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 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 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.

What precautions should the company undertake to implement the changes?

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Solution

The company should introduce the latest form of scientific management, as pointed above with due consideration to human factor in mind and by obtaining their motivated willingness.

(i) Production planning including routing, scheduling, dispatching and feedback should be implemented keeping in mind the human factor for better compliance.

(ii) Functional foremanship will be good but it neglects unity of command. It might not be useful for the company, so it should be avoided.

(iii) Standardisation should be implemented in the right earnest. It will improve productivity and also reduce quality variations. But right training and willingness must be obtained.

(iv) 'Differential piece rate system', if introduced, should be done with extreme caution. It must not result in unhealthy competition. However, monetary and non-monetary incentives can be introduced in place of differential piece rate system.

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Similar questions

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?

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.

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.

F Ltd. 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 wastage. The workers were becoming indisciplined. 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.

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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