Question

Alpha Ltd. was engaged in business of garment manufacturing and selling its products under a popular brand. The demand for their product was increasing. In order to keep the market share in short run, the company directed its existing workforce to work overtime but this resulted in many problems. Due to increase pressure of work the efficiency of workers declined. Sometimes workers worked under more than one superior. The departments which were producing one product were asked to produce more than one type of products. This resulted in lot of overlapping and wastage. The workers were becoming indisciplined. This spirit of team was also reducing. Workers were feeling cheated and their morale was declining. The quality of garments started declining and market share decreased. Based on this case answer the following questions:
(a) Identify which principles of Henry Fayol were violated in above case.
(b) Explain these principle in brief.
(c) What steps should be taken by company to restore its reputation?

Answer 1

The company violated the following principles (i) Division of work

(ii) Unity of command

(iii) Unity of direction

(iv) Discipline

(v) Subordination of individual interest to general interest

(vi) Order

(vii) Initiative

(viii) Remuneration

(i) Division of Work As per the casework is not divided among the workers as per their specialisation. As specialisation is the most efficient way to use human efforts and produces more and better work.

(ii) Unity of Command In the case subordinates had to work for more than one superior. This results in declining efficiency. As per Fayol’s principle of unity of command there should be one boss and if it is violated it results in authority is undetermined, discipline is in jeopardy, order distributed and stability threatened. Same we are observing in the above case.

(iii) Unity of Direction The units of an organisation should be moving towards the same objective. Each group must be having the same objective must have one head one plan. But in case first, the producers are working on one product then moved to two or more group. Thus, this principle is also violated. (iv) Discipline In the case, there is a lack of formalised control as the workers are working beyond there abilities. There is no rules and regulations as well as lack of employment agreement.

(v) Subordination of Individual Interest to General Interest Every individual is working better only when the organisation is giving priority to their general interest. In the case, a company is only focusing on its objective, not on employees.

(vi) Order People and materials must be in suitable places at the appropriate time for maximum efficiency. But in case they are not following the order of anything.

(vii) Initiative It implies that workers should be self-motivated, suggestions should be taken from the employees. It results in substantial cost and time reduction but here they are taking no feedbacks, no suggestions.

(viii) Remuneration The workers should get the fair wages but in caseworkers are performing day and night but they are not getting a fair amount for the same. This results that they are feeling cheated.

(c) Following steps should be taken by the company to retain its past glory (i) Work is divided into small tasks and distributed among the employees as per their specialisation. (ii) There should be one boss. (iii) Functions should be performed under one head or one plan. (iv) Formalised control should be maintained. (v) Proper remuneration and impressive incentives should be given. (vi) Hierarchical communication pattern is to be followed. (vi) Suggestions and feedback should be taken from the employees. (viii) Maintain high morale among employees.