Case study

Question 1

1)Ashutosh Goenka was working in ‘Axe Ltd.’, a company manufacturing air purifiers. He
found that the profits has started declining from the last six months. Profit has an implication for
the survival of the firm, so he analyzed the business environment to find out the reasons for this
decline.

1. Identify the level of management at which Ashutosh Goenka was working.

2. State three other functions being performed by Ashutosh Goenka.

Answer. Ashutosh Goenka was working at top level of management. The three functions being
performed by him at this level are outlined below:

1. He is responsible for formulating the overall organizational goals and strategies.

2. He is responsible for all the business activities and its impact on society.
3. He has to coordinate the activities of different departments in pursuit of common goals.

Question 2.
Rishitosh Mukherjee has recently joined AMV Ltd, a company manufacturing refrigerators. He
found that his department was under-staffed and other departments were not cooperating with his
department for smooth functioning of the organization. Therefore, he ensured that his department
has the required number of employees and its cooperation with other department is improved.

1. Identify the level at which Rishitosh Mukherjee was working.

2. Also, state three more functions required to be performed by Rishitosh Mukherjee at this
level.

Answer. Rishitosh Mukherjee is working at middle level of the management. The three more
functions that he has to perform at this level are stated below:

1. He has to assign duties and responsibilities to the people in his department.

2. He has to motivate the people in his department to achieve the desired objectives.
3. He has to interpret the policies framed by top management.

Question 3.
Sridhar’s father is working as a section in-charge in a government office. Identify the level of
management at which he is working? State any five functions that he has to perform at this level.
Answer. Sridhar’s father is working as a section in-charge in a government office. He is working
at the lower level of management.
He has to perform the following functions at this level of management:

1. He has to directly oversee the efforts of the workforce.

2. He has to serve as a link between the workers and middle level managers.
3. He has to ensure sufficient availability of resources and good quality of output.
4. He has to provide guidance and training to workers.
5. He has to ensure that good working conditions are provided to the workers.

Question 4.
Mega Ltd. manufactured water-heaters. In the first year of its operations, the revenue earned by
the company was just sufficient to meet its costs. To increase the revenue, the company analyzed
the reasons behind the less revenues. After analysis, the company decided:

1. To reduce the labor costs by shifting the manufacturing unit to a backward area where
labor was available at a very low rate.
2. To start manufacturing solar water-heaters and reduce the production of electric water-
heaters slowly.

This will not only help in covering the risks but also help in meeting other objectives.

1. Identify and explain the objectives of management discussed above.

2. State any two values which the company wanted to communicate to society.

Answer. 1. The objectives of management discussed above are:

• Organizational objectives: An organization strives to achieve multiple

organizational objectives in the interest of its stakeholders like owners, employees
etc. The main organizational objectives are survival, profit and growth.
• Social Objectives: It is the obligation of every organization to undertake such
activities which will benefit the society at large like using eco-friendly methods,
contributing towards weaker sections of the society, generating employment
opportunities, promoting literacy etc.
2. The two values that the company wanted to communicate to the society are:
• Rural development
• Environment sustainability

Question 5.
Your grandfather has retired as the Director of a manufacturing company. At what level of
management was he working? What functions do you think he was performing at that level?
State any two.
Answer. Since he has retired from the post of Director of a manufacturing company, he was
working at the top level of management.
The main functions that he was performing at this level are outlined below:

1. He was responsible for the success and failure of the organization.

2. He was responsible for all the business activities and its impact on society.
3. He had to coordinate the activities of different departments in pursuit of common goals.

Question 6
Mr. Nitin Singhania’s father has a good business of iron and steel. But Nitin wants to go to do
his MBA but his father thinks that he should join the business. On the basis of emerging- trends
and importance of management, do you think that Mr. Singhania should send his son for further
studies ? Give any three reasons in support of your answer.

Answer. Yes, according to me, Mr. Singhania should send his son to USA for his MBA because
management is being recognized as a profession to a great extent because of the following
reasons:

1. Well defined body of knowledge: Management is considered to be a well-defined body of

knowledge that can be acquired through instructions. As a separate discipline, it contains a
set of theories and principles formulated by various management experts. Moreover, it is
taught in various schools and colleges all over the world.
2. Ethical code of conduct: Management, in practice, like other professions, is bound by a
code of conduct which guides the behavior of its members. Therefore, acquiring a degree
in management will equip him with the good managerial,, skills and approach.
3. Service motive: A good management course will provide him an insight into the multiple
goals that an organization should pursue. This knowledge will help him to serve both the
objectives of profit maximization and social welfare effectively for his company.

Question 7
Jayant is working as Head Relationship Manager in the wealth management division of a private
sector bank. He has created an internal environment which is conducive to an effective and
efficient performance of his team of ten relationship management executive” A typical day at
work in Jay ant’s life consists of a series of interrelated and continue functions. He decides the
targets for his department which are in line with the objectives of the organization as a whole.
The future course of action for his team members is laid out well in advance. The various
resources required by the relationship managers like an iPad with GPS system, account opening
forms, brochures, details of account holders etc. are made readily available to them. The
executives are given sufficient authority to carry out the work assigned to them. Jayant works in
close coordination with the Human Resource Manager in order to ensure that he is able to create
and maintain a satisfactory and satisfied workforce in his department. Through constant
guidance and motivation, Jayant inspires them to realize their full potential. He offers them
various types of incentives from time to time keeping in view their diverse individual needs.
Moreover, he keeps a close watch on their individual performances in order to ensure that they
are in accordance with the standards set and takes corrective actions whenever needed.
In context of the above case:
1. Identify the concept being referred to in the following line, “He has created an internal
environment which is conducive to an effective and efficient performance of his team of
ten relationship management executives.”
2. Identify and describe the various functions of the concept as identified in part (a) of the
question by quoting lines from the paragraph.

Answer.

1. The concept of management is being referred to in the following line, “He has created an
internal environment which is conducive to an effective and efficient performance of his
team of ten relationship management executives.”
2. The various functions of the management concept mentioned in the above paragraph are
listed below:
• Planning: It is the function of determining in advance what is to be done and who is
to do it.
“He decides the targets for his department which are in line with the objectives of
the organization as a whole. The future course of actions for the team members are
laid out well in advance.”
• Organizing: Organizing is the process of bringing together human, physical and
financial resources and establishing productive relations among them for the
purpose of achieving the desired goals efficiently and effectively.
“The various resources required by the relationship managers like an iPad with GPS
system, account opening forms, brochures, details of account holders etc. are made
readily available to them. The executives are given sufficient authority to carry out
the work assigned to them.”
• Staffing: The managerial function of staffing involves manning the organizational
structure in order to fill in the roles designed into the structure.
“Jayant works in close coordination with the human resource manager in order to
ensure that he is able to create and maintain a satisfactory and satisfied workforce in
his department.”
• Directing: Directing involves leading, influencing and motivating employees to
perform the tasks assigned to them.
 “Through constant guidance and motivation, Jayant inspires them to realize their full
potential. He offers them various types of incentives from time to time keeping in
view their diverse individual needs.”
• Controlling: Controlling is the management function of ensuring that events
conform to plans. ”Moreover, he keeps a close watch on their individual
performances in order to ensure that they are in accordance with the standards set
and takes corrective actions whenever needed.”

Question 8

Anju and Manju are good friends. Considering the fact that the activities involved in managing
an enterprise are common to all organizations, after completing their masters in business
management, both of them take up a job at managerial level in different organizations as per
their individual areas of interest. Anju takes up a marketing job in a retail company and strives to
increase sales whereas Manju joins an NGO and works diligently to realize its objective related
to providing employment to especially abled persons. Both of them have to perform a series of
continuous, composite, but separate functions. On some days, Anju may spend more time in
planning a future display layout and on another day, she may spend time in sorting out an
employee’s problem. Both Anju and Manju make conscious efforts to build a feeling of team
spirit and coordination among diverse individuals with different needs who work under them.
The effect of their management is noticeable in their respective departments as the targets are
met according to plans, employees are happy and satisfied, and there is orderliness in its
functioning rather than chaos.
In context of the above case:
Identify the various features of management highlighted in the above paragraph by quoting lines
from it.

Answer. The various features of management highlighted in the above paragraph are stated
below:

1. Management is all pervasive: “Considering the fact that the activities involved in
managing an enterprise are common to all organizations, after completing their masters in
business management, both of them take up a job at managerial level in different
organizations as per their individual areas of interest.”
2. Management is a goal-oriented process: “Anju takes up a marketing job in a retail
company and strives to increase sales whereas Manju joins an NGO and works diligently
to realize its objective related to providing employment to especially abled persons.”
3. Management is a continuous process: “Both of them have to perform a series of
continuous, composite, but separate functions. Like on some days, Anju may spend more
time in planning a future display layout and on another day, she may spend time in sorting
out an employee’s problem.”
 4. Management is a group activity: “Both Anju and Manju make conscious efforts to build
a feeling of team spirit and coordination among diverse individuals with different needs
who work under them.”
5. Management is an intangible force: “The effect of their management is noticeable in
their respective departments as the targets are met according to plans, employees are happy
and satisfied, and there is orderliness in its functioning rather than chaos.”

Question 9
Real Alliance Ltd. is a well-known cement company in India. It is able to earn adequate revenues
to cover costs. Its capital base, number of employees and production turnover has increased
manifolds over the years. The rate of profitability of the business is also creditable. The
employees of the company are happy and satisfied with their remuneration, working conditions,
promotion policy etc. As a part of its moral obligation, the company has taken many initiatives
for providing employment to especially abled persons and promoting literacy in the villages
adopted by it.
In the context of the above case:

1. Identify and explain the various types of objectives of management being fulfilled by Real
Alliance Ltd by quoting lines from the paragraph.
2. List any two values that Real Alliance Ltd. wants to communicate to the society.

Answer. The various objectives of management being fulfilled by Real Alliance Ltd are
stated below:

1. Organizational objectives: An organization strives to achieve multiple organizational

objectives, mainly:
• Survival: “It is able to earn adequate revenues to cover costs.”
• Growth: “Its capital base, number of employees and production turnover has
increased manifolds over the years.”
• Profit: “The rate of profitability of the business is also creditable.”
2. Personal objectives: These objectives relate to the needs of the employees of the
organization which must be given due consideration.
“The employees of the company are happy and satisfied with their remuneration, working
conditions, promotion policy etc.”
3. Social objectives: It is expected that every organization should undertake certain initiatives
for the welfare of the society at large.
“As a part of its moral obligation, the company has taken many initiatives for providing
employment to especially abled persons and promoting literacy in the villages adopted by
it.”
4. The two value that Real Alliance Ltd. wants to communicate to the society are:
• Social welfare
Respect for their employees
 CASE STUDIES- CHAPTER 2

PRINCIPLES OF MANAGEMENT

Question 1.
Rajeev is a middle lever manager. He keeps all his subordinates under a lot of discipline. His
employees however complain of wastage of time and efforts as they feel that nothing is being
assigned in a proper way and a proper place, also no proper schedule is made for working.
Which principle of management is violated here?

Answer. The principle of management which is violated here is the Fayol’s principle of ‘order’.
Fayol’s principle of order says that everything has a place and everything should be at its place.

Question 2.
Rajesh wants to become an ideal manager. For this he reads many management books. After
reading various broad and general guidelines he prepares f to apply them and make his work
more meaningful. The necessary outcome will be his improved output. Which concept of
management has been highlighted here?
Answer. The concept of management which is highlighted here is ‘principles of management’.
Management principles are the broad and general guidelines which help employees in behavior
and decision making. .

Question 3.
Pakka employment is a company which takes care of the fact that the confidence of the
employees should always be at its peak. For this reason they give surety to their employees for
employment for a minimum fixed tenure of time. Which principle of management is followed
here?
Answer. The principle of management which is followed here is ‘stability of personnel’.

Question 4.
A floor manager of a Mall is very capable as he utilizes all the functions of management. He lays
stress on developing mutual trust and spirit of cooperation amongst the employees. Under his
guidance the employees admit that they learn a lot and are able to meet their targets. This has led
to increase in their salaries.
Identify the principle of Fayol followed by the floor manager in the above case. Answer.
Esprit De Corps

Question 5.
The plant superintendent of a company is very sad. When he was on leave he was expecting his
subordinates to take the remaining work to the finish. However he finds a new way of dealing
with this problem. He develops a system of suggestion building from the side of workers. For
this a suggestion/complain box is to be kept where the workers can drop their advice and hence
take steps from their side.
Which principle of management has been implemented here off late by the plant superintendent?
Answer. The principle of Fayol—’initiative’ was initially not followed and the establishment of
suggestion/complaint box is a step in following it.

Question 6.
Suresh works in a bulb manufacturing company. Each bulb which is manufactured is of standard
size and quality. Further if there is any unrequired type of bulb manufactured then its production
is stopped. Last month when the company came to know that 10 watt bulbs were no more liked
by customers, their production was stopped. He works in the purchase department. His job is to
purchase the filaments required to make bulbs. This time when he purchases the filament he gets
the instruction from the seller that some special care needs to be taken in the first hour of fixing
the filaments inside the bulb. Suresh knows this information should be given immediately to the
production department before the assembling process starts. However he finds that his
company’s policies only allow him to give the message to his immediate boss who will further
pass this message to his boss. The passing of this message will continue till it reaches the desired
person in the production department.
Which technique of management is followed here? Also name the principle of management
followed here by the company? Which option is now available to Suresh since the company is
not allowing him to interact with the concerned worker in the production department?

Answer. The technique of management which is followed here is Standardization (Each bulb
which is manufactured is of standard size and quality) and Simplification (Further if there is any
unrequired type of bulb manufactured then its production is stopped).
The principle of management which is followed here is Scalar Chain. However he finds that his
company’s policies only allow him to give the message to his immediate boss who will further
pass this message to his boss.
The option which is now available to Suresh is the use of Gang Plank as this is an emergency
situation. Suresh knows that this information should be given immediately to the production
department.

*****************************************************************************