Question

'Vanguard Inc.', a company manufacturing footwear for men, women and children has been earning consistent profits for the last many years. It has a democratic style of working. Workers are encouraged to develop and carry out plans for improvement in the organisation. Varun who is working in the production department gave a suggestion which resulted in 10\% reduction in the cost of production of shoes. He was rewarded for his suggestion. Identify the principle of management followed by 'Vanguard Inc.' in the above case:

• A. Esprit De Corps
• B. Subordination of Individual Interest to General Interest
• C. Initiative
• D. Equity

Hint:

Encouraging initiative helps foster creativity, improves morale, and enhances productivity in an organisation.

Answer 1

The Correct Option is C

The principle of Initiative encourages employees to provide suggestions and take actions for the betterment of the organisation. It motivates employees to contribute creatively and rewards their efforts for better organisational performance.