1.

The management of company ’F’ Limited now realised its folly. In order to rectify the situation, it appointed a management consultant ‘M consultants’ to recommend a restructure plan to bring the company back on the rails. ‘M consultants’ undertook a study of the production process at the plant of the company ‘F’ limited and recommended the following changes : –a. The company should introduce scientific management with regard to production. b. Production Planning including routing, scheduling, dispatching and feedback should be implemented. c. In order to separate planning from operational management ‘Functional foremanship’ should be introduced. d. ‘Work study’ should be undertaken to optimise the use of resources. e. ‘Standardisation’ of all activities should be implemented ta increase efficiency and accountability. f. To motivate the workers ‘Differential Piece Rate System’ should be implemented. g. The above changes should be introduced apart from the steps recommended in case problem-1 (as an answer to question number 3 of that case problem). It was expected that the changes will bring about a radical transformation in the working of the company and it will regain its pristine glory.Do you think that introduction of scientific management as recommended by M consultants will result in intended outcome?

Answer»

Though scientific management is the best solution, but still it will still not be able to give very effective results as it has its own limitations. 

a. As competition has increased, market research will not help much now. 

b. Appointing professionals will increase the cost and overheads. 

c. Principle of initiative will not help if functional foreman ship is also adopted. 

d. In differential piece wage system, only efficient workers may gain, the others will be aggrieved as they might lose their wages if target is not met. This will lead to instability which is harmful. 

e. Lot of stress will be generated from top to lower level.



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