Case Studies- Principles of Management

CASE STUDIES- PRINCIPLES OF MANAGEMENT

This case study is hand picked original case study. It is created keeping in mind CBSE 10+2 CBSE Students. Many students get benifit out of it. You will find these in form of simple questions and answers.

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Q1: Anshul a commerce student visited a hospital . He observed that in hospital to treat different type of disease there is a separate department and each department is lead by dean of that respective department who is expert in that particular field having knowledge , training and experience of that particular area only. He could relate it to one of the principle of management. Identify and explain.

ANSWER: Division of work

Q2; Harshita , a sales manager has to negotiate a deal with a buyer. She finds that if she can offer credit period of 60 days she is likely to clinch the deal which is supposed to fetch the company a net margin of Rs. !,00,000 . Now the company gives power to the manager to offer a credit period of 40 days due to which she could not get the deal. Identify the principle of management violated above.

ANSWER: Authority and Responsibility

Q3; In Ashu limited Management and labour union entered into an agreement whereby workers have agreed to put in extra hours without any additional payment to revive the company out of loss. In return the management has promised to increase wages of the workers when this mission is accomplished But afterwards management refused to fulfill its commitment. Identify the principle of management violated by the management of Ashu Ltd. .

ANSWER; Discipline

Q4; Akshit a sales person is asked to clinch a deal with a buyer and is allowed to give 10% discount by marketing manager. But finance department tells him not to offer more than 5% discount. Due to which Akshit is confused. Which principle of management is violated?  Identify.

ANSWER; Unity of Command

Q5; Stuti Industries is engaged in manufacturing Cars and Motorbikes. It has two separate departments for both the products. Each department has its own Incharge , plans and execution resources which leads to focused efforts of all the employees. Identify the principle of management followed by Stuti Industries.

ANSWER; Unity of Direction

Q6;  Udhay is working as Plant superintendent in Tanish Industries. But he is given a salary of a clerk as his compensation.  Which act as a demotivator for udhay and he does not feel like working whole heartedly for the company. Identify the principle of management violated in Tanish Limited.

ANSWER; Remuneration of Employees.

Q7; Amita and Shamita are working as  typist in Ashiana Ltd. . But Amita is paid salary of Rs. 4,000 pm and Shamita is apid salary of Rs. 5,000 pm. After knowing this Amita got discouraged and started thinking of shifting the job. Which principle of Fayol is violated in above case?

ANSWER ; Equity

Q8; Rajeev joined Anamika Ltd. As training manager . After joining he observed that employees are lacking the feeling of belongingness with the organization. To encourage the feeling of beloningingness and self motivation he decided to apply one of the principle of fayol and started employee suggestion system whereby employees are encouraged to give suggestion and whereby suggestions which result in substantial cost/ time reductions will be rewarded. Identify the principle.

ANSWER; Initiative.

Q9; In Tanya Ltd, there is discord among all the employees due which objectives are not realized and there  is no coordination among employees . there is no mutual trust and belongingness among employees . So managers have to apply penalities on employees which further increases the inefficiency. What do you is wrong with above organization . Give your answer in respect to Principle of Fayol.

ANSWER; Espirit De Corps is violated.

Q10; In Ayesha Ltd. Losses are pouring in. So for their rescue Vishal CEO of the company decided to  hire  Aryan the cost control expert at higher salary . Maximum of the directors opposed the decision of hiring  Aryan in company’s crisis period when company is already going into losses. After taking charge of the Job Aryan advised the company to eliminate superfluous varities , sizes and dimensions . because these are the reason for undue high cost Expenditures . Which concept of principle of management is applied above.

ANSWER; Taylor’ s technique of scientific management; Simplification of work

Q11; In Model Motor Company For designing a car the assembly line production is entailed which decided the sequence od operations, place for men, machines and raw material etc. This exercise helped in minimizing the cost of production and maximize the quality of products. Identify the concept in relation to scientific management in the above case which is the reason for minimizing cost.

ANSWER; Method Study

Q12;  On the basis of several observations it is determined that one worker can make one cardboard in 2o minutes. So in one hour he will make 3 boxes. Assuming that a worker has to put in 8 hours of work in a shift and deducting    one hour for rest and lunch, it is determined that in 7 hours a worker makes 21 boxes @ 3 boxes per hour. Now this is the standard  task workers have to do . Wages are decided accordingly. The base of above technique is one of the technique of F.W. Taylor. Identify that technique.

ANSWER; Time Study

Q13; It si determined that standard output per worker per day is 10 units and those who made standard or mopre than standard will get Rs. 50 per unit and those below will get Rs. 40 per unit. Now an efficient worker making 11 units will get Rs. 11x 50= Rs. 550 per day whereas a worker who produces 9 units will get 9×40= Rs. 360 per day. This example is concerned with one of the technique of scientific management whose objective  is to encourage the inefficient workers to work harder. KIdentify the gtechnique.

ANSWER ; Differential Piece Wage System.