question_answer

In Atlans Ltd, no importance had been attached to the suggestions given by the subordinates. In 2016, the company appointed Mr Franco as its Chief Executive Officer. He was an MBA degree holder with an experience of a decade. After assuming the charge of his office, he started a campaign, in which he collected more than 10,000 suggestions from employees out of which 1,500 were selected and implemented in different fields. This campaign fetched the company an additional profit of Rs. 150 crore.

(i) Quoting lines from the para, identify which principle of management was opted by Mr Franco.

(ii) State two positive effects of this principle.

Answer:

(i) Mr Franco has opted to follow 'Principle of Initiative'. Lines from the para indicative of this principle are, "he collected more than........fields." (ii) Two positive effects of this principle are: [a] Increases the thinking process, creativity and bringing of innovative ideas by the employees. [b] Increases the sense of attachment to the organisation.