The management of company F Ltd. now realised its folly. In order to rectify the situation, it appointed a management consultant 'M Consultants' to recommend a restructuring plan to bring the company back on the rails. M Consultants undertook a study of the production process at the plant of the company F Ltd. and recommended the following changes:

1. The company should introduce scientific management with regard to production.

2. Production planning including routing, scheduling, dispatching and feedback should be implemented.

3. In order to separate planning from operational management, 'functional foremanship' should be introduced.

4. Work study should be undertaken to optimise the use of resources.

5. 'Standardisation' of all activities should be implemented to increase efficiency and accountability.

6. To motivate the workers 'differential piece rate system' should be implemented.

7. The above changes should be introduced apart from the steps recommended in case problem (as an answer to question number 3 of that case problem).

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.

Do you think that the introduction of scientific management as recommended by 'M Consultants' will result in an intended outcome?

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Solution

I think that the introduction of scientific management humanely alter due consultations with all stakeholders and obtaining their motivated willingness will result in improvement of company's fortunes.

However, all the changes should not neglect the human factor.

The concept of lean manufacturing which is an offshoot of scientific management can be adopted. So, the form of scientific management introduced should be the latest as:

1. Lean manufacturing

2. Just in time manufacturing

3. Kanban

4. Kaizen

5. Six Sigma, etc.,

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Similar questions

Q. The management of company ‘F’ Limited now realised its folly. In order to rectify the situation it appointed a management consultant ‘M’ consultants to recommend a restructure plan to bring the company back on the rails. ‘M’ consultants undertook a study of the production process at the plant of the company ‘F’ limited and recommended the following changes —

1. The company should introduce scientific management with regard to production.
2. Production Planning including routing, scheduling, dispatching and feedback should be implemented.
3. In order to separate planning from operational management ’Functional foremanship’ should be introduced.
4. ‘Work study’ should be undertaken to optimise the use of resources.
5. ‘Standardisation’ of all activities should be implemented to increase efficiency and accountability.
6. To motivate the workers ‘Differential Piece Rate System’ should be implemented.
7. The above changes should be introduced apart from the steps recommended in case problem-1 (as an answer to question no 3 of that case problem).

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.

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

Q. (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.

Santo Ltd. has to develop its organisational, plan for the current year and for this purpose they hire professional consultants from the United States. These consultants incurred a lot of money in a collection of facts, figures, surveys, etc., including the salaries of the consultants. This whole process of planning has already proved to be a very costly affair and the eventual total cost may exceed the gains expected from the plan. In addition, the top management did not involve a middle and supervisory level of management during the planning process. These two levels of management are neither allowed to deviate from their plans nor are they permitted to act on their own. They keep thinking along the same lines as others so that nothing new or innovative gets added to the process.

(i) Should Santo Ltd, continue with existing planning with consultants from the United States? Explain with reasons. Also explain, which limitation of planning is reflected in this case?

(ii) Which limitation of planning is reflected when top management does not involve a middle and supervisory level of management during the planning process the above case? What remedial steps can Santo Ltd., take to overcome this limitation?

Management should share the gain of the company, if any, with the workers. At the same time, workers should work hard and be willing to embrace change for the good of the company.

Q. ‘F’ limited was engaged in the business of food processing and selling its products under a popular brand. Lately the business was expanding due to good quality and reasonable prices. Also with more people working the market for processed food was increasing. New players were also coming to cash in on the new trend. In order to keep its market share in the short run the company directed its existing workforce to work overtime. But this resulted in many problems. Due to increased pressure of work the efficiency of the workers declined.

Sometimes the subordinates had to work for more than one superior resulting in declining efficiency. The divisions that were previously working on one product were also made to work on two or more products. This resulted in a lot of overlapping and wasteage. The workers were becoming undisciplined. The spirit of teamwork, which had characterised the company, previously was beginning to wane. Workers were feeling cheated and initiative was declining. The quality of the products was beginning to decline and market share was on the verge of decrease.
Actually the company had implemented changes without creating the required infrastructure.

Questions
1. Identify the Principles of Management (out of 14 given by Henry Fayol) that were being violated by the company.
2. Explain these principles in brief.
3. What steps should the company management take in relation to the above principles to restore the company to its past glory?

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