Management Theory and Practice

1. Amar Bajaj Ltd, a company dealing with PVC pipes has traditionally been a centralized
company from generations run by the founders. Now as the 3rd Generation steps in to take
over the reins, they feel its high time, they go decentralized as the firm has grown leaps and
bounds and become a mid-sized company today from the small scale it started with. They
have hired you as a consultant for the same. Can you guide them about the same by
making them aware of the pros and cons of both and helping them take a decision?
(10 Marks)

Answer 1.
Introduction
Aman Bajaj Ltd, dealing with PVC pipes, has been centralized for three generations now and
expanded its business operations appreciably throughout these instances. As the third generation
takes over, they feel the need to decentralize, aligning themselves with the new technology age.
This will have its implications, and the organization ought to face massive repercussions within
the market of PVC pipes. The focus of this record is to provide an informed choice regarding the
pros and cons of such a bold pass within the market and how it's going to influence the extensive
pipe industries that are preferred around the country. We take a look into decentralization, its
means, and how it may prove to be a boon or a bane in the approaching generations. We also
examine the consequences on income to be affected quarterly.

Concept and analysis

Centralized company systems frequently include a headquarters where the total control is
located, and most of the corporation's crucial choices are made. Those options are then surpassed
directly by the local administrator who runs them in series. While pinnacle management controls
the decentralized device, the front-line or neighborhood managers have lots of extra freedom and
energy to make choices that benefit the local market, clients, and stakeholders.
A decentralized company business shape is one in which the pinnacle management delegates
critical decision-making authority to front-line and local managers instead of making all essential
decisions on the pinnacle. Disbursed business systems have benefits and downsides compared to
more excellent centralized operations, and its miles up to each organization to decide which
method is acceptable for them.

The capacity of nearby leaders to conform fast to modifications in nearby markets is one of the
essential advantages of a decentralized organization. Consumers searching out something will
wait for nearby leaders to talk to central leaders, leading to delays and marginalization of vital
customers. Decentralization can improve employee morale because managers in any respect
level believe that they impact an agency's achievement or failure. Decentralization can add
momentum to the enlargement of a growing company. This could result in new business units in
one-of-a-kind geographic regions. Decentralization lets groups reach their entire ability and reply
quickly to specific desires. Sub-managers have enough authority to trade manufacturing
schedules and work orders. They'll take disciplinary motions against co-employees and offer
promotions. This, in turn, leads to more excellent, adequate supervision. Evaluating the overall
performance of every allotted device will help preserve proper management. Decentralization is
an effective device to fulfill vital autonomy, electricity, status, and status desires. This
satisfaction creates a set of satisfied managers who feel liable for the employer's fulfillment.

In line with CEO William Weldon, one of the maximum massive disadvantages of Johnson &
Johnson's decentralized version is that he and other senior executives need to give energy and
significant belief in other leaders. Any other major drawback of decentralization is that selection-
making turns into more dispersed. This means that more people are concerned, and selections
aren't made just through your maximum influential leaders. Any other issue is the possibility of
emblem inconsistency.

A decentralized product line ought to be massive enough for autonomous departments to thrive.
This could now not be very helpful for small businesses with a limited product range. The
complexity component is also complicated by using the lack of certified managers at the
decreased tiers of the organization. Due to decentralization, every worker is held accountable for
the organization's achievement and works more challenging to acquire all of the business
enterprise's desires. In return, they need to receive massive rewards, which can be very expensive
for the organization.

Weldon additionally stated that the decentralized structure of his enterprise has a substantial
effect on its potential to transact globally. They rely on local employees to make important
strategic and business choices globally. In line with the 12Manage internet site, decentralization,
delegation, and delegation of authority are the three main types of decentralization. Dispersion is
considered the weakest form of variance because choice-making is in the hands of better-stage
regional or upper-stage leaders. The delegation will become increasingly common while
authority is transferred to front-line employees. Local-stage or foremost retailers make the
crucial top picks with the most autonomy, which is the most extreme form of delegation.

Conclusion

while the decentralization will be very beneficial to the organization in a long time thinking
about new sales and extra personnel hired, it could be steeply-priced in a brief time. It could
reason a loss of cohesion inside the organizational structure where everybody specializes in their
own appropriate rather than the collective proper f the business enterprise. Each method has its
pros and cons, and decentralization has its own. However, in the long run, this may prove to be a
turning point within the company's s stature, and the business in the p.c pipe industry is
preferred.

Q2. Pri Rock, a company dealing in gems and precious stones polishing earlier only had a
base in Surat. It has now expanded its wings to Mumbai too and want to also get into other
avenues of Jewelry. They have hired you as a consultant to help them design their
organizational structure as earlier they used to follow the traditional line structure. They
would want to use the 6-box model in order to determine what structure will suit them the
best. Can you guide them on the same? (10 Marks)
Answer 2.
Introduction
Pri Rock Company based out of Surat, India, wants to extend its enterprise operation in any other
town, Mumbai, and uses the six box method to decide if the strategic circulate to expand into
nearby territories will healthy them. In addition, they want to transition from the traditional
organizational shape to a brand new organizational shape while developing profits quarterly and
want a new framework to attain this. Weisboard's six-block model affords senior executives a
framework for diagnosing administrative troubles that are not apparent without delay. The model
gives six subjects to explore while looking for areas where your corporation isn't doing nicely.
Groups are regularly so vast and complex that managers recognize where to resolve issues,
although they may be extra powerful. In different words, new systematic strategies to shape a
framework of business shape in an already present one.

Concept and analysis

Created by way of Marvin Weisbord, this model assists you in nicely evaluating overall business
performance. One of the benefits of using this version is that it can adapt to almost any form of
business. This idea needs to be used everywhere, so it should be beneficial in all fields. The six
blocks mentioned within the identity check with applicable Mechanisms: desires, dating
structures, and management Rewards. To better understand these six center fashions and how
they allow you to recognize your company, we've highlighted every one of the six aspects
beneath.
Purposes: You need to understand precisely what type of enterprise you are jogging and what
sort of business you want to do in the future. This can appear like an easy topic, but it can be
more complex while digging deep than you believe you studied. For example, think you have
constructed a patron base that is barely past the target market you first recognized on your
product. In that case, you could find out that your corporation is competing in unexpected areas.

Structure: Moving on to the following step, you'll analyze extra approximate know-how the
enterprise functions and operates often. Your organization's system has a full-size impact on
what you could create and your expenses. Who is responsible within the employer? How will
each individual's work assist us in attaining our significant aim of providing our customers with
high-quality products at an affordable price?

Relationships: There are easy interpersonal interactions that must be managed, every internal
and outdoor of your firm. To obtain the most efficient outputs, there also are interactions among
your personnel and your generation that have to be nicely treated. 

Rewards: Maximum human beings do higher while being rewarded for their efforts. While you
need your humans to put in long hours for the business enterprise's maximum accuracy, they
need to sense worried about their procedure in a few manners. Glaringly, a pay take a look at is a
natural incentive inside facet the place of a job; knowledge, at the way to get the first-rate out of
your employees, you often want to move beyond a paid test.

Leadership: Leadership is another crucial factor of the organizational puzzle in developing a

wholesome way of life. Having accurate control in place makes anyone else sense more assured
and use of their job. It should be harassed; expertise, that sturdy manage does now no longer
should suggest governing the organization "with an iron fist." as opposed to being detached from
the team in a remote corner workplace, it far regularly premieres to be know-how and loving
leader who works as a member of the staff.

Applicable Mechanisms: It is critical to have the generation and specific jigsaw quantities that
permit the enterprise to be characteristic. These techniques will indeed alter over time as
generation advances and markets evolve, so you'll want to live at the pinnacle of what you're
doing to be green and competitive. What turned into a previous idea to be a "useful mechanism"
may all of a sudden end up obsolete and a burden to your company? Do not expect that
something that changed into formerly useful will stay so inside aspect the destiny — generation
evolves rapidly, and corporations who fail to live up will regularly discover themselves staring
upon the opposition because it pulls away.

Conclusion
The six field version can be exhaustive, tiring, and an excessive amount of work for an enterprise
set up in its conventional methods and expertise. As soon as the reorganized structure is up and
running, the business enterprise will see a massive rise in employee health, business enterprise
fitness, and the general workflow around the corporate. This can be attributed to the truth that
those changes aren't subtle and could require a significant amount of time and effort to be put in
so that the organization begins to notice minor changes. In my opinion, the organization ought to
move in advance with the new shape to expand its enterprise operations in Mumbai.

Q3. Simon Quartz, is an age-old company dealing in mechanical wrist watches and wall
clocks. They feel that over the years their employees have lost their motivation and their
performance standards is dipping.

a. They have hired you as a consultant. Can you guide them about how can they use Mc
Cleland’s Theory of Needs to motivate their employees? (5 Marks)

b. Also, can you use ERG Theory, to help guide them to motivate their employees? (5
Marks)

Answer 3a.
Introduction
The well-known watch organization, Simon Quartz, has noticed a recent dip inside the
employees' performance and assumes it might do with the inducement of employees daily and
new hints on how to improve it throughout. We look at some needs to inspire people to achieve
the identical.

Concept and analysis

The theory of the need, commonly called the “3 needs concept”, became espoused thru the
manner of “Psychologist David McClelland”. This precept of motivation shows that an
individual's needs for accomplishment, power, and association have terrific behavioral effects,
necessary to recognize in a managed environment.

Need for fulfillment: “The need to accumulate something in what you do is referred to as the
want for achievement. If you're a lawyer, you need to win times and get popularity; if you are a
painter, you need to create a well-known painting. It is someone's need that motivates them to
take photos hard or maybe fight to gain their goals. People with excessive accomplishment
wishes try to perform in any respect instances, fending off low-reward low-risk eventualities and
difficult-to-accumulate immoderate-danger conditions specifically.”

Need for power: “The urge to exert manipulate and authority over each different character to
persuade and alter their choices constant with one's very own needs or dreams is known as the
want for energy. Those people have inspired thruway of the approach of a choice to decorate
their arrogance and popularity, and they need their evaluations and thoughts to be typical and
applied above the feedback and opinions of others.”

“Those people are terrific leaders who are nicely appropriate to management roles. They belong
to one of the power motivator groups: personal or institutional. A private electricity motivator
strives to dominate others, at the same time as an institutional energy motivator seeks to guide
and prepare a set closer to a not unusual vicinity aim.”

“Need for affiliation: The need to broaden interpersonal and social ties with humans or a
positive institution of human beings is known as they want for the association. They need to
paintings in companies and shape long-lasting social connections. They moreover need to be
favored with the aid of the use of others.”

Conclusion

The wishes concept exemplifies how human beings want precise mental needs met within work.
Most offices fail to fulfill them, leaving the employees unhappy. Although this might no longer
be glaring initially, the company sees a decline in the mindset and performance of the employees
in the end.
Answer 3b.
Introduction
For the reason that age-old organization Quartz has observed out about the performance dip in's
personnel, it desires to inspire its employees using the ERG concept. This will see a lift in
performance indexes and a considerable rise in agency sales. It also enables the preservation of a
competitive and healthful subculture in the workplace.

Concept and analysis

“Clayton Alderfer reformulated Maslow's want hierarchy concept of motivation in his phrases to
carry it in line with empirical findings. The ERG concept of motivation is his rewrite. Maslow's
hierarchy of requirements was reclassified by way of him into three more honest and large
categories:”

Existence Needs: This consists of fundamental cloth desires. In brief, it encompasses the human
need for physiological and physical protection.

Relatedness needs: This consists of a man or woman's choice to maintain meaningful

interpersonal relationships (whether with family, co-employees, or superiors) and gain public
focus. This class of wishes includes the outside additives of Maslow's social wishes and esteem
needs.

Boom wishes: “Those consist of the want for self-development and personal growth and
advancement. Maslow's self-actualization wishes and intrinsic components of esteem desires fall
below this class of the market.”

ERG principle tells us that several desires might be catered to address at any given term. The
ERG theory suggests that after high-stage necessities are suppressed, the choice to meet low-
level needs will increase. Consistent with Maslow, a person keeps a sure stage of desires till
these desires are met. In step with the ERG principle, a person can return to extended pleasure
with decrease-stage needs when higher-stage situations are exacerbated. In ERG theory, this is
referred to as the retrograde element of frustration. For example, while someone's development
needs worsen, he may be driven to fulfill his relatedness need. If he's having a problem fulfilling
his relatedness needs, he can be stimulated by existing situations. Because of the
frustration/aggravation, a regression to a lower stage of demand may additionally arise.

Even as Maslow's want hierarchy theory is inflexible because it assumes that needs follow a
specific and orderly hierarchy and that a person cannot progress to a higher-stage situation until a
decrease-level want is met, the ERG principle of Motivation may be very bendy because he saw
needs as a variety/variety in preference to a hierarchy.

Conclusion

The ERG theory very well proves how the motivation of employees may be brought up with the
aid of catering to specific mental needs in humans. These, in flip, see a rise within the overall
environment around the place, a cause to compete and find complex works to do, all while
feeling proven.