ZAIN UL ABDIN ABRO

15352

Case study 1

Read the following scenario and give your analysis on the stated questions

ZICRON ENTERPRISES

Zircon Enterprises is facing huge losses. The owner of the company is an MBA
pass out. Even then many things in the organization are happening which are
indicative of a lack of proper management in the company.

First of all, there is no specific sharing of work and any time an employee is asked
to do anything. This has led to a wastage of time as well as efforts. Further due to
negligence in proper work-sharing there has been no specialization development
like the jobs done by the employees are not assigned on the basis of specialized
skills and competency. There are no clear and fair agreements between the
workers and the management. This has led to a lot of frustration in the workers.

Management has quite often been found to be ignorant of not fulfilling promises
done by it. There are also no strict rules and regulations binding on the conduct of
the workers.

The departmental heads who are the middle-level managers in the company and
hold key positions always favor their relatives. They quite often don’t turn up for a
job on time and they are always looking for special relaxation from the top
management. This has led to the feeling of resentment among the employees
who are also demanding special favors and threatening strikes in the coming
days.

a. Identify the principles of Henri Fayol violated in the above case.

 b. In what ways the violation of Henri Fayol principles has affected the
productivity level of Zircon Enterprises and caused a feeling of resentment
among the employees?

. The following principles of Henri Fayol are violated in the given case:

Division of work: The lack of specific sharing of work and any employee being
asked to do anything at any time indicates a violation of the principle of division
of work.

Authority and responsibility: The absence of clear and fair agreements between
workers and management, as well as the ignorance of management in fulfilling
promises, indicates a violation of the principle of authority and responsibility.

Discipline: The absence of strict rules and regulations binding on the conduct of
workers indicates a violation of the principle of discipline.

Unity of command: The departmental heads favoring their relatives and seeking
special relaxation from the top management indicates a violation of the principle
of unity of command.

b. The violation of Henri Fayol principles has affected the productivity level of
Zircon Enterprises in the following ways:

 Lack of division of work has led to a wastage of time and efforts, and no
specialization development.
 Absence of clear and fair agreements between workers and management
has led to frustration among workers.
 Ignorance of management in fulfilling promises has resulted in low morale
and trust among employees.
 Absence of strict rules and regulations binding on the conduct of workers
has resulted in a lack of discipline among employees.
 The violation of the principle of unity of command has led to a feeling of
resentment among employees, as the departmental heads favor their
relatives and seek special relaxation from the top management. This has
resulted in demands for special favors and threats of strikes. All of these
factors have contributed to a decrease in productivity levels in the
company.