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Question

Mr Raghunath is production manager of Zaku Ltd. At factory level, supervisors found that a number of workers were not taking interest in work. They were not able to achieve individual standard target of 50 units a day. Due to piece rate system, their actual wages were decreasing. Supervisors as middle men, conveyed it to the Production Manager. Mr. Raghunath coordinated with General Manager, Human Resource Manager and Finance Manager. The team recommended - 'Minimum wages + monetary incentives as per performance of concerned employee' to Mr. Raghunath.
The scheme was implemented. Results were remarkable. Now, workers were satisfied with their jobs. They were producing more than standard output and getting good wages.
(i) Which functions of management are discussed above?
(ii) Name he element of Direction initiated by Mr. Raghunath.
(iii) Quoting the lines from above mentioned paragraph, state the benefits of such implementation.

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Solution

(i)- Staffing- The selection and training of individuals for specific job functions, and charging them with the associated responsibilities.
controlling- The basic management function of
(1) establishing benchmarks or standards,
(2) comparing actual performance against them, and
(3) taking corrective action, if required.
(ii)-The element of Direction initiated by Mr. Raghunath is motivation.
(iii)- 'Minimum wages + monetary incentives as per the performance of concerned employee' .

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