Principles of Bussiness Management

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Case Studies

1-Identify the principle of management being violated in the following situations:

(i) Raghulal receives orders from the planning incharge as well as the production incharge.

(ii) Mohit is the sales manager with a team of five sales executives. He is responsible to meet the sales
target. However, before finalizing any deal he has to seek opinion from the owner of the company.

(iii) A company has two departments to manage sales across India. Both departments are responsible to
sell company products in their areas. The owner felt that appointing separate heads of department
would increase competition and thus increase sales volume.

(iv) The workers of Quick Production Ltd. have to look for tools every morning because everyone in the
company has a habit of leaving tools wherever it is convenient to them.

(v) Mr. Ratiram the production manager expects that workers would perform their best immediately
after joining. If any worker fails to perform he is fired within one week of joining.

(vi) Puneet and a Sarita are working as sales managers in Sell Well Ltd. They both have similar
responsibilities but Puneet enjoys higher salary and more perks than Sarita.

(vii) Mr. Nitin the HR manager grants his assistant ten days paid leave for holiday but rejects Rohit's
leave application for appearing in an exam.

(viii) Mr. Nalin the head of Sales holds meeting with all the sales executives and discusses the market
strategies. Two sales executives give feedback on existing strategies and suggest changes to make them
effective but Mr. Nalin rejects them and asks all the executives to stick to the strategies he has stated.

(ix) Manav a Sales manager sells products to only those customers from whom he can receive incentive.
He makes no efforts to increase sales of other customers.

(x) Kartik and Avi are part of a sales team who is responsible to achieve target collectively. In order to be
superior to others both Kartik and Avi never discuss their plans with the team.

2-Vaibhav Sharma was working as the Production Manager in Crescent Pharmaceuticals Pvt. Ltd. To get
his son admitted in school he wanted to take leave from the office but on the same day, an important
meeting with the Chief Executive Officer (CEO) of whereas the company was scheduled to discuss about
some new medicines to be manufactured. Considering the significance of the meeting, he did not take
leave. The CEO appreciated his exemplary behaviour as he gave priority to the organisational interest
over his personal interest. Name and explain the principle of management being followed by Vaibhav
Sharma in the above case.

3-Karan Nath took over 'D'north Motor Company from his ailing father three months ago. In the

past, the company was not performing well. Karan was determined to improve the company's
performance. He observed that the methods of production as well as selection of employees in the
company were not scientific.He believed that there was only one best method to maximise efficiency.
He also felt that once the method is developed, the workers of the company should be trained to learn
that 'best method".

He asked the Production Manager to develop the best method and carry out the necessary training. The
Production Manager developed this method using several parameters right from deciding the sequence
of operations, place for men, machines and raw materials till the delivery of the product to the
customers. This method was implemented throughout the organisation. It helped in increasing the
output, improving the quality and reducing the cost and wastage.

Identify and explain the principles and the techniques of scientific management followed by the
Production Manager in the above case.

4-Flavours Ltd. was engaged in the business of making handmade chocolates. Lately, the business was
expanding due to good quality and reasonable. prices. As the demand was increasing, Flavours Ltd.
decided to explore bakery products as well. In order to make bakery products the company directed its
workforce to work overtime but this resulted in multiple problems.

Due to increased pressure the efficiency declined and the workers had to take orders from more than
one superior. Workers were overburdened and their health was also affected. Gradually the quality of
ctional. In the the products begins to decline and market share men have been also went down. The
company realised that they had implemented changes without waiting for the required infrastructure.

Identify the explain the principle/technique of Taylor/Fayol referred to in the above case.

5-A famous cricket coach, Alam Raza was hired by sports college, Indore to coach the college cricket
team for a national level competition. In the first meeting itself, the principal of the college announced
that the players would enter into an agreement with the college. The agreement would state the
reporting time for players on the field and other rules and regulations. Failure to obey the agreement
and rules would lead to judicious application of penalties. It was also announced by the college principal
that the players would receive orders from the coach and they would all be responsible only to the
coach, to prevent confusion regarding tasks to be done. The coach was very determined to train the
players to win, as the entire responsibility was on his shoulders. He promoted the spirit of mutual trust
and belongingness among the team members without which he felt it would be difficult to win. The
players were also enthusiastic and the training started in full swing.

Identify and explain the three principles of management discussed in this case.

6-Gaurika has been appointed as the chief organiser of a week long cultural event. Being a staunch
follower for scientific management, she decides to execute her work by putting into practice the various
techniques of scientific management. On the basis of several observations, she is able to determine that
the standard time taken by the security officer at the gate to check the credentials of each visitor is 30
seconds. So, she decides to employ two persons on this job for every function along with the other
necessary support staff. She considers the fact that every day, the functions I will take place in three
shifts of four hours each, therefore, it is important to give breaks to the support staff even in a single
shift to take his/ her lunch etc. Moreover, on introspection, she determines that the best way to
distribute refreshment boxes to the visitors will be to hand it over to them at the exit gate as it would
help to save time and eliminate any kind of confusion.In context of the above paragraph:

Identify and explain the various techniques of work study which have been put into practice by Gaurika.

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