question_answer 25)

(Related to case Paragraph 1) Page No. 70 The management of company ‘F’ Limited now realized 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 1. The company should introduce scientific management with regard to production. 2. Production Planning including routing, scheduling, dispatching and feedback should be implemented. 3. In order to separate planning from operational management 'Functional foremanship' should be introduced. 4. Work study should be undertaken to optimise the use of resources. 5. 'Standardisation' of all activities should be implemented to increase efficiency and accountability. 6. To motivate the workers 'Differential Piece Rate System' should be implemented. 7. 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 not be able to give very effective results as it has its own limitations. (i) As competition has increased market research now will not help much. (ii) Appointing professionals which increase the cost. (iii) Principle of initiative will not help if functional foremanship will also be adopted. (iv) In differential piece wage system only efficient workers may gain, the others will be in pain as they might lose their wages if target not met This will lead instability which is harmful. (v) Lot of stress will be generated from top to lower level.