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:

Initiative questions typically feature employee suggestions, improvement ideas, and reward systems. Look for voluntary contributions.

Answer 1

The Correct Option is C

The case illustrates Initiative (Henri Fayol's 14 Principles) via:
1. Employee Empowerment: Workers are motivated to create improvement plans, fostering a democratic and creative work environment.
2. Reward System: Varun's cost-saving proposal was acknowledged, resulting in a 10% production cost reduction, demonstrating a measurable outcome. 
3. Exhibited Characteristics: Voluntary contributions exceeding job roles, a proactive problem-solving approach, and management's openness to suggestions were evident.
Exclusion of Other Options: 
- (A) Esprit De Corps: The case does not emphasize team unity. 
- (B) Subordination: No conflict between individual and organizational objectives is depicted. 
- (D) Equity: Fair treatment is not the central theme. 
Conclusion: (C) Initiative