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Mr. Avinash has joined as a vice President of a manufacturing unit manufacturing garments. As a vice president, he was given the responsibility of increasing the production and efficiency of workers. He observed that managers relied on their personal judgement while attending to the problems they confronted. So he recommended work study which will result in saving time, effort and increasing efficiency. He also noticed that management was not honouring their commitment. He surveyed the market too. His study of the survey showed that demand can be increased through diversification. He decided to diversify into footwear and handbags. He created divisions for garments, footwear and handbags and made the divisional managers responsible for performance. Each division is self contained with respect to various functions like production, purchases, finance, marketing etc. Now he decided to fill the various positions created with the right person. For this, he analysed the number and type of workers needed. He got his organisation registered at naukri.com.

Identify the principle of management which emphasizes on creating place for people and things.

Solution

Correct Option: 4

Fayol's principle of Order states 'a place for everything (everyone) and everything (everyone) in its place'. It emphasises systematic arrangement of people and material resources. Initiative means encouraging suggestions, Division of work means specialisation, and Esprit de Corps means team spirit. The phrase 'creating place for people and things' clearly matches Order.

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