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CBSE Class 12-commerce Answered

Radhika opens a jewelry showroom in Jaipur after completing a course in jewelry designing. She has employed eleven persons in her showroom. For greater productivity, she divides the work into small tasks and each employee is trained to perform his/her specialized job. The sales persons are allowed to close a deal with a buyer by giving a maximum of 10% discount, whereas the decision to given any further discount rests with Radhika as the final authority. In the earlier days of starting of the business, five of her employees were asked to put in extra hours of work. In return she had promised to give them a special incentive within a year. Therefore, after six months when the business was doing well, she awarded a cash bonus to each of these employees to honour her commitment. However, when it comes to setting the conflicts among her employees, she tends to b e more biased towards her female employees. In context of the above case: 1. Identify and explain the various principles of management that are being applied by Radhika by quoting lines from the paragraph. 2. Identify and explain the principle of management which is being violated by Radhika by quoting lines from the paragraph. 3. State any one effect of the violation of the principle of management by Radhika as identified in part (b) of the question.
Asked by purnayyap | 28 Apr, 2020, 10:47: AM
answered-by-expert Expert Answer
Principles of Management Applied by Radhika are as follows:
 
Division of Work:  “For greater productivity, she divides the work into small tasks and each employee is trained to perform his/her specialised job.”
This principle is applicable to all kinds of work both technical as well as managerial. It helps to produce more and facilitates better work for the same effort thereby enhancing specialisation.

Centralisation and Decentralisation:
 “The sales persons are allowed to close a deal with a buyer by giving a maximum of 10% discount, whereas the decision to give any further discount rests with Radhika as the final authority.”
The concentration of decision-making authority is called centralisation whereas its dispersal among more than one person is known as decentralisation. This principle helps to balance subordinate involvement through decentralisation with managers’ retention of final authority through centralisation
 
Discipline: “Therefore, after six months when the business was doing well, she awarded a cash bonus to each of these employees to honour her commitment.”
This principle requires good superiors at all levels, clear and fair agreements and judicious application of penalties. It refers to the obedience to organisational rules and employment agreement which are necessary for the working of the organisation.
 
 
Radhika has violated “Equity” Principle of Management. This principle emphasizes on kindliness and justice in the behaviour of managers towards workers. The managers should not discriminate against anyone on account of gender, religion, language, caste, belief or nationality etc.“However, when it comes to settling the conflicts among her employees, she tends to be more biased towards her female employees.”

Dissatisfaction among the male workers is one effect of the violation of the Principle of Equity.

Answered by Surabhi Gawade | 28 Apr, 2020, 12:11: PM
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