Manav Agro Industries has lately expanded its business, due to an increasing demand of processed foods. As a result of this increasing demand, new players entered the market leading to increased competition. To cope up with increasing competition and to improve supplies, the company forced its work force to work overtime, without additional incentives.
Subordinates had to work for more than one superior resulting in declining efficiency. The divisions that were working on one product were made to work on multiple projects, leading to wastages. Identify the principles violated by the management and their effects.
Principles violated are:
(i) Remuneration of employees : According to Fayol, the quantum and methods of remuneration payable to employees should be fair and reasonable. It should be satisfactory to both employers and employees, which gives them a reasonable standard of living and should be within the paying capacity of the company.
(ii) Unity of command : The principle of unity of command states that each participant in a formal organisation should receive orders and is answerable to only one superior.
If in any case, employee gets orders from two superiors at the same time, the principle of unity of command is violated and it will result in confusion and chaos. It can be avoided if there is proper coordination between different departments.
(iii) Division of work Fayol has advocated the division of work. According to him, if work is divided into small tasks and assigned to trained specialists, then it will help in taking the advantage of specialization.
The intent of division of work is to produce more and better work with the same effort. It is the most efficient way to use human effort. Because of this principle, an organisation is divided into separate departments viz production, sales, finance, marketing, etc.