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Sigma Ltd. Is a large company manufactur...

Sigma Ltd. Is a large company manufacturing electric motors. The company has several departments-Production, Marketing Finance and HR. Mr. Shashank, CEO of the company set a target sale of Rs. 10 crore in a month. To increase the sales, the marketing manager, Mr. Ishaan insists on offering `10%` discount to customers. But the finance manager, Mr. Mohak does not approve such discount as it would mean loss of revenue. Because of dual subordination, the sales manager, Mr. Anshik could not achieve the sales target.
(a) Which concept of management Sigma Ltd. is lacking ?
(b) Which principle of management has been overlooked by this company ? Explain.

Text Solution

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(a) The company is lacking 'Coordination'.
(b) Unity of command (give explanation)
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