Question

Mr. Rajiv the senior manager of Unique enterprise considered himself very wise and used to take all the decisions himself without consulting the employees, he never used to help any one nor he used to take help of anyone. The employees of unique enterprise were not working efficiently and company's profit margin started declining to tackle the problem, the company appointed a new manager from IIm Bangalore. The new manager after joining made a policy that all the decisions will be taken after consulting employees in the meeting. All employees must give some suggestions and best suggestions will be rewarded with financial and nonfinancial incentives. This policy had a very positive effects on company.
State and explain the principle of Henry Fayol used by new manager.

Answer 1

1)- Principle of initiative- ‘Initiative’ means to start, to begin or to instruct in a project. Here, in this principle, Fayol suggested that each employee should be given an opportunity to take some initiative in framing the functional plan as well as in determining the steps to be taken at each level for proper execution of the plan.

- Cooperation, not individualism- ‘Cooperation’ means acting jointly, or a union towards achieving the same result. Taylor emphasized that the workers and the management should act jointly and in unison to achieve the organizational objectives. Management, as well as the employees, are basically the two important component of the organization and without them, the organization cannot work properly.

This principle states that the work should be done in cooperation and with mutual confidence. Employees and management should co-operate with each other. The best way to gain full cooperation from the workers is that the management should try to set the goals and standards in consultation with the workers so that they feel that the goal is set by them and as a result of a psychological factor they will co-operate sincerely and willingly to achieve the determined goal.