‘Vanguard Inc.’, a company manufacturing footwear for men, women and children has been earning consistent profits for the last many years. It has a…

‘Vanguard Inc.’, a company manufacturing footwear for men, women and children has been earning consistent profits for the last many years. It has a democratic style of working. Workers are encouraged to develop and carry out plans for improvement in the organisation. Varun who is working in the production department gave a suggestion which resulted in $\displaystyle 10$% reduction in the cost of production of shoes. He was rewarded for his suggestion. Identify the principle of management followed by ‘Vanguard Inc.’ in the above case :