A car manufacturing company sets a goal at in future, they will expand their production by 15%. After measuring the performance, they noticed that the production it has declined by 10% and the raw material s wasted by the production department.

Relate it to the concept of controlling and which values are ignored in this case?

Open in App

Solution

It is related to the second and the third step of the controlling process. As per this, when the goals are set, the next step is the measurement of actual performance and then at the third step, actual performance and then at the third step, actual performance is compared with the standards.

It is given in the case that the production has declined by 10% and the department wasted a lot of raw material. Thus, in this case, measurement helps to analyse the efficiency of the production department.

The values of a company ignored by the production manager are :

(i) Lack of initiative, commitment, etc.

(ii) Showing irresponsible behaviour because he neither saves the money nor the raw material of a company.

Suggest Corrections

Similar questions

You are a manager in a car manufacturing company. It is reported that postal expenses have increased by 10% and the cost of raw material is increased by 2%. This concept is related to ___

Q. You are a manager in a car manufacturing company. It is reported that postal expenses have increased by 10% and cost of raw material is increased by 2% which of the two deviations is more critical to you? It is related to which concept of controlling? Explain it.

Q. In manufacturing unit the purchase department purchased 50 tonnes of raw material for production department. Although only 40 tonnes was needed by the production department. Due to this goods were overproduced and not accepted by sales department. As result some goods remained unsolved.
(i) Which aspect of management is lacking above
(ii) Explain any two points of importance of that aspect.

Q. In an organisation, sales department could not meet its target due to delay in supply by production department. The production department is blaming the purchase department for delay in supply of raw material, even the employees working in these department are not focussing on their department's objective. The employees seem to be very confused and do not know where to focus.
(a) Name the concept of management missing in this organisation.
(b) State the principle of management violated above.

Anand is the Head of the Purchase and Production department at a cement company. He has four subordinates -Maria, Purchase Manager, managing and overseeing raw material purchases, Ajit, the Purchase Officer who carries out purchase orders and supplies, Savio, the Production Manager who manages and supervises the production processes, and Ashwini, the Production Officer responsible for executing the production process. During the course of production, Ashwini gets crucial information about the likely increase in the price of sand (raw material). She passes his urgent information to Ajit so that Ajit can purchase sand accordingly. Instead of the following the long route of is scalar chain, Ashwini directly passes this information to Ajit by constructing a "gang plank".

(i) Has Ashwini taken the right action? Explain how?

(ii) Explain which principle of Fayol does this case relate to?

(iii) What is a gang plank?

Join BYJU'S Learning Program