Case study

Span of
Management
Delhi Computers Ltd.
Summary

 Delhi computers ltd. (DCL) is a computer manufacturer, specialising in nonstop 2 systems

founded in 1991. The system promises neither go down nor fails to fulfil this promise, the system
employs two computers so that one computer fails another takes its place.

 Banks, airlines, insurance and manufacturing firms buy DCL products. As a high tech firm DCL
has to reply on a group of creative and dedicated people. To ensure this DCL’s chairman Mr.
Sudhir Dhami has instituted a set of unique managerial practices that emphasis on creativity.
Summary
 He believes that corporate environment nurtures creativity. The company has no reserved parking
spaces, dress code, time clocks or organisational charts. DCL rewards more in engineering than in
managerial.

 DCL hires best in the industry even minor positions are filled with adequate care and caution and
once candidates are hired, they are expected to go through an orientation period. DCL’s
management philosophy is based on the notion that employees should be treated with dignity and
be given full responsibility for job and by sharing this responsibilities as well as rewards and
demands loyalty, trust and commitment of its employees.
Summary

 The layers of management between employees and executives are bare minimum and are not
confined by formal structure. Most of employees have terminals on their desks, which are linked
with to DCL mainframe computers.

 Due to this type of management style encourages informal contacts among employees. Finally the
work week ritual ends in party on Friday afternoons and including Mr.Dhami all employees go to
canteen to talk informally.
Summary
 DCL doubled its sales almost every year between 1992 to 1997. Around 800 employees in 1997. But
since 1997 growth has slowed. The informal management style has led to a lack of internal controls.

 Controls were also needed in production management, manufacturing and international marketing.
DCL needs to be creative in introducing a new and improved product at the same time needs to exercise
control over product developmental costs, inventory and sales.

 The challenge is now to exercise management control without losing the creative, entrepreneurial
culture.
Question Answer for
discussion
1.How would you evaluate DCL’s informal
management style?

Informal management style:

 Informal organization refers to the natural grouping of people on the basis of some
similarity in an organization.
 The informal organization means natural groupings of people in the work situation.
 Whenever, people work together, they evolve some sort of grouping or pattern of
relationships among them which is not according to what is prescribed by formal
organization.
1.How would you evaluate DCL’s informal
management style?

In this case DCL’s informal management can be evaluated as below:

As it is a technical based company they should rely on creative people
so in this case for development of creativity informal type of
management is most important.
Mr. Dhami believes that corporate environment nurtures creativity.
1.How would you evaluate DCL’s informal
management style?

 The company has no reserved parking spaces, dress code, time clocks or organisational
charts.
 The layers of management between employees and executives are bare minimum and
are not confined by formal structure.
 Finally the work week ritual ends in party on Friday afternoons and including Mr.
Dhami all employees go to canteen to talk informally.
2.Do you think DCL’s style of management
would work in a large company? Explain.

No, Informal management style cannot work in large company.

 As we can see in this case from DCL doubled its sales almost every year between
1992 to1997. Around 800 employees in 1997. But since 1997 growth has slowed.
The informal management style has led to a lack of internal controls.
 Controls were also needed in production management, manufacturing and
international marketing.
2.Do you think DCL’s style of management
would work in a large company? Explain.
As employees of company increases it is hard to reach and connect
each and every employee.
So it is getting difficult to manage each and every division like
marketing, finance etc.
Because of informal management there are chances of conflicts
among groups and no one will be there to solve it.
Such type of situation may affect reputation of the company in the
market.
3.Do you think DCL should introduce some
form of formal communication structure?

Yes we think that DCL should introduce some form of formal

communication.
As we all know the formal organization refers to structure of well-
defined jobs, each bearing a definite authority, responsibility, and
accountability.
In this case because of increase in number of employees DCL should
adopt formal management style.
3.Do you think DCL should introduce some
form of formal communication structure?

It is very difficult to manage employees when number of employees are

more.
As the company is technical base they can make formal management
style and can do decentralization so that environment of creativity can
be managed up to certain levels.
3.Do you think DCL should introduce some
form of formal communication structure?

Activities can be carrying out in a proper manner with formal

management style.
Informal groups are more powerful in nature so that they can create
problems for a company in future so for future aspects Mr.Dhami
should introduce formal management style.
Conclusion
Formal and Informal
organisation

Fish Out of the pond

Summary

 In the case there is one person Sandeep Mulye who has finished the ITI Diploma from a leading
technical institute in Delhi in 1998. He joined as trainee in Shanker Foams.ltd. Because of his
brilliant interview performance he was asked to report to warehouse supervisor Suresh Kumar.
After interview Suresh assign Mulye to a small group of eight workers who were responsible for
various work like loading trucks that supplied the materials and carried back the foam mattresses,
furniture, pillows etc. to various marketing centers.
Summary
 Mulye was surprised that workers are not doing their work properly. While doing their work they
play hide and seek and do gossip. Mulye found himself unloading the truck alone. While group
members around elsewhere.

 These things Mulye discuss with his crew members. He said that he don’t like this type of waste in
the work place. Be sincere to your job instead of standing around and talking. His group member
does not help him to unloading operation. He said that because of wasting time on useless
activates they cutting off the profits and own bonus also.
Summary

 The workers replied if you don’t like our company better hang outside. If you plan to complain,
you better hold your tongue and indecent haste. Otherwise you may have cost to feel sorry later
on.

 The crew virtually boycotted Mulye form their social network, such s taking tea and lunch
together, celebration of festival in company quarter etc. being bachelor he found this a bit to hard.
Summary

 He pick an argument with Shanker Dada’s thus: “What’s wrong with you guys? I am just trying to
do my job. I don’t like others to run around without spot on their shirts. Any way I am not going to
stick my neck out for long here.

 Shanker Dada’s reply, “comrade Mulye, if you had been here as long as we have, you would be
just like us.”
Question Answer for
discussion
1) Employing some of the theories, explain the possible reasons
for the group formation of this crew. What types of groups exist
in this case?

In this case if we see in an organization point of view this is a formal organization structure but these workers are
working together since so long they have developed informal groups among themselves.

Possible reasons to develop informal groups:

Psychological fatigue of routine tasks :

 Simple and routine tasks in the factory can have undesirable influence on the workers under such conditions
person can become bored by their tasks and indifferent to their work and may experience psychological
fatigue of routine tasks.

 In this case as workers are doing work of loading trucks, carry back foam, furniture, pillows etc… and this is
their routine work so there is a psychological fatigue of routine tasks.
1) Employing some of the theories, explain the possible reasons
for the group formation of this crew. What types of groups exist
in this case?

Desire to socialize with others:

 Informal groups provide social satisfaction. Affiliation with informal group is more than just
friendship; it is a sense of belonging. it gives a man recognition, status and future opportunity to
relate to others.

Source of protection:

 Informal groups serve as a balancing function by giving satisfaction to individual that the formal
structure can’t give. In an informal group the rules for behaviour set by groups not by managers
2) Examine the role the supervisor is playing in encouraging
or discouraging the group to do well on the job?

According to our point of view the role of the supervisor is discouraging here because

 Suresh (supervisor) should have informed Mulye about situation happening among workers.

 Suresh work is to supervise their all workers but he did not do his work properly.

 Suresh even don’t introduce Mulye to other eight workers so it’s little bit difficult for Mulye to
make bonding with other worker.
3) Why Mulye has not been accepted by the group?
Do you agree with Shanker Dada’s Statement? Why
or Why not?

Why Mulye was not accepted by the Group?

 Being the Technician, Mulye was surprised when he saw the worker indulge in gossip, playing
hide and seek and eat where there was work.so Mulye found himself alone. So he quickly
indicates this to crew members.

 As per the case Mulye has not been accepted by the group because of many counter arguments
between him and workers. This is will present through role play
3) Why Mulye has not been accepted by the group? Do
you agree with Shanker Dada’s Statement? Why or Why
not?

Do you agree with Shanker Dada’s Statement? Why or Why not..?

 Shanker Dada’s statement is ‘comrade Mulye, if you had been here as long as we have, you would
be just like us. And yes, we are agreeing with Shanker Dada’s statement. Because group think
Philosophy say that” Some members begin to worship the group. They come to believe that what
they seek must be “good” because the group has decided so. Thus, they develop a delusion of
rightness. Conformity is induced, in which an individual loses his identity and becomes subject to
wilful control of an informal leader, when may manipulate the group towards selfish or
undesirable ends.
Conclusion
Thank you