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"Shining" limited was engaged in the business of food processing and selling its products under a popular brand. Lately the business was expanding due to good quality and reasonable prices of the products. Also with more people working, the market for processed food was increasing. New players were also coming to cash in on the new trend. In order to keep its market share in the short run, the company directed its existing workforce to work over time. But this resulted in many problems. Due to increased pressure of work, the efficiency of the workers declined. Sometimes the subordinates had to work for more than one superior resulting in declining efficiency. The divisions that were previously working in one product were also made to work on two or more products. This resulted in a lot of overlapping and wastage. The workers were becoming indisciplined. The spirits of teamwork, which had characterized the company previously was beginning to take back seat, workers were feeling cheated and initiative was declining. The quality of the products was beginning to decline and market share was on the verge of decrease. Actually the company had implemented changes without creating the required infrastructure.

Identify the principle of management that is violated by shining limited.

"A good company should have an employee suggestion system where by suggestions which result in substantial cost/time reduction, should be rewarded."

Solution

Correct Option: 1

The principle of Initiative states that employees should be encouraged to come up with new ideas and suggestions, and rewarded for those that help the organisation. An employee suggestion system that rewards useful suggestions reflects this principle. Since the passage says initiative was declining, the violated principle is Initiative. Hence, the answer is option 1.

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