CBSE Class 12 Business Studies 2018 Outside Delhi set 1

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Question : 29
Total: 32
Karan Nath took over 'D' north Motor Company' from his ailing father three months ago. In the past the company was not performing well. Karan was determined to improve the company's performance. He observed that the methods of production as well as selection of employees in the company were not scientific. He believed that there was only one best method to maximise efficiency. He also felt that once the method is developed, the workers of the company should be trained to learn that 'best method'.
He asked the Production Manager to develop the best method and carry out the necessary training. The Production Manager developed this method using several parameters right from deciding the sequence of operations, place for men, machines and raw materials till the delivery of the product to the customers. This method was implemented throughout the organisation. It helped in increasing the output, improving the quality and reducing the cost and wastage.
Identify and explain the principles and the technique of scientific management followed by the Production Manager in the above case.
Solution:  
Scientific principles used in the above case are:
(i) Science, not rule of thumb.
(ii) Development of each and every person to his/her greatest efficiency and prosperity.
(i) Science, not rule of thumb: This principle says that we should not get stuck in a set and the old techniques of doing work, rather we should be constantly experimenting to develop new technique which makes the work much simpler. Taylor believed that there was only one best method to maximise efficiency. This method can be developed through scientific study and analysis of each element of a job.
(ii) Development of each and every person to his/her efficiency and prosperity: According to this principle, the efficiency of each and every person should be taken care of, right from his selection. A proper arrangement of every body's training should be made. It should also be kept in mind that each individual should be allotted work according to his/her ability and interest.
Scientific technique used in the above case is:
(i) Method study: The objective of method study is to find out best way of doing the job so as to minimise the cost of production and maximise the quality and satisfaction of the customer.
For finding the best method of performing the job, critical analysis, operation method etc., are also used.
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