Question

(Further information related to the above question 6) The management of company ‘Bhasin Limited now realised its folly. In order to rectify the situation it appointed a management consultant ‘Mukti Consultants- to recommend a restructure plan to bring the company back on the rails. ‘Mukti Consultants undertook a study of the production process at the plant of the company Bhasin Limited and recommended the following changes —

• The company should introduce scientific management with regard to production.
• Production Planning including routing, scheduling, dispatching and feedback should be implemented.
• In order to separate planning from operational management 'Functional foremanship’ should be introduced.
• ‘Work study’ should be undertaken to optimise the use of resources.
• ‘Standardisation’ of all activities should be implemented to increase efficiency and accountability.
• To motivate the workers ‘Differential Piece Rate System’ should be implemented.

(The above changes should be introduced apart from the steps recommended as an answer to Part c - case problem 6 above.).

It was expected that the changes will bring about a radical transformation in the working of the company and it will regain its pristine glory.

a. Do you think that introduction of scientific management as recommended by Mukti consultants will result in intended outcome?
b. What precautions should the company undertake to implement the changes?
c. Give your answer with regard to each technique separately as enunciated in points 1 through 6 in the case problem.

Answer 1

1. Yes, the scientific management techniques as suggested by ‘Mukti consultants’ would prove helpful for the organisation. With the implementation of scientific management techniques the company would be able to work according to standardised techniques and tools. This would help improve both the quantity as well as the quality of the product. At the same time it would also help in reducing the costs. In this way scientific management would help in improving the effectiveness as well as efficiency in work.

2. The following precautions can be taken by the Bhasin Limited:

i. Fresh trained and specialised staff can be recruited for certain specific areas. In addition the existing staff can also be given proper training.
ii. Production should be planned properly and with utmost care.
iii. In the introduction of functional foremanship care must be taken that there is enough incentive and motivation for the employees.
iv. Besides work study, other studies such as method study, motion study, time study and fatigue study should be undertaken.
v. Technique of standardisation can be used for different aspects of production.
vi. Monetary incentives can be given to motivate the employees to work more and with better efficiency.