S. P.

Jain Institute of Management & Research,

Mumbai
8-13-004
th
30 September 2013

BEASTS OF BURDEN…

Rajiv Agarwal wrote this case solely to provide material for class discussion. The author does not intend to illustrate either effective
or ineffective handling of a managerial situation. The author may have disguised certain names and other identifying information to
protect confidentiality.

Ashish, Bandish and Chandru were three cousins who came to Mumbai hunting for jobs. They had the
option to work on the family land in their village, but they knew that they needed to try their luck in
improving their future prospects. When they got to Mumbai, they realized that the rentals were much
higher than what they had anticipated, and the only apartment that they could get was a large three-room
apartment for Rs 90,000/-. Hence, they thought it would be more economical to share this bigger flat and
split the rent. Single Bedroom flats were more expensive and hence they were left with this alternative,
which looked as the only viable option. They could not find anyone else to share this apartment, as the
landlord insisted that only one family occupy this flat at a time, and for security reasons, they could not
take anyone else as a co-lease.

Harilal, their family’s patriarch, had assured them that he would be paying their expenses until they found
jobs. Each was clear that they would use this help for a maximum of three months, after which they
would go back home if they were still not able to support themselves. They also realized that the
individual personal expenses were Rs 10,000/- per month, and ideally, they should each save at least Rs
10,000/- per head per month, with the surplus being sent back to the village to the family funds. The last
point being important to them, as they were committed to contributing to the family pool to the extent of
at least 10,000 per month, as anything less need not make sense for them to come to the city. For
Chandru, any job in the city would be better than tilling the land, back home. But he had been the
pampered one, of all the children, showing little interest in studying, and he was always supported by all
the others in the family. Chandru’s lack of educational qualifications would pose a challenge in getting a
high paying job, but Harilal wanted Chandru to stay together with his brothers, even if it meant
subsidizing him for a longer time. Keeping all this in mind, they moved into a decent flat that the three of
them could share, with a monthly rent of Rs 90,000/-.

Harilal, the family patriarch, had said, “I want to help all my sons do well. I hope that they find jobs soon,
but eventually they all need to be self-supporting and independent. I am happy to support them until such
a time. After all, all three are equally dear to me.”

Ashish was an IT software engineer and was the brains in the family. He got a job as a project leader in an
IT firm drawing Rs 125,000/- per month. Balram was a qualified Chartered Accountant, and he took up a
job in an accountancy partnership for Rs 75,000/- per month. Chandru was hardly a graduate, and he took
up a job as an office assistant for Rs 25,000 per month.

The issue came up when the first rental payment was due, as each one was in a dilemma. How much
should each one pay?

Ashish was very upset. “I studied so much and clearly I was the top of the class. I hoped to get a high
paying job and earn a lot more so that I can save a lot after paying for my food and other costs of Rs
10,000/- per month. Even if I take a basic savings of Rs 10,000/-, I hardly get anything! The share of the
Page 2 BEASTS OF BURDEN… SPJIMR 8-13-004

rent should be split equally among all three of us, which is the fair thing to do. I don’t know why I should
pay much more than others. I will hardly save anything!! How can we pay to the family pool if we spend
all the money here? If Chandru cannot contribute, then let him go back to the village, I am happy to work
for all of us and contribute. In any case, I am subsidising his costs too!”

Bandish was indifferent and decided to go along with whatever the others had decided. He was grateful to
have gotten a job in the city. But he felt bad for Chandru and would have preferred that the savings were
used as a basis instead of the salaries. But he kept quiet, not wanting to upset Ashish.

Chandru was not very happy. “If I were to share the rent equally, I cannot afford to stay in the city. I
cannot expect Harilal to fund me indefinitely, as I would be asking him to pay Rs 18,000/- per month
even after having a job! (Rs. 33,000 rent + Rs. 10,000 living costs – Rs. 25,000 salary). I cannot accept
this. I would rather pack up and go back to my village where I can work in the fields. Atleast I would not
be a burden on anyone.”

Harilal was clear in his mind, “My sons have to be independent and should eventually be able to sustain
themselves. However, it is also the joint responsibility of the family to look after each other, and this is
important. As all fingers on the hand are not equal, all persons may not have the same abilities. I
understand that and expect accordingly.”

The dilemma remained. How should they share the rent?