Prashant Toys Pvt. Ltd. manufactures and sells toys of different types

1.	Prashant Toys Pvt. Ltd. manufactures and sells toys of different types. Two founders of the company, Prashant and Nishant, jointly look after the overall management of the company. Since there is no clear-cut demarcation of authority between the two, often contradictory orders are passed to production and marketing people. Sometimes, this situation becomes embarrassing to production and marketing manager. (i) Which principles of Management are being violated in this case? (ii) State two steps that the company should take to overcome the problem.
Answer» (i) Principle of Authority and Responsibility and principle of Unity of Command are being violated here. (ii) Following steps can be taken to overcome the problem: (a) The promoters should define their areas of authority clearly based on functions performed by them. (b) The promoters should issue orders in their specific areas only to avoid confusions.

Prashant Toys Pvt. Ltd. manufactures and sells toys of different types. Two founders of the company, Prashant and Nishant, jointly look after the overall management of the company. Since there is no clear-cut demarcation of authority between the two, often contradictory orders are passed to production and marketing people. Sometimes, this situation becomes embarrassing to production and marketing manager. (i) Which principles of Management are being violated in this case? (ii) State two steps that the company should take to overcome the problem.

Answer»

(i) Principle of Authority and Responsibility and principle of Unity of Command are being violated here.

(ii) Following steps can be taken to overcome the problem:

(a) The promoters should define their areas of authority clearly based on functions performed by them.

(b) The promoters should issue orders in their specific areas only to avoid confusions.