A Case Study on Interpersonal Dynamics

Part 1

Mr. Ram Mukherjee, has been working as a Regional Sales Manager for the Tamil Nadu
division of Priya Pharmaceuticals Co. Ltd. for the last six years. He has four area
managers reporting to him. Mukherjee was promoted and transferred from Delhi to
Chennai at a time when company’s sales in the South were falling continually. Mr.
Atulya Ghosh, the president of Priya Pharaceuticals was impressed with Mukherjee’s
performance in Delhi and his innovative ways of motivating the sales force. Mr. Ghosh
thought that the South would get a “shot in the arm”, if Mukherjee took charge of South
as the Regional Manager. Promotion and transfer orders were issued and gladly accepted
by Mukherjee.

Mr. Mukherjee made many changes in the organisation of the Southern region and
introduced various types of incentives for the area officers, the sales force, and for
various cadres of field personnel. For instance, the top three salespersons and the top
three field supervisors who had the greatest volume of sales generated by the field force
under them, and the three area officers that had the highest sales record received special
recognition. Awards and rewards were in the form of cash prizes, radios, T.V sets, paid
vacation for a week to Kashmir, plaques inscribed with names, trophies, certificates of
merit and the like, suited to the level of performance. The top three performers from each
region and local offices and the top three from among the area supervisors, field
supervisors, and salespersons were recognised and rewarded at the end of the year in a
public ceremony held at Chennai where the recipients of the awards were flown in with
all transportation costs paid.

Within two years of Mukherjee’s taking charge of the Tamil Nadu region, there were
dramatic changes in the sales figures. The last two years have been so good that Tamil
Nadu is among the first three top performers in the whole country ---- an impressive
record considering the state of affairs just six years ago! However, there was one fly in
the ointment. A few salesmen and field supervisors working in the rural areas of
Pennathur, Sumaithangi, Kotur and such places were frustrated and discouraged. The
harder they tried, the less they seemed to sell. Their areas were economically depressed
and the village population just did not have money to but medicines, even though the
children and the older farmers were constantly falling sick. The municipal doctors and the
corporation dispensaries had limited funds and their placement of orders for the high
quality drugs of the company was very low. The facts were brought to the attention of the
regional office by area managers, but it was obvious that nothing was being done.
Somebody was perhaps sitting on the matter! The salesmen and field supervisors in the
rural areas were constantly complaining and seemed disgruntled. The area managers were
concerned about this, but did not know what else to do to resolve the matter.
Part two

Two months later, during the Regional Managers’ conference at Delhi, Mr. Ghosh had
invited Mr. Mukherjee to see him in his office of Friday, the last day of the conference.
After the usual greetings, Ghosh informed Mukherjee that he was considering him for the
Vice President position, an unexpected vacancy that will soon arise when Dr. Rajiv Bhat
prematurely retires in August for health reasons. Ghosh was certain that Mukherjee
would jump at the offer, but as things turned out, Mukherjee’s reaction to the proposal
was far from enthusiastic. Mukherjee hemmed and hawed and after a few minutes
replied, “I am very honoured that you have considered me for this position, Mr. Ghosh. I
am extremely gratified that you have such a high opinion about my abilities and
professional skills, but I think this is not a good time for me to move from Madras. My
children are finally settling in the school and are starting to make good progress. My wife
and I have made many friends in the area and enjoy the beauty, quiet, and peace of the
South. Moreover, I am active in the number of voluntary organisations, such as the Social
Service Institute, the youth Organisation, and the Fine Arts Academy, and these are no
only enjoyable activities, but are very beneficial for the publicity of our company. I guess
I am not ready for a transfer just yet, even if it is on promotion. I can, of course use
money, but I want my family; especially my children to experience some stability in their
lives. Three years from now, I am sure I would be itching for a change. I hope at that time
when an opportunity arises, you will still consider me for a promotion. I hope you
understand why I am not in a position to accept your present kind offer, Mr. Ghosh.”

Mr. Ghosh simply smiled and said, “Don’t make up your mind just yet Mukherjee, take
time to think about it. Talk this over with your wife also, and we will have another talk
when I visit Madras Next Month.”

Frankly, Ghosh was rather upset at Mukherjee’s reply. “I thought he had more ambition
and sense that that, the fool!” Ghosh Muttered to himself.