Q.'Bhasin' Limited was engaged in the business of food processing and selling its products under a popular brand. Lately the business was expanding due to good quality and reasonable prices, and the market for processed food was increasing with new players coming in. In order to keep its market share in the short run, the company directed its existing workforce to work overtime. But this resulted in many problems: due to increased pressure of work the efficiency of the workers declined; sometimes the subordinates had to work for more than one superior; the divisions that were previously working on one product were also made to work on two or more products, causing a lot of overlapping and wastage; workers were becoming indisciplined; the spirit of teamwork was beginning to wane; workers were feeling cheated and initiative was declining; and the quality of the products and the market share were on the verge of decrease. Actually the company had implemented changes without creating the required infrastructure.

This is a classic case of a company chasing short-term market share by overloading its existing workforce instead of building proper structure. Each symptom in the case points to a specific Fayol principle being violated.

(a) Principles violated

• Unity of Command – "subordinates had to work for more than one superior."
• Unity of Direction – single-product divisions were made to handle two or more products, causing overlapping and wastage.
• Discipline – "the workers were becoming indisciplined."
• Esprit de Corps – "the spirit of teamwork was beginning to wane."
• Initiative – "initiative was declining."

(b) Brief explanation

• Unity of Command: each employee should receive orders from only one superior; multiple bosses cause confusion.
• Unity of Direction: each set of activities with the same objective needs one head and one plan; overlapping divisions violate this.
• Discipline: obedience and respect for fair agreements; imposing change without fair systems broke it.
• Esprit de Corps: management must build team spirit and unity; here it was being lost.
• Initiative: employees should be free to think out and execute plans; overburdened, demoralised workers stopped doing so.

(c) Steps the company should take

• Ensure each subordinate reports to only one superior (Unity of Command). …

Bhasin Limited tried to protect its market share by simply pushing its existing workforce harder — directing overtime and reshuffling work — instead of building the structure needed for growth. The case describes several specific symptoms, and each points to a particular one of Henri Fayol's fourteen principles being violated.

(a) Principles Violated

1. Unity of Command
2. Unity of Direction
3. Discipline
4. Esprit de Corps
5. Initiative

(b) Explanation of the Violated Principles

1. Unity of Command

Every employee should receive orders from, and be responsible to, only one superior. The case states that "sometimes the subordinates had to work for more than one superior." Receiving conflicting instructions from two bosses creates confusion and conflict and undermines authority and discipline.

2. Unity of Direction

Each group of activities having the same objective must have one head and one plan, and the working of two divisions should not overlap. At Bhasin, "the divisions that were previously working on one product were also made to work on two or more products," which caused "a lot of overlapping and wastage." This is a direct violation of unity of direction.

3. Discipline

Discipline is obedience to organisational rules and agreements, resting on good superiors, clear and fair agreements, and the judicious application of penalties. The case says "the workers were becoming indisciplined." Changes imposed without proper systems and fair treatment eroded respect for the rules.

4. Esprit de Corps

Management should promote a team spirit of unity and harmony ("replace I with We"). The case notes that "the spirit of teamwork, which had characterised the company previously, was beginning to wane." Losing this team spirit weakens cohesion and coordination.

5. Initiative

Employees should be encouraged to think out and execute plans for improvement. The case says "initiative was declining." When workers are merely ordered to work harder under pressure and feel cheated, they stop offering suggestions and improvements.

(c) Steps the Company Should Take

• Restore Unity of Command: restructure reporting so that every worker takes orders from exactly one superior, ending conflicting instructions. …