ORGANIZATIONAL BEHAVIOUR

ASSIGNMENT

CASE STUDY ANALYSIS

SUBMITTED TO -: SUBMITTED BY -:

DR. GUNJAN ANAND AYUSH SHARMA

NIHAL YADAV

SUMMARY OF CASE STUDY

Magnum Industries Limited the company at first modestly started its
journey at the early phase of industrialization in the country along
with the growth of the automotive industry the company also grew.
The Chairman Mr. Suresh Shah started his career in the company as
an engineer trainee and rose to the position of trainee and not only
he is acquainted with the things and employees of the company but
also takes part in the process of recruitment and training with Mr
Janardan Thakur. Mr Thakur entered the company as a Training
instructor he trains and turns them into craftsmen as he also used
report things directly to the MD even after the vast gap in the
hierarchy but as the growing phase of the company was practically
over by that time the company did not have any vacancies to absorb
the trained apprentices training. The winds of change were blowing
and now the MD was Anil Shah the founder's son. He was full of
ideas he wanted to bring changes in the company by modernising
the present plant and change the management style from the
traditional direct approach to systems controlled approach and
because of that the company was facing many hurdles as the existing
employees were not al all adequately qualified for the company but
had grown into senior positions .as the the touchstone before was
loyalty and hard work but now it was competence when the new
MD wanted to appoint new people as it was a necessity of the
company but was denied by the chairman and no senior employees
would leave from the company, then the Md was interested in trying
out the HRD approach by training all the employees so he hired Mr
Kumar , he was basically was in the training and management
development he also introduced two assistants who will report an
manage the affairs to the Mr Kumar only but Mr Thakur who was
happy with the demotion of his post and started creating problems
for Mr Kumar, but Mr Kumar ignored him as he thought that time
will change his behaviour but happened was just opposite to what he
thought. Mr Kumar was looking into the company’s employee details
he got to know that many employees were not fit for the company
and even they don’t have a proper communicating system or the
plans for the company growth and informed this to the company’s
MD in returned MD advised that he should convey this matter with
the Chairman and when he conveyed all the thing to the chairman in
return he was blamed that because of him a normal employee is
creating chaos suddenly and at the end he was left with two options
that are either he should let treat person create chaos and handle all
the work or give that employee promotion.

INTRODUCTION TO THE CASE STUDY

As the old employees on the senior level of the company were not
qualified for the place they have in the company as they were only
judged on their loyalty and hard work for the company, not on any
other things. In the Case study we can see that when the company
was ready for changes the chairman do not want to change anything
but the company needed changes for its growth and to influence the
market for long terms and can get a higher amount of profit. We can
also see that Mr Thakur when Mr Kumar came into the company, Mr
Thakur's pride was hurt as he was deprived of the position and he
started creating chaos in the company and was also bothering Mr
Kumar which is not at all a proper behaviour for a colleague to
disturb his or her colleague and it also hinders the company’s
environment as well which in end is not all well for the company.
when Mr Kumar conveys these things to the chairman he was
himself blamed that because of him the sane employees are
becoming insane which was not good for the company as the
chairman should firstly think about the welfare of the company, not
the employees who are not worthy of being there.

Q1
SOL 1
The main reason behind protecting the senior employee of the
company was chairman did not have any plans and upgradation
ideas to grow further, As the chairman was familiar with the senior
employee and he believes that they are the reason for the growth of
the company. The company runs on old policies and technology from
earlier whose motive to earn profit only and ignoring modification. if
we look from the perspective of the chairman of MIS Yes, it is right
on the part of the chairman to protect the senior employee, thereby
causing the problem to the new MD.As trust in them was mainly
affect that to secure them. But from the viewpoint of the new MD
and organizational need, steps should be taken to replace an old
senior employee with a new skilled person who has adequate
knowledge about a complex situation.

Q2
SOL 2
That’s not right its completely false that the chairman, not over-
rewarding long service certificate, the chairman have a policy for the
senior employee of giving long service certificate and reward to all
those who completed 20 years of service in the company. When Mr
Kumar observes that it is not given in the right criteria then he
instructs that it must be given to the person who deserves it.
Several employees were belonging to the same category of which
Mr. Thakur belongs, who was not happy with the decision of the new
MD’s policy. Thus conflict occurs against the new MD by a senior
employee in front of the chairman to not to accept these new
policies.

Q3
SOL 3
The senior employee is over-reacting to the changes as until Mr.
Kumar come along, Mr. Thakur had enjoyed the position of the head
of the training division, though there were no other training apart
from apprenticeship training, as Mr. Kumar tolerated him with the
hope that Mr. Thakur would reconcile himself to the changes. But he
continued to behave the same way, so this shows how employee
over-reacts to the situation of changes in the organization.
Q4
SOL 4
The changes in the organization Yes the new MD prepare the ground
for introducing them, as the new government policy there were
several new competitors to MIL arise. The MD felt that now there
was a strong need and urgency to bring in changes in the
organization. The new MD has to make it possible to take such
changes rapidly, and thus these situations create n environment of
making hasty himself. He looks such cases as on priority basis and
trying to bring such changes so the company face the challenges and
meet the requirement of the complex environment but these
changes are not possible without the involvement of chairman and
the chairman was with the senior employee and thus in result to MD
to remove himself from the position and company also.

Q5
SOL 5
The senior employee has the full skill to cope up with changes and as
the requirement of new skilled employee occur while observation
was done by Mr. Kumar. Mr. Kumar instructs the chairman about to
replace a senior employee who does not have adequate knowledge
but the chairman ignore it because if he believes that the handwork
of the senior employee is sufficient to meet the future requirement
and thus Mr. Kumar failed to make changes but for the future
perspective they need to change only those employee who did not
have such required skill and knowledge.

Q6
SOL 6
The assumption of the training manager that ‘over-protection is the
root cause of trouble’ so it is right the observation of Mr. Thakur
implies that new policy should bring changes to face competition.
Although it is an old company which beliefs in hard work and thus
replacing an old senior employee with a new employee would not
bring such changes and modification in the company and they start
protecting the senior employee. They were also over-paid. To
increase productivity they need to set up better plans and adopt
them by recruiting a new skilled employee. If there is allowed to
replace them then there would not be such a problem and it brings
efficiency and effectiveness also. They need to understand that only
hard work does not make such modification to the company. As
taking actions against Mr. Thakur and category of his employee start
conflict and in reply senior employee continue to behave the same as
Mr. Thakur behave and that was the main problem of the company.