Question 8: (Further information related to the above question 6) The management of company Bhasin Limited now realised its folly. In order to rectify the situation it appointed a management consultant -Mukti Consultants - to recommend a restructure plan to bring the company back on the rails. Mukti Consultants undertook a study of the production process at the plant of the company Bhasin Limited and recommended the following changes —
• The company should introduce scientific management with regard to production.
• Production Planning including routing, scheduling, dispatching and feedback should be implemented.
• In order to separate planning from operational management ’Functional foremanship’ should be introduced.
• ‘Work study’ should be undertaken to optimise the use of resources.
• ‘Standardisation’ of all activities should be implemented to increase efficiency and accountability.
• To motivate the workers ‘Differential Piece Rate System’ should be implemented.
(The above changes should be introduced apart from the steps recommended as an answer to Part c - case problem 6 above.) It was expected that the changes will bring about a radical transformation in the working of the company and it will regain its pristine glory.
a. Do you think that introduction of scientific management as recommended by M consultants will result in intended outcome?
b. What precautions should the company undertake to implement the changes?
c. Give your answer with regard to each technique separately as enunciated in points 1 through 6 in the case problem.
Answer:
a. Yes, I think that introduction of scientific management as recommended by M consultants will be helpful for the organization. By implementation of scientific techniques the company can work according to standardized techniques and tools. By adopting scientific management the quality and quantity of their product will improve. And it will also increase the effectiveness and efficiency of the company and its work.
b. The following precautions can be taken by the company to implement the changes are:
1) They should provide proper training to their existing employee and should hire trained and specialised staff.
2) By introducing functional foremanship they should take care that there is incentive and motivation for the employees.
3) Not only work study but other studies like motion study, fatigue study and time study should be followed.
4) Monetary incentive can be given to employees to motivate them so that they provide efficient work.
c. The company should introduce the latest form of scientific management, with due consideration to human factors in mind and by obtaining their motivated willingness.
1) Production planning including routing, scheduling, dispatching and feedback should be implemented.
2) Functional foremanship will be good but it neglects unity of command. And it is not useful for the company, so it should be avoided.
3) Standardization should be implemented because it will improve productivity and also reduce quality variations. But right training and willingness must be obtained.
4) ‘Differential piece rate system’ if it is introduced then it should be done with extreme caution. It must not result in unhealthy competition. Hence monetary and non-monetary incentives can be introduced in place of differential piece rate systems.
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