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CSEET · Business Laws and Management · Functions of Management

In Sundaram Auto Parts Ltd, the production department made 5,000 units of a component, but the marketing department had planned promotions for only 2,000 units and the finance department had arranged funds for only 3,000 units. Which management shortcoming does this mainly show?

The situation shows a lack of coordination among departments. Production, marketing and finance are each working to different volumes without being synchronised towards a common plan. Nothing in the facts points to centralisation, staffing or motivation problems, so the fault lies in unifying departmental efforts.

  1. ALack of coordination among departmentsCorrect
  2. BExcessive centralisation of authority
  3. CAbsence of a staffing policy
  4. DFaulty directing through poor motivation

Explanation

Production, marketing and finance are working to different targets and are not aligned with one another. This mismatch of departmental activities is a failure of coordination, not a problem of centralisation, staffing or motivation, none of which the facts indicate.

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