Question

'Saarthi', the name has been associated with the manufacturing and sale of Fashion products since 1960, when Kapil Saarthi opened his first retail fashion clothing outlet in Ahmedabad. Sarthi Cosmetics was incorporated in India in 1940, and became a member of the S & M family of companies in 1959. Sarthi Perfumes began operations in Gujarat in an existing administrative S&M facility in 1985. An important difference between S&M and most other companies is that instead of operating as one large corporation it operates as 180 smaller companies each focused on a specific product and area, implying selective dispersal of authority, recognising the decision makers need four autonomy, as decision making authority is pushed down the chain of command. It enables the company to maintain short lines of communication with customers and employees, and accelerate the development of talent.

Why is there, need to apply the philosophy being followed by S & M, with caution?

विकल्प

• As it can cause a delay in communication

• As it can cause disintegration of the organisation

• As it can increase the workload of the top management

• As it can reduce the chances of growth of the firm.

Answer 1

As it can cause disintegration of the organisation