Question

P. Madhav is the production manager of ‘Trendy Style Pvt. Ltd.’, a firm manufacturing office furniture. His objective is to increase production by 20% in the next one year. But the Sales Manager, R. Shetty, does not approve of the increase in production till changes are brought about in the quality of wood, locks, handles, etc., to incorporate latest trends. This kind of conflict brings to light an important concept of management that can help to link the activities of various departments.

1. Identify and explain the concept discussed above.
2. State any two points of importance of the concept identified in (i) above.

Answer 1

1. The key issue the situation raises is coordination. The activities of different departments within an organization must be coordinated to ensure that the processes run smoothly and the organization’s goals are met. In this case, the Sales Manager wants to focus on improving quality, while the Production Manager wants to increase output. These two goals need to be aligned through coordination so that production increases without quality declining.
2. 1. Growth in size: As a business grows, it becomes more complex, with more departments and employees. Coordination is important for bringing this diverse group of workers together to achieve the organization’s goals. At “Trendy Style Pvt. Ltd.,” the company wants to boost production and quality, so teamwork will be key to handling the extra work and different goals.
   2. Functional differentiation: Different areas within an organization each have a specific role. Coordination helps connect the work of these different groups. In this case, it aligns the production department’s goal of increasing output with the sales department’s focus on quality. This ensures both departments work together to achieve their goals.