Assignment 1- Principles of Management

Case Study 1

Mr. Harbhajan owns a small business. His son Mehul has just joined the business and plans to
expand it. Mehul wants to hire a professional manager and short listed 2 candidates for the
job.
• Ms. Ziva, who is a fresh MBA graduate from a reputed institution
• Mr. Venu, who has an experience of 10 years in a small organization. He is a simple graduate
from a small-town college.
Mehul favors Ms. Ziva who is professionally qualified.
When he talks about this with his father; Mr. Harbhajan says, "Why do we need a manager at
all? Things have been going fine without any manager. I have run the business without any
professional qualifications since the last 24 years. If at all, we hire someone, we should employ
Mr. Venu because of his experience. Experience is more important as management is an art”.
But Mehul believes that in the modern times a professional manager is more suitable.

Based on the above situation, answer the following.

1. Do you agree with the statement made by Mr. Harbhajan about there being no
need for a manager? Give suitable reasons to support your answer.
INTRODUCTION

No, I do not agree with Mr. Harbhajan when he denies the need for management.
Management is required wherever 2 or more people work together to achieve common
goals. It creates teamwork and coordination and is indispensable in all organizations
whether a business, firm, government Etc.

NEED FOR MANAGEMENT

Business environment is becoming more complex and dynamic and management is required
to face multiple challenges like
• Growing size and complexity of business
• Increasing specialization of work
• Competition in the market
• Growing unionization of Labor
• Sophisticated and capital-intensive Technology.

CONCLUSION

I believe that in a continuously changing and volatile business environment, it becomes

necessary to introduce management. In Mr. Harbhajan’s case, however things have run
smoothly for a long time, that is not guaranteed in the future. Management is the Catalyst
without which no organization can survive or grow.

2. Is Mehul correct in his belief that Ziva should be employed because she has a
professional degree?

INTRODUCTION
Yes, Mehul is correct to want Ziva to be employed. Ziva is an excellent and extremely
qualified and educated candidate and will bring young blood in the organization. Her
qualifications will help in increasing efficiency of the organization as well.

WHY IS ZIVA A GOOD CANDIDATE?

Ziva is a good candidate because her professional degree has equipped her with a Body of
Knowledge and has expanded her knowledge to Interchange of ideas, information and
research.

She has Formal Education and Training and has acquired Knowledge and Skills through
formal methods and intellectual training.

She has Minimum Qualifications and has passed prescribed examinations to acquire her
degree.

CONCLUSION
In summation, it is evidently to your that Ziva is a competent and qualified candidate who
would prove to be an asset to the organization, however we must realize that having a
professional degree is not everything, there are multiple aspects that make a good manager
such as experience, minset, personality Etc. A good manager is one who can achieve
objectives and not necessarily the one with an academy degree.

3. If you were the owner of this business, would you hire Ms. Ziva or Mr. Venu?
Why?

4. Do you think that management is needed to run a business in today's times?

Case Study 2

A Week in the Life of a Bank Manager

I start my working day early. After completing the security checks of the branch, my normal
routine will involve viewing our sales figures for the outlet and discussing these with my
management team. I always start the day with a branch huddle, which allows the staff to
understand the priorities for the day.
10.00am
I have a weekly meeting with my management team covering issues we need to address for
the week and ensuring an agenda is set for their own teams. We discuss topics such as staff
development, coaching and risk management as well as any sales and service issues.
11.00am
I read our Intranet page, which includes daily company-wide announcements and
information. I catch up on reading my e-mails, which tend to be from my boss and regional
office. I try to prioritise these as best as possible and make sure I pass on any useful
information to the staff.
12.00noon
I decide to carry out some training and development with my counter staff. We concentrate
on their individual training needs allowing them to feel more confident in their role. This is
an area I take great enjoyment from, as it is a time where I can use my experience to help
my staff to develop themselves and progress in their own careers.
1.00pm
I have a regional conference call with about 10 other Branch Managers in our region. This
call allows us to share best practices and ideas allowing each unit to work as successfully as
possible.
2.00pm
The conference call lasted a bit longer than expected so I only have time to grab a quick bite
to eat whilst chatting to my Assistant Manager about the morning’s business results.
2.30pm
I have a meeting with a business customer to discuss opening a new account. Although not
a major part of my role, I enjoy the customer interaction and always try to be available for
customers if necessary.
3.15pm
I have to deal with a customer complaint and spend the next hour getting in contact with
other areas of the business to make sure I can resolve the complaint within regulated
timescales and to the customer’s satisfaction.
4.15pm
I spend the remainder of my day preparing for a meeting I have in the morning with other
managers in my area. I’ve been given a slot on Branch Service Expectations on which I have
to deliver a presentation. It’s something I enjoy doing and is a task I’ve had to do on a regular
basis ever since my first role.
5.00pm
The bank’s doors close to the public but I still have tasks to complete. I have a quick meeting
with the team, celebrating successes from the day and making sure we’re prepared to start
it all again tomorrow. After the office cash is balanced and I send an update e-mail to my
boss we carry out the end of night security checks.
6.00pm
I leave the office and it’s off to football training which gives me time to release my stress
from a tiring day.....
Career Progression
I graduated with a BCom (Hons) Business Studies Degree from Edinburgh University in 2002
and joined the HBOS Graduate Scheme in the same year. After completing my initial training
I progressed to Assistant Manager of a branch in Durham, then on to Branch Manager in
the Gateshead Metro Centre Branch and in April 2005 I became the Branch Manager of the
High Street Branch in Falkirk.

Based on the above case answer the following questions:

1. What functions are performed by the bank manager?

2. In reference to Mintzberg's roles, what roles are assumed by the manager in the above
case?
Answer:
In reference to Mintzberg’s Roles, the roles assumed by the manager are:
a) Figure head
The line in the paragraph, “After completing the security checks of the branch, my
normal routine will….for the day”, shows that the Bank Manager is a figure head.
Def: As the symbolic head of his organisation, a manager must perform routine duties
of a social or ceremonial nature. This role is associated mainly with senior managers.
E.g. Receiving official visitors, welcoming new recruits, signing letters to retiring
employees, attending subordinates' weddings, taking clients to lunch, etc.
b) Liaison
According to the line, “I have a meeting with a business customer to…customers if
necessary.” The bank manager is a Liaison.
Def: Building and maintaining external relationships or outside contacts to obtain
favours and information.
E.g. Keeping in touch with local community, suppliers, clients, etc.
c) Monitor
The line “I read our Intranet page….. boss and regional office.” Depicts that he is a
Monitor.
Def: Seeks and receives information to develop thorough understanding of organisation
and environment. Emerges as a nerve centre of information.
E.g. Reading periodicals and reports, observational tours, questioning subordinates,
mail.
d) Disseminator
‘I’ve been given a slot on Branch Service…since my first role.’
Def: Transmits information to other members of the organisation.
E.g. Formal reports, memos and phone calls to other managers regarding activities in
the organisation or local community, keeping superiors informed.
e) Spokesperson
Def: Transmits information to outsiders on plans, policies and actions of the
organisation. Represents the organisation.
E.g. Conversation with suppliers and customers, speeches to local groups.

Case Study 3

Mr Nandan, the Managing Director has just come from a meeting with Mr Prakash,
MS. Retha and Mr Salim. The meeting was a big disaster and ended up with a shouting
match between the four. The issue started last month when Mr Prakash the Sales
Manager bagged a huge export order for the company. Mr Prakash is young, dynamic
and ambitious manager and was recently appointed by the organisation and his sales
team has been doing well. The order was for delivering 10,000 pieces of the product
within 1 month. Mr Prakash agreed to the terms including a penalty clause in case of
delay in fulfilling the order. The Managing Director had been very happy with such a
large order and the possibility of growth in future. However, when he informed Mr
Salim, the Production Manager, he received a negative response.
Mr Salim was very upset that his department had not been consulted before accepting
such a huge order. He said that it was very difficult to complete the order within the
time period of 1 month as he already had his hands full and there was a backlog in
production. Two of the machines were obsolete and the new machines ordered last week
had still not been bought by the company. In such a situation he was not sure that the
export order could be completed in time. Mr Nandan advised him that an additional
shift could be started on Sunday to complete the order. This was implemented and the
required orders were passed. He also said that he will try to get the old machines
replaced within 10 days.
After 5 days, Ms Rekha, the HR manager came to Mr Nandan and told him that the
Trade Union was unhappy with the decision of the company to work an extra shift on
Sundays. They felt that the overtime being paid was inadequate. There were also safety
concerns about working on the old machinery. She wished that she had been consulted
about the extra shift before passing the order. Mr Nandan brushed aside her concerns
and asked her to negotiate with the Trade Union about the overtime payments.
Two weeks after production started, there was an accident in the factory and one of the
workers was seriously injured. The trade union went on a strike. The order was still not
completed. Mr Salim blamed Mr Prakash for the mess. Ms Rekha was upset with Mr
Salim and Mr Nandan for not listening to her about the safety concern. Mr Nandan tells
the three managers that they are not coordinating and should have sorted this out with
each other instead of bothering him.
On the basis of the case, answer the following questions:

1. What do you think is the core issue in the case?

Answer
The core issue in the above case was clearly lack of communication and coordination.
Coordination implies and orderly pattern or arrangement of group efforts to ensure
unity of action in the pursuit of common objectives. It is the task of reconciling
differences in interest or approach in order to maximise contribution towards
accomplishment of common goals.
Firstly, Mr. Prakash should have discussed with his team before accepting the order and
Mr. Nandan as a Managing Director he should have known about the defaults that the
company was facing. All four of them should realise that being correct on their
individual part is not all that is required, coordination is the essence of management.
Planning and consulting with the team members is a must. Each should also understand
that the division heads expertise in their own areas and thus listen each other.
To coordinate is to harmonise all the activities of a concern so as to facilitate its working
and its success.

2. Do you think Mr Prakash is at fault in this situation? Why or why not?

In my opinion, Mr. Prakash was at fault in this situation because without knowing
previous orders of the company, companies capability to produce goods,
malfunctioning of the machines and not discussing it with his seniors and subordinates
he took the order for producing 10,000 pieces within a month and even agreed to the
terms including a penalty clause in case of delay in fulfilling the order. He lacked
communication skills that led to mis conduct and coordination for all the events that
followed ending it all being a disaster. He might not be solely responsible but started it
all.

3. Do you agree with Mr Nandan that "the managers are not coordinating and
should have sorted this out with each other instead of bothering him."
No, I don’t agree with Mr. Nandan that the managers are not coordinating and
should have sorted this out with each other instead of bothering him.
Him, being the Managing Director should also have known what are they all up to
because he was also happy with Mr. Prakash’s Decision imposing the order on
others ignoring the problem of different departments like Mr. Salim gave a negative
response and Ms. Rekha told him that the trade union was unhappy leading to a
strike.
In a well-coordinated enterprise, each department or division works in harmony
with others, and is fully informed of its role in the organisation. The working
schedules of various departments are constantly attuned to circumstances. The
purpose of coordination is to secure harmony of action or team-work and
concurrence of purpose. "coordination is balancing and keeping together the team
by ensuring a suitable allocation of tasks to the various members, and seeing that
the tasks are performed with due harmony among the members themselves".
4. How can coordination be established for future?
Coordination can be established in the future by keeping in mind, the principles of
coordination i.e. Requisites for effective coordination;
a. Direct contact:
According to this principle, coordination is best achieved through direct
personal contact among the people concerned. Direct communication is the
most effective way to convey ideas, feelings and information
b. Early start:
Coordination can be achieved more easily in the early stages of planning
and policy-making. Therefore, plans should be based on mutual consultation
and participation.
c. Reciprocal relationship:
This principle states that all factors in a given situation are reciprocally
related. For instance, in a group, every person influences all others and is in
turn influenced by others.
d. Continuity:
Coordination is an on-going or never-ending process rather than a once-for
all activity. It cannot be left to chance but management has to strive
continually for maintaining proper balance among different elements.
Coordination is the result of the process of management. Every function of management
contributes to coordination. The relationship between managerial functions and
coordination can also be achieved through 1) Coordination through planning 2)
Coordination through organising 3) Coordination through staffing 4) Coordination
through direction and 5) Coordination through control.

Case Study 4