CIA-1

Principles of Management

Submitted to:

Saba Fatima Ma’am

Submitted by:

Name: Manas Srivastava

Register Number: 2127616

 Introduction to the Company

Ashok Leyland, located in Chennai,

Tamil Nadu, India, is an Indian
multinational automobile
manufacturer. The Hinduja Group
owns the property. It began as
Ashok Motors in 1948 and changed
its name to Ashok Leyland in 1955. Ashok Leyland is India's second-largest
commercial vehicle manufacturer and the world's third-largest bus maker.

With a bus manufacturing facility in Ras Al Khaimah (UAE), another in Leeds,

United Kingdom, and a joint venture with the AL teams Group to manufacture
high-press die-casting extruded aluminum components for the automotive and
telecommunications sectors, Ashok Leyland has manufacturing units
everywhere on the globe.

Ashok Leyland was recently ranked as India's

34th best brand. The AON Best Employers for
India award was given to the company in
2019. One of the most fully integrated
manufacturing companies, with a market
capitalization of $2.3 billion and 50 countries.

Ashok Leyland, which has nine plants, also produces spare parts and engines
for industrial and marine applications. In FY 2016, it sold around 140,000
vehicles (Heavy and Light commercial vehicles category segment); the
company ranked as India's second-largest commercial vehicle manufacturer in
the year 2016.
Classical Management Theories: -

 Scientific Management theory:

This theory was given by Frederick Taylor, who is also called the father
of Scientific Management. The theory presented by him revolves around
the production and Engineering aspects for the low-level management.
In an organization the size of Ashok Leyland, this theory is used widely.
In addition to Taylor's theory of scientific management,Ashok Leyland
uses a Japanese philosophy, "GEMBA."
As far as appreciation for low level employees is concerned ,efforts of
low-level production-oriented employees are acknowledged through
activities like
 Incentives
 Special perks / Reward programs for workers in the manufacturing
plant
 Training programs for the workers.
Whereas employees that are involved in a customer-facing
function/administrative function they're acknowledged by
 Appreciation meetings with higher management.
 Public appreciation and recognition of efforts in conferences e.g.
Inter-organization award functions
 Administrative Management Theory: This theory was given by Henry
Fayol. He is also called the father of general management. This theory
revolves around top-level management. This theory is universally
applicable. There are five aspects to this management theory, namely
 Planning: There is the formulation of five-year rolling business
plan that is in line with the current business
environment,government policies ,regulations, technological
evolutions,customer safety needs and a significant aspect of
environmental and business sustainability, and corporate social
responsibility.
 Forecasting: For the purpose of forecasting business yields and
demands in Ashok Leyland ,standard scientific tools are
used ,mathematic modelling. It also helps in calculating business
driver requests and business growth driver requests in industries
such as Agricultural,trade and various projects. Last but not the
least, situations like the pandemic can also be forecasted along
with the impact it might have on the business.
 Controlling: For the purpose of controlling the movement of
talent and resources within the organization there are structural
roles for all the levels namely national roles,regional roles and
state roles ,these roles are mostly for customer facing roles in
Ashok Leyland such as region heads ,national heads
etc.Controlling aspect also delegates the authority to people
responsible supplier procurement and sourcing
functions .Production and operation processes also become more
defined by this.
  Commanding: Within the AL organization, there is a very clear
chain of command ,like the topmost person is the Chairman,then
comes the Managing directors and CEO’s,followed by Presidents
for each vertical in the organization namely Sales and
Marketing,Network and training and Spares and services.
Ashok Leyland also deals in military contracts from not only the
Indian army but various other forces, and that is also an important
aspect of the business.
 Organising: As mentioned in the previous point,in an organization
of this size and scale, it is very important for the employees to
adhere to the chain of command and for the smooth functioning .

 Bureaucratic Management Theory: This theory was given by Max

Weber. He is also known as the Father of Bureaucratic Management.
This theory also revolves around the top level management of a
company.
Weber thought that each layer of management should supervise the
levels below them while being subject to the control of those above
them. Individuals at the top of the management hierarchy thus have the
most authority, while those at the bottom have the least.Ashok Leyland
as an organization follows this theory where the every person is
responsible directly or indirectly for the performance of his/her
subordinates.

Business approaches: -
 Quantitive systems approach:
 The quantitative approach to management entails using
quantitative tools to improve decision making, such as statistics,
information models, and computer simulations.
 Ashok Leyland as an organization is significantly dependent on
Data Science Forecasts for its decisions on various issues,business
problems and expansion plans
 Data Science tools such as “pandas” and numerous other python
libraries are used to simulate and ongoing or forthcoming
business problems.
 The company also hires external audit and surveying companies
such as McKinsey ,Deloitte to conduct surveys within its
organization to increase efficiency.
 Queuing theory aids in the allocation of service workers or
workstations in order to reduce customer wait time and service
costs.
 Contingency approach
 The contingency approach is a management philosophy that
proposes that the best management style is determined by the
situation's environment.

 Contingency approach for achieving volumes and market share

 Contingency approach For achieving margins
 Contingency approach Geographical coverage of channel network
benchmarking competition
 Multiple supplier approach for procurement of components
 Multiple body-builder approach for procurement of fully built
solutions
 Multiple sales lever approach to mitigate channel sales like
institutional government sales and corporate sales 
  Preparing managers pipeline for n-1,n-2,n-3 levels and at all levels
till frontline sales and service team(incase any top-level employee
leaves the organization )
 Training and upskilling and job rotation to develop managers and
executive leaders through 
 Problems and situations in any organization can be highly variable
and management theories are can only guide as to what should be
done.
 As the environment is highly unpredictable within an
organization ,there are a couple of other management theories
that are used within Ashok Leyland in addition to the
aforementioned ones
 One such theory is “Lean Six Sigma”,this basically provides a set of
tools that contribute to the constant improvement of the
organization. This theory is inline to to the Japanese theory of
“kaizen” followed by AL

Violations of Management theories

Theories are developed on the assumption that particular conditions exist, and
their applicability is contingent on the assumptions underpinning them being
met. According to a sociologist, many theories have failed because they were
misapplied. According to him, managers frequently apply theories
indiscriminately to linked events without taking into account the requirements
for producing the intended results. Managers must be able to recognise when
their theories do not work and quit applying them.However, in an unfortunate
event in which application of management theories do fail,Ashok Leyland as
an organization has training programs that identifies the mistakes employees
make and rectifies it.To do so they have a plan called “PDCA”,It stands for

 Plan
 Do
 Check
 Act

Earlier, Ashok Leyland had tried applying all these management theories ,but
the one problem that the company was face by was ,"EGO ISSUES" between
the top-level management and low level management ,this was a violation of
Weber's theory of bureaucratic management .The company immediately opted
out of it trained both its top level management and lower level employees and
rectified the issue.
 Identify the application of management theories (classical,
 scientific and behavioral thoughts)
  business approaches (quantitative,
 system approach and contingency approach) in their work
environment.
 explain the application of these thoughts and theories with
 examples.