Q.Company X is facing a lot of problems these days. It manufactures white goods like washing machines, microwave ovens, refrigerators and air conditioners. The company's margins are under pressure and the profits and market share are declining. The production department blames marketing for not meeting sales targets and marketing blames production department for producing goods, which are not of good quality meeting customers' expectations. The finance department blames both production and marketing for declining return on investment and bad marketing. State the quality of management that the company is lacking? What quality of management do you think the company is lacking? Explain briefly. What steps should the company management take to bring the company back on track?

The company is clearly lacking coordination — the essence of management that ensures different departments work in harmony toward common organisational goals. Here, each department (production, marketing, finance) is working in isolation, blaming others instead of aligning their efforts. This is a textbook sign of poor coordination, which is the very first principle of management.

Coordination is the glue that binds all management functions. Without it, departmental goals override organisational goals, leading to conflicts, inefficiencies, and declining performance — exactly what Company X is experiencing.

To bring the company back on track, management must take the following steps:

• Establish clear, shared goals for all departments so that sales targets, quality standards, and cost controls are aligned, not contradictory.
• Improve communication channels — hold regular inter-departmental meetings where problems are discussed jointly, not blamed separately.
• Create a unified planning process where production, marketing, and finance plans are integrated before implementation. …

The Missing Link: Coordination

Management is not just about planning, organising, staffing, directing, and controlling. There is a sixth thread that runs through all these functions — coordination. Coordination is the force that binds all the functions of management together. It is the essence of management, the glue that prevents departments from pulling in opposite directions.

In Company X, each department is working in isolation. Production blames marketing; marketing blames production; finance blames both. This is a textbook case of lack of coordination. When coordination is absent, departments develop tunnel vision — they see only their own targets and problems, not the organisation’s overall health.

What Exactly Is Coordination?

Coordination means synchronising the activities of different departments so that they work as one unit toward the organisation’s objectives. It ensures that:

• The production department makes goods that marketing can actually sell.
• Marketing gives production realistic sales forecasts and customer feedback.
• Finance allocates resources in a way that supports both production quality and marketing efforts.

Without coordination, you get exactly what Company X is experiencing: blame games, declining profits, falling market share, and a downward spiral.

Steps to Bring the Company Back on Track

The company’s management needs to take concrete steps to restore coordination. Here is what the NCERT framework suggests:

1. Create clear, shared goals. Every department must understand that the company’s survival depends on working together. The production department’s goal is not just to make goods — it is to make goods that customers want, at a cost that allows profit. Marketing’s goal is not just to sell — it is to sell what the company can produce profitably. Finance’s goal is not just to cut costs — it is to fund quality and sales efforts that generate returns.

2. Establish regular inter-departmental meetings. Production, marketing, and finance heads should meet weekly to share data, discuss problems, and align plans. This is a simple but powerful coordination mechanism.

3. Use a unified information system. If marketing knows what production is making and at what cost, and production knows what customers are complaining about, the blame game stops. Shared data creates shared accountability. …

Here is a clear, concept-first solution method for this question.

Method: The "Symptoms-to-Core" Diagnostic Method

This method is designed for case-study based questions in management. It moves from identifying surface-level problems (symptoms) to diagnosing the missing management principle (core), and finally to prescribing a cure (steps).

Step 1: Identify the Symptoms (The "What")

Read the case and list the visible problems. Do not interpret yet—just state the facts.

• Symptoms:
  • Declining profits and market share.
  • Inter-departmental blame game (Production vs. Marketing vs. Finance).
  • Poor product quality and unmet customer expectations.
  • Low return on investment (ROI).

Step 2: Diagnose the Missing Core Principle (The "Why")

Ask: "Which fundamental management quality, if absent, would cause all these symptoms?"

• The key clue is the blame game and lack of coordination between departments. Each department is working in a silo, pursuing its own goals (e.g., production wants volume, marketing wants sales, finance wants ROI) without a unified direction.
• Conclusion: The company is lacking Coordination (the essence of management) and Unity of Direction (a principle of management by Henri Fayol).

Step 3: State the Missing Quality (The Answer)

• Quality lacking: Coordination (or Integration of Efforts).
• Brief Explanation: Coordination is the orderly arrangement of group efforts to provide unity of action in the pursuit of a common purpose. Here, the departments are working at cross-purposes. Production is not aligned with customer quality needs, marketing is not aligned with production capabilities, and finance is not aligned with the operational realities. This lack of synergy is destroying value.

Step 4: Prescribe the Steps (The "How")

The steps must directly address the root cause (lack of coordination).

• Step A: Establish a Common Goal. The top management must define a clear, shared objective (e.g., "Achieve 15% market share with a 20% ROI by delivering top-quartile quality"). This creates Unity of Direction.
• Step B: Create Cross-Functional Teams. Form a "Quality & Customer Satisfaction Task Force" with members from Production, Marketing, and Finance. This forces direct communication and joint problem-solving.
• Step C: Implement a Feedback Loop. Marketing must share real-time customer feedback and quality complaints with Production. Production must share cost constraints and capability data with Marketing.
• Step D: Align Incentives (Reward System). Stop rewarding departments for individual targets. Introduce a group bonus tied to overall company profit and customer satisfaction scores. This kills the blame game.
• Step E: Use a Formal Coordination Tool. Introduce a simple Gantt chart or a weekly coordination meeting where all department heads review progress against the common goal.

Final Answer (as you would write in an exam)

1. Quality of Management Lacking: …

Here are the common mistakes students make when answering this question, along with how to avoid each one.

Mistake 1: Naming the wrong management quality

The error: Students often write “Leadership,” “Coordination,” “Planning,” or “Controlling.”

Why it’s wrong: The case clearly shows departments blaming each other — production blames marketing, marketing blames production, finance blames both. This is a classic symptom of lack of coordination (or lack of cooperation / team spirit). The question specifically asks for the quality of management that is missing.

How to avoid:

• Look for conflict between departments or blame game.
• The correct answer is Coordination (or Teamwork / Integration of efforts).
• Remember: Coordination is the essence of management — it ensures all departments work harmoniously toward common goals.

Mistake 2: Confusing “Coordination” with “Communication”

The error: Students say “lack of communication” and stop there.

Why it’s wrong: While poor communication may be a cause, the quality missing is coordination — the deliberate synchronization of activities. Communication is a tool, not the quality itself.

How to avoid:

• Use the exact term from the NCERT/CBSE syllabus: Coordination is the “essence of management.”
• Explain that coordination integrates the efforts of different departments to achieve organizational goals.

Mistake 3: Giving a vague or incomplete explanation

The error: Writing only “The company lacks coordination” without linking it to the case.

Why it’s wrong: Marks are awarded for application — you must show why the situation proves lack of coordination.

How to avoid:

• Quote the case: “Production blames marketing, marketing blames production, finance blames both.”
• Explain: This shows absence of unity of action — each department works in silos, not as a team.

Mistake 4: Suggesting only one step (e.g., “Improve communication”)

The error: Listing only one vague step like “talk to each other.”

Why it’s wrong: The question asks for steps (plural) to bring the company back on track. A single point loses marks.

How to avoid:

• Give at least 3–4 concrete steps (see sample answer below).
• Use management terminology: clear goals, regular meetings, cross-functional teams, performance-linked rewards.

Mistake 5: Writing steps that are not linked to the problem

The error: Suggesting “reduce prices” or “fire the managers.”

Why it’s wrong: The core problem is lack of coordination, not pricing or staffing. Steps must directly address the blame-game and misalignment.

How to avoid:

• Every step should aim to align departmental goals and reduce conflict.
• Example: “Set common targets for production and marketing” — this directly tackles the blame culture.

✓ Correct Answer (Model)

Quality of management lacking: Coordination

Explanation: …