'Vanguard Inc.', a company manufacturing footwear for men, women and children has been earning consistent profits for the last many years. It has a democratic style of working. Workers are encouraged to develop and carry out plans for improvement in the organisation. Varun who is working in the production department gave a suggestion which resulted in 10% reduction in the cost of production of shoes. He was rewarded for his suggestion. Identify the principle of management followed by 'Vanguard Inc.' in the above case:
Show Hint
- Esprit De Corps
- Subordination of Individual Interest to General Interest
- Initiative
- Equity
The Correct Option is C
Solution and Explanation
The case demonstrates Initiative (Henri Fayol's 14 Principles) through:
1. Employee Empowerment: - Workers encouraged to develop improvement plans - Democratic work culture fosters creativity
2. Reward System: - Varun's cost-saving suggestion was recognized - 10% production cost reduction shows measurable impact
3. Characteristics Exhibited: - Voluntary contribution beyond job description - Problem-solving orientation - Management receptiveness to ideas
Why not other options:
- (A) Esprit De Corps: Team spirit not highlighted
- (B) Subordination: No conflict between individual/organizational goals shown -
(D) Equity: Fair treatment not the focus here
Final Answer: (C) Initiative
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