What are the strengths and weaknesses of a bureaucratic organization

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Assignment Solutions, Case study Answer sheets Project Report and Thesis - Contact [email protected] www.mbacasestudyanswers.com ARAVIND – 09901366442 – 09902787224 International Human Resource Management Case study (20 Marks) Kaniksha Ispat is an established medium size company manufacturing steel strips. The company has employed over 800 workers. The products of the company have established a good reputation and company was doing very well for last 15 years. The market is slowly changing its nature. The competition is growing and the recessionary trends are now clearly visible. The company is not visualizing a bright, growing market and most of the products, as per present marketing conditions are overpriced. In an effort to save the organization, the company president Mr. Vasant invited all the employees for a joint meeting. At the meeting he tried to explain what problems company is presently facing and what the means to save the company are. The employees after understanding the graveness of the situation, agreed to have a10% cut, effective from the next month in their salaries immediate increase in salary is not possible. Mr. Vasant was highly impressed at the cooperative and positive approach of the employees. The company also tried to maintain a strict austerity measures in order to cut costs. Three months later, the company installed many new devices to improve quality and cut costs. Anagram Finance and Leasing came foreword to offer a hand of help to improve its financial position. The loan agreement amounted to Rs. 1 crore. First installment was received by the company Rs. 30 lacs and reconstructive work started at a rapid speed. The techno economic survey was made by the expert of Anagram Finance and they submitted a report that, future cut in administrative cost by reducing 200 employees is the essential step that Kaniksha should take immediately. If this is not acceptable to the company then the next installment should not be released. Since the fixed assets of the company had been used by the company to support the loan agreement, it had a little scope for denial. Mr. Vasant decided to invite union leader and discuss the issue Answer the following question. Q1. What is the fundamental management problem Q2. List out alternative courses of action Q3. Identify the position of both Mr. Vasant and Union Leader Case study (20 Marks) Amit, a Chief Manager of Sparkleading departmental stores at Nagpur, has attended a seminar on Japanese Management System. He was highly impressed by the innovative and democratic approach of the system. He decided to go for Japanese System by introducing initially a few measures in the stores. Mr. Rajesh is his close rival, who feels that he has the right to be the chief of these stores, for his qualities and understanding of the departmental stores. Mr. Rajesh often puts spokes in the wheel in order to bring Mr. Amit in troubles. He has won confidence of a small section of sales representative, who at his insistence often play games to trouble Mr. Amit and malign his image or foil his plans. Mr. Amit decided to introduce a suggestion box scheme. He thought that the suggestion so received will be helpful to improvise the functioning of the department. As well as to involve the workers in decision-making process. A meeting of all sales personnel and assistant managers was called on for this purpose. Mr. Rajesh along with others also attended the meeting. He listened to the idea of Mr. Amit properly and decided to foil it. Mr. Amit explained the concept of suggestion box, and said that anyone can put the suggestion, he need not mention his name, if he mentions his name and offers a useful suggestion, a reward of Rs. 50 will be given. Mr. Amit felt that the scheme will work and he will fetch a goodwill as well as good participation. A week after launching of the scheme, the box was opened. It was having nearly 70 suggestions. A scrutiny was made by Mr. Amit and to his surprise; he received a bolt from the blue. 36 suggestions were to scrap the scheme and in 22 cases very naughty ideas were offered. This frustrated Mr. Amit and he decided to abandon the suggestion box scheme. A feedback from the workers was taken. He found that no worker was much impressed with the idea. The scheme was scrapped and Mr. Amit continued with existing ideas…. Answer the following question. Q1. Analyze the incidence Q2. Identify the issues, problems involved in this scheme Q3. List out the facts Q4. List the critical problems demanding immediate attention Q5. Was Mr. Amit right in scrapping the scheme? Case study (20 Marks) A Food specialty is presently headed by Nandan Vinayak. The company is doing business very well and its profits are on continuous rise. The company has maintained a steady profitability, sales and performance track record. The employees are mostly less paid and less educated. Most of them are semiskilled and coming from nearby rural areas. Mr. Nandan is quite happy with the existing situation. He has recently launched an expansion program ha fetched him grand success. The new products of the company are highly appreciated. In discussion with his closest colleagues he decided to institute a program of employees rewarding employees with silver potteries. The types of silver wears were to vary from employees to employees depending on his tenure of service and cadre in which he has served. Mr. Nandan felt that he would receive a grand reception on this announcement. The announcement was made on 12th October in order to offer Diwali Gifts to the employees. Instead, after he cheerfully presented his plan, he faced a silent group of weary workers staring back at him in near disbelief. Most of them were nervous and unhappy. They thought that this is not what they expected for the tremendous labour put in as a reward. Mr. Nandan was puzzled at the pathetic response of the workers. Answer the following question. Q1. Analyze the case Q2. Was the incentive scheme wrong in any way? Winning with Bureaucracy at McDonald’s (20 Marks) McDonalds Corporation, the fastfood hamburger giant, has experienced immense success around the world. The secret to its growth and profits is based on product consistency and uniformity. The product and the service is the same the world over. This tight consistency is achieved through bureaucratic control. Rules and regulations are the byword at McDonald’s. Every task is done in the same way in every store. To enforce the standardisation of operations, McDonald’s has a welldefined organisational hierarchy. Field service managers and inspectors visit each store regularly to assure compliance with standard operation procedures. Each store has a welldefined division of labour. Analysts have broken down every job into its smallest steps and have then automated the entire process to further assure that individual workers won’t get creative about what fixings should go on a Big Mac. Assistant managers are assigned to cover each shift and crew leaders are responsible for certain time periods, such as breakfast or lunch. Each employee knows exactly what to do. Trainers are assigned to teach each new worker precisely how to perform their asigned tasks. Trainees soon learn that, at McDonald’s, standards are more important to the maintenance of operational effectiveness. Management at McDonald’s has created effective mechanisms for work coordination, such as a detailed organisation structure and provisions for standardised services by corporate staff members in such areas as advertising, public relations, and operations. Area field consultants visit each store on a regular basis to be certain that every franchise conforms to all of McDonald’s rules and regulations. Since McDonald’s operates in a relatively stable environment, employing basic technology that has remained quite constant for the past fifteen years, the bureaucratic, mechanistic node of operation is ideal. At McDonald’s, the adherence to the bureaucratic process is not seen as a negative concept, but a posh one that spells continued consumer satisfaction and continued business success. Proof that bureaucracy works for McDonald’s is found in 1993 yearend financial numbers: (1) revenues were up over the preceding year by 6 per cent to $7.3 billion; (2) net profit was up 13.7 per cent to $1.0 billion; and (3) total return on equity rose to 21 per cent. Answer the following question. Q1. Discuss the advantages and disadvantages of the various forms of departmentalization? Q2. What are the strengths and weaknesses of a bureaucratic organization? Q3. How does downsizing make firms more competitive in the global arena? Q4. Compare and contrast bureaucratic control with clan control. Which is better? Q5. Discuss the strengths and weaknesses of budgeting? Q6. How can a manager make control systems more effective? Assignment Solutions, Case study Answer sheets Project Report and Thesis - Contact [email protected] www.mbacasestudyanswers.com ARAVIND – 09901366442 – 09902787224

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Assignment Solutions, Case study Answer sheets Project Report and Thesis - Contact [email protected] www.mbacasestudyanswers.com ARAVIND – 09901366442 – 09902787224 International Human Resource Management Case study (20 Marks) Kaniksha Ispat is an established medium size company manufacturing steel strips. The company has employed over 800 workers. The products of the company have established a good reputation and company was doing very well for last 15 years. The market is slowly changing its nature. The competition is growing and the recessionary trends are now clearly visible. The company is not visualizing a bright, growing market and most of the products, as per present marketing conditions are overpriced. In an effort to save the organization, the company president Mr. Vasant invited all the employees for a joint meeting. At the meeting he tried to explain what problems company is presently facing and what the means to save the company are. The employees after understanding the graveness of the situation, agreed to have a10% cut, effective from the next month in their salaries immediate increase in salary is not possible. Mr. Vasant was highly impressed at the cooperative and positive approach of the employees. The company also tried to maintain a strict austerity measures in order to cut costs. Three months later, the company installed many new devices to improve quality and cut costs. Anagram Finance and Leasing came foreword to offer a hand of help to improve its financial position. The loan agreement amounted to Rs. 1 crore. First installment was received by the company Rs. 30 lacs and reconstructive work started at a rapid speed. The techno economic survey was made by the expert of Anagram Finance and they submitted a report that, future cut in administrative cost by reducing 200 employees is the essential step that Kaniksha should take immediately. If this is not acceptable to the company then the next installment should not be released. Since the fixed assets of the company had been used by the company to support the loan agreement, it had a little scope for denial. Mr. Vasant decided to invite union leader and discuss the issue Answer the following question. Q1. What is the fundamental management problem Q2. List out alternative courses of action Q3. Identify the position of both Mr. Vasant and Union Leader Case study (20 Marks) Amit, a Chief Manager of Sparkleading departmental stores at Nagpur, has attended a seminar on Japanese Management System. He was highly impressed by the innovative and democratic approach of the system. He decided to go for Japanese System by introducing initially a few measures in the stores. Mr. Rajesh is his close rival, who feels that he has the right to be the chief of these stores, for his qualities and understanding of the departmental stores. Mr. Rajesh often puts spokes in the wheel in order to bring Mr. Amit in troubles. He has won confidence of a small section of sales representative, who at his insistence often play games to trouble Mr. Amit and malign his image or foil his plans. Mr. Amit decided to introduce a suggestion box scheme. He thought that the suggestion so received will be helpful to improvise the functioning of the department. As well as to involve the workers in decision-making process. A meeting of all sales personnel and assistant managers was called on for this purpose. Mr. Rajesh along with others also attended the meeting. He listened to the idea of Mr. Amit properly and decided to foil it. Mr. Amit explained the concept of suggestion box, and said that anyone can put the suggestion, he need not mention his name, if he mentions his name and offers a useful suggestion, a reward of Rs. 50 will be given. Mr. Amit felt that the scheme will work and he will fetch a goodwill as well as good participation. A week after launching of the scheme, the box was opened. It was having nearly 70 suggestions. A scrutiny was made by Mr. Amit and to his surprise; he received a bolt from the blue. 36 suggestions were to scrap the scheme and in 22 cases very naughty ideas were offered. This frustrated Mr. Amit and he decided to abandon the suggestion box scheme. A feedback from the workers was taken. He found that no worker was much impressed with the idea. The scheme was scrapped and Mr. Amit continued with existing ideas…. Answer the following question. Q1. Analyze the incidence Q2. Identify the issues, problems involved in this scheme Q3. List out the facts Q4. List the critical problems demanding immediate attention Q5. Was Mr. Amit right in scrapping the scheme? Case study (20 Marks) A Food specialty is presently headed by Nandan Vinayak. The company is doing business very well and its profits are on continuous rise. The company has maintained a steady profitability, sales and performance track record. The employees are mostly less paid and less educated. Most of them are semiskilled and coming from nearby rural areas. Mr. Nandan is quite happy with the existing situation. He has recently launched an expansion program ha fetched him grand success. The new products of the company are highly appreciated. In discussion with his closest colleagues he decided to institute a program of employees rewarding employees with silver potteries. The types of silver wears were to vary from employees to employees depending on his tenure of service and cadre in which he has served. Mr. Nandan felt that he would receive a grand reception on this announcement. The announcement was made on 12th October in order to offer Diwali Gifts to the employees. Instead, after he cheerfully presented his plan, he faced a silent group of weary workers staring back at him in near disbelief. Most of them were nervous and unhappy. They thought that this is not what they expected for the tremendous labour put in as a reward. Mr. Nandan was puzzled at the pathetic response of the workers. Answer the following question. Q1. Analyze the case Q2. Was the incentive scheme wrong in any way? Winning with Bureaucracy at McDonald’s (20 Marks) McDonalds Corporation, the fastfood hamburger giant, has experienced immense success around the world. The secret to its growth and profits is based on product consistency and uniformity. The product and the service is the same the world over. This tight consistency is achieved through bureaucratic control. Rules and regulations are the byword at McDonald’s. Every task is done in the same way in every store. To enforce the standardisation of operations, McDonald’s has a welldefined organisational hierarchy. Field service managers and inspectors visit each store regularly to assure compliance with standard operation procedures. Each store has a welldefined division of labour. Analysts have broken down every job into its smallest steps and have then automated the entire process to further assure that individual workers won’t get creative about what fixings should go on a Big Mac. Assistant managers are assigned to cover each shift and crew leaders are responsible for certain time periods, such as breakfast or lunch. Each employee knows exactly what to do. Trainers are assigned to teach each new worker precisely how to perform their asigned tasks. Trainees soon learn that, at McDonald’s, standards are more important to the maintenance of operational effectiveness. Management at McDonald’s has created effective mechanisms for work coordination, such as a detailed organisation structure and provisions for standardised services by corporate staff members in such areas as advertising, public relations, and operations. Area field consultants visit each store on a regular basis to be certain that every franchise conforms to all of McDonald’s rules and regulations. Since McDonald’s operates in a relatively stable environment, employing basic technology that has remained quite constant for the past fifteen years, the bureaucratic, mechanistic node of operation is ideal. At McDonald’s, the adherence to the bureaucratic process is not seen as a negative concept, but a posh one that spells continued consumer satisfaction and continued business success. Proof that bureaucracy works for McDonald’s is found in 1993 yearend financial numbers: (1) revenues were up over the preceding year by 6 per cent to $7.3 billion; (2) net profit was up 13.7 per cent to $1.0 billion; and (3) total return on equity rose to 21 per cent. Answer the following question. Q1. Discuss the advantages and disadvantages of the various forms of departmentalization? Q2. What are the strengths and weaknesses of a bureaucratic organization? Q3. How does downsizing make firms more competitive in the global arena? Q4. Compare and contrast bureaucratic control with clan control. Which is better? Q5. Discuss the strengths and weaknesses of budgeting? Q6. How can a manager make control systems more effective? Assignment Solutions, Case study Answer sheets Project Report and Thesis - Contact [email protected] www.mbacasestudyanswers.com ARAVIND – 09901366442 – 09902787224

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