Neeraj Gupta started a company 'YoYo Ltd'. with ten employees, to assemble economical computers for the Indian rural market. The company did very well in its initial years. As the product was good and marketed well, the demand went up. To increase production the company decided to recruit additional employees. Neeraj Gupta, who was earlier taking all decisions for the company, had to selectively disperse the authority. He believed that people are competent, capable and resourceful and can assume responsibility for effective implementation of their decisions. This paid off and the company was not only able to increase its production but also expanded its product range with different features.
(a) Identify the concept used by Neeraj Gupta through which he was able to steer his company to greater heights.
(b) Also explain any three points of importance of this concept.

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Solution

(a) The concept used by Neeraj Gupta through which he was able to steer his company to greater heights is decentralisation.
(b) The following is the importance of decentralisation:
(i) Greater motivation: Decentralisation improves the morale and motivation of subordinates which is reflected in better work performance.
(ii) Develops managerial talent for the future: As a result of decentralisation, employees get more opportunities to develop new skills. It makes them better future managers.
(iii) Quick decision-making: Decentralisation in an organisation, provides more freedom to lower level managers to take their own decisions. There is no need to get approval from higher level. It helps in quick and better decision-making.

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Q. Four Mark Question:
Nemaj Gupta stoned a company 'YoYo Ltd.' with ten employees, to assemble economical computers for the Indian rural market: The company did very well in its initial years. As the product was good and marketed well, the demand went up. To increase production the company decided to recruit additional employees. Neeraj Gupta, who was earlier taking all decisions for the company, had to selectively disperse the authority. He believed that people are competent, capable and resourceful and can assume responsibility for effective implementation of their decisions. This paid off and the company was not only able to increase its production but also expanded its product range with different features:
(a) Identify the concept used by Neeraj Gupta through which he was able to steer his company to greater heights.
(b) Also explain any three points of importance of this concept.

Q. Samir Gupta started a telecommunication company, 'Donira Ltd.' to manufacture economical mobile phones for the Indian rural market with 15 employees. The company did very well in its initial years. As the product was good and marketed well, the demand of its products went up. To increase production the company decided to recruit additional employees. Samir Gupta, who was earlier taking all decisions for the company had to selectively disperse the authority. He believed that subordinates are competent, capable and resourceful and can assume responsibility for effective implementation of their decisions. This paid off and the company was not only able to increase its production but also expanded its product range.
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(b) Also explain any three points of importance of this concept.

Samir Gupta started a telecommunication company,'Donira Ltd'. to manufacture economical mobile phones for the Indian rural market with 15 employees. The company did very well in its initial years. As the product was good and marketed well, the demand for its products went up. To increase production, the company decided to recruit additional employees. Samir Gupta, who was earlier taking all decisions for the company had to selectively disperse the authority. He believed that subordinates are competent, capable and resourceful. They were responsible for the effective implementation of their decisions. Samir Gupta used the concept of ___ to steer his company to greater heights.

Q. XYZ Power Ltd. set up a factory for manufacturing solar lanterns in a remote village as there was no reliable supply of electricity in rural area. The revenue earned by the company was sufficient day by day, so the company decided to increase production to generate higher sales. For this they decided to employ people from the nearby villlages as very few job opportunities were available in that area. The company also decided to open schools and creches for the children of its employees.
(i) Identify and explain the objectives of management discussed above
(ii) State any two values which the company wanted to communicate to the society.

XYZ Power Ltd., set-up a factory for manufacturing solar lanterns in a remote village as there was no reliable supply of electricity in rural areas.

The revenue earned by the company was sufficient to cover the costs and the risks. The demand of lanterns was increasing day-by-day, so the company decided to increase production to generate higher sales. For this, they decided to employ people from the nearby villages as very few job opportunites were available in that area. The company also decided to open schools and cretches for the children of its employees.

(i) Identify and explain the objective of management discussed above.

(ii) State any two values which the company wanted to communicate to the society.

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