Question 5: Mr.Arfaaz had been heading the production department of Writewell Products Ltd., a firm manufacturing stationary items. The firm secured an export order that had to be completed on a priority basis and production targets were defined for all the employees. One of the workers, Mr. Bhanu Prasad, fell short of his daily production target by 10 units for two days consecutively. Mr. Arfaaz approached MsVasundhara, the CEO of the Company, to file a complaint against MrBhanu Prasad and requested her to terminate his services. Explain the principle of management control that MsVasundhara should consider while taking her decision. (Hint: Management by exception).
Answer:
The principle of management control that Ms Vasundhara should consider while taking her decision is management by exception. It means if a manager tries to control everything, he may end up by controlling nothing. To make control effective and economical, it must focus attention on factors critical to performance. Therefore the manager should pay serious attention to only such cases, which are critical to success. In the above case Mr. Bhanu Prasad, fell short of his daily production target by only 10 units. This is very small deviation and it is not right to terminate him on the basis of this small deviation.
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