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AEREN FOUNDATION’S                                                                              Maharashtra Govt. Reg. No.: F-11724

 

 

 

 

 

 

 

 

 

Name : LIMA KHURAMI                                                                     Marks : 80                                                                                             Course : Specialisation

Subject  : International Human Resource Management

 

 

Case Studies

Case study (20 Marks)

 

Kaniksha Ispat is an established medium size company manufacturing steel strips. The company has employed over 800 workers. The products of the company have established a good reputation and company was doing very well for last 15 years. The market is slowly changing its nature. The competition is growing and the recessionary trends are no clearly visible. The company is not visualizing a bright, growing market and most of the products, as per prese marketing conditions are overpriced. In an effort to save the organization, the company president Mr. Vasant invited the employees for a joint meeting. At the meeting he tried to explain what problems company is presently facing a what the means to save the company are. The employees after understanding the graveness of the situation, agreed have a10% cut, effective from the next month in their salaries immediate increase in salary is not possible. Mr. Vasa was highly impressed at the cooperative and positive approach of the employees. The company also tried to maintain strict austerity measures in order to cut costs. Three months later, the company installed many new devices to impro quality and cut costs. Anagram Finance and Leasing came foreword to offer a hand of help to improve its financ position. The loan agreement amounted to Rs. 1 crore. First installment was received by the company Rs. 30 lacs a reconstructive work started at a rapid speed. The techno-economic survey was made by the expert of Anagram Finan and they submitted a report that, future cut in administrative cost by reducing 200 employees is the essential step th Kaniksha should take immediately. If this is not acceptable to the company then the next installment should not released. Since the fixed assets of the company had been used by the company to support the loan agreement, it had little scope for denial. Mr. Vasant decided to invite union leader and discuss the issue

 

Answer the following question.

 

Q1. What is the fundamental management problem?

Answer: The fundamental problem in the case is the poor management planning which should have been proactive in all

 

 

 

Q2. List out alternative courses of action.

Answer:

·         To reduce marketing cost, teams can create market segments to which the company’s products are most suitable and spend marketing budget only on that segment. Marketing cost is the

 

Q3. Identify the position of both Mr. Vasant and Union Leader

Answer: Mr. Vasant is the company president and he is in a state of confusion and uncertainty. The union leader on the other

 

 

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Case study (20 Marks)

 

Amit, a Chief Manager of Spark- leading departmental stores at Nagpur, has attended a seminar on Japane Management System. He was highly impressed by the innovative and democratic approach of the system. He decided to go for Japanese System by introducing initially a few measures in the stores. Mr. Rajesh is his close rival, who feel that he has the right to be the chief of these stores, for his qualities and understanding of the departmental stores. M Rajesh often puts spokes in the wheel in order to bring Mr. Amit in troubles. He has won confidence of a small section sales representative, who at his insistence often play games to trouble Mr. Amit and malign his image or foil his plan .Mr. Amit decided to introduce a suggestion box scheme. He thought that the suggestion so received will be helpful improvise the functioning of the department. As well as to involve the workers in decision- making process. A meeting all sales personnel and assistant managers was called on for this purpose. Mr. Rajesh along with others also attend the meeting. He listened to the idea of Mr. Amit properly and decided to foil it. Mr. Amit explained the concept suggestion box, and said that anyone can put the suggestion, he need not mention his name, if he mentions his nam and offers a useful suggestion, a reward of Rs. 50 will be given. Mr. Amit felt that the scheme will work and he will fet a goodwill as well as good participation. A week after launching of the scheme, the box was opened. It was havi nearly 70 suggestions. A scrutiny was made by Mr. Amit and to his surprise; he received a bolt from the blue. suggestions were to scrap the scheme and in 22 cases very naughty ideas were offered. This frustrated Mr. Amit and decided to abandon the suggestion box scheme. A feedback from the workers was taken. He found that no worker w much impressed with the idea. The scheme was scrapped and Mr. Amit continued with existing ideas….

 

Answer the following question.

 

Q1. Analyze the incidence.

Answer: This situation in the company is call chaos which prevails in a situation of failure of management

 

 

Q2. Identify the issues, problems involved in this scheme

Answer: The Suggestion box scheme, which Amit

 

 

Q3. List out the facts.

Answer: There is dirty politics in

 

 

Q4. List the critical problems demanding immediate attention

Answer: Disorder, poor management of

 

 

 

Q5. Was Mr. Amit right in scrapping the scheme?

Answer: He was unable to make it a success alone. Hence he

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Case study (20 Marks)

 

A Food specialty is presently headed by Nandan Vinayak. The company is doing business very well and its profits a on continuous rise. The company has maintained a steady profitability, sales and performance track record. T employees are mostly less paid and less educated. Most of them are semiskilled and coming from nearby rural area Mr. Nandan is quite happy with the existing situation. He has recently launched an expansion program ha fetched h grand success. The new products of the company are highly appreciated. In discussion with his closest colleagues decided to institute a program of employees rewarding employees with silver potteries. The types of silver wears were vary from employees to employees depending on his tenure of service and cadre in which he has served. Mr. Nand felt that he would receive a grand reception on this announcement. The announcement was made on 12th October order to offer Diwali Gifts to the employees. Instead, after he cheerfully presented his plan, he faced a silent group weary workers staring back at him in near disbelief. Most of them were nervous and unhappy. They thought that this not what they expected for the tremendous labour put in as a reward. Mr. Nandan was puzzled at the pathetic respon of the workers.

 

Answer the following question.

Q1. Analyze the case

Answer: Even though the company was on gain and rapid success, the employees were underpaid. Their were neither given deserving

 

Q2. Was the incentive scheme wrong in any way?

Answer: Yes, when the employees are under paid

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Winning with Bureaucracy at McDonald’s (20 Marks)

 

McDonalds Corporation, the fast-food hamburger giant, has experienced immense success around the world. The secr to its growth and profits is based on product consistency and uniformity. The product and the service is the same t world over. This tight consistency is achieved through bureaucratic control. Rules and regulations are the byword McDonald’s. Every task is done in the same way in every store. To enforce the standardisation of operation McDonald’s has a well-defined organisational hierarchy. Field service managers and inspectors visit each store regula to assure compliance with standard operation procedures. Each store has a well-defined division of labour. Analys have broken down every job into its smallest steps and have then automated the entire process to further assure th individual workers won’t get creative about what fixings should go on a Big Mac. Assistant managers are assigned cover each shift and crew leaders are responsible for certain time periods, such as breakfast or lunch. Each employ knows exactly what to do. Trainers are assigned to teach each new worker precisely how to perform their asigned task Trainees soon learn that, at McDonald’s, standards are more important to the maintenance of operational effectivenes Management at McDonald’s has created effective mechanisms for work coordination, such as a detailed organisati structure and provisions for standardised services by corporate staff members in such areas as advertising, pub relations, and operations. Area field consultants visit each store on a regular basis to be certain that every franchi conforms to all of McDonald’s rules and regulations. Since McDonald’s operates in a relatively stable environme employing basic technology that has remained quite constant for the past fifteen years, the bureaucratic, mechanis node of operation is ideal. At McDonald’s, the adherence to the bureaucratic process is not seen as a negative conce but a posh one that spells continued consumer satisfaction and continued business success. Proof that bureaucra works for McDonald’s is found in 1993 year-end financial numbers: (1) revenues were up over the preceding year by 3/3 per cent to $7.3 billion; (2) net profit was up 13.7 per cent to $1.0 billion; and (3) total return on equity rose to 21 p cent.

 

Answer the following question.

 

Q1. Discuss the advantages and disadvantages of the various forms of departmentalization?

Answer:  Types of Departmentation

There are several bases of Departmentation.

 

(A) Departmentation by Functions

The enterprise may be divided into departments on the basis of functions like production, purchasing, sales, financing, personnel etc. This is the most

 

 

Q3. How does downsizing make firms more competitive in the global arena?

Answer: Reasons for Downsizing Companies:

Downsizing is done to restructure, revamp the whole setup, increase company value to eliminate excess costs and create unemployment as well.

Also, downsizing happens when the

 

 

 

 

Q4. Compare and contrast bureaucratic control with clan control. Which is better?

Answer: Organizations are built with the goal of profitability through processes in mind. The organizational control approach incorporates goals and the strategy used to reach them. These strategies and tactics are developed with the foresight of specific operational objectives, such as market share, return on investments, earnings, and cash flow. As a result, organizational control consists primarily of reviewing and

 

 

 

Q5. Discuss the strengths and weaknesses of budgeting?

Answer: Advantages of Budgeting

·         coordinates activities across departments.

·         Budgets translate strategic plans into action.

·         Budgets provide an excellent record of organizational activities.

·         Budgets improve communicationwith employees.

·         Budgets improve resources

 

 

 

Q6. How can a manager make control systems more effective?

Answer: Managers are responsible for controlling in the organization and a manager must improve the effectiveness of the organization’s control system; as can do a great deal to improve the effectiveness of their control systems.

Controlling is the last step of management where how the implemented plan is working is assessed and evasive actions are taken.

 

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