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Identify and Explain the Principles and the Technique of Scientific Management Followed by The Production Manager in the Above Case. - CBSE (Commerce) Class 12 - Business Studies

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Question

Karan Nath took over ‘D’ north Motor Company' from his ailing father three months ago. In the past, the company was not performing well. Karan was determined to improve the company's performance. He observed that the methods of production, as well as the selection of employees in the company, were not scientific.
He believed that there was only one best method to maximise efficiency. He also felt that once the method is developed, the workers of the company should be trained to learn that 'best method'.
He asked the Production Manager to develop the best method and carry out the necessary training. The Production Manager developed this method using several parameters right from deciding the sequence of operations, a place for men, machines and raw materials till the delivery of the product to the customers. This method was implemented throughout the organisation. It helped in increasing the output, improving the quality and reducing the cost and wastage.

Identify and explain the principles and the technique of scientific management followed by the Production Manager in the above case.

Solution

The principles and technique of scientific management followed by the Production Manager in the above case:

  1. Method study: One must determine the best way of doing a particular task. The method so determined must aim at minimising the cost and maximising the quality. One of the popular examples of this study is the assembly line production used by Ford Motors.
    Quote 1: He believed that there was only one best method to maximise efficiency. The Production Manager developed this method using several parameters right from deciding the sequence of operations, the place for men, machines and raw materials till the delivery of the product to customers.
  2. Science, Not Rule of Thumb: According to Taylor, instead of a rule of thumb, scientific management practices should be followed. Under the rule of thumb, a trial and error method is used wherein each manager handles a situation in his own manner as and when it arises. According to Taylor, scientific management practices should be used. The best method of doing a task which would maximise efficiency should be developed. It would then replace the rule of thumb method. This would help in reducing the cost and improving efficiency.
    Quote 2: He observed that the methods of production, as well as a selection of employees in the company, were not scientific.
  3. Development of workers to their greatest efficiency and prosperity: According to Taylor, the overall efficiency and productivity in an organisation depend on how competent the individual employees are. Accordingly, to improve the overall productivity and efficiency, the working capabilities of employees must be improved. For this, they must be given proper training and education.
    Quote 3: He also felt that once the method is developed, the workers of the company should be trained to learn that 'best method'.
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Solution Identify and Explain the Principles and the Technique of Scientific Management Followed by The Production Manager in the Above Case. Concept: Structure of Organisation.
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