Friday, 28 April 2017

The L. J. Thomson Company, a large chain store operation


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Essential of Management


Case Studies
CASE STUDY (20 Marks)
The L. J. Thomson Company, a large chain store operation, recently reorganized their structure after a six month study by an outside management consulting firm. Prior to the reorganization each branch outlet sold company and other products for both retail and wholesale. Retail sales were made to customers who came to the branch while wholesale sales were made by sales representatives who called on customers in the branch marketing area. These sales representatives handled large sales to other retailers and industrial firms who bought in large quantities. The consulting firm suggested separation of the wholesale and retail business into profit centers so sales could be more carefully measured and costs more accurately determined. Wholesale sales representatives were moved out of the branches and combined with the sales force from adjacent marketing areas into regional wholesale sales offices. Because the retail branches maintained the stock of merchandise, they performed the warehousing and shipping function for the wholesale selling force. In addition returns and adjustments were handled by the retail branch since it retained the clerical force in existence before the reorganization. Ben Dixon was the manager of one of the new retail branches. He had been in charge before the reorganization, and he resented his assignment to the retail branch, believing that wholesale sales were easier and more profitable. He was particularly angry to be saddled with the responsibility for warehousing, shipping, returns, and adjustment. Clerical work was costly and he simply didn’t believe that the transfer credits to cover costs which the branch received for handling all but the sales function for wholesale selling would really fully compensate the retail branch. He felt he was in a “no win” situation, believing it virtually impossible to show a profit. He was telling anyone who would listen that the new organization would not work.

Answer the following question.
Q1. Was the new organization structure a sound one? Explain.
Q2. Should Dixon give it more time before concluding that he was in a “nowin” situation? Explain.
Q3. Could his opinion be based on the fact that he resented the retail assignment? Justify.
Q4. . Could the organization have been designed differently? Explain.

CASE STUDY (20 Marks)
The Gurjjar agitation in the Western part of India (particularly in the Indian state of Rajasthan) had claimed many lives since 2007. The Gurjjar community was demanding Scheduled Tribe status for the community but the issue became a matter of debate as scholars held divergent views about the origins of the Gurjjars. The issue also took a political hue and posed a serious challenge for policy maker in India.

Answer the following question.
Q1. Should the issue of inclusion of the Gurjjar community in the Scheduled Tribes category be corrected by political means? What will be the major consequences for Indian politics and society if the Gurjjars are enlisted in the Scheduled Tribes Category?
Q2. Is there a need to redefine the criteria for considering any community for inclusion in the Scheduled Tribes  category? Discuss.

CASE STUDY (20 Marks)
Mr.Kapi lMalhotra, a brand Manager with a leading textile company in Calcutta, came to Mumbai to attend a seminar. Among other participants he met his old friend Anil Madan, currently with a pharmacy company in Bangalore and decided to spend a day with him. As they discussed their office and work. Kapil suddenly said “ Actually our biggest regret is that my sincere work and efforts are never appreciated nor my superior performance is given due credit. In our organization, only the right connection can give rewards” Anil replied , “ That happens in every organization, though I am fortunate to have a boss, for whom the work and efforts are more important than our mere submission to her views. Our Boss, Mrs.ReenaJian is one of the most capable person in the pharma industry today. Kapil was however not impressed. He said “ I for one, am sure that women at top positions are very demanding and complex. It’s quite strange that men in your organization are comfortable with her. As men find it very humiliating and a blow to their ego to take orders from women bosses. Further he added, “Not only men, every women prefer male bosses and find women bosses a pain in the neck”. His opinion is neither unique nor isolated but typical mindset of majority of professionals, who view women bosses as a direct threat and incompetent, its so common a perception that often a woman has to prove at every step that she is capable and as competent as any man in her position. Anil then shared his own experience of having a female boss. “ I feel she is as competent and capable as anybody else. She is highly qualified and mature with no overzealous need to prove herself  or outperform other men to prove a point. She is perhaps the best negotiator and has an amazing ability to see things from our perspective. She has promoted team participation and involvement at all levels of the organization. Kapil reminded an article on participative management that says that autocratic managerial style is giving way to people oriented style; the article also said that women are more likely to succeed in the role of such leader.

Answer the following question.
Q1. What difference does it make if you work under a female superior?
Q2. Abilities and not gender make a boss good or bad. Discuss.

CASE STUDY (20 Marks)
In the past two years Horton Manufacturing Company had expanded very rapidly. It was producing a unique electronic device, and sales were excellent. Because of this expansion many additional employees were added in most areas of the company’s operations. This increased staff required more first level supervisors, and these people were largely promoted from the existing work force. In most instances the supervisors were chosen because they were efficient and dependable workers who knew their jobs well. The rapid growth of the company caused much overtime work, and many employees became used to the extra income this provided. Hortonwas a nonunion company and had a very good labour relations record. When employees were promoted to supervisory positions, they were considered members of management, and they became salaried employees. They usually entered the salary range for the job just above the minimum, but were considered for increases in six month periods until they reached the midpoint of the range after which annual consideration took place. Thus a newly appointed supervisor who performed well could reasonably expect three or four increases in the first two years on the supervisory job. Supervisors, however, did not receive overtime pay which was restricted to the hourly paid factory staff and the nonexempt office clerical employees. In the past six months ten people had been promoted to first level supervisory positions. Eight of these were in manufacturing and two in the office administration area. All of these people along with eight more supervisors are now confronting the company’s president with the fact that they are now earning less money as a supervisors than they did as line employees when the regular overtime they worked increased their pay. They were quite adamant about their position, believing that they had more responsibility and were working harder than ever. They firmly believed that they deserved overtime pay or a higher salary.

Answer the following question.
Q1. What should the president do?
Q2. . Are the supervisors justified in their complaint? Explain.
Q3. Should supervisors be paid overtime? Justify.
Q4. Could the company have planned their growth and promotion process more effectively? Explain.

Assignment Solutions, Case study Answer sheets
Project Report and Thesis contact
ARAVIND – 09901366442 – 09902787224



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