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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:
Options
Esprit De Corps
Subordination of Individual Interest to General Interest
Initiative
Equity
Solution
Initiative
Explanation:
Production expenses were significantly decreased as a result of Varun, a production department employee, being encouraged to create and carry out an organizational improvement plan. He also received recognition for his recommendation, which shows how much the business values staff initiative and creative thinking.
