CBSE 2024 · Region 2 · Set 1 · Q21

Piyush is the Production Manager of a shoe company called Comforty .

He has $\displaystyle 1000$ workers working under him in his department. Piyush

booked a special order for $\displaystyle 300$ pairs of gents shoes at an estimated cost

price of $\displaystyle 500$ per pair plus $\displaystyle 20$% profit margin. The order is to be

< completed within $\displaystyle 10$ days. After completion of the order, Piyush found out

that the production cost of one pair of shoes was 600. He tried to find

< out the reason, but he couldn t. He reported it to the Chief Executive

Officer. The Chief Executive Officer appointed Abhay to find out the

cause. Abhay was not only a specialized Cost Accountant, but also a

qualified Human Resource Manager. After two days, Abhay reported that

the set targets could be completed with the help of only $\displaystyle 800$ workers,

which revealed that there was overmanning in the organization. The

organization was not utilizing the human resources optimally, which had

led to higher labour cost.

The above case highlights one of the points of importance of an important

function of management.

(i)

Identify the function of management.

(ii)

State any two points of importance of the function of management

(ii)

identified in part (i), except the one discussed in the above case.