IMPORTANT CASE STUDIES—NATURE AND SIGNIFICANCE OF MANAGEMENT CLASS XII.

MISCELLANEOUS CASE STUDIES:—

Q. 1. Certain persons who had done their MBA established 'Alpha Limited' with the aim of earning justifiable profit and doing service to the society. In order to run their business successfully they took the help of several people. The people working in the company were doing different activities. Their activities were different, but their aim was the same. Here the need was to continue putting in such efforts as may not let the people lose their aim. Therefore, the arrangement made in the company was such that the efforts of all the people may lead them towards the same path.

Identify the feature of management described in the paragraph given above.

Ans. Here the feature of management described as "Management is goal oriented process'. 

Q. 2. The Managing Director of 'Lal and Lal Blanket Pvt. Ltd.' remains very watchful about the changes taking place in the Business Environment. The study of Business Environment provided him with the information that in the coming year there were indications of the weather being very cold. On the basis of this information, he decided to double the production of blankets. Looking at the production goal, the finance manager thought they would need more funds of rs. 5 crore only. He arranged this amount immediately. The company got this amount at the interest rate of 9% per annum, whereas the current rate of interest in the market was 8.75%.

On the basis of the case given above, explain that the finance manager of the company is efficient and effective. 

Ans. No, the finance manager is effective, but not efficient.

Q. 3. On the basis of the changes taking place in the Business Environment, 'Delhi Motors Limited' took the decision that now the survival in the market could be possible only by adopting the Modern Technology. It implemented this decision. To do the production by using the Modern Technology, the company had to appoint. in a large number, the specialists in this technology. As soon as these people entered the company, the employees were divided into two groups: One group was of the specialists and the other of all the rest of the employees. The company's environment begun to deteriorate. To cope with this situation, the company had to call a team from outside, which removed the differences cropped up among the employees. 

Which point of importance of coordination has been mentioned in the paragraph given above.

Ans. Specialisation

Q.4. The General Manager of "Dehradun Wood Pvt. Ltd.' called a meeting of the Production Manager and Sales Manager both of his company. He explained to them that both of these departments are the base of the company's success. Therefore, it is very necessary for both of them to work with coordination. Also, they were told that whatever decision they took for their respective departments, which could affect others, they must give its information to them immediately. They did the same. As a result of this, there never arose a situation in the company, when the sales orders could not be complied with because of the shortage of goods.

Identify the importance of coordination in the paragraph given above.

Ans. Coordination ensures Unity of Action.

Q.5. All the members of a cricket team start doing any activity according to their own will in the course of the play. The reason for this was that the team did not have any capable captain. Whenever, the team played, it was defeated. When the manager of the team realised this, he changed the team's captain. The new captain divided the different activities of the game among the players according to the individual's interest and caliber. Now the team started winning the game. The objective of the team was victory, earlier as well as now. But earlier there was no integration in the efforts of the players of the team, but now at had been established.

Identify the characteristics of coordination in the paragraph given above.

Ans. Coordination integrates group efforts.

Q.6. A few years ago there were only 500 students studying in your school. At that time 20 male and female teachers were teaching. The Principal, Mrs Radhika Sharma could control the school very easily, without any special efforts. Now the number of students in the school has reached the figure of about 2,500. Proportionately, the number of teachers also has reached 100. The number of people being so large, the difference in the background, caste, religion, interests and attitudes being there is quite natural. Now, exercising control over the school for the Principal is likely to become difficult. She will have to ensure that everybody should work for the realisation of the general objectives. But their individual objectives can become a hurdle in the realisation of the school's general objectives. Hence, to maintain the welfare of school, a harmonious adjustment of the objectives of both of them is essential.

Which point of the importance of coordination has been mentioned in the paragraph given above? 

Ans. Growth in size: With the growth of organisation in size, the necessity of co-ordination goes on increasing.

Q.7. The Managing Director of Mysore Tea Limited', Mr Primal Rai decided that his company will serve the society through earning a reasonable profit. For the realisation of this goal, he started the business of tea. In order to attract the tea consumers of the whole country, he gave his advertisement on the T.V. The company had just started capturing the market when a survey report was presented on the TV. This report stated that the people had started liking coffee more than tea and that it was useful for health also. The company had to immediately change its business from that of tea to coffee. Mr Rai saved the company from suffering the possible heavy loss through his timely countrol of the situation.

Which special feature of management is indicated/suggested through the above paragraph?

Ans. Management is a dynamic activity.

Q. 8. The Principal of 'Shivaji Public School', Shri Rakesh Mohan, set up the goal of Quality Education for his school. For the realisation of this goal he made several plans. His special focus was on the satisfaction of employees. At the end of the year it was found that all his activities were done successfully in accordance with the plans made. It took no time for the people to know the news that the school had accomplished its goal of quality education. Everyone said that it was a miracle performed by the school management.

Identify the special feature of management referred to in the above paragraph. 

Ans. Management is an intangible force.

Q.9. All the players of a team want to play whole-heartedly. To win the game is their only objective. But their captain does not tell them timely what each one of them is to do. On account of the deficiency of division of work, victory often slips out of the hands of the team.

The captain of another team divides the work properly at the right time. The work is handed over to all the members of team in accordance unth each individual's interest and calibre. But the majority of the team members want to see the captain losing the game. Defeat of such a team is almost definite. 

(a) Identify both the situations described in the paragraph given above. 

(b) Write down the effect of the situations identified in the point 'a'.

Ans.(a) i) In the first situations cooperation is there, but coordination is lacking. 

(ii) In the second situation coordination is there, but there is no cooperation. 

(b) (i) In the first situation, on account of the absence of coordination, the efforts of cooperation receive a big blow.

(ii) In the second situation, because of the absence of cooperation, the feeling of dissatisfaction comes in the players.

Q. 10. There are about 150 people working in the 'Bhargav Agencies'. All these people belong to different castes, creeds, backgrounds and have different interests. In this company, there is a tradition of organising competitions in different subjects. One of the subjects of competition was 'Your expectations from the company' . The main excerpts of the views expressed by one of the competitors were the following:

Firstly , I want that the salary given to me should be at least as much as it is given to the other people doing the similar work. Besides, I expect the other perks also.

Secondly, I want that the environment prevailing in the company should be such as gives all of us peer recognition.

Finally , I want that the company should make the opportunities for personal development available." 

Similarly , the other participants also expressed their personal views on this subject .

Identify the objective of management described in the above paragraph and explain it.

Ans. Here the Personal Objectives of Management have been described. The Personal Objectives of Management can be divided into three parts with a view to fulfil the following three needs:          

  (I)Financial Needs: People expect a competitive salary and other perks from the organisation. 

(II) Social Needs: People want to get recognition from their peers.

(III) Higher-Level Needs: People want to get sufficient opportunities for personal development. 

Q.11, The General Manager - GM of "Radhaswami Kidswear Limited", Mr Sahil Radhaswami, has divided all the employees of his company into three levels (Top Level, Middle Level and the Lower Level). At the Top Level the General Manager and the Board of Directors themselves work. The Middle Level work is looked after by the four Departmental Managers like the Production Manager, Purchase Manager, Sales Manager and Finance Manager:

The Lower Level is constituted of one supervisor of each of the four departments. The supervisors look after the daily activities of their subordinates.

Often, it is observed that the managers of all the Levels remain busy sometimes with the planning of their respective departments and sometimes with the comparison of the desired and actual results. Similarly, sometimes they are busy with the Recruitment, Selection and Training of the employees and sometimes with their motivation.

Mr Sahil knows it very well that the job of management cannot be done by a single person alone, but when all join hands to work together the meaning of management is realised. This is why he makes all his efforts to effect coordination in the activities of all his employees. All the employees are working with the team spirit. 

In the above paragraph two special features of management have been described. Identify them by quoting the relevant lines and explain them.

Ans. (1) "Often, it is observed................ with their motivation"

• Management is a continuous process: Management is such a process under which the managers of all the levels continue performing all the activities of management, namely planning, organising, staffing, directing and controlling

(II) Mr Sahil knows it very well ..... management is realised."

• Management is a group activity: The job of management is done not by a single person alone, but it is a group effort done by all the persons working in an organisation. 

Q. 12. The Marketing Manager of 'Surya Bulb Limited fixed the target for all his Sales Executives and all the possible authorities to achieve it. They were asked to submit to him their performance report at the end of the month. All of them did the same. On the receipt of report, the expected and actual results of the Sales Executives were compared. On this basis planning for future was done. The Sales Executives also wrote in their report what the expectations of the customers from the company were. Majority of them had written that they (customers) wanted the company to cooperate in the construction of the Dharamshala going on in the city at that time. The Marketing Manager placed this demand of the customers before the Board of Directors. This was happily accepted.

(1) Identify the two functions of management described above by quoting the relevant lines. 

(ii) Which two values are being given to the society.

Ans.(I) a) "The Market Manager of Surya...... rights to achieve it."

Organising 

(b) "On the receipt.......Sales Executives were compared." 

Controlling 

(II) (a) Community Development

      (b) Accomplishment of Social      Responsibility.

Q. 13. Three groups af employees of 'Gama Limited' are working at different posts. The first group of employees is responsible for the welfare and survival of the organisation. In order to discharge its responsibility properly, this group continuously keeps a watch over the Business Enironment. With a view to coping with the changes going on in the business Environment, this group immediately discusses the change to be brought about in the company's plans. 

The second group of employees is responsible for maintaining quality and safety standards, and minimising wastages.

The responsibility of third group of employees is to explain the policies decided by the top management and developing the feeling of cooperation among all the departments of the company, 

(a) Identify the concept of management described in the paragraphs given above. (b) Identify the three types of the concept identified in 'a' by quoting the relevant lines.

Ans. (a) Here the levels of management have been described.

(b) Here the following three levels of management have been highlighted: 

(I) "The first group ..................... of the organisation."

Top-Level Management 

(II) "The second group.................wastages." Lower-Level Management

(III) "The responsibility of third group............ departments of the company."

Middle-Level Management.

Q. 14. Mr Rohit Shrivastava is working as the Finance Manager in 'Khan Foodgrain Limited'. He has the knowledge of all the secrets of his company. His son is running a company which does the same business as his own M, Shrivastava shared a confidential information of his company with his son. As a result, he earned a great profit, but Khan Foodgrain Ltd.' suffered a heavy loss. When the Managing Director-MD, learnt about it, he lodged a complaint against Mr Shrivastava with All India Management Association." The Association refused to take any action on the complaint with the plea that this matter did not fall within their jurisdiction. 

This very company is visited by Dr Rattan Arya daily for two hours in order to give medical treatment facility. He knows about a secret disease of one of the employees. This knowledge he shared with another employee of the company. Slowly and slowly this information reached several employees of the company. The concerned employee, who was suffering from the disease, took it very bad. He lodged a complaint about it with the Medical Council of India. On investigations, the doctor was found guilty. As a result, his licence as a doctor to treat patients was cancelled.

On the basis of the facts described in the paragraphs given above, write about the difference between medical and management.

Ans. Here one of the characteristics of profession, Ethical Code of Conduct, has been described. On the basis of this description, the following conclusions can be drawn:

(I) In management, the feature Ethical Code of Conduct of profession is not given. The knowledge of this fact is evident from the non-existence of any Representative Association of Management in India where from one may have to obtain a licence for becoming a manager. Hence, when the practice of obtaining the licence is not there, the question of its being cancelled does not arise.

(II) In Medical, the feature Ethical Code of Conduct of the profession is present. For this there is a representative organisation, and to work as a doctor to treat patients one has to obtain a licence from it.

Q.15. A student of MBA had to give presentation on Management in his class. The main parts of his presentation were the following:

"Several Representative Associations have been set up in India, for example for Law 'Bar Council of India' for Medical 'Medical Council of India' and for Accountancy 'Istitute of Chartered Accountants'. Similar organisations for Management how been set up in India and other countries, In India 'All India Management Association— AIMA' organisation is set up. But in order to become a Manager 'AIMA' is not obligatory."

(a) On the basis of description given in the paragraph above, explain whether management is a profession.

(b) Write about the characteristic of a profession, on the basis of which management can be regarded as a profession.

Ans.(a) On the basis of this description, management can't be regarded as a profession, because in management, one of the main characteristics of a profession- 'Professional Association' is not present. No doubt, in India, 'Management Association' is there, but its objective is not to issue a licence to a person to become a manager but to do research in management is there.

(b) Well–defined Body of Knowledge: In management, this characteristic of a profession is there, Management has its own principles which can be called an organised body of knowledge. 

Q.16. Tushar Aggarwal is working as the Managing Director in 'Aggarwal Infotech Limited'. He has got a long experience of management. He understands every complexity of management. The reservoir of knowledge he has obtained through continuous practice. Whenever he was faced with managerial problems, he faced them with firmness and tried to learn something from them. 

There are four departments in all in Mr Agarwal's company. They are: Marketing, Production, Finance and Personnel. The Marketing Department of the company has fixed high objectives of sales. All the Sales Executives are working hard day–in and day–out to achieve the objectives. On the other hand, the Manager of the production department has started the repair work on the factory at a lorge scale. Consequently, it has not been possible to supply the sales orders.

It was beyond everybody's understanding how the two departments working under the so highly experienced Managing Director made such a big mistake,

(a) To which concept of management is related to the mistake made at the departmental level (as given in the paragraphs above) related to?

(b) Identify the characteristics of art available in management by quoting the relevant lines,

Ans(a) Here 'coordination'. one of the concepts of management has been highlighted. There has been a lack of coordination between the Marketing Department and Production Department For this, along with departmental managers, the Managing Director is also answerable,

(b) (i) "He has got a long.........every complexity of management."

Existence of theoretical knowledge.

(b) "This reserve of knowledge .......... continuous practice."

Based on practice and creativity 

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