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(Further Information Related to the Above Question 6) the Management of Company Bhasin Limited Now Realised Its Folly. in Order to Rectify the Situation It Appointed a Management Consultant - Business Studies

Answer in Brief

(Further information related to the above question 6) The management of company Bhasin Limited now realised its folly. In order to rectify the situation it appointed a management consultant -Mukti Consultants - to recommend a restructure plan to bring the company back on the rails. Mukti Consultants undertook a study of the production= process at the plant of the company Bhasin Limited and recommended the following changes —
• The company should introduce scientific management with regard to production.
• Production Planning including routing, scheduling, dispatching and feedback should be implemented.
• In order to separate planning from operational management ’Functional foremanship’ should be
introduced.
• ‘Work study’ should be undertaken to optimise the use of resources.
• ‘Standardisation’ of all activities should be implemented to increase efficiency and accountability.
• To motivate the workers ‘Differential Piece Rate System’ should be implemented.
(The above changes should be introduced apart from the steps recommended as an answer to Part c - case problem 6 above.)

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Solution

 

a. Although scientific management is an extremely good condition it would not be able to give effective results due to the following reasons:

a. The principle of the initiative will not help if functional foremanship is adopted.

b. A lot of stress would be generated in the organisation.

c. The adoption of professionals would lead to an increase in cost.

d. Market research will be of little help due to the increased competition.

e. With the introduction of the differential piece wage system, only the efficient workers would gain. The others would face a lot of instability if the target is not met.

b. The company should take the following precautions to implement the changes as they would not be readily accepted by everyone:

a. The company must appoint trained workers only in a few areas.

b. Extreme care must be undertaken while production planning.

c. Functional foremanship can be introduced but the workers must be consulted for the suggestion.

d. Optimum utilisation of time and money must be promoted.

e. Standardization must be implemented for material and machine.

f. Instead of introducing the differential wage system, financial incentives must be given to the workers who get more work done.

Concept: Principles of Taylor’s Scientific Management
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APPEARS IN

NCERT Class 12 Business Studies Part 1 - Principles and Functions of Management
Chapter 2 Principles of Management
Long Answer | Q 8 | Page 66
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