PoM Case Studies

Godha engineering works specialises in the installation of heating and air conditioning
equipment in a metropolitan area of about one million people. Although the company usually
installs nationally known equipment, it engages in for commercial installation. Since it was
established some forty years ago, the company has earned a reputation of quality work.
Prabhu Lal has been with the company as sales representative for two years. During this period
he believes that the company has missed a number of opportunities to obtain lucrative contracts
because of the condition under which he is forced to operate. Particularly in the case of
commercial installation, he does not have the authority to make any decision or commitments
during preliminary contract negotiation. He has to post- pone discussion of price, completion
time and credit term until after each of the technical experts in these areas how studies the job
and made formal commitments. By negotiations and gets the contract. Prabhu Lal considers this
a continuing problem, and feels hampered.
Questions:
(a) In what respects do you think Lal is justifies or not justifies in his complaint?
(b) What can be done on a company wide basis to improve the situation?
Kenyon-Werner Company
Helen Snelling is executive secretary to Andrew Evans, a cautious, retiring, quiet man. She was
transferred to his office about four months ago when the Louisville regional sales office of the
company was closed. Top managers hoped to provide Evans with expert help by assigning
Snelling, whose personnel record showed her to be capable, highly efficient, ambitious,
somewhat impatient, and the possessor of a quick temper. She is 28 years old. Reporting to
Evans are James Root, head of accounting; Hortense Higgins, head of order writing; Francis
Green, head of production scheduling; Beth Cooper, chief of switchboard operators and
receptionists; and Henry Schwartz, chief of the mailroom. James Root, age 46, knows accounting
very well, but he is not a good administrator. He is inclined to let chores other than accounting
work be unduly delayed and seems to have little perception of human relations problems within
his unit. Well liked and accommodating, he is accepted by his employees, but the top managers
do not view him as a heavy weight to assume higher management responsibilities in the
company. In view of the delay and uncertainty displayed by Andrew Evans, Helen Snelling is
inclined to take action on those matters that, in her opinion, need attention. Usually her decisions
have proven quite effective; but other members of the department object to her grabbing
authority that doesn't belong to her. To illustrate, about two weeks ago, Higgins, age 50, and
Snelling got into a verbal scuffie about' priority in completion of the order writing for certain
customers. The issue was settled by Evans, who decided in favor of Higgins. Then he had a talk
with Snelling about taking it easy and the folly of being too aggressive in business relationships.
Only two days ago during the lunch hour, Snelling answered Root's telephone, took request for
some records to be sent to the purchasing director, secured the wanted records from the file, and
sent them to the purchasing director. Root found out about the request yesterday and spoke with
Snelling about it. He stated that she was overstepping her prescribed duties and the least she
could have done was to tell him about it or leave a note on his desk. Snelling said she did write
him a note and was only trying to help. Root emphasized that he would not tolerate any
interference by her and that he intends to report the incident to Evans. Later, in searching through
papers on his desk, he found the note referred to by Snelling. It is the opinion of Snelling that the
people reporting directly to Evans are taking advantage of him and have been doing so for a long
time. He is so buried in details that he delays many financial decisions. She is certain that the
management personnel of the finance group are going in all different directions and that Evans
doesn't realize this. In her own mind, Snelling is positive that her dealings with various heads
within the finance group are for the best interests of the company. She also feels certain that the
subordinates of Evans go ahead and decide issues, sometimes poorly, when the final decision
should come from Evans, or at least with sanction by him and knowledge of what decision has
been made.
Questions
a) What is the problem as you see it?
b) What important factors do you believe contributed to the present state of affairs?
Elaborate on your answer.
c) What plan of action would you recommend to remedy the problem? Discuss.
Parmeshwari Prasad, superintendent of the Green Roadways Company is in charge of the

operation and maintenance of all company buses. The company has over 50 buses which operate
on 8 long-distance routes in the country. Because of recent complaints, Prasad is concerned about
controlling the quality of service provided to bus travelers. Schedules, setting of fare and
replacement of equipment are outside Prasads jurisdiction; instead his attention focuses on bus
drivers, garage crews, and the few people working at the main terminal. Assume Prasad has
asked you for recommendations for a control system.
(a) What control points do you suggest be used?
(b) How should actual performance be measured at these points?
Harish Nawal did his MBA from I.I.M., Bangalore and joined his fathers business, which
employed 60 semi-skilled workers and five supervisors. After a week, his father called him and
said, "Nawal, I have had a chance to observe your working with the men and women for the past
few days. Although I hate to, I must say something. You are just being too nice to people. I know
they taught you human relations stuff at the I.I.M., but it just does not work here. I remember,
when the Hawthorne studies were first reported, everyone in the academic field got all excited
about them. But, believe me, there is more to managing people than just being nice to them."
(a) Do you think Newals father understood and interpreted the Hawthorne studies correctly?
(b) If you were Newal, what would your reaction be to your fathers comments?

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Godha engineering works specialises in the installation of heating and air conditioning

Parmeshwari Prasad, superintendent of the Green Roadways Company is in charge of the

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