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:

Initiative questions typically feature employee suggestions, improvement ideas, and reward systems. Look for voluntary contributions.

Answer 1

The Correct Option is C

The case demonstrates Initiative (Henri Fayol's 14 Principles) through:
1. Employee Empowerment: - Workers encouraged to develop improvement plans - Democratic work culture fosters creativity 
2. Reward System: - Varun's cost-saving suggestion was recognized - 10% production cost reduction shows measurable impact 
3. Characteristics Exhibited: - Voluntary contribution beyond job description - Problem-solving orientation - Management receptiveness to ideas
Why not other options: 
- (A) Esprit De Corps: Team spirit not highlighted 
- (B) Subordination: No conflict between individual/organizational goals shown -
 (D) Equity: Fair treatment not the focus here 
Final Answer: (C) Initiative