Mr Raghuender Singh is working as the Chief Executive Officer-CEO in 'Palm Residency Ltd.' The business of this company is to build houses, furnished with all modern facilities.It is quite clear that the success of the company depends on the level of its advertisement.That is why this department has been set up separately, in the company.Besides, several standards have been fixed to keep a control over its quality and cost,the standard of material to be used in the construction, the standard of working conditions,the standard of construction cost and the standard of work to be done by per person per day.
Realising the importance of advertisement,the CEO gave the right of spending money upto Rs5 lakh to the Departmental Manager without seeking his permission.When the other departmental managers came to know of this authority,they also demanded this type of authority to spend money.Their demand was accepted happily. This decision started yielding positive results.Then the CEO again decided to give the authority of spending money to a limit freely to the supervisors also.
(a) Which concept of F.W.Taylor has been described in the paragraph given above?Identify it.
(b) Which concept of management is referred to according to which the Advertisement Manager has been given the authority of spending money to a limit?
(c) Identify the concept of giving the Departmental Managers the authority similar to that of the Advertisement Manager.
(d) What would you call this situation when the authorities referred to in point 'C' are given to the supervisors?

Dear student, 

(a) The concept of Taylor that is being described is 'Scientific management'. It aims at identifying and devising a best method of completing a task such that the effectiveness and efficiency is improved. 

(b) The concept of management that is being referred is managing the work. Herein, the work is managed so as to ensure that the work is interpreted in terms of goals and objectives that are to be achieved. 

(c) The concept is decentralisaiton. It refers to the process wherein the decision making power is shared with the middle and lower level of management. 

(d) The concept is 'delegation". It refers to the process wherein the authority and responsibility of the superior is passed on to the subordinates. 

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aauthority and responsibility
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b centralisation n decentralisation
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A.Standardisation of work B.Delegation C.Decentralisation
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Option D??
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