Case Study

5. Super Engineering Company

Super Engineering Company was a multilocationallight engineering company. It had
manufacturing facilities at Hyderabad, Pondicherry and Indore. The company adopted
budgetary system with main emphasis on production and expense budgets. The budget
targets used to be set on the basis of analysis of production facilities and production
operations. While two units located at Hyderabad and Pondicherry were working
properly and were able to meet their budget targets, Indore unit was not able to do so.
Mr. P. Manohar was transferred to Indore unit as plant manager. He joined the
company about eight years back as engineer trainee and became the assistant plant
manager at Hyderabad unit, the biggest of the three units. Manohar was very ambitious
and a little bit autocratic. He believed in the exercise of authority and control to carry out
his instructions. He was high achiever and believed in getting things done. He got quick
promotions in the company.
Immediately after joining at Indore unit as plant manager, Manohar made preliminary
study of the plant and issued instructions to all departments to increase production by ten
per cent. He also instructed all supervisors to strictly adhere to budgets. He introduced
several new reports and watched the operations very closely. He suspended two
supervisors in the second month for not meeting the budget targets. Subsequently two
supervisors left the plant.
With all his efforts, the unit was very much on the right track and within six months
exceeded the new budgeted figures by eight per cent. On setting the plant right, he was
called back at Hyderabad unit as plant manager where vacancy arose. However, shortly
after he left for Hyderabad, the productivity at Indore unit fell below the earlier level and
the budget was again in trouble.

QUESTIONS
1. Analyses the type of organizational climate created by Manohar at Indore unit?
2. Why was there a drop in productivity at the unit after Manohar left it?
Facts of the cases

Super Engineenring Company was known, it has three manufacturing facilities that is:
Hyderbad,Pendicherry and Indor units.

The company adopted budgetary system with the main emphasis production and expense budget.
The budget used to set on the basis of analysis of production facilities and production operations.

From those three unites Hyderabod and Pendicherry unites are effective were able to meet there
budget targets. Indor unite was not able to do so. Hydrabod unit is specially the biggest of the
three unites.

Mr.p Manhor was high achiever and believed in getting things done. He got quick promotions in
the company.

When Indor unit was getting a good manager it was changed in to effective.

A major problem is Indor unit was not effective productivity before and after mr.p Manohar was
delegating the unit as plant manager.

Now Answering the Cases question

1. Analyze the type of organizational climate created by manohar at indor unit?

He’s experience was important to Indor unit. Manohar follows in the organization that is
managerial systems (Getting the most output for the least input).
-He had implemented the production or efficiency oriented management system .these
system emphasize on relationship between efforts and results as the objectives of
management but do not specify how these objectives can be achieved. He creates in the
indoor unit, concentrated on achieving high production efficiency, Low costs, and Low
resource waste.
-He had also created monitoring and evaluation systems.
-He’s managing skill was important for the success of Indor unit. Due to these Indor unit
had coming in to the good performance for a short period or up to manohar were turn
back in to the hyderabad unit.
2.Why was there a drop in productivity at the unit after Manohar left it?
After he becomes left the Indor unit productivity fell under blew the earlier level and
the budget again in trouble.