FOM Case Studies

Dr NAGA SAI KUMAR TIRTHALA PhD (NIT WARANGAL)

Case Study 1
Mega Ltd. holds an Annual Management Programme every year in the month of
March in which the top managerial personnel formulate plans for the next year by
analyzing and predicting the future to meet future events effectively.As they are
responsible for providing direction to the organization, factsarethoroughly checked
using scientific calculations. Detailed plans are prepared after discussion with
professional experts. Preliminary investigations are also undertaken to find out the
viability of the plan. Since it is an intellectual activity requiring intelligent imagination
and sound judgement so it is mainly done by the top management. Usually rest of the
members just implement the plans. Middle level managers are neither allowed to
deviate from the plans nor are they permitted to act on their own. The top
management ensuresthatthe expenses incurred in formulating the plans justify the
benefits derived from them.
State any two limitations and any two features of planning discussed above
Solution for Case Study 1
The features of planning which are discussed in the given situation are:Planning is a mental
exercise - "Since it is an intellectual activity requiring intelligent imagination and sound
judgement so it is mainly done by top management". It requires application of mind and sound
judgement. Since planning defines what is to be done in future, it requires sound thinking rather
than doing.Planning is futuristic - "The top management formulate plans for the next year by
analyzing and predicting the future to meet future events effectively". Planning is futuristic in the
sense that it foresees the future, thereby helping to prepare for uncertain future
events.LimitationsPlanning reduces creativity - "Middle level managers are neither allowed to
deviate from the plans nor are they permitted to act on their own". Plans are made by only the
top management, and the lower levels of management are not allowed to deviate from the pre-
defined course. Thus, in the process, lower level managers tend to lose their creativity.Planning
involves huge costs - "The top management ensures that the expenses incurred in formulating
the plans justify the benefits derived from them". As planning is based on future predictions, it
requires much thought, analysis, scientific calculations, etc ., which are to be used for
formulating a course of action. This involves high costs.
Case Study 2
Pratap Singh is the Chief Executive Officer of Nissar Enterprises. It is an automobile parts manufacturing
company. The enterprise has a functional structure, in which jobs of similar nature have been grouped
together as Production, Finance, Marketing and Human Resource. Nissar Enterprises has its
manufacturing unit at Manesar. The factory has been plagued with many problems for a long time which
was in the knowledge of the Production Manager, Varun Sharma. The workers had internal differences.
Time and again, there were misunderstandings between the management and the workers. Keeping the
problems in mind, Varun Sharma appointed, Siyaram Singh who had 14 years of experience of working
with the actual work force and passing on instructions of the middle management to the workers.
Siyaram Singh met Varun Sharma to understand what the management wanted? Thereafter he met the
workers and conveyed the ideas of management to them. He also promised the workers to convey their
problems to the management. In this way, he cleared the misunderstanding between the management
and the workers. He also sorted out internal differences and was able to unite the workers within a
month of his joining. His work was acknowledged by management and he was given a certificate of good
performance along with 10% increase in salary.Siyaram Singh performed some of the functions which are
required to be performed at the position he is working at. State any five other functions Siyaram Singh
isexpected to perform.Name the incentives provided to Siyaram Singh
Solution for Case Study 2
• Siyaram Singh performed at the Operational level of management as his main
function was to interact with the workers and pass on the instructions of middle
level management to the workers and to listen to the problems & grievances of
workers & pass them to middle level management.The other five functions that
Siyaram is expected to perform are as follows:i. Ensuring proper working
environment/conditions ii. Ensuring safety of workers iii. Helping middle
management in appointment, recruitment & promotions of workers iv. Interacting
with employees, welcoming suggestions & feedback, suitable reward for good
suggestionsv. Developing team spirit & boosting morale of workers and ensuring a
standard output is produced.b. The incentive that is being given to Siyaram Singh
are:Non-financial incentive: 'Employee Recognition programmes' as he was given a
certificate of good performance and,Financial incentive: 'Pay and allowances' as he
was given a 10% increase in salary.
Case Study 3
• Appliances India Ltd. is engaged in manufacturing and distribution of
home appliances since 1987. It has a good name in the market as the
company is producing good quality appliances. It has separate
departments for manufacturing, finance, sales maintenance services
and technical services to achieve specialization.Since the areas of
operations of the company have increased and customers have become
more demanding, the company decided to modify the existing principle
of management to meet the changing requirements of the
environment.
• State the general principle of management which the company wants
to modify to meet the changing requirements.
Solution for Case Study 3
• The principle of management that the company wants to modify is
'division of work'.
Case Study 4
• Nayan Medicare Equipment Ltd.' manufactures equipment for
surgeons having a unique laser technique. The equipment can be
used by the surgeons only after proper training. Even their
maintenance requires guidance of specialised engineers. Because of
this, the equipment is used in a limited number of hospitals. The
company wants to increase the sale of the equipment.Suggest the
promotion tool to be used by the company giving reason in support of
your answer.
Solution for Case Study 4

• Personal selling can be a promotional tool as the technology is unique

in nature and can be used only by professionals. Therefore, to create
awareness about the product among hospitals and doctors, personal
selling can be used.
Case Study 5
• Shiv has recently joined an industrial unit manufacturing low cost LED
bulb. He has five workers working under him. He gives them
instructions to ensures optimum utilization of resources and
achievement of work targets. He provides good on-the-job training to
the workers to build an efficient team. He also analyses the work
performed by them and gives feedback.The work performed by Shiv
may be described as an important element of directing. Name the
element and state two other functions which may be performed by
Shiv in addition to those highlighted above.
Solution for Case Study 5
• The element of directing which is discussed above in the question is supervision. It is
the process of guiding and instructing the subordinates towards the achievement of
desired goals and objectives of the organisation. A supervisor is a person who lies
immediately above the worker in the organisational hierarchy and directly oversees
the activities of the subordinates.
• The other functions which may be performed by Shiv in addition to giving instructions
and feedback are:
• 1. He acts as a link between the managers and the workers. It is through the
supervisor that the management communicates the ideas and policies to the workers
and the workers communicate their problems and grievances to the management.
• 2. He is in direct contact with the employees and thereby guides and supports them. In
this way, he helps in maintaining harmony and unity among the employees.
Case Study 6
• Biru Nandan, Chairman of Lalit group of companies founded 'Biru
University' for undergraduate and postgraduate courses in diverse
disciplines. The Information Technology department of the 'Lalit
Power Ltd ., had few vacancies related to Cyber Security. The Human
Resource Department of the Company decided to recruit fresh
engineering graduates from 'Biru University' for the same. Identify the
type of source of recruitment
Solution for Case Study 6
The source of recruitment that is being used is 'Campus Recruitment'.
Case Study 7
• Vardan Patel started the business of preparation and supplying sweets
through home delivery at a production cum show-room 'Express Sweets'
at Ahmedabad.He made a plan forecasting the sales of different types of
sweets in various localities of Ahmedabad for each month of the year to
earn a profit of 20% on Capital employed.He sets a sales target of ?
20,00,000 in the current year with a 10% increase every year.He then set
the criteria for selecting suppliers from whom he would make purchases
of raw material. The planning paid off and the business was able to
achieve its targets.
• (a) Identify any two types of plans by quoting the lines from the above.
• (b)Also give the meaning of the types of plans identified in part (a) above
Solution for Case Study 7
• Ans.(a) The two types of plans are:
• (i) Objective: 'He set a sales target of Rs. 20,00,000 in the current year with a 10% increase ever
year
He made a plan forecasting the sales of different types of sweets in various localities of Ahmedabad
for each month of the year to earn a profit of 20% on Capital employed.’
(ii) Policy: He then set the criteria for selecting suppliers from whom he would make purchases of
raw material.
***
Definitions
(b) Objective: An objective is the end which the management seeks to achieve within a given time
period, expressed in quantitative terms.
Policy : A policy is a general guideline which brings uniformity in decision making for achievement of
predetermined objectives.
• Sara was pursuing her graduation. Everyday she saw her mother working tirelessly at
home after coming back from her work-place.She decided to start a tiffin service to
increase her family income.To begin with she started supplying tiffin only in the
neighbourhood. Everyday she detailed out the menu after consulting her mother. For
informing the people about her service she designed a beautiful informative pamphlet,
got it printed and started distributing it through the daily newspapers. She also
appointed two delivery boys to deliver tiffins.The business was slow to begin with but
picked-up well afterwards. She was able to earn a profit of 20% of the revenue in the
first month
• (a)Identify the promotional tool used by Sara to communicate to the customers about
her tiffin service.
• (b)State any three roles of the promotional tool identified in (a) above in marketing of
goods and services.
Solution for Case Study 7
• (a) Advertising
• (b)Role of advertising in marketing (Any three):
• (i)It helps to create demand by informing the prospective customers about the
product.
• (ii) It provides economies of scale (low cost of production as increased demand leads
to higher production).
• (iii) It educates consumers by informing about the availability of different products in
the market.It generates employment by creating various kinds of jobs to artists, script
writers etc .
• (iv) It improves standard of living by giving information regarding new products and
increasing income levels of people.It sustains the media by acting as a source of
revenue.
Case Study 8
• Deewan Ltd. is a multinational consulting company with its headquarters at
Washington D.C. It hires young people from different countries of the world.It
is a company in which people dream to work because of its work-
environment, pay and growth prospectus. The company has a culture of open
communication and people of various nationalities work together in a
discrimination free environment. The behaviour of managers of Deewan Ltd
emphasizes kindliness and justice which ensures loyality and devotion of
workers.It also promotes mutual trust and belongingness among team
members. In this way management of Deewan Ltd. is able to achieve its
objectives by promoting team work. By doing so managers of Deewan Ltd. are
following some principles of management.
• Identify and explain any two such principles.
Solution for Case Study 8
• The two principles of management followed by managers of Dewan
Ltd are:
• Equity" Equity states that there should be no discrimination against
anyone on account of sex, religion, language, caste, belief, nationality
etc." It emphasises kindliness and justice in the behaviour of
managers towards the workers to ensure loyalty and devotion.
• Espirit de Corps."Management should promote team spirit of unity
and harmony among employees.'This will give rise to spirit of mutual
trust and belongingness among team members and will minimise the
need for using penalties.
Case Study 9
• Q. There were two vacancies for the post of Assistant Manager in 'Gyan
Electrics Private Ltd.' 'Parth' the Human Resources Manager identified
one suitable candidate 'Vishwas' from within the organization and
promoted him to the post of Assistant Manager. For another post, the
Manager 'Parth' took help of a placement agency and selected 'Saleem'.
After six months, Parth observed that 'Vishwas's' performance was much
better than 'Saleem's' performance though 'Vishwas' was less qualified
than 'Saleem'. Hence, 'Parth' decided that in future he will not make any
appointment with the help of an outside source.Explain any four reasons
on the basis of which 'Parth' would have taken the above decision.
Solution for Case Study 9
• Reasons on the basis of which 'Parth' would have taken the decision not to make
appointment with the help of an outside source are: (any four)
• Internal sources are more reliable way of recruitment since the candidates are already
known to the organisation whereas external sources.If internal source are used, there is
no need for induction training as the employees are already familiar with the
organisation.
• Internal sources help to improve the motivation, loyalty and satisfaction level of existing
employees.Promotion at a higher level may lead to a chain of promotions at lower levels
in the organisation.They simplify the process of selection as the candidates are already
known to the organisation.They help in adjustment of surplus staff in those departments
where there is shortage of staff.
• Filling of jobs internally is cheaper as compared to getting candidates from external
sources.