CBSE Class 12 Business Studies 2014 Delhi Set 1 Paper

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Question : 24
Total: 27
Principles of Taylor and Fayol are mutually complementary. One believed that, management should not close its ears to constructive suggestions made by the employees, while the other suggested that a good company should have an employee suggestion system, whereby suggestions which result in substantial time or cost reduction should be rewarded. Identify and explain the principles of Taylor and Fayol referred in the above para.
Solution:  
The two principles that are being regarded in the given paragraph are as follows:
(i) 'Cooperation, not individualism' by Taylor: This can be inferred from the line that "management should not close its ears to the constructive ideas made by the employees". This principle emphasises cooperation among the managers and workers over individualism. This principle was an elongation of the principle of Harmony, not discord'. According to this, the workers and the manager should work with mutual understanding of each other. The manager should take care of the wrokers. Similarly, the labours should willingly work, giving their best contribution to the company. This will build mutual trust and belongingness. Work and responsibility should be equally divided and a sense of cooperation and coordination should be established.
(ii) 'Initiative' by Fayol: This can be inferred from the following sentence: 'A good company should have an employee suggestion system, whereby suggestions which result in substantial time and cost reduction should be awarded'. According to this principle, workers should be given enough motivation and incentive to work. They should be inspired to come up with suggestions regarding the work. Although initiatives should be encouraged, they should be in line with the practices and rules of the organisation. For example, the managers can ask the workers for suggestions how to increase efficiency. Also, good suggestions can be rewarded.
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