[DOCUMENT TITLE]

I Year B.A./B.B.A., LL. B – Semester - I (2021-22)

Business studies

2nd -Internal Assessment

Case study analysis

Name : Pranshu Bansal

Division: B

PRN: 21010126126

Course: BBA LL.B

Batch: 2021-2026
 Question no. 1
Ques. What are the issues in the case?
Ans. The issues in the case are:
• Teamwork is hampered by a lack of shared views and prejudices.
National sales manager Rama Rao was a great believer in delegation. On the
other hand, Kumar Gaurav had a different viewpoint. He wanted to make sure
that all his subordinate were being closely monitored and often used to say
that “if you don’t make sure that every salesperson is doing the job right, some
of them won’t do their job right.” Due to this control nature of Gaurav his
subordinates were not able to work as a team as they were not able to share
their viewpoint, take risks and act accordingly.
• Delegation of authority is undervalued due to lack of understanding.

Delegation refers to the sharing of work in a downward trend from superior to

subordinates and one of the key elements of delegation is the “authority”.
Authority means power to take decision to carry on the responsibilities.
In present case study Rama Rao pointed out to Gaurav what he regarded as
the advantages of delegations. But still Gaurav didn’t take it seriously and
insisted that district sales manager needs to be in control and insisted on
approving all the key decision by his or her district managers due to which his
subordinates tend to protect themselves by taking no risk and differing even
minor decisions until they can be cleared by the regional manager. As a result,
there was less flexible response to the market pressure and a reduced share of
the market.

• Lack of initiative

As a national sales manager it was Rama Rao’s duty to make sure that proper
delegation of authority was performed there but it took him over a year to say
to Gaurav that he needs to change his strategy and need to delegate authority
to his subordinate so that even they can take the risk and act appropriately on
their own. But he acted late due to which sales have begun to decline and
district managers still seek advice from the Gaurav as they were in habit of
that.
 Question no. 2
Ques. Contrast Rao’s and Gaurav’s attitude towards authority and delegation.
Which is more effective?

Ans. When it came to authority and delegation inside the company's structure,
Gaurav and Rao had opposing viewpoints and methods.
Gaurav was unconvinced by the practice of delegating the work at hand to the
authorities throughout his term. He thought that delegating provided few benefits
and that he required strict supervision over all operations since, in his perspective,
if you don't make sure that everyone is performing their job correctly and
efficiently, they probably aren't. Gaurav exercised excessive control over all
operations and did not delegate much power to the district managers to oversee
operations, and the other workers and district managers were required to seek his
approval for all decisions, even the smallest ones, and as a result, no risk was
taken by the subordinates, and they also took very little initiative. This made them
hesitant to make judgments that may have been advantageous. Due to a lack of
delegation and excessive monitoring, productivity was lowered and the sales
objective was not met.
Rao, on the other hand, was a staunch believer in delegating during his term. This,
he believes, encouraged employers and district managers to express their views
and increased their productivity without the need to seek approval for every minor
work. They came up with inventive solutions to boost their production and
efficiency because they didn't had to approve every tiny work.
As a result, Rao's belief in delegating proved to be more successful.
Some advantages of delegation of authority are-

• Effective management: When managers delegate authority they get freedom

from doing routine work they are able to do their work more effectively as
they get time to concentrate on important matters. In present case
• Employee’s development: Due to delegation employees get more
opportunities to utilize their talent, it gives them opportunity to develop those
skills which will enable them to perform complex task.
• Motivation of employees: Delegation helps in developing talents of the
employees, when a superior assigns some tasks to a subordinate it is not task
 sharing only but also shows that superior trust his subordinates more, this
makes subordinates more committed.

Question no. 3
Ques. Was Pankaj remiss in not giving Rao specific instruction for dealing with
Gaurav? Why or why not?

Ans. Pankaj was Gaurav's superior, and it was his responsibility as a superior to
correct, suggest, and help his subordinates understand if any decision or
management policy implemented by them was not entirely correct, and in his
opinion, could result in certain losses and prevent the system from operating at
100% efficiency.
It is the superior's job to offer suitable feedback to his or her subordinate. If he
notices even a slight deficiency in some function that might result in a loss of
efficiency, it is the superior's responsibility to provide appropriate advice on how
to fix the situation or what the next step should be to avoid further losses. It is
also the superior's obligation to see that the proper steps are taken to guarantee
that the problem is rectified.
In the event of a difficulty, the superior should assist by offering the most
expedient and efficient solution rather than prolonging the process, which might
result in losses.
In this scenario, it was Pankaj's obligation to provide Rao suitable instructions
and comments on the challenges he observed Rao dealing with. In the instance at
hand, Pankaj identified Rao's error. Rao did not move quickly enough to correct
Gaurav's shortcomings. Despite the fact that Pankaj was aware of his error, he
just chastised him and informed him about it, rather than offering him solutions.
As a result, Rao was unable to take the essential actions, resulting in decreased
efficiency rather than bad performance.
Yes, Pankaj was remiss in not providing Rao with precise directions in the
aforementioned scenario. Pankaj had a responsibility to offer comments and
provide alternative solutions to the problem, as well as to assist in learning how
to cope with it. Especially when it might have been avoided with no negative
impact on the business.
 Question no. 4
Ques. What should Rao do now?

Ans. Rama Rao has to decide whether he wants to accept the fact that there is a
gradual change in the way the region under Kumar Gaurav accepts or will have
to take a drastic action and change the way in which Gaurav’s region work.
To enhance regional sales, which are controlled by lower-level subordinates since
regional subordinates are the lowest in the scalar chain and are fully aware of the
issues that are becoming a hindrance. As a result of their familiarity with the job
on the ground, some power must be assigned.
When a decision must be made quickly, it cannot be made by going back and
forth via the hierarchy of power, which wastes time and causes facts to be
distorted, resulting in a loss of profit and a lack of time to make effective
judgments on key topics.
When power is delegated, it inspires subordinates to dedicate their entire attention
to the topic because they are aware of the opportunity to be acknowledged; as a
result, profit rises.
Rao should first make aware Kumar Gaurav and the district managers under him
about the importance of delegation and make them work under that process and
how they don’t have to seek advice from Kumar Gaurav in every single decision.
Rama Rao should wait for reasonable time and take note of the sales time to time,
and should observe if the district managers and Kumar Gaurav are following
delegation or not and if still the sales are low and district managers are asking for
advice again and again from Kumar Gaurav then he should take a drastic change
of recruiting the whole new team of Kumar Gaurav and making sure that they are
following the principle of delegation.
Recruiting the whole new team of Kumar Gaurav should be done by scientific
method and not by matching Kumar Gaurav’s compatibility with his old
management style and most important it should be done by professionals. The
process of recruiting whole new team should be as follow:

• Preliminary screening: It helps the manager to eliminate unqualified or unfit

job seekers based on the information supplied in the application form.
• Selection test: recruiting professionals should conduct various test like
intelligence test, aptitude test, personality test, trade test and interest test to
find out the practical knowledge of the candidates.
• Employment interview: The consultants who are specialized in that particular
field should conduct the interview of people who cleared the selection test. It
basically tell us about the confidence level and the amount of pressure one can
handle in a situation which is not possible to get to know in written test.
• Checking references and background: This step is important as it talks about
the personal character of the candidate and his/her behavior towards other
people in organization.
• Selection decision: Before making the final decision about selection, the views
of the concerned managers will be generally considered and the managers will
select most suitable candidate from the selected list.