Question

'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:

• A. Esprit De Corps
• B. Subordination of Individual Interest to General Interest
• C. Initiative
• D. Equity

Hint:

Encouraging initiative helps foster creativity, improves morale, and enhances productivity in an organisation.

Answer 1

The Correct Option is C

The principle of Initiative promotes employees submitting ideas and performing actions to improve the organization. This fosters creative contributions and recognizes employee efforts, ultimately enhancing organizational performance.