CBSE 2024 · Region 1 · Set 1 · Q29

Piyush is the Production Manager of a shoe company ‘Comforty’. He has

$\displaystyle 00$ workers 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 a $\displaystyle 20$% profit margin. This order is to be completed within

days. After completion of the order, Piyush found out that the

production cost of one pair of shoes was 700. He tried to find out the

< reason but he couldn’t. He reported it to the Chief Executive Officer. For

this the Chief Executive Officer appointed Abhay, who was not only a

specialized Cost Accountant, but also a qualified Human Resource

Manager. After two days, Abhay reported that the set target could have

been completed by only $\displaystyle 800$ workers. This revealed that there was

overmanning in the organization. The organization was not utilizing the

human resources optimally which had led to high labour cost.

The above case highlights an important function of management.

(i)

Identify the function of management discussed above.

(ii)

State any three points of importance of the function identified in (i)

(ii)

above.