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You can use the time in travel, waiting for meetings, lunch time, small breaks or at home usefully.

Through these tools, the learning bytes are right sized for ease of learning for time challenged participants.

The content starts from practice and connect to precept making it easy to connect to industry and retain.

They can be connected to continuous assessment process of the academic program.

Practitioners can use their real life knowledge and skill to enhance learning skills.

Immediate visualization of the practical dimension of the concept will offer a rich learning experience.

AN INTRODUCTION TO DIFFERENTIATED LEARNING TOOLS

Participants in flexible learning programs have limitations on the nature of the time they can spend on learning. Typically they are employed fully or partially, pursuing higher studies or have other social and familial responsibilities. Availability of time is a great constraint to these students.

To aid the participants, we have developed four unique learning tools as below:

· Bullet Notes : Helps in introducing the important concepts in each unit

of curriculum, equip the student during preparation of examinations and

· Case Studies : Illustrate the concepts through real life experiences

· Workbook : Helps absorption of learning through questions based on real life nuggets

· PEP Notes : Sharing notes of practices and experiences in the Industry will help the student to rightly perceive and get inspired to learn concepts at the cutting edge _{application level.}placementinterviews

Why are these needed?	· Adults learn differently from B. School or college going
	· Adults learn differently from B. School or college going
	students who spend long hours at campus.
	· Enhancing analytical skills through application related learning
	kits trigger experiential learning
	· Availability of time is a challenge.
	· Career success increasingly depends on continuous learning
	and success

What_· makes it relevant?

How_· is it useful?

Where· does this lead to?

· Easier to move ahead in the learning process.

· Will facilitate the student to complete the program earlier than _otherwise.Helpsstay motivated and connected.

When_· is it useful?

Case Studies:

Principles of Management

No part of this publication may be reproduced, stored in a retrieval system, used in a spread sheet, or transmitted in any form or by any means – electronic, mechanical, photocopying or otherwise – without prior permission in writing from The ICFAI Foundation for Higher Education (IFHE), Hyderabad.

Ref. No. POM-CS-IFHE – 042015

For any clarification regarding this book, the students may please write to The ICFAI Foundation for Higher Education (IFHE), Hyderabad giving the above reference number of this book specifying chapter and page number.

While every possible care has been taken in type-setting and printing this book, The ICFAI Foundation for Higher Education (IFHE), Hyderabad welcomes suggestions from students for improvement in future editions.

CONTENTS

1.	Change the Rules of the Game, if necessary	5
2.	Changing Patterns of Bureaucratic Management	6
3.	WIPRO- The World‘s Most Ethical Company in 2014	8
4.	Frugal Innovation at TATA Group	10
5.	Managing Organizational Objectives: Rypple‘s Way	12
6.	Vision 2050	14
7.	How Rational Decisions turn Irrational Sometimes	16
8.	The Re-Organizing Decision at Flipkart	18
9.	Otis India‘s Decentralization Move	20
10.	The New Organizational Structure @ Infosys	22
11.	Facebook and its Organizational Culture	24
12.	Staffing at Myntra	26
13.	Nadella‘s Compensation	28
14.	Organization Development at Wanxiang	29
15.	Facebook‘s New-fangled offer for freezing of eggs	32
16.	Motivating Employees through Unique Rewards	34
17.	Alexander the Great‘s Leadership	35
18.	Managing Communications	37
19.	Uber	38
20.	Zero and Minimum Inventory Policies of Big Basket	39
21.	Mathematical Predictions on Ebola	42

22. M-One- Multimode Mobile Governance:

An Information and Communication Technology for

Citizen-Government Engagement

iii

Introduction to the Case Study

Participants in ICFAI University Programs are eager to apply theory into practice. They realize that application orientation can enhance their learning and subsequent usage of management precepts and practices. Picking out the principle behind real world events is critical to this learning.

To fulfill this objective the institution has introduced the Case Study methodology as a learning tool. A one page case is developed for learning a concept/topic from an illustration of a real world occurrence. The case illustrates a situation pertinent to an individual/a company/an industry or an economy in relation to a concept or issue covered in the curriculum. The illustration is specific to the point being discussed.

The case depicts the knowledge which can be applied as illustrated in the practice of the real world. These experiences can be distilled to look at a core principle at play by the participant. While there could be multiple principles at play, the illustration of each case helps in its better understanding of the concept at a very fundamental level.

The learning outcomes expected are:

1. Real world is illustrated and connected back to one concept/topic for better theoretical understanding.

2. Application based approach, which significantly enhances absorption and retention.

3. Exposure to specific business situations and developments improves perspective.

It may be used for Assessment

₁Change the Rules of the Game, if necessary

Australian cricketer, Phillip Hughes (Hughes), aged 25, died in a tragic freak accident on November 27, 2014, while playing a state match for South Australia against New South Wales, causing a tremendous shock to cricket fraternity. He was hit on the side of the head by a bouncer bowled by Sean Abbott at a speed of about 85 km/hour. The blow had split the main artery carrying blood to the brain, causing brain haemorrhage. After being hit, Hughes put his hands on his knees, before collapsing and losing consciousness, never to regain. Battling for two days in the hospital, he died, putting a promising career in cricket to an abrupt end and sending shockwaves to the entire cricket players and lovers.

Hughes was born on November 30, 1988 in the town of Macksville, near Sydney. He made his test debut in 2009, at the age of just 20, against South Africa.

While the International Cricket Council (ICC), the international governing body for cricket was overlooking

match playing conditions, decision review systems, bowling reviews and other regulations, Marylebone Cricket Club (MCC) made cricket‘s laws and rules. Only MCC had the authority to change the laws of

cricket, which was usually done after discussions with the ICC.

The authorities controlling sports like Boxing, Motor Racing, which were deemed dangerous, have taken several precautions and modifications to protect the life of the players involved. Rules for Boxing have been changed to reduce the length of fights and to closely monitor fighters both inside and outside the ring.

Formula One‘s authorities had changed the racing routes. Cricketing enthusiasts said that, emphasizing on the safety of players; changes need to be brought in the rules of cricket too.

The cricket scenario

Some of the	·	potential dangers of cricket:
	·	A very hard leather ball- bowled even at a speed of up to 100miles/per hour
	·	Helmets that do not provide adequate protection to the batsmen who face balls bowled at
	·	high speed
	·	No formal training given to players, umpires and sports officials on first aid to rescue the
	·	injured
	·	Non-availability of medical team for quick and optimum care to the players at the ground
	·	Absence of facilities to counsel traumatized players

The four decisional „roles of a manager‟ are that of an entrepreneur to take innovative methods to improve the performance of the firm; as a disturbance handler to take remedial actions for situations which may affect the credibility of a firm; as a resource allocator; and as a negotiator to negotiate in the interest of the organization. ICC should come forward with its decisional roles to ensure the safety of its players.

Discussion Questions

1. What decisional managerial roles should ICC suggest to MCC to reduce the dangers of cricket? (Hints-usage of helmets-training to players, umpires- optimum care to players)

2. Discuss the role of management in the event of a crisis

(Hints-analysis of the crisis- remedial actions-decision making-effective implementation)

Course Reference -Concept- Role of management, Unit- Management: An Over view, Subject- Principles of Management

Sources:

i. “It is the time to grieve for Hughes,” The Hindu, November 29, 2014

ii. Dan Diamond, “Phil Hughes Dies in Tragic Cricket Accident, as Australia Mourns 'Heart-breaking Day',” www.forbes .com, November 27, 2014.

iii. Arun Venugopal,”Injury Opens Debate on Dangers of Cricket,” The Hindu, November 26, 2014.

Other Key words: Organization Behavior, BC&SS

₂Changing Patterns of Bureaucratic Management

ANZ Motors (ANZ), a Germany based global car manufacturing company, was founded in 1956 by Charles Grey. Within a decade of its incorporation, ANZ emerged as the leading car maker in the German market. ANZ entered the international market in 1968. It was ranked among the top 10 global car makers by 2008.

In 2009, the company appointed David Loy (Loy) as its new CEO. ANZ was hopeful of scaling new heights under Loy‘s leadership. Loy had 18 years of industry experience. Under his leadership, DRV motors, his

previous employer, had emerged as the 3^rd largest car maker in the world. However, ANZ started witnessing a decline within a year of Loy‘s leadership.

· By 2011, ANZ‘s position in the global car market slipped from the 8^th to the 15^th.

· Experts attributed this declining performance to Loy‘s bureaucratic management style.

· Employees used the company‘s hierarchical structure as an excuse to delay decisions.

· Customers complained of lack of new features and variants in the company‘s product offerings

In 2012, James Button (Button) was appointed as the new CEO of ANZ. In his nearly two decade long professional journey, James had headed the manufacturing and marketing divisions of two prominent

international car makers. Button worked towards reforming the prevailing bureaucratic model at ANZ (Refer to Chart 1 for Button‘s Reforms).

Chart 1: Button’s Reforms

Button‟s Approach

Changes in the working style

1. Long lunch hours and breaks during work hours were done away with.

2. A stricter electronic surveillance was introduced to track the reporting time of employees Changes in the culture of rigidity and hierarchy

1. Rewards and incentives were introduced to encourage employees to think out-of-the-box

2. Employees were given the freedom of approaching the CEO directly Time bound decision making

1. All the product related decisions were to be taken within a 2 week time frame

2. All the departments were expected to specify their deadlines and strictly adhere to the same

3. Monetary incentives were introduced to reward teams which met their targets within the specified deadlines

Accountability and responsibility were given importance

1. Every individual who went through product proposal was expected to comment on the same.

2. The old approach of passing over a proposal to the next level with a ‘please advise’ remark was no longer

acceptable.

Despite its many benefits, industry experts had raised certain concerns over Button‘s approach, and termed it bureaucratic (Chart 2: Benefits and Drawbacks):

Chart 2: Benefits and Drawbacks of Button‘s Model

BenefitsDrawbacks

1. Risk of undercutting the top _management

1. The time bound approach created sense of

urgency across departments

2. Strict time-frames might lead to lack of inter-

departmental consultation

2. Deadlines were being adhered to

3. The _{sustainability} challenge in the long-run

3. Sales the global market had increased

from 7% to 10 %

„Bureaucratic management‟ referred to a highly structured, formal and impersonal organizations managed by clearly defined regulations and lines of authority. Button initiated numerous reforms in the

existing bureaucratic framework at ANZ including encouraging new ideas and not being inhibited by hierarchy in order to improve the efficiency and effectiveness of the company‟s functioning.

Discussion Questions

1. Discuss the characteristics of bureaucratic management.

(Hints: hierarchical structure-adherence to rules and regulations-formal structure)

2. What were the advantages and disadvantages of Button‘s reformed bureaucratic model?

(Hints: created sense of urgency- adherence to work timings-sustainability challenge)

Course Reference: Concept- Bureaucratic Management/Unit 2-Evolution of Management Thought/Subject-Principles of Management

Other Keywords: HRM, Organizational Behavior

This is an imaginary Brief Case to illustrate the concept of Bureaucratic Management

3	WIPRO- The World’s Most Ethical Company in 2014

Wipro Limited (formerly Western India Products Limited), established in Maharashtra in 1945 ventured into IT in 1981 and established software products in 1983. The multinational IT consulting and System Integration Services Company headquartered in Bangalore had a workforce of 147,452, serving clients across 61 countries as of March 2014. It was one of India's largest publicly traded company and seventh largest IT services firm globally with a market capitalization of Rs.1.27 trillion ($20.8 billion). WIPRO delivered solutions that enabled clients to do better business with its technology expertise and comprehensive portfolio of services.

In March 2014, Wipro was recognized as the world‘s most ethical company by the Ethisphere Institute, an American management consulting firm, which promoted best practices in corporate ethics and compliance. Their assessment was based on the scores generated from five categories- ethics and compliance programs (25%), reputation, leadership and innovation (20%), governance (10%), corporate citizenship and responsibility (25%), and culture of ethics (20%). Based on these parameters, Ethisphere in 2014 had selected 144 companies across 41 industries from 21 countries of 5 continents. WIPRO Limited and Tata Power Company were the only two Indian companies that ranked in the list.

The practices of WIPRO that earned world’s prestigious award

· Integrity and ethics in thinking and acting of business matters

· Commitment to ethical leadership, compliance practices and corporate citizenship

· Collaborative work with stakeholders including employees, customers, suppliers, investors through communication and shareholder satisfaction surveys and web based query redressed system

· Institutionalized checks and balances in all systems- prevention of insider trading

· Transparency in company‘s disclosures

· Code of Business Conduct and Ethics (COBCE)

· Environmental performance and corporate social responsibility a part of the company‘s spirit

· Spirit of Wipro reflected through its values - Intensity to win, Act with sensitivity and Unyielding integrity-

· Embeds process for employees and non-employees

However Ethisphere‘s selection process was to be taken with some caution. Most of the self-reported information from companies was based on element of trust and on face value. The list did not include some highly ethical companies with serious social missions. Erblich, CEO of Ethisphere, himself conceded that

‗we have to find a way to engage more companies‘.

To improve ‘ethical behavior’ and make organizations most ethical, organizations can help managers improve ethical behavior through commitment, code of ethics, ethics committees, ethics audits, ethics training and ethics hotline. WIPRO could win the prestigious award of most ethical company for 2014 by imbibing ethical practices in all its systems by letter and spirit.

Discussion Questions

1. Explain the practices followed by WIPRO that earned the world‘s prestigious award ‗Most ethical company‘.

(Hints-integrity at work-collaborative work culture- commitment to ethical leadership-transparency)

2. Write a note on the social and ethical responsibility parameters adopted by Ethisphere in determining world‘s most ethical companies

(Hints-ethics and compliance programs-leadership and innovation-governance- corporate citizenship and responsibility)

Course Reference: Concept- Mechanism for ethical management/Unit-Social and Ethical Responsibilities of Management/Subject-Principles of Management

Sources:

i. Susan Adams, “The World‟s Most Ethical Companies 2014,” www.forbes.com, March 20, 2014.

ii. Ethisphere, Worlds Most Ethical Companies – Honorees, www.ethishpere.com

iii. Sustainability @WIPRO 2012-2013, The Butterfly journey, http://www.wiprosustainabilityreport.com/corporate-governance

Other Key Words: Organizational Behavior, HRM

	4		Frugal Innovation at TATA Group
	4

Tata group, Indian Multinational Corporation, headquartered at Mumbai, was founded by Jamsetji Tata in 1868. It had 100 operating companies that included Tata Steel, Tata Motors, Tata Consultancy Services, Tata Power, Tata Chemicals, etc, spread in more than 100 countries. The revenue of Tata companies was $103.27 billion (around INR 624, 757 crore) in 2013-14, with 581,470 employees worldwide. Tata, known for its innovation, consistently delivered breakthrough products and services, with its renowned business models.

Frugal Innovation referred to making better and cheaper products and services, without compromising on quality and making a flexible arrangement for solving problems. Frugal Innovation tried to generate more business and social value at low-cost, while reducing usage of scarce resources. It also played a vital role in solving several social problems. Nano, Tata Swach and Solar Home Lighting Systems were some of the examples of frugal innovations brought out by the Tata‘s. A lot of planning was required to bring in innovative products at cheaper prices.

Nano- the cheapest car- By using less number of components, Tata made Nano cost effective and launched in 2008. Nano‘s initial price was INR 1, 00, 000.

Tata Swach- the lowest cost water purifier – Tata Innovation Labs in collaboration with TCS

launched a filter based innovative water purifier for low income groups. The filter could purify 3000 liters of water. With an operating cost of INR 30 per month for a family of five, Tata‘s innovation

fulfilled the basic need of safe, clean drinking water. When the purification capacity of the cartridge exhausted, automatic signals were given to replace the cartridge. Swach used nano technology low-cost and widely available natural ingredients like Rice Husk Ash to purify water, to meet the internationally acceptable water purification standards. Tata Power Solar Home Lighting systems-Low-cost power systems to generate electricity from sunlight. It contained a rechargeable battery that stored electricity. Aryvartan Gramin bank lent support in financing for the lighting systems.

Frugal innovations from TATA are helped in providing low-cost solutions to problems faced by people in countries like India. These innovations contributed to the development of the country and were also exported to other countries. Developed countries were also eyeing frugal innovations of India.

‘Planning’ is a prerequisite for achieving success and for surviving in a complex and competitive world. It facilitates innovative and creative thinking among managers. The innovative leader has to decide what to do and then direct the organizational members how to do it. Several frugal innovations of TATAs, not only brought solutions to societal problems but also put India in world map for creativity and planning.

Discussion Questions

1. What is frugal innovation? Explain the role and significance of planning in frugal innovation

(Hints- making socially useful qualitative and cheaper products-planning for innovation-using excellent business models)

2. Taking examples from TATA‘s frugal innovations, explain how innovative and creative thinking in planning helped in bringing out innovative products

(Hints- Nano, cheapest cars- Swach, lowest cost water purifier- Solar home lighting systems-planning to solve local problems-producing socially beneficial products)

Concept Reference: Concept- Significance of Planning, Unit- Fundamentals of Planning, Subject- Principles of Management

Sources:

i. Shambhu Kumar,"Frugal Innovation: The Tata Way,” Indian Management, December 2014.

ii. Tata Leadership with trust, www.tata.co.in/aboutus/sub_index/Leadership-with-trust

Other key words: Human Resource Management, Social Enterprises

	5		Managing Organizational Objectives: Rypple’s Way
	5

Rypple was founded in 2008 by Daniel Debow (Debow) and David Stein. This Toronto based company offered solutions for sales performance, customer service and marketing. Rypple, a social performance management platform helped managers and employees in collaborating with individual, team and organizational goals and facilitated the exchange of feedback. It helped them to improve their work performance in the course of continuous coaching, real-time feedback and recognition. In 2012, Salesforce.com acquired Rypple and was renamed Work.com.

In 2011, while the US economy was recovering, some employee engagement surveys and research by

popular research organizations disclosed that employee disengagement had an impact on the productivity hitting the organization‘s bottom line. Rypple could sustain its productivity during the downturn as it had an

effective system in place for employee engagement. Rypple had a culture of appreciating employees for doing well on the job in public or through its built-in social network system. The secret behind the sustainability of Rypple was the employee engagement technique adopted by Debow (Refer Chart 1).

Chart 1: Debow’s three ways of keeping employees engaged at Rypple included:

Make time for face	·	Say thanks:	Connect work with
time:	·	Employees were	meaning:
· Connected teams		appreciated by	· Reframed jobs to
for personal touch		immediate	connect with their
through	·	managers	work
technology	·	By peers through	· Allowed staff to post
· Example: video	·	software	feedback
Skype portal for	·	Publicly awarded	· Allowed to share
direct video access		badges	stories from

Debow also ensured giving timely feedback and coaching. He also introduced ESOP (Employee Share Ownership Plan) to encourage the employees.

For realizing the organizational objectives, Debow

· Encouraged and reinforced employees

· Connected people through technology for personal touch

· Sustained productivity in times of economic downturn

· Drove innovation through improved commitment

· Helped in building quality products

· Improved employee morale

‘Encouraging participation’ of the employees at all levels of the organization helps in attaining organizational objectives effectively. Rypple‘s approach in recognizing and improving the employee

commitment helped the company sustain its productivity in critical times.

Discussion Questions:

1. Why do organizations focus on employee commitment?

(Hints: encourage employees- creativity-cope up with contingencies)

2. Explain the employee commitment approach designed by Debow at Rypple?

(Hints: connecting teams – praising – feedback)

Course Reference: Concept-Encouraging participation – Unit – Management by Objectives/ Subject – Principles of Management

Sources:

i. Camille Jensen, “Combining Equity with a Sense of Mission Key to Rypple‟s Success,” Axiom News, April 25,

2009.

ii. Daniel Debow, “Three ways to Boost Commitment at Work,” Fortune, March 3, 2011.

iii. David F. Carr, “Salesforce Acquires Rypple or Social Employee Performance Management,” InformationWeek,

2012.

Other Keywords: Human Resource Management, Organizational Development.

	6		Vision 2050
	6

World Business Council for Sustainable Development (WBCSD) led by CEO Peter Bakker, aspired to create a sustainable future for business society and the environment. WBCSD had prepared 2050 Vision Report, compiled by 29 leading global companies from 14 industries in consultation and dialogue with 200 companies. The basic aim of Vision 2050 was to develop a sustainable future and happy living to the 9 billion inhabitants of our planet. Vision 2050 visualized transformation of the world wherein people could live comfortably within the available resources of the planet.

To achieve the Vision 2050, WBCSD formulated Action 2020 which developed ‗Societal Must Haves‘ in collaboration with Business, Government and Society, focusing on 9 priority areas and 5 business solutions, to address the societal and environmental problems. The priority areas were: climate change, release of nutrient elements, ecosystems, exposure to harmful substances, water, basic needs and rights, skills and employment, sustainable life styles and food, feed, fiber and bio-fuels. The business solutions were

measurable, scalable, replicable, beyond business and good for business. Millennium Alliance for Humanity and Biosphere (2012) highlighted in its analysis, stated that WBCSD‘s identification of nearly 40 must-

haves and bringing together of business and government to realize these must haves for achieving a sustainable 2050 were commendable.

The Must haves:

· Incorporating the costs of externalities into the structure of marketplace

· Increasing the agricultural output by 100%, without increasing water or land usage

· Halting deforestation

· Reducing the carbon emission level of 2005 to half by 2050

· Improving energy efficiency and providing access to low-carbon mobility

The plan of WBCSD was to achieve these targets by 2020 to gain confidence to achieve Vision 2050, which would open manifold business opportunities.

Business Opportunities:

· Developing and maintaining low carbon

· Zero-waste cities

· Improving and managing bio-capacity, ecosystems, lifestyles and livelihoods

Vision 2050 strongly envisaged for putting an end to the destruction caused to ecosystem, rising greenhouse gas emissions and moving towards sustainable agriculture in order to strive for sustainable economic development and societal well-being.

‘Strategies and policies’ provide a direction or a sense of purpose to an organization. Strategic planning involves understanding present and future trends, determining the direction in which the firm is

headed, and developing the means to achieve the organizational goals. The strategic planning of WBCSD‘s Vision 2050 had shown the pathway for sustainable development coupled with societal well-

being.

Discussion Questions

1. Explain the importance of strategies and policies in planning

(Hints-provide direction and sense of purpose- understanding present and future trends- help in achieving organizational goals)

2. Discuss Vision 2050 in relation to strategies, policies and planning premises (Hints-action 2020- societal must haves-new business opportunities)

Concept Reference: Concept- Strategies and Policies, Unit- Strategies, Policies and Planning Premises, Subject-Principles of Management

Sources:

i. World Business Council for Sustainable Development, vision2050, Overview, www.wbcsd.org

ii. World Business Council for Sustainable Development, Action 2020, Overview, www.wbcsd.org Wbcsd.org/action2020.org

iii. Sustainable Business Case Studies, www.theguardian.com

Other key words: Strategic Human Resource Management, Social Enterprises

₇How Rational Decisions turn Irrational Sometimes

On 8th November 2014, at Bilaspur, in the state of Chhattisgarh, a surgeon sterilized 83 young women in just six hours without adhering to the established hygiene norms. State Governments regularly conducted family planning camps to control population growth. The camp at Bilaspur was one such camps. But what brought the incident to the headlines was the death of 13 women in the camp the sterilization was conducted callously by a single doctor overriding many norms. Generally, in such camps, a team of doctors were given a target of 40 sterilizations and were advised not to exceed 50. But the number of operations held in this case was 83 and reports suggested that a total of 1,434 women died from such programs between 2003 and 2012.

India was the first country in the world to introduce a population control policy in the 1950s and Government sponsored mass sterilizations had become common in India. Still these efforts did not show much progress, and population in India continued to grow, straining the limited resources in the country.

Successive governments failed to formulate rational policies to manage India‘s population growth.

Features of Rational decision-making in the case

· Population control was essential for economic development

· It was also in the interest of poor families, many of them being illiterate and ignorant, did not understand the importance of family planning programs. Some motivational initiatives prompted them to accept and practice family planning methods.

· For micro and macro societal development, population control was considered as a rational decision.

Features of irrationality of the case

· The sterilization deaths proved lack of safety measures and negligence in the conduct.

· Women were forced by health workers to attend the camp for sterilization

· They were not being informed about the risks involved and alternative choices

· Not adhering to the norms set to perform sterilization

· Absence of sterile and hygienic conditions in the camp

· Use of adulterated medicines.

· Patients were discharged immediately after sterilization and no follow-up care was provided

What could have been done?

· Minimizing excess dependence on women sterilization as birth control

· Creating awareness about contraceptive choices

· Need for popularization of easier, safer and non-risky vasectomy for birth control

· Taking extraordinary care in conducting such camps

· Concentrating more on rational views such as health and safety of women rather than irrational emphasis such as meeting the targets

Under the rational model of decision-making, ‘managers’ engage in ‘decision-making’ which is totally rational. But managers may not always be perfectly rational in making decisions. Irrational models like satisficing, incremental and garbage-can model either make managers to ignore critical information or find solutions for short-term goals. In the Bilaspur tragedy, the team was more ambitious to reach the goals rather than looking at the critical points underlying sterilizations.

Discussion Questions

1. Why are managers not always rational in decision-making? Answer the question with reference to the case cited above

(Hints-urgency to realize targets- pressures from top hierarchy-callousness- monetary gains)

2. Explain the role and importance of managers in making rational decisions

(Hints-rational decision-making-micro and macro societal development-motivators)

Concept Reference: Concept: Managers as Decision-makers, Unit- Managerial Decision-Making, Subject- Principles of Management

Sources:

i. Jason Burke, “India-Sterilisation-Deaths-Women-Forced-Camps-Relatives, www.theguardian.com, November 12, 2014.

ii. Shanoor Seervai, Gabriele Parussini, “Deaths Put Spotlight on India‟s Sterilization „Camps‟,” November 13, 2014.

iii. ILNS,”Women critical after sterilization surgery”, IndiaLive Today, November 12, 2014.

Other key words: Human Resource Management, Organizational Behavior

₈The Re-Organizing Decision at Flipkart

Flipkart, an Indian e-commerce firm headquartered at Bangalore, was founded by Sachin and Binny Bansal in 2007. Flipkart commenced its business operations as an online platform focused on selling books. In 2010, the company expanded into newer product categories including movies and mobiles. It introduced the

cash-on-delivery option in the same year. As of 2014, Flipkart offered about 20 million products under more than 70 categories.¹ It had about 26 million registered users and nearly 20,000 employees in 2014. Flipkart‘s

valuation rose from $2.5 billion in 2013 to about $11-$12 billion by December 2014. When Flipkart started it was a small company and operated as a flat start-up firm. The increase in the number of employees

brought about a re-organization within the company as new layers including directors, vice-presidents and managers were introduced (Refer to Chart 1 for Flipkart‘s Management Organizational Structure).

Chart 1: Flipkart‘s Management Organizational Structure

	Sachin Bansal			Binny Bansal
	(CEO)				(COO)
		CFO	VP, HR	President,
		CFO	VP, HR
VP,	VP,	President,
Products	Marketing	Engineering
				VP, Retail	VP, Operations
		Sr. Manager,
		Payments		AVP,	Director, Flipkart
				AVP,	Director, Flipkart

Adapted from http://forbesindia.com/media/images/2012/Jun/img_65730_flipkart_one.jpg

In February 2015, the company decided to re -organize into 3 businesses or units. This was the biggest re-organization in the company‘s 7.5 year history (Refer to Chart 2 for Flipkart‘s Re-organized Structure).

Chart 2: Flipkart‘s Re-organized Structure

					Mukesh
1. To continue as the
1. To continue as the		Sachin Bansal	Binny Bansal	Marketplace, Retail and
CEO.		Sachin Bansal	Binny Bansal	Marketplace, Retail and
CEO.		(CEO)	(COO)
2. Increase focus on new		(CEO)	(COO)
2. Increase focus on new
projects and strategy
3. The involvement in				Sr. VP, Head of		Senior VP,
day-to-day management		New	Supply Chain	Engineering		Marketplace
was expected to reduce
*Adapted from Mihir Dalal, “Flipkart Reorganizes into 3 Units,” Livemint, Febru*ary 7, 2015
This re-organization was introduced to achieve the following objectives:
·	To enter new business ventures and keep pace with the aggressive growth and the dynamic
·	operational environment
·	To split technology into – innovation or research and development and day-to-day
·	technology
·	To allow Sachin and Binny to focus on charting the company‘s long-term path. For example,
	Sachin shall focus on generating advertising revenues, mobile payments and exploring new
	projects

1 The Flipkart “tory,		http://www.flipkart.com/about-us
			18

· To build a massive logistics and supply chain organization in order to maintain the competitive edge over players like Amazon and Snapdeal

· Despite these positive developments, experts had raised certain concerns:

· The jump in valuation created a significant pressure over the company to consistently deliver a high revenue growth

· Flipkart had to spend a considerable amount to recruit senior management executives as nearly 5 senior executives parted ways with the company between September-December 2014.

‗Organizing’ referred to a managerial function that dealt with the allotment of duties, coordination of tasks, delegation of authority etc. Flipkart decided to organize itself into 3 units. This re-organization involved a change in responsibilities, new focus areas and change in reporting structure within the company.

Discussion Questions

1. Discuss the importance of organizing for an organization.

(Hints: focus on new ventures-chart out future growth plans-keep pace with the dynamic market environment)

2. Discuss the salient features of Flipkart‘s re-organization model.

(Hints: division into 3 business units-increased focus on technology-focus on logistics and supply chain)

Course Reference: Concept-Organizing /Unit 8 –Fundamentals of Organizing/Subject-Principles of Management

Sources:

i. „About Us‟, www.flipkart.com

ii. Itika Sharma Punit, “Organizational Structure to Keep Evolving, Says Flipkart,” www.business-standard.com, November 29, 2014

iii. Mihir Dalal, “Flipkart Reorganizes into 3 Units,” Livemint, February 7, 2015

Other Keywords: HRM, Organizational Behavior

	9		Otis India’s Decentralization Move
	9

The Otis Elevator Company was a manufacturer of vertical transportation systems, predominantly escalators and elevators. It was founded by Elisha Otis in 1853. Otis was acquired by United Technologies Corporation Inc., an American multinational conglomerate in 1976. Otis India was founded in 1953 and was headquartered in Mumbai. In 2014, Otis India had more than 2,600 employees and had more than 80 service centers across the country.

In 2008, Johnson Lifts, a privately held, Chennai -based company ousted Otis India from its number 1 position. The company‘s slower response due to its centralized nature of operations was cited as one of the reasons for this slip in position. Stephen D‘Souza, Director, service Operations said, ―People in the field had to approach t he head office for everything.‖² In 2012, Otis India appointed Sebi Joseph as Managing Director. Sebi Joseph designed a strategy to change the company‘s operating style (Refer to Chart 1 for Sebi Joseph‘s Decentralization Strategy).

Chart 1: Sebi Joseph‘s Decentralization Strategy

Adapted from P.R. Sanjai, “Management Case|Decentralization Benefits Otis India,” Livemint, March 25, 2014

The salient features of Otis India‘s decentralized structure included:

· The company was divided into four geographical regions, each operating as a profit and loss entity

· Each region had an independent team and was headed by a director or regional head

· Each geographical region was given independence to make its own decisions

· Cross-functional regional teams coordinated functions like sales and service divisions

· The teams collaborated to devise a ‗go-to market‘ strategy for the Indian market

Sebi Joseph‘s decentralization strategy reaped many benefits for Otis India:

· Resulted in faster actions and drew customers closer

· Energized the regions to ensure faster response time and service excellence

· Decisions were taken at the local level. The Directors at the company‘s headquarters played an advisory role

² Di eye du Ga guly, Ho “e i Joseph is Re lai i g Otis Ele ators’ No. 1 Positio , THE ECONOMIC TIMES, September 20, 2013

· New equipment orders increased 44% between March 2013 and March 2014

· Otis India regained its number 1 position w.r.t. bookings value

· It bagged the Hyderabad Metro Rail Ltd. project for supplying 520 escalators and 260 elevators in 2013

„Decentralization‟ referred to an organization where employees were allowed to participate in the decision making process. Otis India had been operating under a centralized framework. Under Sebi‟s

leadership, the company adopted a decentralized operating style which helped the company regain its position and bag prestigious projects in the country.

Discussion Questions

1. Discuss the features of a decentralized organization.

(Hints: localized decision-making-faster decision-making-quicker response time)

2. How did Sebi‘s decentralized operational style benefit Otis India?

(Hints: the company regained its number 1 position-bagged prestigious project like hyderabad Metro Rail project)

Course Reference: Concept- Decentralization/Unit 9- Strategic Organization Design/Subject-Principles of Management

Sources:

i. P.R. Sanjai, “Management Case Decentralization Benefits Otis India,” Livemint, March 25, 2014.

ii. Dibeyendu Ganguly, “How Sebi Joseph is Reclaiming Otis Elevators‟ No. 1 Position,” The Economic Times, September 20, 2013.

iii. “OTIS HISTORY,” http://www.otisworldwide.com/d30-history.html

Other Keywords: HRM, Organizational Behavior

	10		The New Organizational Structure @ Infosys
	10

Infosys, an India based global consulting and IT-services firm was incorporated in 1981. Infosys was co-

founded by Narayana Murthy along with Nandan Nilekani and 5 other engineers. It was headquartered at Bangalore, Karnataka. Murthy served as the company‘s CEO from 1981 to 2002 and later stepped in as the

Chairman from 2002 to 2011. The CEO baton was passed on to Nilekani in 2002 and he was succeeded by

another co-founder, S. Gopalakrishnan, in 2007. In 2011, S.D. Shibulal, one of the co-founders, stepped in as the company‘s new CEO. Shibulal was succeeded by Dr. Vishal Sikka (Sikka) who took over as the CEO on

August 1, 2014. Sikka was the first non-founder CEO of Infosys. Before joining Infosys, Sikka was the Executive Board member of SAP, a globally leading provider in business software. Sikka‘s appointment was

accompanied by the following changes at Infosys:

· In June 2014, Murthy and Gopalakrishnan voluntarily stepped down from the positions of Chairman and Executive Vice Chairman, respectively

· Murthy and Gopalakrishnan continued on the company‘s Board as Non-executive Chairman and Non-executive Vice Chairman till October 2014 to ensure a smooth transition

· Twelve company leaders were elevated as Executive Vice Presidents and were entrusted additional responsibilities

In February 2015, Sikka announced a realignment of the company‘s organizational structure (Refer to Chart 1 for Organizational Realignment). As a part of the new structure Infosys would be organized into- sales, business-enabling functions and delivery functions

Chart 1: The New Organizational Structure Proposed by Sikka

Guiding Principles

“Renew and New” Change existing ways

^.of delivering IT services

Scout for newer opportunities for growth

The Proposed Structural Changes

„Sales Function‟

Would continue to focus on industry segments like financial services, manufacturing, etc..

„Delivery Function‟

1.To be structured around 7 service lines including digital integration services, management consulting services, etc.

„People Movement and Realignment of Roles‟

1. Sanjay Purohit, head of Edge Verve, the company‘s wholly

owned subsidiary dealing with platforms and products, would

head the company‘s management consulting services

2. Michael Reh , would head Edge Verve, in addition to his current position as Senior VP and Global Head of Finacle

(Infosys‘s banking product)

3. Ravi Kumar S, head of cards and insurance, would head the delivery function

Expected

Sharpen competitive differentiation

Improve operational excellence

To create a ‗next

generation services

Boost the company‘s growth

Nurture innovation

Increase agility in the market

Adapted from various sources

Sikka also introduced the following initiatives:

· He formed a skunkwork or a small team of about 8-12 employees to collate digital proof of concepts (PoCs). The team aimed at targeting valued projects, from existing and new clients.

· Focused company‘s investments on next generation technologies including artificial intelligence and automation

· Recruited more than 200 new employees in the sales team in order to sell and market its new strategies and products

· The company hired about 13,000 new employees in the last quarter of 2014 to counter the growing attrition rate

· Incentives like 100% bonus and about 3,000 new iPhone 6s for the best performing employees were introduced

· Employees to be re-trained at the company‘s Mysore based training centre to align them with Sikka‘s vision

The new organizational structure was expected to be effective from April 1, 2015. The ability of this new structure to improve the company‘s agility and market position remained to be seen.

‘Organization Structure’ referred to the defined relationships between the tasks, information, people and control processes of an organization. Sikka proposed a new organizational structure and introduced new initiatives. The impact of these structural changes and initiatives remained to be seen.

Discussion Questions

1. Discuss the importance of organizational structure.

(Hints: impact on the various departments-impacts on company‟s performance)

2. What structural changes did Sikka propose at Infosys?

(Hints: the focus of the sales function-structuring of the delivery function)

Course Reference: Concept- Organizational Structure/Unit 10-Strategic Organization Structure/Subject-Principles of Management

Sources:

i. Debojyoti Ghosh, “Infosys Charts Organizational Realignment to Boost Growth,” Forbes India, Feb 6, 2015

ii. Venkatesh Ganesh, “Infosys Targets Return to Glory Days as Market Perception Turns Positive,” Business Line, December 22, 2014

iii. “Infosys Announces Realignment of Organizational Structure,” www.infosys.com, February 5, 2015

iv. “Infosys: Sikka‟s „Renew and New‟ to the Rescue,”www.dnaindia.com, January 9, 2015

Other Keywords: HRM, Organizational Behavior

	11		Facebook and its Organizational Culture
	11

Facebook, an online social networking service, was headquartered at Menlo Park, California. Facebook was founded by Mark Zuckerberg along with Eduardo Saverin, Chris Hughes and Dustin Moskovitz in February

2004. The company was originally known as ‗The Facebook‘ and was renamed Facebook.com in August

2005. The company held its Initial Public Offering (IPO) in May 2012. It was one of the biggest IPOs in the history of the internet and technology sector with a market capitalization of more than $104 billion. It had about 890 million daily active users and nearly 1.19 billion mobile monthly active users by December 2014.

Facebook‘s growth and success was attributed to its organizational culture (Refer to Chart 1 for the components of Facebook‘s organizational culture)

Chart 1: Components of Facebook‘s Organizational Culture

Company’s Beliefs

1. Empower people to share and make the world more open and connected

2. Create and build a shared identity and vision as the company grew

Company’s Beliefs

1. Company‟s beliefs were not considered as the sole responsibility of the HR department

2. New employee orientation was regarded as a serious process

Company’s Beliefs

1. Employees were allowed to pose a question directly to the company‟s leadership

2. Employees were allowed to even ask controversial or sensitive questions in these meetings

Company’s Beliefs

1. Culture was of significance to an organization

2. Culture grew only if tended to

Company’s Beliefs

Employees were encouraged to participate in social activities

Company’s Beliefs

1. Fewer hierarchies and greater collaboration

2. Focused on 2 aspects:

„How did the company want to be known as it grew?‟

„What was communicated to the outside world about working at Facebook?‟

Facebook’s

Mission

The

Onboarding

Process

Conducted

Weekly All-

hands

Meetings

Conscious

Attention to

Culture

Encouraged

Social

Activities

Employed

Unique HR

Strategies

		*How was it Achieved?*
	· *Worked on the principle of „move fast and*		*break things‟ which*
	*allowed the company to surpass competitors in the social-*
	*networking arena*
	· *Employees were encouraged to act quickly and take risks*
	*irrespective of its consequences*

		*How was it Achieved?*
	· *The new recruits directly learnt about the*		*culture from the*
	*company‟s longest-tenured employees from various departments.*
	*These employees interacted with every new recruit to ensure that*
	*the company‟s purpose and meaning were thoroughly*
	*understood.*
	· *All employees underwent the same extensive on boarding*
	*process*

	· *Zuckerberg and the*	*How was it Achieved?*

		*management team hosted an honest and*
	*open Q&A session for employees*
	· *Every employee had direct access to the CEO*
	· *Employees openly expressed their frustrations or concerns*
	*which were addressed in this public forum*

		*How was it Achieved?*
	· *Before opening a new office, a „landing team‟ was sent to help*
	*set up key aspects of the company‟s existing culture into the new*
	*location*
	· *Created a uniform work environment. For instance, at its India*
	*office, one of the initial activities undertaken by the team*
	*included painting their own walls with Facebook‟s values*

	· *Facebook organized*	*How was it Achieved?*
		*activities like clubs,*	*an annual Game*
	*Day (outdoor field day for all employees)*
	· *Introduced policies like a $600 rent subsidy per month to*
	*those who lived within 1 mile of the office in order to*
	*encourage a close community living culture*
	· *Had a mailing list titled „social‟, dedicated to non-work*
	*related discussions*

		*How was it Achieved?*
· *Less emphasis was laid on „titles‟ to ensure*			*unobstructed flow of*
	*ideas. Open offices spaces were created to allow employees to sit*
·	*and interact*
	*In 2014, Facebook offered an incentive of about $20,000 to its*

top women employees in a bid to help them balance their

· personal and professional lives.

Employees were eligible for nearly $4,000 as a cash incentive whenever they became parents-biologically or by means of

· adoption

The company offered 4 months of paid paternal leave with considerable flexibility

Adapted from various sources

Despite its contribution to the company, experts have raised certain concerns over Facebook‘s organizational culture:

Incentives like paid paternal leaves for parents were often unclaimed. The company had not revealed the proportion of employees who fully claimed the allotted paternal leave

Policies like egg-freezing were viewed as incentives to discourage employee poaching

‘Organizationalv Culture’ referred to a system of shared values, assumptions, beliefs and norms that united the members of an organization. Facebook focused on fostering an employee-friendly culture by

encouraging open communication, reducing hierarchies and encouraging social, non-work related interactions etc. which contributed to the company‘s growth.

Discussion Questions

1. Discuss the importance of organizational culture.

(Hints: impact on the company‟s revenue-impact on the growth of the company in the log-run)

2. What elements of Facebook‘s organizational culture were critical in its success?

(Hints: the on boarding process-conscious attention to culture- unique hr strategies-encouraged social activities

Course Reference: Concept- Organizational Culture /Unit 11 –Effective Organizing and Organizational Culture/Subject-Principles of Management

Sources:

i. Kevin Colleran, “Lessons From Facebook: How Culture Leads to Growth,” www.blogs.wsj.com, February 5, 2013

ii. Joshua Brustein, “Facebook‟s Egg Freezing Policy Isn‟t an Evil Plot,” www.bloomberg.com, October 15, 2014

iii. Samantha Nielson, “Why Did Facebook‟s Shares Fall After its Initial Public Offering,” www.marketrealist.com,

Jan 14, 2014

iv. Ami Sedghi, “Facebook: 10 Years of Social Networking, in Numbers,” www.thegaurdian.com, February 4, 2014

Other Keywords: HRM, Organizational Behavior

	12		Staffing at Myntra
	12

Myntra.com, an Indian e-commerce company of fashion and casual lifestyle products, headquartered in Bangalore was founded in 2007. It had a spacious office, spread over five floors and 80,000 sq ft.

Myntra.com merged with Flipkart in May 2014 but continued to function and operate independently. Myntra‘s web site had over 700 Indian and International brands e-tailing 1.5 lakh styles and received 3

million visits every day and held 35 per cent market share and together with Flipkart, it accounted for 60 per cent of the online fashion market in India.

Myntra‘s staff in 2014 consisted of 2000 employees whose average age was 28 years. It planned to recruit 2,500 employees during 2015-16, for middle/senior management positions to support its growth. The company was also looking to hire creative professionals — fashion photographers, fashion content writers, art directors and creative directors. To meet the staffing challenges, Myntra adopted the following measures

· Recruited fresh graduates from the Indian Institutes of Technology, Indian Institutes of Management, Indian School of Business and National Institutes of Fashion Technology

· Around 30-35 employees in Myntra had degrees from foreign universities, including premier institutes like Stanford and Harvard to bring in fresh perspective and diversity to the team.

· Conducted five rounds of interviews for any position

· More than 30% of its recruitment was through employee referrals only

· Looked for candidates with flexibility, professionalism, data orientation and non-hierarchical attitude

· Adopted open work culture

· Offered all its employees ESOPs, health and life insurance and child care support facility

· Facilitated a free transfer to the city where the employee was relocated.

„Staffing‟v is identifying the manpower required and attracting qualified candidates to fill positions in

the organization,v to facilitate achievement of organizational goals. While staffing, it is necessary to take into account the internal factors as well the external environment. Myntra, is in full swing to face the challenges in staffing and grow in fashion market and expected to surpass the giants in the field.

Discussion Questions

1. Discuss Myntra‘s staffing plans to grow in fashion and lifestyle market

(Hints-recruiting from IITs and IIMs- stringent interview techniques-open work culture-employee benefits)

2. What is staffing? Explain the process and purpose of staffing.

(Hints-identifying and attracting manpower- selection process-achieving organizational goals-facing challenges)

Concept Reference: Concept-Staffing, Unit- Human Resource Management and staffing, Subject- Principles of Management

Sources:

i. Sangeetha Chengappa, “On Hiring Spree, Myntra to Offer ESOPs,” The Hindu Business Line December 10, 2014 , Business Line

ii. Sangeetha Chengappa , “Myntra to Double Office Warehousing Space,”, Business Line , Dec 12, 2014,

iii. Experiences of people working in Myntra,		www.glassdoor.com/Overview/Working-at-Myntra-
	EI_IE508705.11,17.htm

Other key words: Human Resource Management, Recruitment, Training and Development

	13		Nadella’s Compensation
	13

Satya Nadella, originally from Hyderabad, an Indian-American, had become the Chief Executive Officer of

Microsoft on February 4, 2014, succeeding Steve Ballmer. Before that, he held leadership roles in both enterprise and consumer businesses across the company. He had a bachelor‘s degree in electrical engineering from Mangalore University, a master‘s degree in computer science from the University of Wisconsin and a master‘s degree in business administration from the University of Chicago.

In just 10 months, on December 3, 2014, Nadella‘s pay package was hiked to $84 million per annum (nearly INR 520 crores), making him one of the highest paid CEOs in the world. Nadella‘s pay package included a

base salary of $918,917 plus bonus of $3.6 million and stock grants valued at $ 79.8 million.

Executive compensation revision was usually tied to performance and so was Nadella‘s. Microsoft ascertained the views of its shareholders in their annual shareholder meeting before taking the final decision for which 72% of shareholders had participated in the voting. The average support for such moves was 91.5%, whereas Nadella could win less than 70% votes. Against this backdrop, executive compensation was to be evaluated.

Why Microsoft wanted the hike

· Attract and motivate for better performance

· Incentive for future performance

· Retention strategy

· Create sustainable long-term shareholder value

· Build ownership of the company

The critical points in the case

· Any motion that received approval from less than 70% shareholders needed reconsideration

· His predecessor, Ballmer‘s pay package was $ 13 million per annum

· Microsoft‘s shares dipped by 38 percent to close at $48.08 on December 3, 2014 after the announcement.

Nadella’s performance measures

· Initiatives to bring out diversity in Microsoft

· Transparency in reporting detailed figures to federal government

· Reorganizing Microsoft with 18,000 job cuts

· Wall Street analysts felt that Nadella was moving the company forward

The best „criteria of judging managerial performance‟ relate to the ability to set goals, to plan programs that would help in accomplishing the goals and succeed in achieving the goals. Managers should be appraised on the basis of how well they understand and undertake managerial functions. Satya vNadella, CEO of Microsoft passed the test and had become one of the best paid CEOs of the world for his performance.

Discussion Questions

1. Discuss the criteria for judging performance of CEOs

(Hints-Past performance- stakeholder‟s approval-leadership abilities)

2. Analyze the factors that led to the hike in Satya Nadella‘s executive compensation

(Hints-past performance- motivation technique- retention strategy- sustainable shareholder value)

Course Reference -Concept- Criteria for Appraising Managers, Unit- Performance Appraisal and Career Strategy, Subject- Principles of Management

Sources:

i. ”Satya Nadella to get $84 Million Pay Package,” India Today in Tech, December 4, 2014

ii. “Microsoft CEO Satya Nadella‟s $84 Million Pay package Gets Approved”, NDTV Gadgets, December 04, 2014.

Other Key Words: Performance Measurement and Rewards System, Human Resource Management

	14		Organization Development at Wanxiang
	14

Wanxiang Group Corporation, the largest automotive components supplier company in China, headquartered in Hangzhou, China, was founded in 1969 by Lu Guanqju (Lu). Born into a farmer's family and a dropout of school, Lu along with six other farmers set up a tractor repair shop with a meagre investment of $ 500. Over the years he started manufacturing universal joints, and the company was named Wanxiang. It developed gradually and started manufacturing more complex and sophisticated parts and module systems.

It was considered as one of 520 key enterprises in China and owned well equipped Technical Center, Laboratory, Incubation Center, and Postdoctoral Work Station. The group consisted of more than 40,000 employees with total revenue of more than $ 16 billion as of 2014. It expanded its business from auto parts to agricultural engineering, bridge and road construction, hotel management, financial services and power plant construction. All of its products have gained ISO9000 and QS9000 Quality System Certification. It even got approval to manufacture electric cars. Wanxiang acquired assets of US-based hybrid automaker Fisker for $149.2 million in a U.S. bankruptcy auction in February 2014. Analysts said that with the acquisition, Wanxiang would be in a position to compete with electric car manufacturer Tesla. Wanxiang gained competitive advantage through the management practices and strategies it had adapted (Refer Figure 1).

Figure 1: Management Practices and Strategies adapted by Wanxiang

Adapted from various sources

‗Organization Development’ is a change effort that is planned and focused on an entire organization, aimed at enhancing organizational effectiveness. Waxing could rise from an automotive components supplier to a manufacturer of an electric car because of its planned and focused efforts.

Discussion Questions:

1. Explain the importance of planned efforts in Organization Development

(Hints-sustaining competition-turning the adversaries as benefits- adapting relevant strategies)

2. What are the management practices followed by Lu Guanqju to take Wanxiang to new heights?

(Hints- developing new products- pushing into new markets- using cheaper parts- building alliances constantly)

Course Reference: Concept- Organization Development/ Unit- Organization Change and Organization Development/ Subject- Principles of Management

Sources:

i. Norihiko Shirouzu, Ben Klayman, “Exclusive: China's Wanxiang to Relaunch Fisker Karma Car with 2012 Design – Sources”, www.reuters.com, September 18, 2014.

ii. Thomas Hout, David Michael, “A Chinese Approach to Management,” HBR, September 2014

iii. Samuel Shen, Norihiko Shirouzu, “China's Wanxiang Plugs Fisker Bid, Open to Tesla Ties,” www.reuters.com, January 23, 2014.

Other Keywords: Organizational Behavior, Organization Development

	15		Facebook’s New-fangled offer for freezing of eggs
	15

Facebook, an online social networking service, headquartered in California, was founded in 2004 by Mark Zuckerberg. It was the second most accessed and popular website, after Google with $134 billion market capitalization and 13 billion active users in 2014. As of Sept 2014, of 8348 employees 69% were male and 31% female.

In October 2014, understanding the nature and special needs of its women employees, Facebook offered novel benefit of Ocyte-cryopreservation, in simple terms ‗freezing of eggs‘, as a part of surrogacy benefits.

Under this benefit, Facebook would cover the cost to preserve the eggs of the female employees, or the partners of male employees. Facebook planned to cover costs up to $20000 per employee under surrogacy benefit. Doctors recommended two rounds to store 20 eggs, which would cost $10000 per each round of freezing plus $500 for storage for every year. In addition it also offered adoption and surrogacy assistance to its employees. It was felt that this policy would cut down recruiting and hiring costs and also help in retention (Refer Table 1 for Benefits and barriers)

Table 1 Benefits and barriers of Egg freezing

Benefits	Barriers

Growth in career	Very Expensive

Gender equality in workplaces	Female conservatism

Freedom and choice of having children at their will	New initiative- takes time for acceptance

Grow at work and contribute for organizational development	Doctors sceptic –No guarantee of the procedure
	leading to successful pregnancy

Forward-looking approach to bring women to top in the	Interference in personal life
companies

Good work-life balance initiative	Health issues

Facebook understood the different needs of its women employees and to utilize their potential optimally, had granted this benefit.

Organizations need to understand ‘the nature of its people’ and frame its policies and engagement accordingly. People have different needs and objectives. Managers lead their subordinates in a way to fulfil organizational goals as well as the personal needs of the employees, looking at their individual differences, personal dignity and the multiplicity of roles they undertake. Facebook had initiated this challenging move to retain its talented female employees and get the best out of them.

Discussion Questions

1. Explain the way in which Facebook tried to understand the special needs of its female employees and rewarded benefits to retain and empower them

(Hints-special needs of women- bearing and rearing children- balancing work- reaching higher goals- contributing higher levels of performance-empowering women- special benefits like egg freezing)

2. Every individual plays multiple roles. Organizations must look not only at the employee role but

also consider the employee as a whole person. Justify the statement in the light of the benefit of

‗freezing of eggs‘ granted to its female employees.

(Hints-Multiple roles of women- balancing work and family- special benefits- freezing of eggs-getting best out of women workforce)

Course Reference: Concept-The nature of People /Unit- Managing and the Human Factor/Subject- Principles of Management

Sources:

i. Danielle Friedman,” Perk Up: Facebook and Apple Now Pay for Women to Freeze Eggs”, NBC News.com,

October 14, 2014.

ii. Mark Tran, “Apple and Facebook offer to Freeze Eggs for Female Employees,” October 15, 2014.

iii. Jessica Bennett, “Company-Paid Egg Freezing Will Be the Great Equalizer”, TIME, October 15, 2014.

iv. Facebook newsroom. company information

Other Keywords: Human Resource Management, Organization Behavior

	16		Motivating Employees through Unique Rewards
	16

Savji Dhanji Dholakia (Dholakia), the founder and chairman of Hari Krishna Exports Pvt. Ltd, a diamond manufacturing and exporting company, hailed from Surat, Gujarat. After gaining experience for 10 years in diamond polishing work, he formed the company in 1991. Though a school drop-out, he was a visionary and under his leadership Hari Krishna Exports revenues grew from INR 1 crore in 1991 to INR 6000 crores by 2014. His company had 1268 employees from 21 states in India, some of whom were not very educated but were highly skilled with an average monthly salary of INR 70000-80000. The diamond polishing industry in

India in general was on decline but Hari Krishna Exports was one company that attracted talented people. The diamond industry insiders credited Dholakia‘s business practices for the success of Hari Krishna

Exports (Refer Figure 1). To motivate the employees, Dholakia gifted cars, apartments, diamond jewellery worth Rs. 4 lakhs as Diwali gift during October 2014.

Figure 1 Business Practices of Dholakia

Adapted from http://www.theguardian.com/cities/2014/oct/21/-sp-surat-diamond-merchant-india-generous-boss-diwali-hari-krishna

One of the important ‘motivational techniques’ is rewards, which may be defined as material or psychological pay-offs for the accomplishment of tasks. Extrinsic rewards such as money, perks and amenities, promotion and recognition, are the pay-offs granted by the management. Intrinsic rewards such as satisfaction and achievement are the internal feelings generated in individuals through the performance of challenging and interesting jobs. Dholakia, the Chairman of Hari Krishna Exports, Gujrat, is a trend setter and with his HR strategies coupled with value based business practices, could earn a high place in society and motivate his employees to high performance by giving them rich rewards.

Discussion Questions

1. Discuss rewards as an important motivational technique for higher performance?

(Hints- motivation techniques- extrinsic and intrinsic rewards- performing challenging jobs)

2. Analyze Dholakia as trend setter and HR strategist in giving away rich rewards to his employees (Hints-retaining talented employees- keeping personal touch- designating extraordinarily- rich and unique rewards and facilities)

Concept Reference: Concept-Motivational Techniques, Unit- Motivating employees for Job Performance, Subject-Principles of Management

Sources:

i. Aparna Joshi, “Meet the Indian boss who gave cars, apartments and diamonds to employees,” October 21, 2014.

ii. “Meet the Diamond Merchant Everyone‟s Talking about,” Seasonal magazine, Issue 42, December 2014

Other key words: Human Resource Management, Organizational Behavior, Performance Management and Reward Systems

	17		Alexander the Great’s Leadership
	17

Educated by the philosopher Aristotle, Alexander was born in Macedonia in July 356 BC to Philip II of Macedon and Olympias. When his father was assassinated in 336 B. C, he took the reins of the kingdom, and led his army to victories across the Persian territories of Asia Minor, Syria and Egypt and became 'great king' of Persia at the age of 25. He created an empire that stretched across three continents and covered around two million square miles. Alexander's conquests spread Greek culture, also known as Hellenism, across his empire.

In his short span of thirteen years of rule, he showed exemplary leadership traits, but towards the end, he deviated from these principles, leading to his downfall.

Strengths ·

Weaknesses·

Visionary, team builder, mentor and great conqueror

Took responsibility for shortcomings of his followers as he felt he could have prevented them

Goal oriented and quick decision-maker

Finest strategist and tactician

Genius for analyzing a situation and instantly making a judgment

Adaptability to changing situations and circumstances

Selected able sub commanders

Motivational Leadership with superhuman ability to inspire his men to reach pinnacles of achievement

Fostered strong group identification

Paranoia and ferocious temper.

Senselessly slaughtered thousands who stood in his way

Stubborn

Greed for conquest

Though had good logistics, failed in the end because he did not have enough food and water to fight

Army rebelled against the prospect of further conquest of India

Alexander the Great led his army by example with great confidence and courage which led to his triumph. At the age of 25, Alexander ruled an expansive empire. But as his greed to conquest had not ended, he continued his campaign driving farther east. When he reached India, his troops refused to fight further as they were exhausted. Alexander was compelled to return and on his way back, he died of a fever caused due to the wounds he encountered in the battlefield, in Babylon in June 323 BC.

‗The key elements of a leadership’ are using power in a responsible manner, ability to understand people, ability to inspire followers to accomplish a task and the style adopted by the leader. Alexander‘s

leadership shows both the positive and negative aspects of leadership. In his early times, he showed exemplary leadership but when his greed to conquer increased, he deviated from the well-being of his followers. They rebelled against him and that led to his downfall.

Discussion Questions

1. Discuss the traits required for exemplary leadership

(Hints- vision- team building- genius- adaptability- concern for followers)

2. Analyze the factors and circumstances that led to the downfall of Alexander the Great (Hints- greed to conquest- stubbornness-ferocious temperament- followers rebellion)

Concept Reference: Concept-Key Elements of Leadership / Unit-Leadership / Subject- Principles of Management

Sources:

i. “Alexander the Great (356 -323 BC),” “http://www.bbc.co.uk

ii. Manfred Kets de Vries, “11 Leadership Lessons from Alexander the Great”, INSEAD, November 18, 2014.

iii. 5g. “Alexander the Great”, www.ushistory.org/civ/5g.asp

iv. Stephen English, “Top 10 reasons Alexander The Great was a great commander”, http://theworldofalexanderthegreat.com, September 11, 2012.

Other key words: Human Resource Management, Organizational Behavior, SHRM

	18		Managing Communications
	18

Carlsberg, a Danish brewing company founded in 1847 by J. C. Jacobsen was headquartered at Copenhagen, Denmark. Under the leadership of Jorgen Buhl Rasmussen (Rasmussen), the CEO of the Carlsberg

Group the company became the fourth largest brewer in the world, with 40000 highly skilled engaged employees in 2014. Carlsberg‘s business was focused in Western Europe, Eastern Europe and Asia with

strong market positions. It catered to the needs of all its customers with more than 500 brands

In 2012, Carlsberg launched a website to communicate with all its stakeholders highlighting the importance of collaboration for sustainable achievements. It shared all the vital information through this website effectively, which motivated employees to perform well, competing with each other. Employees shared their success factors in improving the products and environment. Carlsberg could also get connected with the

society too. Rasmussen was able to lead Carlsberg to new heights because of his effective communication style (refer Fig 1 for Carlsberg‘s effective communication styles).

Figure 1: Carlsberg’s effective communication styles.

Adapted from www.theguardian.com/sustainable-business/sustainability-case-studies-carlsberg-website

Rasmussen moved Carlsberg forward by focusing on collaboration, training and compliance with company rules. He used to communicate effectively on healthy drinking.

‘Effective communication’ is crucial for the smooth functioning of an organization. It helps in planning and organizing the managerial activities. It is a means of conveying important data and information and assists in the achievement of organizational goals. It helps managers in leading, directing, motivating and controlling. Carlsberg through its website communicates with all its stakeholders effectively and able to retain its talented employees and also remain as market leader.

Discussion Questions

1. Explain the importance of communication in leading

(Hints-concentrating on focus areas- communicating strong points and undermining the negative points)

2. Discuss how Carlsberg‘s communication channel helped the company remain as market leader

(Hints-promoting responsible drinking-sustainable package solutions- communicating with stakeholders effectively)

Concept Reference: Concept-Significance of communication, Unit- Managing Communications, Subject- Principles of Management

Sources:

i. Katharine Earley, “Carlsberg makes Website about its Social Enterprise Achievements”, The Guardian

Sustainable Business Case Studies, May 15, 2014.

ii. ”Communicating Sustainability – Lessons Learnt from the Best”, http://oneplanetblog.com, October 21, 2014.

iii. Carlsberg's Full Year Results-2014, 18 February 2015, www.carlsberggroup.com

Other key words: Human Resource Management, Organizational Behavior

	19		Uber
	19

Uber, an internet- based taxi firm, headquartered in San Francisco, California was founded in 2009. It provided taxi service to customers on request. Its motto was to expand globally and serve locally. As of 16 December 2014, its services were available in 53 countries, in more than 200 cities worldwide. Uber, as on December 2014 was valued at more than US $ 40 billion. It assured better, faster and cheaper service than a taxi. Uber Taxi, UberX, Uber Black Car, Uber SUV were some of its products. It provided cashless & convenient payment mode through mobiles and credit cards and receipts were e-mailed to the customers. When more than one customer used its service at the same time, the charges were equally divided among

them. Uber helped the customers find their destination, by connecting the customer with the nearest available driver who would help in finding the location. All the details of the driver‘s name and number were

texted to the mobile app and customers could get any required information easily. It was as simple as ‗request, ride, and pay via smart phone‘.

But, several complaints and violations of laws against Uber were gradually coming to light, warranting strict control measures. Refer Figure 1 for the complaints.

Figure 1- Complaints against Uber

Germany

¨ Drivers did not have proper permits

¨ Not properly insured

¨ Not subject to checks

¨ Uber had been banned in Germany for violation of laws and could face fine of 250,000 Euros

India

¨ Not following safety norms

¨ On Dec 5, 2014, a Delhi executive was raped

¨ Adversely affected its Brand Building

¨ Uber had been banned in Delhi and Hyderabad and advisory for other states to ban Uber was given out

Other Countries

¨ A CEO in Washington kidnapped in July by Uber driver

¨ In Toronto, an appeal for ban of Uber appeared for violation of laws

¨ Protest in France for its sexy promos

Serious charges were levelled against Uber and violations of law were on the rise. Travelling in Uber‘s taxis was posing a risk and no government could take it easy with such allegations and there was an urgent need for adopting control mechanisms.

Controlling plays an important role in helping managers detect irregularities, identify opportunities, handle

complex situations, decentralize authority, minimize costs, and cope with uncertainty. Managers use different types of controls depending on the situation. In ‗feedback control‘, otherwise known as post

action control, corrective action is taken to adjust the performance. Accounting records, disciplinary action are some of the examples of feedback control. Governments are expected to take punitive actions on all erring companies and protect the consumers of services/products of erring companies like that of Uber.

Discussion Questions

1. What is feedback control? Explain the concept taking example from Uber.

(Hints-detecting irregularities- handling complex situations- corrective action- Uber-irregularities-no valid permits- safety norms overlooked- executives raped- control mechanisms)

2. What remedial actions do you suggest to improve the safety of working women while travelling?

(Hints- monitoring public and private transports- registration of cabs- adopting strict control mechanisms)

Concept Reference: Concept- Feedback control, Unit- The Control Function, Subject- Principles of Management Sources:

i. Arindam Majumder, “Branding missteps dog Uber”, Business Standard, December 09, 2014.

ii. Ben Knight, “Car sharing service Uber banned in Germany,” www.theguardian.com, September 02, 2014.

iii. “Two down, nine to go: Uber banned in Hyderabad, India”, www.thenextweb.com, December 10, 2014.

Other key words: Human Resource Management, Operations Management

20	Zero and Minimum Inventory Policies of Big Basket

BigBasket, an online food and grocery store was founded by two brothers VS Sudhakar and VS Ramesh along with two other entrepreneurs Hari Menon and Vipul Parekh during 1999-2000. The Bangalore based store was initially launched with the name Fabmart. Due to low accessibility of internet in 2003, the store was set offline and was renamed as Fabmall. Subsequently in 2006, it was acquired by Aditya Birla group and was merged with US-based Indiaplaza. In 2012, BigBasket opened its branches in Hyderabad and Mumbai. Its products list included 10,000 products covering 1000 brands in the categories of fresh fruits and vegetables, rice and dals, spices and seasonings, packaged products, beverages, meats and personal care products.

Supply chain management played a major role in e-grocery business, BigBasket had on-time delivery rate of 99.5 percent in 2014. It was able to differentiate itself from the competitors by adopting policies such as guaranteed delivery times and built-in penalties for late/incomplete deliveries. BigBasket was among those firms that invested heavily on technology. It adopted different inventory policies for managing different category of products. It followed zero inventory policy for fruits and vegetables and minimum inventory levels for packaged food products (Refer Chart 1).

Chart 1: The inventory and supply chain management model of BigBasket:

Inventory model Supply chain model

· Trained its staff on ways to handle fresh produce

· Fresh produce was kept for minimum time in storage

· Efficiently managed chilling/freezing equipment‘s

· Used direct sourcing inventory model to reduce costs for better working capital management

· Used technology for forecasting customer buying patterns and ordering purchases

· Managed inventory turnover at 40-45 times a year

· Set inventory levels and re-ordering levels to manage stocks at warehouses

· Picking, packing, storage was tech-assisted

Benefits Reaped:

· Routing was done automatically

· Followed scheduled slot-based delivery

· Drivers were given devices with apps to reach the locations easily

· Vehicles were tracked using GPS enabled devices

· Updated its customers by tracking the delivery vans

· Followed ‗no-questions-asked‘ policy if a customer ordered ten items and were delivered only nine items, 50% of the value was credited to his account and billing was done only for nine items

Built ability to carry more than 10,000 SKUs (Stock-Keeping Units)

Developed efficient inventory model

Could increase margins by maintaining optimum logistics and supply levels

A strong team of 600 employees was created to work on inventory models

Efficient management of inventory and delivery system aided by technology helped Big Basket in achieving the record of meeting 75,000-80,000 orders per month. Further, it anticipated to increase its sales to INR Rs.350 crores during 2014-2015 financial years. It had plans to extend its range of products by including pesticide-free/organic fruits and vegetables.

‘Inventory control’ involves stocking the materials and resources needed for the execution of organizational

activities and maintaining the inventory at proper level to overcome the problem of uncertainty of supply and demand. Big Basket‗s efficient inventory and supply chain model facilitated them in meeting their customers

demand on time and in maintaining a delivery track record of 99.5 percent.

Discussion Questions:

1. What is the significance of inventory control in an organization?

(Hints: on time delivery- competitive advantage-build efficient model

2. Highlight the key elements of Big Basket‘s inventory model?

(Hints: reducing storage time – technology-tracking delivery vans and updating customers

Course Reference: Concept-Inventory Control – Unit – Control Techniques/ Subject – Principles of Management

Sources:

i. Raghavendra Kamath, Anusha Soni,”Meet the New-Age Grocers,” Business Standard, March 17, 2014.

ii. Devina Joshi, “Long way to Go”, Business Standard, July 14, 2014.

iii. “Basket in The Media”, BigBasket.com.

Other Keywords: Project Management.

	21		Mathematical Predictions on Ebola
	21

Ebola, predicted as a high risk and highly contagious killer disease, caused by Ebola viruses, was on decline as of February 2015. It received attention as 25 to 90 per cent of those infected with the disease have died and through them the virus spread to many more. By February 2015, this outbreak had 23,034 reported cases resulting in 9,268 deaths and was centered in Guinea, Sierra Leone and Liberia of West Africa. No specific treatment or vaccine for the virus so far had emerged (Refer Figure 1 for the nature of the disease).

Figure 1 Nature of Ebola

Mathematical models in operations research were found to be useful to contain the spread of the disease.

Mathematical predictions helped

· In making predictions on number of people infected by Ebola patients

· In determining the infectious nature of the disease

· In minimizing potential deaths in future outbreaks

Predictions were made on the basis of:

· Grouping people into four categories- susceptible to the disease, exposed but not showing the symptoms of the disease, Infected with the disease, removed from the disease(either killed or cured)

· Estimates were made on the number of people who might catch the disease, remain infectious, or die due to the disease

· Data was fed to the computer to determine the extent of the disease

But though done with meticulous care, mathematical models, fortunately, went wrong and the number of people affected by Ebola was not as high as predicted by the models.

Why mathematical predictions went wrong?

· Fewer unreported cases than assumed in the models

· More precautions were taken than expected, for example, traditional practices of burial of Ebola patients were minimized

· Much higher spending on control of the disease

· High estimates were made to get attention. People might not take serious note in future occurrences

‘Mathematical models’ in operation research are able to provide managers a definite framework for solving their problems because of the advanced computing machines and their ability to handle voluminous data with complex relationships. Though mathematical predictions went wrong on Ebola, the alarming situation in West Africa could be contained to a great extent.

Discussion Questions

1. Discuss the importance of mathematical models in operations research (Hints-making predictions- decision-making- planning and control)

2. What are the pros and cons of mathematical models in the case of Ebola?

(Hints-determining the infectious nature of the disease- predictions on the severity- early warning-future setbacks- limitations on accuracy

Concept Reference: Concept-Mathematical Models, Unit- Productivity and Operations Management, Subject-Principles of Management

Sources:

i. "Ebola data and statistics - Latest available situation summary,” World Health Organization. February 13, 2015".

ii. H.J., “How disease forecasts can go wrong”, The Economist, February 04, 2015.

iii. Jaime Astacio et al, “MATHEMATICAL MODELS TO STUDY THE OUTBREAKS OF EBOLA”,

https://ecommons.library.cornell.edu/bitstream/1813/31962/1/BU-1365-M.pdf

iv. How disease forecasts can go wrong, 4 Feb 2015, www.economist.com/blogs.economist-explains/2015/02econo ,

Other key words: Operations Research, Project Management

			M-One- Multimode Mobile Governance:
			M-One- Multimode Mobile Governance:
	22		An Information and Communication Technology for
	22		Citizen-Government Engagement

In 2014, Karnataka government launched Mobile One App (M-One), a technology platform to offer different state and central government related online services along with some private services. This was an initiative taken by the Karnataka government after the launch of investor-friendly i-4 (Information Technology, Information Technology-enabled Services, Innovation and Incentives) policy. M-One was not limited to urban areas, but could be used by people who were in remote areas and those who were travelling.

M-One, a platform to connect through computers, laptops, tablets and over phone, landline or mobile

(smartphone) also had a voice portal to converse in local and English language. The model was developed by the Karnataka state government‘s centre for E-governance in association with IMImobile (a mobile

technology solutions provider based in Hyderabad). IMImobile built the model on cloud and it was integrated with the Karnataka State Data Centre. The model enabled the government to connect with telecom, digital and other third-party service providers such as Wipro, GE Healthcare and Practo.com. About 1,00,000 users were connected through the model. The benefits of the model were:

· Paying utility bills such as electricity, property tax

· Applying for the driving license, passport, pan card

· Paying traffic challans, booking railway or bus tickets

· Providing maternal and childcare solutions and Tele-Intensive Care Unit solutions

· Fixing an appointment with a specific doctor

· Recharging phone through pre-paid or post-paid recharge options

· Giving crop alerts and solutions to farmers

· Offering Tele-Intensive Care Unit (ICU) solutions (where a doctor with the help of camera and IT solutions monitors a remotely located patient)

· Opening accounts in Banks (also extended to open accounts for Jan Dhan Yojana program)

The Karnataka government intended to further develop the information systems model and streamline its working in next five years. However, the model had some drawbacks such as:

· Transaction fee was charged for recharging phones (Rs.5 for recharge of <Rs.500 and Rs.10 for recharge > Rs.500)

· Farmers had to subscribe for some of the crop alerts and solutions

· Booking appointment was available for only some doctors

· Phone numbers of doctors were not displayed

· All the services were restricted to their specific locations (Bengaluru people could access only Bengaluru Electricity Supply Company and Water Supply and Sewerage Board)

· Banking services were limited to only some banks such as Canara, ICICI, Axis and Punjab National Bank

Nevertheless, Karnataka was the first state to develop e-governance. The initiatives under the models that set benchmarks were, Bhoomi- an online system for land records management; Kaveri- an e-registration system of the Department of Stamps and Registration; e-swathu- software to list urban local bodies properties.

‘Management Information System’ is designed to facilitate complex interaction among people, computer and communication technologies and to quickly provide relevant data or information collected from both internal and external organizational sources. MobileOne launched by the Karnataka government served as platform to quickly provide the information needed by citizens.

Discussion Questions:

1. How does management information system help in organizational operations?

(Hints: facilitates easy operations- uses internal data stored in the computer systems-increases the efficiency)

2. In what ways the launch of Mobile One assisted the Karnataka government?

(Hints: paying bills – booking doctor appointments – banking services)

Course Reference: Concept-Management Information Systems – Unit – Management Information Systems/ Subject – Principles of Management

Sources:

i. “Anita Babu, “Karnataka e-governance Initiative has Miles to go to Fulfill Promises,”, Business Standard,

December 11, 2014.

ii. “President Lauds Karnataka e-Governance Initiatives,” The Hindu Business Line, December 8, 2014.

iii. Sowmya Aji, Varun Aggarwal,”Karnataka app M-One to give Access to 4,000-Plus Services,” ET Bureau, The

Economic Times, November 27, 2014

Other Keywords: IT & information Systems

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