CH- NATURE &

SIGNIFICANCE OF
MANAGEMENT
CASE STUDIES
CASE 1

• Rishitosh Mukherjee has recently joined AMV Ltd, a company manufacturing refrigerators.
He found that his department was under-staffed and other departments were not cooperating
with his department for smooth functioning of the organization. Therefore, he ensured that
his department has the required number of employees and its cooperation with other
department is improved.

1. Identify the level at which Rishitosh Mukherjee was working.

2. Also, state three more functions required to be performed by Rishitosh Mukherjee at this
level
ANSWER:

• Rishitosh Mukherjee is working at middle level of the management. The three more
functions that he has to perform at this level are stated below:
1. He has to assign duties and responsibilities to the people in his department.
2. He has to motivate the people in his department to achieve the desired objectives.
3. He has to interpret the policies framed by top management
 CASE II

• Mega Ltd. manufactured water-heaters. In the first year of its operations, the revenue earned by the company was just
sufficient to meet its costs. To increase the revenue, the company analyzed the reasons behind the less revenues.
• After analysis, the company decided:

1. To reduce the labor costs by shifting the manufacturing unit to a backward area where labor was available at a very
low rate.
2. To start manufacturing solar water-heaters and reduce the production of electric water heaters slowly.

This will not only help in covering the risks but also help in meeting other objectives.

QUESTIONS:
a) Identify and explain the objectives of management discussed above.
b) State any two values which the company wanted to communicate to society.
ANSWER

A. The objectives of management discussed above are:

• Organizational objectives: An organization strives to achieve multiple organizational objectives in the
interest of its stakeholders like owners, employees etc. The main organizational objectives are survival,
profit and growth.
• Social Objectives: It is the obligation of every organization to undertake such activities which will benefit
the society at large like using eco-friendly methods, contributing towards weaker sections of the society,
generating employment opportunities, promoting literacy etc.

B. The two values that the company wanted to communicate to the society are:  Rural development 
Environment sustainability.
CASE III

• Vaibhav Garments Ltd/s target is to produce 10,000 shirts per month at a cost of Rs. 150
per shirt. The production manager could achieve this target at the cost of Rs.160 per shirt.

Do you think the production manager is effective? Give reasons for your answer.
ANSWER

• Yes, the production manager of Vaibhav Garments Ltd. is effective as he could achieve
the target to produce 10,000 shirts in a month
CASE IV

• Mr. Nitin Singhania’s father has a good business of iron and steel. He wants to go to the
USA for his MBA but his father thinks that he should join the business. On the basis of
emerging- trends, do you think that Mr. Singhania should send his son to the USA? Give
any three reasons in support of your answer.
ANSWER

• Yes, according to me, Mr. Singhania should send his son to USA for his MBA because management is being
recognized as a profession to a great extent because of the following reasons:
1. Well defined body of knowledge: Management is considered to be a well-defined body of knowledge that can be
acquired through instructions. As a separate discipline, it contains a set of theories and principles formulated by
various management experts. Moreover, it is taught in various schools and colleges all over the world.
2. 2. Ethical code of conduct: Management, in practice, like other professions, is bound by a code of conduct
which guides the behavior of its members. Therefore, acquiring a degree in management will equip him with the
good managerial,, skills and approach.
3. 3. Service motive: A good management course will provide him an insight into the multiple goals that an
organization should pursue. This knowledge will help him to serve both the objectives of profit maximization
and social welfare effectively for his company.
• Jayant is working as Head Relationship Manager in the wealth management division of a private
sector bank. He has created an internal environment which is conducive to an effective and
efficient performance of his team of ten relationship management executive” A typical day at work
in Jay ant’s life consists of a series of interrelated and continue functions. He decides the targets
for his department which are in line with the objectives of the organization as a whole. The future
course of action for his team members is laid out well in advance. The various resources required
by the relationship managers like an iPad with GPS system, account opening forms, brochures,
details of account holders etc. are made readily available to them. The executives are given
sufficient authority to carry out the work assigned to them. Jayant works in close coordination
with the Human Resource Manager in order to ensure that he is able to create and maintain a
satisfactory and satisfied workforce in his department. Through constant guidance and motivation,
Jayant inspires them to realize their full potential. He offers them various types of incentives from
time to time keeping in view their diverse individual needs. Moreover, he keeps a close watch on
their individual performances in order to ensure that they are in accordance with the standards set
and takes corrective actions whenever needed. In context of the above case
QUESTIONS

• Identify the concept being referred to in the following line, “He has created an internal
environment which is conducive to an effective and efficient performance of his team of
ten relationship management executives.” 2. Identify and describe the various functions
of the concept as identified in part (a) of the question by quoting lines from the
paragraph.
• Kartik joins a garment factory as a plant supervisor in Lucknow. He observes that the output of some
workers is very low as compared to the standards set for their performance. On analyzing the reasons for
the same, he finds out that a lot of time of the workers is wasted in getting the requisite materials issued
from the store. Whereas on asking, the store keeper complains that there is no harmony in the working of
the production department as a whole. Every day the workers approach him at the last minute to procure
different kinds of threads, laces, mirrors, buttons etc. If it is not available in the store then he has to place
an order with the purchase officer. As a result, a lot of time of the workers is wasted. So, in order to
integrate the various production activities, henceforth, Kartik ensures, that the store keeper is informed
well three days in advance about the requisite material. Consequently, the store keeper is able to keep the
materials ready for the workers every morning in accordance with their requirements. In context of the
above case:
QUESTIONS

• Identify and explain the quality of management that Kartik has introduced in the working
of the production department as a corrective measure to control the output of the workers.
• State briefly any two points highlighting the importance of quality of management
identified in part (a).
• Coordination is the quality of management that Kartik has introduced in the working of the production department as
a corrective measure to control the output of the workers. Coordination is the process which helps to integrate the
efforts of different individuals with diverse needs to secure a unity of action in the pursuit of common goals.
• The two points highlighting the importance of coordination are stated below:

A. Growth in the size: With the growth in the size of an organization, there is a proportionate increase in the number of
its employees. So there is a greater need to unify the efforts of diverse individuals towards the realization of
organizational goals.
B. Functional differentiation: As a result of functional differentiation in an organization, its people and activities get
divided into small departments on the basis of functions like marketing, finance etc. Since each such department tends to
formulate its own objectives, policies etc., there is a need to reconcile the goals pursued by each of such departments
with the goals of the organization as a whole
• Ajay and Sanjay are childhood friends. Sanjay had lost his right hand in an accident in childhood.
They meet after a long time in a restaurant. On being asked, Sanjay tells Ajay that he feels very
discontented in managing his family business after the death of his father as it doesn’t match with
his areas of interest. Ajay knows that Sanjay possess extraordinary skills in management although
he hasn’t acquired any professional degree in management. Therefore, he asks Sanjay to wind up
his business in India and join him in his hotel business in Dubai as an Assistant Manager in Sales
and Marketing Division.
• In context of the above case:
1. Can Sanjay be deployed at the post of Assistant Manager in Sales and Marketing Division
though he hasn’t acquired any professional degree in management? Explain by giving suitable
justifications in support of your answer.
2. 2. List any two values that are reflected in this act of Ajay.
• Yes, Sanjay can be deployed at the post of Assistant Manager in Sales and Marketing Division although he
hasn’t acquired any professional degree in management as management is not considered to be a full-fledged
profession because of the following reasons:
A. Restricted entry: Unlike management, the entry to the other professions is restricted through an examination or
eligibility criteria like specific percentage in a particular degree or diploma. However, management as a profession
does not fulfill this criteria as anyone can be called a manager regardless of his/her academic qualifications.
B. Professional association: Unlike managers, all working professionals have to be a member of an affiliated
professional association which regulates their entry, grants certificate of practice and formulates and enforces code
of conduct. For example, the practicing lawyers have to be a member of Bar Council of India, the practicing
doctors should have membership of All India Medical Association etc. However, in case of management, although
there exist several management association like the AIMA (All India Management Association), neither does it
have any statutory backing nor is it mandatory for the practicing managers to a member of such associations.
2. The two values that are reflected in this act of Ajay are:
• Compassion
• Responsibility.