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Gagan Industries Ltd. is a manufacturing company with line and staff or­ganisation. Shri Raman, a young staff officer, developed a plan for increasing the life of certain equipment in the plant. He carried the plan directly to the Superintendent of the department in which he hoped to introduce it, but was rebuffed by the Superintendent who privately acknowledged the merit of the scheme, but resented the Staff Officer trying to show off his talent.

The Staff Officers' Association condemned the behaviour of Shri Raman and felt that he should have allowed the plan to appear as a contribution of the staff group rather than his own. Shri Raman himself declared, ^"By God, it is my idea and I want credit for it. There is none among the Staff Officers who would not have claimed it to be a personal achievement."

 

QUESTIONS'

1. Analyse the situation in terms of the possible causes of the reaction of the Superintendent and the Staff Officers' group.
2. Suggest measures to defuse the situation.
3. Why did the Superintendent refuse to implement the plan which he appreciated privately?

 

 

You are the head of the Production Department in an industrial concern. Gobind, one of your Supervisors, is continually socializing with your Deputy General Manager. Go bind arranges his coffee breaks with the Deputy General Manager and takes him on fishing trips. Gobind is always getting information about changes that are going to take place in your department before you do. The Deputy General Manager tells Gobind about problems in your department which Gobind shares with the other employees. Gobind pays little attention to you. When you give him advice, he usually says he will check with the Deputy General Manager the next time they have coffee. The other staff in your department openly refer to Gobind as Mr. Climber.

 

QUESTIONS

1. What do you think is the motivation behind Gobind's behaviour ?
2. Should the Deputy General Manager continue to socialize with Gobind ?
3. What action would you take as head of the Production Department ? Why ?

Sanjay, doing MBA with a Management Institute, has taken up a summer job in a big factory at Faridabad. He has been assigned to a small group of men who are responsible for loading and unloading the boxcars that supply the materials and carry away the finished goods of the factory.

 

After two weeks on the job, Sanjay was amazed at how little work the men in his crew accomplished. It seemed that they were forever standing around and talking or in some cases, even going off to hide when there was work to be done. Sanjay often found himself alone unloading a boxcar while the other members of the crew were off messing around somewhere else.

When Sanjay complained to his co-workers, they made it very plain that if he did not like it, he could quit, but if he complained to the supervisor, he would be sorry.

Sanjay has been deliberately excluded from any of the crew's activities such as taking breaks together or having delicious snacks at the popular restaurant across the street. Yesterday, he went up to one of the older members of the crew and said, "I don't know why you people behave like this. I am just trying to do my job because I am here only for my summer assignment. I get a good salary which is all that I care about. I would have liked to know you all better, but frankly I am sure that I am not like you all." The elder man replied, "Sanjay, if you had been here as long as I have, you would have been just like us.^"

 

QUESTIONS

1. Explain the group processes involved in this case.
2. Describe the degree and type of motivation of Sanjay and other members.
3. Do you think Sanjay would change his attitude if he were to stay longer in the job ? Explain the reasons for your answer.

 

 

A hospital was having financial problems. Occupancy was low, equipment costs were higher than expected, and the cost of supplies had increased. At the year's end, a rumour began to circulate that there would be no salary raises and that personnel reductions were possible. The hospital's five hundred employees were shocked by the extent of the financial problems indicated by the rumors. They began to ask supervisors, "Does top-level management agree with this rumour or not ?"

The managers made no comment, refusing to confirm or deny the rumour. The official communication from management was, "The matter is under study". Most employees believed there would be no pay increases and, as a result, their morale was getting low.

When management announced that there would be no layoffs and that there would be a 2-percent pay raise, the employees were delighted. Manage­ment was pleased with the employees reaction, since six months before there were demands for a 10-percent pay increase and reduction of workloads

 

QUESTIONS'

1. Was the employee reaction to the 2-percent pay raise more favourable than it would have been if the rumour had not started ?
2. Should management have taken action when the rumour started circulating ?
3. What would be possible results if the employees learned that the management had started the rumour ?

 

CASE STUDY  5 *

Miss Sarita was employed in a multi-product company and was placed in the payroll office as a Steno. She was intelligent, cheerful, energetic and had pleasing manners, but looked delicate and was somewhat lacking in self-con­fidence. The payroll officer had asked for a girl who was good at figures, could type with reasonable speed and accuracy and do shorthand. Sarita met all these specifications.

There were twenty girls in the payroll office, and Sarita readily made friends with all of them. She not only adapted herself quickly to the job, but evidently enjoyed the work. She was usually the first to arrive in the morning and was frequently spoken to for her failure to leave work in the evening. She became an asset to the department head and within a year had demons­trated to the employment manager, Mr. Praveen, that she was in line for promotion. Consequently when Mr. Praveen received a requisition for a secretary to one of the sales executives, Sarita came to his mind. He went to the payroll officer, Mr. Vineet and suggested Sarita's release for transfer.

Praveen : I have a requisition from Arun's office for a bright girl to replace Kamlesh who is leaving to be married. I think Sarita is the right choice for the job.

Vineet : Praveen, that girl is practically indispensable to me. She's one of the best girls I ever had. You don't think I'm going to let her go, do you ?

Praveen : You can't pay her what she may eventually receive as a private stenographer.

Vince: : No, of course not. Good girls always go. I sometimes wonder if I'd be better off to take girls that aren't quite so good, so I could keep them around here after I've spent time and money training them.

Praveen : Well, here's your chance to decide. If I take Sarita, you'll need a girl to replace her. Tell me what you want and I^'ll find just the right candidate for you.

Vineet : Well, I suppose there's only one answer. I've got to give Sarita the break. But you find another girl as good as she is, if you can. I guess I'm better off to hire bright girls even if there is a chance that I may lose them.

(Later in the day, Sarita was called to see Mr. Praveen in his office)

Praveen : Good afternoon, Miss Sarita. Have a chair. I have a suggestion to make which I believe will please you. Do you know Miss Kamlesh in Mr. Arun's office.

Sarita : Not very well, but I know who she is.

Praveen : Well, she's leaving us very soon–getting married– perhaps you have heard ? I have suggested that you be considered to take her place. But whether or not you get the job depends on three conditions. The first is Mr. Vineet's consent to release you ; the second, your own willingness to give it a try ; and the third, Mr. Arun's acceptance. Now I want to tell you something about this job before you make up your mind. If you do well, you would become Mr. Arun's private stenographer, and be the only girl in his office. This is quite a change from your present job and you might feel rather lonely. Mr. Arun's work requires a considerable amount of detail. You would handle his correspondence, keep his files, and run the office when he is out of town. This would involve contact with customers in person as well as over the telephone. If you are transferred to this job, you would receive a slight increase in salary at once, and more later, if you do well. Do you think you would like to try this job ?

Sarita : Really, I don't know, Sir. It sounds like a lot to learn and so different from what I've been doing._I'd hate to fail. You know more about it than I. Do you think I could do it ?

Praveen : I'm very sure you can do it if you want to.

Sarita : Is there much dictation ?

Praveen : Yes, there's a good deal. But I'm sure you can handle that part of it. And, of course, Miss Kamlesh would be with you for a couple of weeks, would you try this ?

Sarita : Well....it's awfully hard to say, I will think.

Praveen : Certainly, just let me know in a day or so when you've made up your mind.

(At the end of two days, Mr. Praveen had heard nothing further from Miss Sarita. He spoke to Mr. Vineet the next day.)

Praveen : Oh, by the way, has Sarita said anything to_, you about taking the job at Arun's office ?

Vineet : No, she hasn't, but I certainly hope she'll make up her mind about it pretty soon. She^'s not much good to anybody since you spoke to her.

She goes around looking like she^'s lost her friends. I believe she feels she ought to take a chance, but hates to leave the department and her friends.

 

QUESTIONS

1. Why is Ms. Sarita reluctant to accept her transfer to the new job ? Will you call it intra-individual conflict ?
2. Why should she accept the new job at the cost of informal relations at her present workplace ?
3. If Ms. Sarita refuses the offer, how would you persuade her to give a try to the new job ?

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Sunder Chemicals was established in the year 1965 with about 40 workers and was manufacturing a couple of pharmaceutical products. After three years of initial crisis, the company found itself in a very prosperous situation. In 1999, the company employed about 5,000 employees working in 15 different departments.     -

Mr. Parikh was incharge of the Tablet department having about 50 workers. In the day shift, Parikh was assisted by Mr. Patel for the general supervision of the department. Mr. Joshi was one of the workers in the Tablet department about whom Patel did not have a good opinion as Joshi was in the habit of remaining absent without leave. Patel often found him taking leave under false pretexts. Patel did not have any other complaint about Joshi.

One day Joshi approached Patel with a request to grant him leave for a week, as he wanted to go for a pilgrimage with his family. Patel this time flatly refused to grant leave to him saying that he was not prepared to believe him considering his past record. Joshi felt very sorry about this and seemed to be disturbed.

During the lunch break, he was not in a mood to talk with his co-workers with whom he otherwise talked very cheerfully. On observing this, Mr. Solanki, a very old worker who was with the company since its inception, asked Joshi if there was something wrong with him. Joshi narrated the matter and broke into tears saying that his old parents would be unable to go on a pilgrimage.

Solanki was very popular among the group and always helped his co-workers by representing their case to the management. He was in general very hostile towards the managers and they in turn did not have good opinion about him. Solanki assured Joshi that he would certainly get his leave granted.

 

Solanki went to Patel on the same day and found him giving instructions to some workers. Throwing the leave application on Patel's table, Solanki very arrogantly asked him why he was not sanctioning leave to Joshi. Patel felt very bad about the manner in which Solanki asked this and that too in front of his subordinates. But, controlling his emotions, he simply told him to ask Joshi to discuss the same with him. Solanki said that Joshi had authorised him to discuss this matter. He further accused Patel by saying that he unnecessarily harassed workers and that he will have to give up this habit, or he should be prepared to face the consequences. Patel, feeling very much insulted, asked him (Solanki) to get out of the department. On hearing this Solanki reacted very furiously and pushing Patel physically, told him, "I will now straighten you." After saying this, he himself left the department. Immediately, Patel saw Parikh and briefed him about the incident. Parikh regarded this as a very serious matter, and referred it to the Personnel Officer, Mr. Amin requesting him to take appropriate action in the matter. Considering this as a gross misconduct, Mr. Amin served Solanki with a charge-sheet. The company had a consistent policy for disciplinary action and in such cases the punishment would be that of discharge.

Solanki was a very active member of the representative union which had very good relations with the management. Management always supported this union against another union which was very aggressive and protested against all actions of the management. When workers of the department came to know that Solanki had been charge-sheeted, they all approached the Sec­retary (of the representative union) and strongly requested him to see that Solanki did not lose his job. They all agreed that Solanki was, to some extent, at fault. The Secretary, after hearing the full story, remarked that Solanki should have rather taken the constitutional course to deal with the matter. The workers said that in any case Solanki should not lose the job, as he had fought for his co-worker and not for himself. Considering the insistence of the workers, the Secretary decided to see Amin. In the meantime, a written petition was also handed over to Amin by the workers.

The Secretary met Amin and conveyed to him the feeling of the workers. He pointed out that this was the first time when workers had expressed their desire so forcefully. The Secretary further requested Amin to reconsider the case for the following reasons :

1. All the workers were insistent and felt involved in the matter, and if they were dissatisfied, the popularity of the union may decline, thus paving way for the rise of the other union which is hostile to management.
2. The Secretary assured that he would see to it that Solanki does not misbehave like this in future.

 

Amin had been until now very consistent with the policy and he thought that this may become a very significant deviation from the rules. On the other hand, he thought that it would be rather difficult for him to observe consistency  in this case, as otherwise he will have to displease the workers and perhaps the other union might take up the opportunity to establish a footing in the company. In the meanwhile, Parikh telephoned Amin and said that his workers had approached him and requested him to consider the case sympathetically. He insisted that he considered this as a very serious thing and that no mercy may be shown in Solanki's case.

QUESDONS'

1. What is the problem in the case ?
2. Indicate the individual, managerial and organisational causes that have led to the problem.
3. How could this problem have been avoided ? How would you explain Patel's behaviour ?
4. Discuss the alternatives now available to Parikh and Amin. Discuss the conse­quences of these alternatives for the organisation.

 

 

Mr. Rao and Mr. Dash, two young and dynamic engineers with M.B.A. degree from the States, floated R.D. Engines Ltd. in the year 1985. Mr. Dash went to Japan to acquire technical know-how for the manufacture of Kerosene Engines. Mr. Rao remained in India to arrange for the finances and to look after the construction of the factory shed and office building. On his return from Japan, Mr. Dash arranged for the import of the machinery and procured raw materials. He also supervised the installation of machinery and physical arrangement of facilities.

R.D. Engines Limited started the production of Kerosene Engines in the year 1989 with Mr. Rao as the Managing Director and Mr. Dash as the Technical Director. Mr. Rao was looking after the finances, sales, public relations, personnel and purchase functions. Mr. Dash was looking after the Production, Stores, Quality Control and Planning. In the first few years, the company had very good sales because Kerosene being much cheaper than Diesel and Petrol. The main customers were farmers who used these engines

. for pumping the water and other agricultural operations. In fact, it was a multi-purpose engine.

After two-three years, the service engineers started making requests for issuing spare parts for the repair and maintenance of engines sold. Mr. Rao instructed the service engineers to get spare parts from the stores which were under the charge of Mr. Dash. On being approached, Mr. Dash refused to issue the spare parts to the marketing personnel on the ground that there will be a loss of production if the available parts were given to the marketing people instead of using them for the assembly of new engines. This way, it became very difficult for the farmers to procure the spare parts for their engines manufactured by R.D. Engines Limited. Over a period of a few years, the company lost the goodwill that it had earned among the customers.

Due to change in the marketing conditions, the company switched over to the manufacture of Diesel Engines instead of Kerosene Lngines. The sale of Diesel Engines was not encouraging because of the following facts :

1. The company had lost goodwill due to non-availability of spare parts.
2. There were teething problems in initial stages of change of design.
3. Many complaints were coming regarding the poor performance of the engine and they were not looked into.

Mr. Rao was naturally worried over the situation. Despite poor sales, the manufacture of engines was continued to achieve the production targets. The finished goods inventory rose up considerably. Mr. Rao called the Pro­duction Superintendent, Mr. Chandra and spoke to him to slacken the pro­duction pace and the production was cut down to 50%. Looking at the production reports for the previous month, Mr. Dash called Mr. Chandra and asked him to give reasons for the loss of production. Mr. Chandra told Mr. Dash that the fall of production was at the order of Mr. Rao, the Managing Director.

Mr. Dash became furious because he felt that the Managing Director, who is looking after functions other than the production, should not have a say in the production. He felt that Mr. Rao was not performing his functions satisfactorily which led to dropping of the sales curve. This conflict between the two directors went on for quite some time. For not being able to obey the contradicting instructions of the two directors, Mr. Chandra submitted his resignation. Mr. Dash who was aware of the abilities of his Production Superintendent requested him to withdraw his resignation and Mr. Chandra agreed to do so. As soon as Mr. Chandra returned to his table, there was a note from the Managing Director. "Resignation accepted with immediate effect. Contact Personnel Department for the settlement of accounts."

 

QUESTIONS

1. Comment on the acceptance of resignation of Mr. Chandra.
2. What was wrong with the management of R.D. Engines Limited ?
3. Was the conflict between two directors really unavoidable? Give reasons for your

answer.

4. Give your suggestions to improve the working of R.D. Engines Limited

 

A.N. Iron & Steel Company is a reputed concern engaged in the manufacture and sale of iron and steel for the last 25 years. The company has a big mine which is mechanised and the mine meets its input requirements of iron ore. The mining sites and crushing units are located at the hill top, and the benefication plant is located a few kilometres away in the valley.

The company has a number of light and heavy vehicles. There are two garages — the one at the hill top is much bigger than the other one in the valley. The garage on the hill top has two main sections, Light Vehicles (LV) and Heavy Vehicles (HV) Sections, and there was also a small Autoelectric Shop in one room attached to the LV Section. The Autoelectric Shop takes care of all the electrical jobs of the garage.

The hill top garage is under the charge of a Garage Manager who has under him one Assistant Manager and two Chargemen, one looking after the LV section and the other the HV Section.

Bhushan, aged 35 years, was a Helper in the Autoelectric Shop. He joined the company as Khalasi when he was studying in Standard VIII 20 years ago. He was a sincere and devoted worker and soon picked up the different kinds of jobs that were being done by the Autoelectrician and his Helper. Previously, Bhushan was working as a Helper to Lalit, the Autoelectri­cian in the shop. But as Bhushan was quite competent in his job and Lalit could not manage Bhushan effectively, a working arrangement was evolved whereby both Lalit and Bhushan worked independently.

Two months ago, Lalit was transferred. The Garage Manager told Bhushan to look after all the jobs in the Autoelectric shop and gave him hope that he would be considered for promotion. But Anil, aged 30 years, who was appointed three months ago as Autoelectrician and posted in the valley garage, was transferred to the Autoelectric Shop. This made Bhushan -extremely unhappy. Anil was also dissatisfied because Bhushan, though a Helper, earned much more money than him. Anil also had another cause for dissatisfaction as he appeared for a post at the P-5 scale but was given the P-4 scale only. When Anil came to the hill top garage, the relations between Anil and Bhushan were strained initially but apparently became normal over time. On one occasion, Bhushan complained to the Assistant Manager that Anil was delaying the jobs to earn more overtime. In fact, the overtime for the Au­toelectric Shop was going higher.

One day at 2.30 p.m., there was a hue and cry in the Autoelectric Shop as people found Bhushan lying on the floor and crying for help. Bhushan complained that Anil had given him a hard blow on the chest. But Anil defended himself by saying that a tool slipped and he lost his balance, so his hand merely touched Bhushan leading to the accident.

 

QUESTIONS'

1. What is the main problem in the case ?
2. Examine Bhushan's behaviour, explaining possible causes of his dissatisfaction.
3. Comment on the state of relationship between Anil and Bhushan.
4. Examine Bhushan's grievance vis-a-vis his competence and company's promo­tion policy.
5. As Garage Manager how would you tackle the conflict between Anil and Bhushan ? Also suggest remedies for checking recurrence of such problems.

 

 

 

Desert Cool Ltd. is an old company engaged in manufacture and distribution of ice cream with the help of a workforce of about 300. Because of increasing business, the company needed to strengthen its accounting procedure parti­cularly through computerisation. For this purpose, the company decided to hire a new manager, designated as Assistaft Commercial Manager. The company invited applications through press advertisement and after receiving applications, it appointed a selection committee consisting of three members of top management including Commercial Manager, Mr. Rajesh. The com­mittee interviewed several candidates and finally selected Mr. Vishwanath as the new Assistant Commercial Manager.

After joining the company, Mr. Vishwanath showed great dedication to his work. He used to put extra efforts and even worked during holidays as he did not have any family responsibility. He gained the reputation of being a dedicated employee, his strong point being his knowledge of accountancy and computers. He was reporting to Mr. Rajesh, the Commercial Manager who was quite impressed with his working.

The accounting procedures of the company were in need of considerable improvement. Mr. Ajay Kumar, the Managing Director of the company, directed Mr. Rajesh to get the needful done for introducing a computerised accounting system. Since most of accounting work related to sales, no separate accounting department existed and the work was performed under the direc­tion of the Commercial Manager. Mr. Vishwanath was mainly appointed to strengthen the accounting procedures and so he was asked to prepare a project report so that necessary changes could be made.  In order to get the first hand information about the problem, Mr. Vishwanath began meeting Mr. Ajay Kumar without the knowledge of Mr. Rajesh. However, there was no attempt to have secret meetings. Mr. Ajay Kumar would just call Mr. Vishwanath in for a report without bothering to tell Mr. Rajesh. The members of the management team had formed a tight-knit group and appeared satisfied with the company. They all worked together and the company prospered in spite of keen competition in the market.

Mr. Rajesh was gradually losing contact with the progress of the project as Mr. Vishwanath was almost reporting directly to the Managing Director though he was placed under the Commercial Manager. Mr. Rajesh was now visibly upset over the development and also worried about Mr. Vishwanath's increasing area of influence. He started feeling humiliated.

QUESTIONS

1. Explain the crux of problem in this case.
2. Could Mr. Rajesh have prevented Mr. Vishwanath from acquiring greater power in the company ? If so, how ?
3. Suggest the course of action now available to Mr. Ajay Kumar to restore team spirit among the members of the management.

 

 

Case study  10

Devkumar was a man on the move. Every one in the firm felt that some day
he would be company president. To listen to his boss, Manohar, Vice President
of Marketing it was only a matter of time before Dev would be at the helm.
The current president of the firm was a marketing person. She had
worked her way up from field salesperson to president by selling satisfaction
to customers and raising the image of the company. In a manner of speaking,
the marketing department was the "well-oiled" road to the top. Dev was the
number 1 salesperson and, according to the grapevine, was due to get
Manohar's job when the latter retired in two years. However, Dev was not
sure that he wanted to be Vice President of Marketing. Another slot was
opening up in foreign sales. Dev knew nothing about selling in Europe, but
this was the firm's first venture outside the country and he thought he might
like to give it a try. He alked to Manohar about it, but the Vice President tried to discourage him. In fact, Manohar thought that Dev was crazy to consider the job at all. "Kid^", he said, ^"that^'s no place for you. Things are soft and cosy back here. You don^'t have to prove yourself to anyone. You^'re the number I boy around here. Just sit tight and you will be President. Don^'t go out and make some end runs." Dev was not convinced. He thought perhaps it would be wise to discuss the matter with the President herself. This he did. The President was very interested in Dcv^'s ideas about international market­ing. "If you really think you like to head this office for us, I will recommend your name for the job.^"

 

After thinking the matter over carefully, Dev decided that he would much rather go to Europe and try to help establish a foothold over there than sit back and wait for the promotion when his boss retires. He told his decision to Manohar, "Manohar I've talked to the President, and she tells me that this new opening in foreign sales is really going to get a big push from the company. It's where the action is. I realise that I could sit back and take it easy for the next couple of years, but I think I'd rather have the international job." Manohar again told Dev that he was making a mistake. " You're throwing away a golden opportunity. However, if you want it, I'll support you.^,,

A week later, when the company selected someone else from sales to head the international division, Dev was crushed. The President explained the situation to him in this way : "I thought you wanted the job and I pushed for you. However, the other members of the selection committee voted against me. I can tell you that you certainly didn't sell Manohar very strongly on your idea. He led the committee to believe that you were really undecided about the entire matter. In fact, I felt rather foolish telling them how excited you were about the whole thing, only to have Manohar say that he had talked to you since that time and you weren^'t that sure at all. When Manohar got done, the committee members figured that you had changed your mind after talking to me, and they went on to discuss other likely candidates."

 

QUESTIONS

1. Who had power in this organisation ? What type of power did Manohar have ?
2. Do you think Dev played company politics well ? If so, why didn't he get the international sales job ?
3. At this point, what would you do if you were Devkumar 7 What political strategies will you use to strengthen your position in the organisation ?

 

 

In a search for effective leaders, 206 CEO respondents from Fortune 500 and Service 500 companies identified as the three top leaders Don Petersen at Ford, Lee Iacocca at Chrysler, and Jack Welch at General Electric. The overwhelming majority of those questioned felt that there is no industrial leadership crisis in the United States. On the otter hand, those holding another view pointed to the ineffectiveness of managers in competing in the global market ; the excessive focus on short-term results, often at the expense of long-term company health ; and the lack of investment in plants.

About two-thirds of the respondents thought that leadership can be taught, especially through job rotation, in-company training, and delegation of authority. But there was also the realisation that latent leadership qualities have to be the foundation for leadership.

Although not on the basis of the survey, Fortune identified certain factors for successful business leadership which are as follows :

1. Trust in subordinates is the foundation for delegating authority. A manager gets things done through people.
2. Leaders must provide a vision for the enterprise and inspire others to commit themselves to this vision.
3. Leaders must take command in times of crisis. Even those who subscribe to participative management realise that at critical times they have to take charge.
4. Taking risks is a part of business — not careless risks, but calculated ones. Probably those who have never failed (who played it safe) may not have managed well.
5. Leaders need to be very competent in their fields and command the respect of employees.
6. A top executive surrounded by "yes-sayers" will get an incorrect view of what is really going on within and outside the organisation. Thus, executives should invite dissenting views.
7. Effective leaders see and understand the big picture. They sim­plify complex situations and problems so that they could be understood

 

QUESTIONS

1. Who were the top leaders identifed in the survey ? Why do you think they have teen effective ?
2. What were the leadership characteristics identified by Fortune? How far do you agree with the seven statements about the characteristics ?
3. Do you think that leadership skills can be taught ? Give arguments in support of your answer.

 

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Case study 12

 

Hemanth, the canteen manager, went out to the corridor outside his office to light his cigar. As he was enjoying the smoke, two of his assistants, Gopal and Ramesh, just walked past him. Neither noticed Hemanth. But Hemanth started to wave 'hello', when he realised that they were talking about him. Gopal was telling Ramesh, "Ramesh, you know what the old man (meaning Hemanth) was telling me this morning. He said that he can't run the canteen without me and that I am his number one boy".

"Oh ! Hemanth told this to you too ?", responded Ramesh, "May be in your case he means it. I don't pay any attention to his compliments any more. I heard that he gives everyone the same pep talk. Even when I spoil a job and expect him to take me to task, he's just as sweet as sugar as ever. But behind me he writes a bad report and at the time of appraising my perfor­mance, an annual ritual, he doesn't tell where I stand. Last time when the promotion to Canteen Supervisor's post came up, he placed the heap of performance appraisals before me and wondered how I could be helped with such poor ratings."

"To tell you the truth," said Gopal, "I wish he had told me where I stand. It may be fine to have a boss who talks nice to you, but I am always afraid he tells me one thing and runs me down for someone else in the canteen. You know how Deepak does his job in the kitchen. Last week, I saw Hemanth checking up some dishes and he appeared to be visibly shocked. On seeing Hemanth's facial expression, Deepak asked 'anything wrong Sir ?', you know how Hemanth replied ? `Oh, nothing. I am glad you got the job done in time.' But see the irony. Hemanth comes to me in less than three minutes and tells me he can't trust Deepak and perhaps I may have to take charge of the kitchen department soon. Why is he not straightening Deepak anyway ? "Look Gopal ! I am least bothered about Deepak," said Ramesh ; ^"What I worry about is what Hemanth tells others about me that he can't tell me. to my face." As Gopal and Ramesh walked away, Hemanth threw out his unsmoked cigar, went back to his office desk and began to think.

 

 

QZIESZ'IO91(,S

What do you think Hemanth was thinking about ? What was wrong with Hemanth's approach in dealing with his employees ? Was he all wrong ?

If you were to advise Hemanth, how would you tell him to improve his status among his employees ?

"Behavioural theories postulate that the behaviours of the leaders are more important than their qualities." Justify this statement bringing out the distinction between traits and behaviours of Hemanth.

 

CASE STUDY 13

Inderjit is about 40 and for the last one year has been the Chief Executive of a manufacturing company, that operates autonomously, but belongs to a large group. He has firm ideas on how best to manage people. In general terms, he believes that people respond best when the pressure is on them.

Inderjit has tremendous energy. He comes to work at 7.00 o'clock and stays late each evening. He works very hard and expects others to do the same. He is a stickler for details and often sends his managers running back from meetings to collect more facts. Face to face meetings with him are something like inquisitions. He has a very aggressive questioning style and bowls people out when he notices mistakes. He is proud that he can move heaven and earth to "fix" problems. Since he is good both in technical and financial matters, he tends to intervene as soon as he suspects a deficiency. He almost "pounces" to sort it out himself.

When there is a problem to be solved, Inderjit likes to call all those involved together in committee room, irrespective of rank or reporting rela­tionships and forces the facts out on to the table. In order to bring out the truth, he adopts a very challenging style (such as, "I don't believe in you...", "You are lying..."). Such remarks are made out in public, often to senior managers in the presence of their subordinates. What is more, Inderjit will even keep the group at it all night, if necessary, keeping aside other commit­ments. Eventually, he succeeds in solving the problem and also gets advance warning about other likely problems.

Raghur,ath, the personnel manager, is one who reports to Inderjii and particularly resents this treatment. He finds it degrading for a man in his position and also feels that, as personnel manager, he must do something to As Gopal and Ramesh walked away, Hemanth threw out his unsmoked cigar, went back to his office desk and began to think.

 

QZIESZ'IO91(,S

1. What do you think Hemanth was thinking about ? What was wrong with Hemanth's approach in dealing with his employees ? Was he all wrong ?
2. If you were to advise Hemanth, how would you tell him to improve his status among his employees ?
3. "Behavioural theories postulate that the behaviours of the leaders are more important than their qualities." Justify this statement bringing out the distinction between traits and behaviours of Hemanth.

 

 

 

CASE STUDY 14

Inderjit is about 40 and for the last one year has been the Chief Executive of a manufacturing company, that operates autonomously, but belongs to a large group. He has firm ideas on how best to manage people. In general terms, he believes that people respond best when the pressure is on them.

Inderjit has tremendous energy. He comes to work at 7.00 o'clock and stays late each evening. He works very hard and expects others to do the same. He is a stickler for details and often sends his managers running back from meetings to collect more facts. Face to face meetings with him are something like inquisitions. He has a very aggressive questioning style and bowls people out when he notices mistakes. He is proud that he can move heaven and earth to "fix" problems. Since he is good both in technical and financial matters, he tends to intervene as soon as he suspects a deficiency. He almost "pounces" to sort it out himself.

When there is a problem to be solved, Inderjit likes to call all those involved together in committee room, irrespective of rank or reporting rela­tionships and forces the facts out on to the table. In order to bring out the truth, he adopts a very challenging style (such as, "I don't believe in you...", "You are lying..."). Such remarks are made out in public, often to senior managers in the presence of their subordinates. What is more, Inderjit will even keep the group at it all night, if necessary, keeping aside other commit­ments. Eventually, he succeeds in solving the problem and also gets advance warning about other likely problems.

Raghur,ath, the personnel manager, is one who reports to Inderjii and particularly resents this treatment. He finds it degrading for a man in his position and also feels that, as personnel manager, he must do something to

change Inderjit's style. Raghunath is seriously concerned about the effects of Inderjit' s behaviour. He notices that his colleagues are showing signs of stress; they are putting in enormously long hours. They have become more compet­itive towards each other and less co-operative. Their preoccupation with Inderjit has reached absurd proportions. They spend lots of precious time talking about Inderjit in his absence and trying to anticipate "his next move.^"

Another alarming effect of Inderjit's behaviour is that senior managers spend long hours, getting the details right, so that Inderjit's probing will not catch them out. Managers who were previously willing to delegate, are now less inclined to do so. They feel the only right way is to do things themselves. The managers thus spend all their time on day-to-day issues and are not inclined to do any forward planning. Furthermore, Raghunath notices that the managers are less willing to accept mistakes than before. They try more to contain the problems, conceal them from Inderjit to escape his wrath.

Ironically, Inderjit has complained to Raghunath that too many managers are "fire fighting" instead of doing what 'they are paid to do, that is "to think" and to act. He told Raghunath that he could not understand why people "don't realize that conflict management is nothing but stimulating alternative courses of action ? What I really want is for them to go back, think again and tell me about it."

QUESTIONS

1. Assuming you are Raghunath, how would you analyze and explain Inderjit's behaviour as an individual ?
2. What would be your analysis of Inderjit's style of leading his people ? How far is it appropriate or otherwise ? Give reasons.
3. What options do you now have to remedy the situation with what objectives in mind ? Which option would you choose ? Why ?

 

Chhavi Woollen Mills Ltd. was incorporated in 1970 and it manufactures and 'sells woollen garments under the brand name 'CWM'. Its products are popular not only in India but abroad also. The company expanded its plant capacity in the early nineties. Majority of its existing employees joined the company in the early seventies and are now nearing retirement age. In fact, the process of replacing such employees with younger ones has already begun. Because of expansion also, several new employees have joined the company in the past five years. The company failed to achieve its sale targets last year mainly because of fall in quality of its products. Though it employs best materials and latest machines, the workmanship has not been upto the mark. This was the general complaint of the dealers and customers. The public image of the company has suffered a lot. In order to recover the lost ground, the production manager discussed the issue with the staff several times, but it brought no improvement. The young workers have started raising their voice against bureaucratic rules and regulations in the factory. The old workers recall that earlier they were guided by the process of self-control which has now given way to bureaucratic controls. The new managers insist more on rules and regulations than on human relations. They give little freedom to the workers at the workplace. There is thus greater degree of formalisation and also strict supervision over the workers. It is the new `culture' which is being opposed by the workers.

The pent up feelings of frustration and resentment against management, like a gathering storm, have resulted in volcanic eruptions leading to violent arguments between young workers and foremen on the shop floor. In the process, production has suffered, both quantitatively and qualitatively. The executive director of the company is seriously thinking of bringing about a radical change in the controls that are prevailing now in the company.

 

QUESTIONS

1. What factors have led to the deterioration in the quality of company's products ?
2. What changes have occurred in the organisation culture over the past five years or so?
3. Why do workers resist rigid controls ?
4. Suggest changes in the control system to improve the quantity and quality of production.

 

 

 

You are the General Manager of a large electronic toy company. After an extensive study of operation you have approved installation of new machines and a new scheduling system. This investment is expected to result in sub­stantial increase in number of units produced and decrease in manufacturing costs. To the surprise of everyone the production has not Una-eased as ex­pected. In fact, production has dropped, quality has fallen off and worker-complaints have increased.

 

You believe that there is nothing wrong with the machines. The manufacturer's representatives have thoroughly checked the operation in plant and are satisfied that they should operate at peak efficiency.

 

 

 

You have reason to believe that new scheduling system may be the culprit. But your immediate subordinates insist that the new system is oper­ating as intended. Some subordinates believe the drop in production is entirely due to worker psychology. It is caused by a combination of factors such as poor training, poor supervision, lack of financial incentives and poor morale.

Your President called you in the morning and has reviewed your pro­duction figures for the last quarter. He is concerned about the effectiveness of your investment decision to acquire new machines. He indicated that the problem was yours and he wanted to know what actions you intend to take to resolve this problem within one week.

 

QUESTIONS

1. What do you feel are the causes of low productivity ? Elaborate.
2. What could be the possible causes of increase in complaints of workers ?
3. If you were the General Manager of the Company, how would you handle the situation?

 

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Three Star Polyplastics Manufacturing Co. Ltd., was founded in 1978 by Mr. Bishan Singh after retirement from his military service. In 1995, it was still family owned, had no union, and was conservatively and paternalistically managed. The company adapted to changes slowly, but it remained a profit-able enterprise.

In 1982, the company sent five of its first line supervisors to a human relations training program, but the liberal ideas with which th<. supervisors were indoctrinated made a negative impression on the company's. top manage­ment. As a result, all supervisory training was conducted in-house after that. In 1989, labour problems and conflicts between the supervisors and the human resource department led management to enroll the company's 15 supervisors in a 5-day executive development program organised by a management consultancy firm. This change of policy was initiated by the new H.R.D. Manager, Mr. S.P. Jain. To avoid having too many supervisors away from the factory at once, three were sent to each monthly program.

Mr. Deepak, a young supervisor who had production engineering back-ground, returned from the executive development program excited about what he had learnt especially about delegation of authority, giving employees the opportunity to assume the maximum possible responsibility and establishing channels of open communication with employees. After the Friday afternoon session, Mr. Deepak discussed some of these ideas with his immediate supe­rior, Mr. Naresh Kumar. Both seemed genuinely pleased to learn that Mr. Deepak felt he had benefited from the management development program.

When Mr. Deepak returned to work on Monday morning, he discovered that several quality control problems had to be dealt with, a report was due, and several employees needed to talk with him about work schedule problems. It was Friday afternoon before he realised that he had not yet been able to take any of the ideas about which he had become so enthusiastic. By this time, the frustrations of the week had taken the edge off his enthusiasm, and he became preoccupied with the pleasant thought of a relaxed weekend with his family. He felt that Monday morning would be a good time to begin the new ideas.

QUESTIONS

1. What is the probability that the "outstanding" training program will change behaviour of the concerned supervisors ?
2. What factors in this organisation function as a deterrent to change ?
3. What, if any, OD interventions do you recommend in this situation ?
4. What steps do you recommend to stimulate lasting changes in supervisory behavi‑ our ?

 

ABC Company produces several types of recreational products such as small pleasure boats, campers, and related accessories. Most of the operations are divided into two activities-manufacturing the various component parts and assembling these parts into finished products. There are eight different as­sembly lines in the plant which assembled twenty seven different products. However, only eight different products could be produced at the same time. As seasonal demand for the various products changed, assembly lines were reconstituted. These also required a little change in the staffing of these lines, since most of the work was of an assembly type and these skills were transferable between almost all products.

The General Manager of the Company recently attended a production management seminar in which the speakers made frequent reference to the `Volvo concept'. This concept referred to Volvo's move in one of its plants from an assembly line operation to one designed around small work-teams. Each of these teams was responsible for a significant portion of the final automobile (such as assembling an entire engine) and the groups were given considerable freedom to choose their own work methods and perform their own quality control functions. The work groups were also segregated from each other to increase the 'group feeling'. The General Manager is seriously considering implementing the 'Volvo concept' in his plant.

 

QUESTIONS

1. What factors should be considered in deciding whether or not the idea should be used?
2. What problems are likely to be encountered to implementing the 'Volvo concept' ?

 

 

 

Imperial Chemical Industries is an international firm. It consists of 11 divi^­sions doing business in speciality chemicals, pharmaceuticals, agricultural chemicals and fertilizers, paints, explosives, oil, fibres, petrochemicals and plastics. It is a British firm with a large market presence in this country and Europe and smaller markets in many other countries.

The 1980 world recession hit ICI hard. Earnings in 1979 had been Rs. 595 million, but in 1980 ICI lost Rs. 27 million. In 1982, the company earned only Rs. 196 million. This drastic decline in earnings was the result of several factors : a poor world economy, an inflated rupee, the fall of commodity chemical prices and a rise in operating expenses all took their toll. However, an unfocused response to these outside factors also contributed to the prob­lems. by 1982, some of these factors were changing : The rupee was weak­ening and the world economic picture was brightening. However, many of the underlying problems within ICI were still present and had to be taken care of by ICI's new chairman.

 

The new chairman wanted to examine the current structure and func­tioning of the board of directors first. He had three alternatives before him in structuring the management of ICI : maintain the status quo,

become a holding company, and

make the company more than the sum of its parts through a restruc­turing of responsibilities. Each alternative offered advantages and disadvantages, but one had to be, chosen. At the time, the company was structured, each board member was responsible for a separate division. Each board member planned for the future of his division and tried to persuade other members to support it. Each member had a vested interest in seeing his or her division receive substantial funds, larger budgetary allocations and the chance to pursue a goal that may or may not be consistent with the goals of other divisions of the organisation as a whole. Each member mapped out a strategy for his or her own division, and no one coordinated the plans. Not surprisingly, conflicting goals were fixed, and self-interest dominated.

One option for change was to become a holding company, whereby the board would give a minimum amount of guidance to each division. Each division would then be expected to contribute a certain amount of profit to be corporation, each would be independently responsible for meeting its profit goal. In large part, the holding company option negated the necessity of an active board of directors.

The final option was to make the board responsible for the overall direction and performance of the company instead of each director managing one division. The board was to set company goals and coordinate divisional goals with it. Day-to-day responsibility was to rest with the president of each division, but the process and decisions were subject to be reviewed by the board.

 

 

QUESTIONS

1. What factors do you feel are important in deciding the structure of the Board of Directors ?
2. Which structure is best suited to the organisations ? Why ?
3. What process should be followed to have a smooth change in structure if the chairman decides to go for a change ?

 

 

"Sunrise" is the brand name of Sunrise Industries Ltd., a leading industrial house'of northern India with an annual turnover of more than Rs. 450 crores. The company produces a wide variety of electrical home appliances which are popular not only in India, but in foreign countries also. The Board of Directors is headed by Mr. Kamaldeep and its executive director is Mr. Ankit. The company has its head office at New Delhi and works at Ludhiana, about 300 km. from New Delhi. It is in the process of starting a new factory at NOIDA (about 25 km. from New Delhi) for the manufacture of refrigerators and air-conditioners. Sunrise Industries wasn't always a big industrial giant. In fact, it had a very humble beginning. Kamaldeep, an electrical engineer, set up a small scale industrial unit in 1975. To start with, he undertook assembly and sale of sewing machines under the name `Sunrise' and gradually started manu­facture of certain spare parts. Because of better quality,_,greater selling skills and lower profit margin, his sales turnover touched the figure of Rs. 1 crore during 1979-80. The products included sewing machines, irons, fans, geysers,

etc.

In 1981, Kamaldeep entered into a partnership with Ankit, an M.B.A., who contributed a lot of capital into the business. The firm acquired a big industrial plot in the New Industrial Area of Ludhiana and converted their business into a company known as Sunrise Industries Ltd. in 1982. The brand name `Sunrise^' was also registered in the name of the company. The company started the commercial production of single tub washing machines and instant geysers in 1983. Kamaldeep looked after production and Ankit took care of marketing and finance. They never looked back as they had a motivated work force of 40 workers and 5 foremen who worked like a big family.

It was during 1990 that the company shifted its head office to New Delhi and entered into a technical collaboration agreement with a foreign company. As a result, new generation twin tub semi-automatic washing machines and vacuum cleaners were launched in 1991 and the products were well received in the market because of latest technology and expanding market for electrical gadgets. The sales turnover increased tremendously every year.

During the first few years, the management and employees of Sunrise Industries were nothing more than a group of friends and relatives. There were no job descriptions, no formalized procedures and not much division of labour. All the people worked together and shared the problems of each other. The decision-making was participative in the sense everyone was free to give his opinion whenever any problem arose. Thus, there were cordial relations between the management and the employees. But after the collaboration agreement in 1990, the organisation structure of the company started changing dramatically. Because of massive expansion, a large number of workers, foremen, executives and professionals were recruited and separate depart­ments were created for the production of sewing machines, irons, fans, gey­sers, washing machines and vacuum cleaners. Formalization got momentum further with the creation of separate Finance, Marketing and Human Resource divisions. Now all the jobs in the company are standardized, there are job descriptions, manuals, many rules and procedures and also an elaborate management information system. All the important decisions are taken at the top and there are many layers between the top management and the workers because of vertical differentiation that has taken place during the past five

years. The quarterly reports of the last year reveal that percentage of customer complaints is on the rise, the morale of the workers is going down and commitment of the workers to the organisation is on the decline.

 

Questions

1. What changes in structural dimensions have taken place in Sunrise Industries ?
2. Is the present structure organic ? Give reasons for your answer.
3. Which approach to organisation do you feel can help the company tackle the current problems ?

 

 

Case study 21

R.K. Nair, formerly a Regional Manager of Premier Soap Co., was promoted as General Manager (Sales) more than a year ago. Rajesh Puri, Nair's im­mediate superior, had told him that his primary task would be to bring up all four national sales regions to a set sales quota so as to take early advantage of the emerging regional market trends. But Nair anticipated problems with one Regional Sales Manager, Mahesh Anand. Although he liked the man personally, he felt that Anand exerted excessive control over operations in his region, and that the result was a lack of initiative on the part of district sales managers reporting to Anand and the salesmen themselves.

As Regional Manager, Nair had often pointed out to Anand that if a Regional Manager insists on approving all key decisions by his District Managers, and countermanding decisions made without his consent, his sub-ordinates would be inclined to protect themselves by taking no risks and deferring even minor decisions ; the result would be a less flexible response to market pressures and a reduced share of the market. However, Anand had not taken Nair's advice seriously. Anand believed in making sure that every subordinate knew that he was under his control. "I have learned the hard way," Anand would say, "that if you do not make sure that every salesperson was doing the job right, some of them won't do their job right."

Soon after his promotion, Nair resolved to put his bias aside and give Anand a fair chance. During his visit to Anand's region, however, Nair was distressed to find that many of his fears seemed to have come true. Salesmen were reluctant to make decisions that might have ⁱmproved the market posi­tion of the company's products without the approval of their district manager, who in turn was often reluctant to grant that approval without checking with Anand. The result was a conservative and mostly uniform approach to an increasingly volatile and segmented market. Thus, Anand^'s region was falling behind the others in meeting the new sales targets. Nonetheless, Nair clung to his resolves. He felt that differences in exercise of authority were to some degree a matter of taste, and it would be unfair that all his managers operate the same way. He was also aware of the informal grapevine between the four Regional Managers, and he feared that if he made an issue of the matter which was essentially a philosophical difference between him and one of his sub-ordinates, others might hear of it and lose their respect for him.

At a monthly meeting with Rajesh Puri, his superior, Nair confessed that sales had even begun to decline in Anand's region. Puri observed that Nair^'s initial reluctance to question Anand^'s way of functioning was under­standable, but a year had passed since Nair took over, and his continued inaction could hardly be justified. "You should not have waited till sales started declining in that region," Puri remarked. He further accused Nair of inaction in order to preserve his own image as a fair and judicious person. However, Puri did not specify the action he wanted Nair to take.

Nair then called Anand for an informal meeting. Anand interpreted the situation as a matter of bad luck and attributed it to the ineptness of a particular District Manager whom he proposed to discharge. Nair noted that the decline in sales was roughly uniform in all districts of Anand's region, and whatever the particular District Manager's faults may be, he could not be blamed for the region's poor performance. He then asked Anand to attempt a sharp and sustained change of approach. Although, Anand was sceptical, he agreed to try.

During the next several weeks, the sales decline-was arrested in this region, although the lost market share could not be recovered. Anand went to some length to assure Nair that he had allowed his subordinates greater freedom to take decisions on their-own. But he also reported that the policy was working no better than he thought it would, because the district managers continued to be dependent on him for `advice'.

Nair's problem was to decide whether he could accept the position as it was or whether he would have to take some drastic action.

Question

1. Analyse Nair's and Anand's attitude towards exercise of authority.
2. Was Puri right in not giving Nair specific instructions for dealing with Anand ?

Why or why not ?

3. What should Nair do now ? Give plausible reasons for your answer.

 

 

Case study 22

HIREN DASGUPTA

Hiren Dasgupta, Sales Manager of Fashion Fabrics, Eastern Region, did not find the performance of Harish Mastana, one of his sales representatives, upto the mark. On six separate occasions, Hiren personally discussed with Harish about his various problems, suggesting ways and means so that he might impro^ve his sales performance. During the last conference, Hiren said, "Harish, I'm not going to have to let you go if your sales are not upto quota this month."

Harish failed to meet his quota. Hiren could not bear with the situation and decided to go for further action. He wrote him a letter informing him of his dismissal. Three days later, Hiren received a call from Mr. K.T. Parekh, General Sales Manager, "Hiren, I want you to put Harish Mastana back on the payroll immediatel} . You know he is the nephew of Mill Mazdoor Union President^" "O.K.^" sighed Hiren, "I'll see that it's done.^"

Question

 

1. What are the authority power responsibility accountability relationship I this case ?

 

2. What can be the possible impart of thes3e relationship on the functioning of the company?

 

3. How far hire was justified I brig garish?

 

 

 

 

 

larish Nawal did his MBA from I.I.M., Bangalore and joined his father^'s usiness, which employed 60 semi-skilled workers and five supery isors. After ee week, his father called him and said, "Nawal, I have had a chance to tbserve your working with the men and women for the past few days. Although I hate to, I must say something. You are just too nice to people. I know they taught you human relations stuff at the I.I.M., but it just does not work here. I remember, when the Hawthorne studies were first reported, everyone in the academic field got all excited about them. But, believe me, there is more to managing people than just being nice to them.^"

QUESTIONS

1. Do you think, Nawal's father understood and interpreted the Hawthorne studies

correctly ?

2. If you were Nawal, what would your reaction be to your father's comments ?
3. Is it possible to be nice to employees and achieve higher productivity ? How ?

 

 

Case study 24

Mr. Anand occupies No. 2 position in the Corporate Planning Department of multi-product company having a turnover of more than Rs. 900 crores and operating in a high technology (hi-tech) industry. For the last five years, Anand has been associated with strategic planning of the company and recently he has been deputed to a task force to reorganise the company to cope up with the changing technology and environment.

At the last meeting of the Board of Directors of the company, the members expressed their concern about the falling competitive position of the company in the industry. The main reason cited by the Chief Executive was the outdated organisation structure which has net undergone any change for the last 10 years though the size, technology and environment of the company have changed tremendously. It was on the advice of the Chief Executive that the Board of Directors decided to set up a task force for company^'s reorganisation.At the first meeting of the task force, Anand, who is an expert in planning, convinced the other members to adopt the following procedure :Determine exactly, what type of structure the company has at present.Determine the type of environment the company faces now and the weaknesses of the present structure.Forecast the environmental changes in the future and the type of technology to be used by the company. Design the organisation structure to meet the future challenges.

It was discovered that the company is currently structured along classical Imes and the company is operating in a highly dynamic environment. The environment in future is likely to be more uncertain because of fast changes in technology and requirements of customers and competition by MNCs. The task force came to the conclusion that the structural design must be responsive to change and if this is not done, the company's survival in4he market would be made more difficult.

Question

1. How far do you agree with the procedure adopted by the task force ?
2. Explain how the system and contingency approaches can contribute to the analysis of this case.
3. What type of organisation design should the task force recommend ? Explain its broad features.

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