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IMT- 01
MANAGEMENT PROCESS AND ORGANIZATION
SECTION - A
Q1 With examples, describe the various functions performed by managers. Also elaborate on Managerial Roles and
Operational Approaches to the Management Process.
Ans Effective utilisation of human resources;
1. Desirable working relationships among all members of the organisation; and
2. Maximum individual development.
The major functional areas in human resource management are:
1. Planning,
2. Staffing,
3. Employee development, and
4. Employee maintenance.
These four areas and their related functions share the common objective of an adequate number of competent
employees with the skills, abilities, knowledge, and experience needed for further organisational goals. Although each
human resource function can be assigned to one of the four areas of personnel responsibility, some functions serve a
variety of purposes. For example, performance appraisal measures serve to stimulate and guide employee
development as well as salary administration purposes. The compensation function facilitates retention of employees
and also serves to attract potential employees to the organisation. A brief description of usual human resource
functions are given below:

According to Fayol, commanding as a managerial function concerned the

personal supervision of subordinates and involved inspiring them to put forth unified effort to
achieve objectives. Fayol emphasized the importance of managers understanding the people who
worked for them, setting a good example, treating subordinates in a manner consistent with firm
policy, delegating, and communicating through meetings and conferences.
Fayol saw the function of coordination as harmonizing all of the various activities of the firm. Most
later experts did not retain Fayol's coordination function as a separate function of management
but regarded it as a necessary component of all the other management functions. Fayol defined the
control function in terms of ensuring that everything occurs within the parameters of the plan and
accompanying principles. The purpose of control was to identify deviations from objectives and
plans and to take corrective action.

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Fayol's work was not widely known outside Europe until 1949, when a translation of his work
appeared in the United States. Nevertheless, his discussion of the practice of management as a
process consisting of specific functions had a tremendous influence on early management texts
that appeared in the 1950s.
Management pioneers such as George Terry, Harold Koontz, Cyril O'Donnell, and Ralph Davis all
published management texts in the 1950s that defined management as a process consisting of a set
of interdependent functions. Collectively, these and several other management experts became
identified with what came to be known as the process school of management.
According to the process school, management is a distinct intellectual activity consisting of several
functions. The process theorists believe that all managers, regardless of their industry,
organization, or level of management, engage in the functions of management. The process school
of management became a dominant paradigm for studying management and the functions of
management became the most common way of describing the nature of managerial work.
Q2 Elaborate upon the interrelationship between planning, organizing and control.
Ans Organizing, Gulick emphasized the division and specialization of labor in a manner that will increase

efficiency. Gulick notes that there are three limitations to division of labor. The first occurs when labor is divided
to the point where any one task in the division of labor would require less than the full time of a worker, in which
case a worker may need to be employed in other tasks to fill up their time. The second limitation to division of
labor arises from technology and custom, where certain tasks may only be handled by certain workers either
because of a lack of technological means or customs at the time. Gulick gives the example of a single worksite
in which only plumbers do the plumbing work and electricians do the electrical work, though this may not take up
their full work time. Work in these areas could be re-combined in a manner to increase efficiency, however union
considerations could prevent this. The third limitation to division of labor is that it must not pass beyond physical
division into organic division, or intricately related activities must not be separated from each other. Gulick gives
the example that while it may seem more efficient to have the front end of a cow grazing in pasture at all times
and the back half being milked at all times, this would not work due to the intricate connection between the
halves that is needed for the whole to function.
Gulick notes that organization of specialized workers can be done in four ways which are:

By the purpose the workers are serving, such as furnishing water, providing education, or controlling
crime. Gulick lists these in his organizational tables as vertical organizations.

By the process the workers are using, such as engineering, doctoring, lawyering, or statistics. Gulick
lists these in his organizational tables as horizontal organizations.

By the clientelle or materiel or the persons or things being dealt with, such as immigrants, veterans,
forests, mines, or parks in government; or such as a department store's furniture department, clothing
department, hardware department, or shoe department in the private sector.

By the place where the workers do their work.

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Gulick is careful to recognize that these modes of organization can often cross, forming a complex and
interrelated organizational structure where organizations like schools will include workers and professionals not
in the field of education such as doctors or nurses, janitors, secretaries, police departments might include nonpolice professionals, a shoe department including buyers as well as salespeople, etc.
Under Coordination, Gulick notes that two methods can be used to achieve coordination of divided labor. The
first is by organization, or placing workers under managers who coordinate their efforts. The second is by
dominance of an idea, where a clear idea of what needs to be done is developed in each worker, and each
worker fits their work to the needs of the whole. Gulick notes that these two ideas are not mutually exclusive,
and that most enterprises function best when both are utilized.
Gulick notes that any manager will have a finite amount of time and energy, and discusses span of
control under coordination. Drawing heavily from military organizational theory and the work of V. A.
Graicunas, Sir Ian Hamilton, and Henri Fayol, Gulick notes that the number of subordinates that can be handled
under any single manager will depend on factors such as organizational stability, the specialization of the
subordinates and whether their manager comes from the same field or specialty, and space. Gulick stops short
of giving a definite number of subordinates that any one manager can control, but authors such as Sir Ian
Hamilton and Lyndall Urwick have settled on numbers between three and six. Span of control was later
expanded upon and defended in depth by Lyndall Urwick in his 1956 piece The Manager's Span of Control.
Also under coordination, as well as organization, Gulick emphasizes the theory of unity of command, that
each worker should only have one direct superior so as to avoid confusion and inefficiency.
Still another theory borrowed from military organizational theory, particularly Sir Ian Hamilton and Lyndall
Urwick and brought to prominence in non-military management and public administration by Gulick and Urwick is
the distinction between operational components of an organization, the do-ers, and coordinating, the
coordinating components of an organization who do the knowing, thinking, and planning. In the military, this is
divided between "line" and "staff" functions. Gulick gives the private-sector example of a holding company
performing limited coordinating, planning, and finance functions, with subsidiary companies carrying out their
work with extensive autonomy as it saw fit according to the parent company's overall direction.
Q3 Taking examples, comment on how the macro environment affects the business of an organization
Ans Various factors affecting marketing function.
The environmental factors that are affecting marketing function can be classified into :
1) Internal environment and
2) External environment
Internal Environment of Marketing :
This refers to factors existing within a marketing firm. They are also called as controllable factors, because the
company has control over these factors :
a) it can alter or modify factors as its personnel, physical facilities, organization and function means, such as
marketing mix, to suit the environment.
There are many internal factors that influence the marketing function, they are :

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Top Management : The organizational structure, Board of Director, professionalization of management..etc..Factors
like the amount of support the top management enjoys from different levels of employees, shareholders and Board of
Directors have important influence on the marketing decisions and their implementation.
Finance and Accounting: Accounting refers to measure of revenue and costs to help the marketing and to know how
well it is achieving its objectives.Finance refers to funding and using funds to carry out the marketing plan. Financial
factors are financial polices, financial position and capital structure.
Research and Development : Research and Development refers to designing the product safe and attractive. They
are technological capabilities, determine a company ability to innovate and compete.
Manufacturing : It is responsible for producing the desired quality and quantity of products.Factors which influence
the competitiveness of a firm are production capacity technology and efficiency of the productive apparatus,
distribution logistics etc.,
Purchasing : Purchasing refers to procurement of goods and services from some external agencies. It is the strategic
activity of the business.
Company Image and Brand Equity : The image of the company refers in raising finance, forming joint ventures or
other alliances soliciting marketing intermediaries, entering purchase or sales contract, launching new products etc.
In organization, the marketing resources like organization for marketing, quality of marketing, brand equity and
distribution network have direct bearing on marketing efficiency. They are important for new product introduction and
brand extension, etc..
Q4 Why are Corporate Social Responsibility (CSR) initiatives needed? Comment on the pros and cons of CSR
activities for the organization
Ans There are some factors in the lives of organizations that affect them, but they don't have any control over

them (much like in our own life). We can define three major areas, but these are just the large groups, they just
give a general outline.
Political-legal environment:
The effects of this are quite visible. Just think of the effect of changing taxes, or raising interest rates. If the legal
system, pushed by politics lowers he acceptable emission rates, companies may have to invest in new
equipment or close down.
Technological state (R+D):
Technology can bring millions to one company and take millions from another. Organizations on the frontier
usually experience a boom, with many following, but some rivals may go bankrupt. A good manager has to be
aware of change and embrace technology to gain an edge on competition.
Social-Cultural environment
This is a very important but also very diverse category. Think of a company in China and a company in Hungary.
A Hungarian company only has to produce for a potential market of about 10 million. A Chinese company has a
potential market of 1.3 billion., which is 130 times as much! That alone is a huge difference, and we haven't even
touched cultural differences. For example in India, McDonalds probably wont sell any hamburgers made from
beef because they don't eat that there. A manager has to keep all these in mind when leading an organization!

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Inner environment (microenvironment)

This is the environment that an organization can influence. It may not be able to correct all flaws in the
microenvironment, but it has a much better control over it than the macro environment. The microenvironment
consists of seven larger parts:
Employees
Organizations have to find the right people for each job. This means finding some highly specialized people and
generally trained workers. Organizations are limited by their money supply and the constraints of the general
workforce.

Owners and the board

The investment mood is a primary question for every organization. A positive mood means funds, while a
negative mood means extra costs. It is important that the owners are satisfied with the company, but this doesn't
always mean large profits have to be shown all the time. Many companies can choose between keeping profits
and investing them. It is the manager's job to balance the aims if the company and the owners (although many
times this can be the same).

Consumers
Another important goal of the company is to keep the consumers happy. Today, competition is so large that for
every product, there are ten of the same, but different brands. Organizations recognize that it is in their own
interest to keep consumers happy.

Contractors
The inputs of organizations are supplied by its contractors. Depending on size the contractors may race to keep
the organizations happy, but it may happen vice-versa. The main objective here is sustaining a well oiled input
supply system.

Competition
Competition, or rather the observation of it, is important if the company wants to keep its position on the market.
It is also possible for organizations to buy a part of their competition, or they can try to outsmart them.

Financial organizations
Their effect is possibly the most visible. For example, the exchange rate difference between two banks could
mean millions of extra loss or profit. Their guarantee may be needed for large projects, but aside all that, the

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most important thing is that they insure functionality day to day.

The government
Governments may have a direct or indirect effect. They may subsidize, giving money directly to the
organizations. They can also give extra tax-refunds or they may punish unlawful behavior.

Q5 Elaborate on the steps in Decision Making. Comment on the techniques for effective decision making
Ans Decision making is a daily activity for any human being. There is no exception about that. When it comes to business
organizations, decision making is a habit and a process as well.Effective and successful decisions make profit to the company and
unsuccessful ones make losses. Therefore, corporate decision making process is the most critical process in any organization.In
the decision making process, we choose one course of action from a few possible alternatives. In the process of decision making,
we may use many tools, techniques and perceptions.

Steps of Decision Making Process:

Following are the important steps of the decision making process. Each step may be supported by different tools and techniques.

Step 1: Identification of the purpose of the decision:

In this step, the problem is thoroughly analysed. There are a couple of questions one should ask when it comes to identifying the
purpose of the decision.

What exactly is the problem?

Why the problem should be solved?

Who are the affected parties of the problem?

Does the problem have a deadline or a specific time-line?

Step 2: Information gathering:

A problem of an organization will have many stakeholders. In addition, there can be dozens of factors involved and affected by the
problem.
In the process of solving the problem, you will have to gather as much as information related to the factors and stakeholders
involved in the problem. For the process of information gathering, tools such as 'Check Sheets' can be effectively used.

Step 3: Principles for judging the alternatives:

In this step, the baseline criteria for judging the alternatives should be set up. When it comes to defining the criteria, organizational
goals as well as the corporate culture should be taken into consideration.
As an example, profit is one of the main concerns in every decision making process. Companies usually do not make decisions that
reduce profits, unless it is an exceptional case. Likewise, baseline principles should be identified related to the problem in hand.

Step 4: Brainstorm and analyse the different choices:

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For this step, brainstorming to list down all the ideas is the best option. Before the idea generation step, it is vital to understand the
causes of the problem and prioritization of causes.
For this, you can make use of Cause-and-Effect diagrams and Pareto Chart tool. Cause-and-Effect diagram helps you to identify all
possible causes of the problem and Pareto chart helps you to prioritize and identify the causes with highest effect.
Then, you can move on generating all possible solutions (alternatives) for the problem in hand.

Step 5: Evaluation of alternatives:

Use your judgement principles and decision-making criteria to evaluate each alternative. In this step, experience and effectiveness
of the judgement principles come into play. You need to compare each alternative for their positives and negatives.

Step 6: Select the best alternative:

Once you go through from Step 1 to Step 5, this step is easy. In addition, the selection of the best alternative is an informed decision
since you have already followed a methodology to derive and select the best alternative.

Step 7: Execute the decision:

Convert your decision into a plan or a sequence of activities. Execute your plan by yourself or with the help of subordinates.

SECTION - B
Q1 What is delegation? Comment on the steps in the delegation process. Discuss some reasons for the
failure of delegation.
Ans When the work of an office manager increases so much that he cannot cope with it, he may divide the work

among his subordinates. During, the course of division he expects that each subordinate will do the job as he
himself would have done. This process of dividing the work among the subordinates is called delegation. The
process of division of work whereby the subordinates are entrusted with a part of the work is called delegation.
Delegation is termed as the ability to get results through others.
. Prepare
Employees can't deliver results successfully if the task delegated to them isn't fully thought out or results are a moving target. Take
the time and create the discipline to know what you're asking for since an ounce of prevention of worth the pound of cure repairing
a situation where delegating falls apart.
2. Assign
Hand over the deliverable with timing, budget and context to enhance understanding.
Provide tips and coaching while making it clear to the employee that she owns the process.
Set expectations for communication and updates: frequency, content, in person or via email, etc.
Have an open door policy for the employee to ask questions.
3. Confirm Understanding
One of the most critical areas where delegating tends to fall apart is when an assumption is made that the other person
understands what we mean. Confirming understanding is a process that takes about 60 seconds and can determine the success or
failure of delegation more than any other step in the process.
Have the employee paraphrase the deliverable you've assigned in his own words.
Be up front about the process of delegating. This is simply a step that helps you both be certain there is clear understanding.
Be creative about how you elicit the paraphrasing from your employee. Replace the phrase, "Now what did I just tell you?" with
How would you explain this task to a fellow employee?
Ask employees if they feel they have the tools and resources to be successful.
Ask questions to make sure employees understand what the task will require.

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4. Commitment
This is another area that most managers tend to skip in the delegation process. Managers assume an employees acceptance of
the task. In a relay race, the most critical stage is handing the baton to the next runner. A huge amount of training is invested
in learning the handoff. It's no different in organizations. Commitment is making sure you've successfully handed over the baton.
5. Avoiding Delegating Back
Many of the managers who begin working with me are extremely overworked, and one of the first determinations is that their
employees are better at delegating than the manager. We know this because delegated tasks return to the manger's workload. I
call this "delegating back." There are very few, if any, cases when a manager taking back a delegated task is necessary. When an
employee reaches an impasse, managers need to coach them through it, but let employees do their job. Don't take tasks back.
6. Accountability
Communication in delegation is key. Finding out that a deliverable wasn't completed or wasn't done satisfactorily after the
completion date is the nightmare scenario of delegating. Accountability is actually the act of giving a report on progress.

Q2 What is power? With examples, comment on the various sources of power.

Ans power

is the rate at which electrical energy is converted to another form, such as

motion, heat, or an electromagnetic field. The common symbol for power is the
uppercase letter P. The standard unit is the watt,symbolized by W. In utility circuits,
the kilowatt (kW) is often specified instead;1 kW = 1000 W.
One watt is the power resulting from an energy dissipation, conversion, or storage
process equivalent to one joule per second. When expressed in watts, power is
sometimes calledwattage. The wattage in a direct current (DC) circuit is equal to the
product of the voltage in volts and the current in amperes. This rule also holds for lowfrequency alternating current (AC) circuits in which energy is neither stored nor
released. At high AC frequencies, in which energy is stored and released (as well as
dissipated or converted), the expression for power is more complex.
he five sources of a leaders power come from distinctly different sources. Heres an overview:
Expert Power: When a leader has significant domain knowledge/skills. E.g. an expert accountant
influences how junior accountants go about their tasks
Positional Power: Comes when a leader has a legitimately held position of authority. E.g. typically,
the CEO of an organization has the highest positional power
Reward Power: Is evident when a leader can give, or take away, a reward. E.g. a leader can
influence a followers behaviour by awarding a bonus, or taking away perks
Coercive Power: This is felt when a leader creates the perception of a threat. E.g. a leader has
coercive power if her followers believe that she will initiate disciplinary action
Personal Power: Influence gained by persuasion. E.g. a manager may have to rely on nothing
more than a friendly please and thankyou for an employee to perform a task
So now we will look at each of these sources of power and consider when they could be used, and
when its not appropriate to use them
Q3 What is employee retention? Why is it important? Comment on the utility of employee retention strategies.
Ans Employee retention refers to the ability of an organization to retain its employees. Employee retention can

be represented by a simple statistic (for example, a retention rate of 80% usually indicates that an organization
kept 80% of its employees in a given period). However, many consider employee retention as relating to the

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efforts by which employers attempt to retain employees in their workforce. In this sense, retention becomes the
strategies rather than the outcome.
A distinction should be drawn between low performing employees and top performers, and efforts to retain
employees should be targeted at valuable, contributing employees. Employee turnover is a symptom of a deeper
issue that has not been resolved. These deeper issues may include low employee morale, absence of a clear
career path, lack of recognition, poor employee-manager relationships or many other issues . A lack of
satisfaction and commitment to the organization can also cause an employee to withdraw and begin looking for
other opportunities. Pay does not always play as large a role in inducing turnover as is typically believed

Expedite the HR Onboarding Process

HR onboarding processes such as meetings, lectures, lengthy videos and printed materials can be
costly to produce, hard to maintain and difficult to measure its effectiveness, not to mention a mile
from my style. Here at Intranet Connections we use our own intranet software and the Enhanced
Form Builder application to develop interactive onboarding tests, which quiz our new employees
on training material and our product videos. We also promote our HR Training
Registration system, especially with new employees during onboarding. It encourages selflearning and the self-starting nature that we tend to look for when hiring.

Promote from Within

Acknowledging your talents potential by promoting from within is one of the best ways to improve
employee retention. I am always on the lookout for where the passion lies within my team. We
have a history of hiring and promoting within as I believe in mentoring and nurturing the talents
and passions of our intranet champions and everyone working here ends up being an intranet
champion! We use our Job Openings application so that everyone can see the job openings
coming up and have a chance to apply for them internally. We also talk about the new roles
opening up as we grow on our corporate intranet through our Blogs and Company News, and this
heightened awareness and known value of promoting within helps employees from looking
elsewhere for growth opportunities.

Encourage Collaboration & Community

Not everyone has the gumption to be a Manager (yet most seem to aspire to be one). However,
we believe at Intranet Connections that everyone has the potential to be a leader. The best way to
garner ideas from your top talent and make them feel appreciated - is to let their voices be
heard. Encouraging a collaborative environment through applications such as Idea Share, Topic
Discussions and Company Blogs promotes creativity and increases employee job satisfaction.

Engage for Employee Retention

Employees offer a unique perspective, and we like our team to assist in decisions even at the
company strategy level. Encourage feedback on decision making processes by adding a quick poll

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on your home page, or through an Interactive Survey (using the functionality of Form
Builder). You can even allow for anonymous survey responses if you feel that will help to
encourage truthful answers or for more sensitive topics.

Recognizing Your Talent

It is satisfying to work in a company and on a team where people feel cared about and
acknowledged by their peers. That is why empathy is so important to us, and important in how we
want to engage with our customers. The KUDOS Application is a great way to recognize
employees accomplishments, both small and large, and recognizes them for their impact and
valuable contributions.
Q4 What is conflict? With examples, comment on the sources of conflict in an organization. Discuss the
relevance and impact of culture and gender in conflict handling.
Ans Conflict may be defined as a struggle or contest between people with opposing needs, ideas, beliefs, values, or
goals. Conflict on teams is inevitable; however, the results of conflict are not predetermined. Conflict might escalate and
lead to nonproductive results, or conflict can be beneficially resolved and lead to quality final products. Therefore,
learning to manage conflict is integral to a high-performance team. Although very few people go looking for conflict,
more often than not, conflict results because of miscommunication between people with regard to their needs, ideas,
beliefs, goals, or values.

The following factors are causes of the conflict:

Past discrimination: Since independence in 1962, Tutsi dominated regimes have

discriminated against Hutus.

Weight of a violent history: Burundis post independence history is strewn with recurrent
coups or attempted coups and inter-communal violence. Clashes that took place in 1965,
1966, 1972, 1987, 1988, 1989, 1991, 1993, and 1996. This sequence of massacres has
created a culture of violence which is hard to dissolve.

State monopoly of resources: The population is preponderantly rural and engaged in

subsistence agriculture. The countrys small industrial sector is confined largely to local
production or uncompetitive exports such as coffee and tea, produced until recently by state
industries. Control of state power almost coincides with control of economic resources.

Divisive leadership: The leaders of the countrys political camps have engaged in
demagogic rhetoric which has sometimes incited violence.

Q5 Why is control important? Taking examples, explain the control process.

Ans Control is important in an organization because it helps in the smooth functioning of the organization.

Control over an organization is what guides the employees through their everyday tasks, and sets expectations
on what goes on within the organization. Control is also what helps the organization reach goals that are set for
it, and guides the organization is taking corrective action when something goes wrong. Without a sense of
control, an organization would fall into chaos and fail to thrive.

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Control as a management function involves the following steps:

1. Establishing Standards:
Standards are criteria against which results are measured. They are norms to achieve the goals. Standards are
usually measured in terms of output. They can also be measured in non-monetary terms like loyalty, customer
attraction, goodwill etc. Some of the standards are as.
a. Time standards:
The goal will be set on the basis of time lapse in performing a task.
b. Cost standards:
These indicate the financial expenditures involved per unit, e.g. material cost per unit, cost per person, etc.
c. Income standards:
These relate to financial rewards received due to a particular activity like sales volume per month, year etc.
d. Market share:
This relates to the share of the company's product in the market.
e. Productivity:
Productivity can be measured on the basis of units produced per man hour etc.
f. Profitability:
These goals will be set with the consideration of cost per unit, market share, etc.

2. Measuring Performance
Measurement involves comparison between what is accomplished and what was intended to be accomplished.
The measurement of actual performance must be in the units similar to those of predetermined criterion. The
unit or the yardstick thus chosen be clear, well-defined and easily identified, and should be uniform and
homogenous throughout the measurement process.
The performance can be measured by the following steps:
(a) Strategic control points:
It is not possible to check everything that is being done. So it is necessary to pick strategic control points for
measurement. Some of these points are:
(i) Income:
It is a significant control point and must be as much per unit of time as was expected. If the income is
significantly off form the expectation then the reasons should be investigated and a corrective action taken.
(ii) Expenses:
Total and operational cost per unit must be computed and must be adhered to. Key expense data must be
reviewed periodically.
(iii) Inventory:

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Some minimum inventory of both the finished product as well as raw materials must be kept in stock as a buffer.
Any change in inventory level would determine whether the production is to be increased or decreased.
(iv) Quality of the product:
Standards of established quality must be maintained especially in food processing, drug manufacturing,
automobiles, etc. The process should be continuously observed for any deviations.
(v) Absenteeism:
Excessive absenteeism of personnel is a serious reflection on the environment and working conditions.
Absenteeism in excess of chance expectations must be seriously investigated.
(b) Meclzanised measuring devices:
This involves a wide variant of technical instruments used for measurement of machine operations, product
"quality for size and ingredients and production processes. These instruments may be mechanical, electronic or
chemical in nature.
(c) Ratio analysis:
Ratio analysis is one of the most important management tools. It describes the relationship of one business
variable to another.
The following are some of the important ratios:
i) Net sales to working capital:
The working capital must be utilised adequately. If the inventory turnover is rapid then the same working capital
can be used again and again. Hence for perishable goods, this ratio is high. Any change in ratio will signal a
deviation from the norm.
ii) Net sales to inventory:
The greater the turnover of inventory, generally, the higher the profit on investment.
iii) Current ratio:
This is the ratio of current asset (cash, receivables etc.) to current liabilities, and is used to determine a firm's
ability to pay the short term debts.
iv) Net profits to net sale:
This ratio measures the short-run profitability of a business.
v) Net profits to tangible net worth:
Net worth is the difference between tangible assets (not good will, etc) and total liabilities. This ratio of net worth
is used to measure profitability over a long period.
vi) Net profits to net working capital:
The net-working capital is the operating capital at hand. This would determine the ability of the business to
finance day-to-day operations.

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vii) Collection period on credit sales:
The collection period should be as short as possible. Any deviation from established collection period should be
promptly investigated.
viii) Inventory to net working capital:
This ratio is to determine the extent of working capital tied up in inventory. Generally, this ratio should be less
than 80 per cent, ix) Total debt to tangible net worth: This ratio would determine the financial soundness of the
business. This ratio should remain as low as possible.
(d) Comparative statistical analysis:
The operations of one company can be usefully compared with similar operations of another company or with
industry averages. It is a very useful performance measuring device.
(e) Personal observation:
Personal observation both formal and informal can be used in certain situation as a measuring device for
performances, specially, the performance of the personnel. The informal observation is generally a day-to-day
routine type. A manager may walk through a store to have a general idea about how people are working.

3. Comparing the Actual Performance with Expected Performance

This is the active principle of the process. The previous two, setting the goals and the measurement format are
the preparatory parts of the process. It is the responsibility of the management to compare the actual
performance against the standards established.
This comparison is less complicate if the measurement units for the standards set and the performance
measured are the same and quantified. The comparison becomes more difficult when these require subjective
evaluations
Ralph C. Davis identifies four phases in the comparison.
1. Receiving the raw data.
2. Accumulation, classification and recording of this information.
3. Periodic evaluation of completed action to date.
4. Reporting the status of accomplishment to higher line authority.
At the third phase, deviations if any are noted between standards and performance. If clear cut deviations are
there, then management must study the:(i) Causes for deviation
(ii) Effect of deviation
(iii) Size of deviation
(iv) Positive or negative deviation.

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4. Correcting Deviations:
The final element in the process is the taking corrective action. Measuring and comparing performance,
detecting shortcomings, failures or deviations, from plans will be of no avail if it does point to the needed
corrective action.
Thus controlling to be effective, should involve not only the detection of lapses but also probe into the failure
spots, fixation of responsibility for the failures at the right quarters, recommendation of the best possible steps to
correct them. These corrective actions must be applied when the work is in progress. The primary objective
should be avoidance of such failures in future.

SECTION - C
Write Short Notes on:
Q1 Approaches to Org. Structure and Work Design
a. Span of Control
b. Strategic Business Units (SBU)
c. PERT and Balanced Scorecard
Ans a) Span of Control means the number of subordinates that can be managed efficiently and effectively by a superior in an
organization. It suggests how the relations are designed between a superior and a subordinate in an organization. Span of control
is of two types:
1.

Narrow span of control: Narrow Span of control means a single manager or supervisor oversees few subordinates. This
gives rise to a tall organizational structure.

2.

Wide span of control: Wide span of control means a single manager or supervisor oversees a large number of
subordinates. This gives rise to a flat organizational structure.

There is an inverse relation between the span of control and the number of levels in hierarchy in an organization, i.e. , narrower the
span, the greater is the number of levels in an organization.
Narrow span of control is more expensive as compared to wide span of control as there are more number of superiors and
therefore there are greater communication problems between various levels of management. Wide span of control is best suited
when the employees are not widely scattered geographically, as it is easy for managers to be in touch with the subordinates and to
supervise them.
In case of narrow span of control, there are comparatively more opportunities for growth as the number of levels are more. The
more efficient and organized the superiors are in performing their tasks, the better it is to have wide span of management. The less
motivated and confident the employees are, the better it is to have a narrow span of management so that the supervisors can
spend time with them and supervise them well. The more standardized is the nature of work ,like - if same task can be performed
using same types of inputs, the better it is to have a wide span of management as more number of employees can be supervised
by a single supervisor. There is more flexibility, prompt decision making, effective communication between higher level and lower
level management, and improved customer interaction in case of wide span of management. Technological advancement such as
internet, emails, mobile phones, etc. makes it easy for superiors to widen their span of control as there is more effective
communication.
An ideal span of control according to modern authors is around 15 to 20 subordinates per manager, while according to the
traditional authors the ideal number is around 6 subordinates per manager. In reality, the ideal span of control depends upon
various factors, such as:
1.

Nature of an organization

2.

Nature of job

3.

Skills and competencies of manager

4.

Employees skills and abilities

There are several reasons SBUs are used in an organization and they are mentioned in my
post on the importance for using SBUs in a multi product organization. However, along with
b)

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the reasons for using SBUs there are also some powers which needs to be inferred on an SBU.
Planning independence, Empowerment and others are such powers which influence a SBU. 3 of
such features are discussed below.
1) Empowerment of the SBU manager Several times the empowerment of SBU managers is
crucial for the success of the SBU / products. This is mainly because this manager is the one
who is actually in touch with the market and knows the best strategies which can be used for
optimum returns. Thus several times, the SBU manager might need a higher investment for his
products. At such times the manager should be supported from the organization. Only this
confidence will help the manager in the progress of the SBU.
2) Degree of sharing of one SBU with another This point is directly connected to the first
one. What if one SBU needs some budget but the same is not offered because the budget is
being shared by 2 other SBUs and as it is the budget is short. Thus the first SBU does not get
the independence to implement some important strategies. Similarly there might be other
restrictions applied to one SBU as it is using some resources which are shared by another SBU.
This might not always be negative. Of one SBU gains more profit then usual, this revenue might
also become useful for the other SBU thereby promoting growth of both of them. This is where
sharing actually plays a positive role.
3) Changes in the market An SBU absolutely needs to be flexible because it needs to adapt
to any major changes in the market. For example if an LCD manager knows that LEDs are
more in demand now, he needs to communicate to the top management that he would also like a
range of LED products to make the SBU even more profitable. Thus by adding LED to its
portfolio, the SBU can immediately become double profitable. Thus by adjusting to change on
SBU levels, the organization as a whole can become profitable.
The key to Strategic business management is to have a strict watch on the investment and
returns from each SBU. The SBU manager too plays a crucial role in this and hence he is
recruited from the industry with extensive experience of that particular industry. Portfolio /
Multi SBU management and is done at the absolute top level of the management. Each and
every change in the market, and its affect on SBUs is anticipated which is then taken into
consideration. Hence, for a multi product organization, business management may actually mean
product portfolio management or SBU management.
c) The balanced scorecard is divided into four main areas and a successful organization is one that finds the right balance between
these areas.Each area (perspective) represents a different aspect of the business organization in order to operate at optimal
capacity.
Financial Perspective: This consists of costs or measurement involved, in terms of rate of return on capital (ROI) employed and
operating income of the organization.
Customer Perspective: Measures the level of customer satisfaction, customer retention and market share held by the
organization.
Business Process Perspective: This consists of measures such as cost and quality related to the business processes.

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Learning and Growth Perspective: Consists of measures such as employee satisfaction, employee retention and knowledge
management.

PERT is all about management probabilities. Therefore, PERT involves in many simple statistical methods as well.Sometimes,
people categorize and put PERT and CPM together. Although CPM (Critical Path Method) shares some characteristics with PERT,
PERT has a different focus.Same as most of other estimation techniques, PERT also breaks down the tasks into detailed activities.
Then, a Gantt chart will be prepared illustrating the interdependencies among the activities. Then, anetwork of activities and their
interdependencies are drawn in an illustrative manner.
In this map, a node represents each event. The activities are represented as arrows and they are drawn from one event to another,
based on the sequence.
Next, the Earliest Time (TE) and the Latest Time (TL) are figured for each activity and identify the slack time for each activity.When
it comes to deriving the estimates, the PERT model takes a statistical route to do that. We will cover more on this in the next two
sections.

Q2 Ethical questions faced by managers of MNCs. Comment on the ethics of managing the environment
around the company with the context of Clean Development mechanism and Carbon Credits
Ans Carbon forestry projects are one of the multiple constituents of what some have called a new carbon

economy (Brown and Corbera, 2003) and others climate capitalism (Newell and Paterson, 2010). In terms of
economic activity and offsets value, forestry projects represent a small fraction of the carbon economy that in
2009 alone was worth 144 billion (Kossoy and Ambrosi, 2010: 1). Beyond economic considerations, the
[9]

relevance of these projects lies in the fact that they are unfolding in rural contexts to transform the ways in which
landowners and communities value and manage landscapes and natural resources (Brown and Corbera, 2003;
Corbera and Brown, 2010). Community forests are discursively becoming reservoirs of a tradable, yet invisible,
commodity, and lands used for grazing can be, temporarily at least, reorganised as forest plantations or agroforestry systems for carbon trading purposes. Carbon forestry projects thus emerge as a new form of
environment-friendly development, built on the commodification of ecosystem services and the involvement of
rural actors in international carbon markets. They are also part of a broader policy agenda promoting the use of
Payments for Ecosystem Services (PES) as a means to value these services and promote conservation and rural
development (Muradian et al., 2010).
The carbon accounting and trading component introduces a difference in the way that these projects are
introduced to local communities that differs from previous attempts to promote conservation and development
through certified forest management or markets for non-timber forest products. These projects are accompanied
by a new discourse on ecosystem services, carbon sequestration and climate change and they entail the
development of contracts defining rights, responsibilities and liabilities, and potentially involving actors that
communities are not familiar with, such as consultants and carbon traders. Furthermore, in contrast with other
PES schemes focusing on watershed regulation that prioritise local or regional self-sustaining funding
frameworks, carbon forestry projects are embedded in broader governance processes and global carbon markets
that influence the projects operational rules and the type of buyers, predominantly from developed countries.

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The measurement of carbon stocks and flows at national, regional or local levels to understand forestry activities
potential impact on GHG emissions has been a flourishing field since the 1990s, of particular relevance for those
interested in project design and implementation, and in the management of GHG land use emissions on broader
scales (Brown, 2002; Sathaye and Andrasko, 2006; Skutsch and Ba, 2010). In spite of an increasing refinement
of the methods and data available, plus the existence of good practice guidelines for calculating emissions from
land-use, land-use change and forestry developed by the Intergovernmental Panel on Climate Change (2003),
some concerns and limitations in carbon accounting have been raised. It has been argued that it is impossible to
predict and to know exactly how much carbon is sequestered in a plantation and for how long because there are
too many uncertain variables embedded in carbon sequestration models (Lohmann, 1999). Others have
suggested that carbon accounting contributes to individuate and abstract an ecological function from its broader
ecological and social context in order to facilitate valuation and commodification, which may over time result in
environmental impacts and the loss of any formerly existing conservation logic (Bumpus and Liverman, 2008;
Kosoy and Corbera, 2010).
Some authors have stressed that new planted trees can help to control flooding, soil erosion, salinization and
sedimentation (Landell-Mills, 2002; Scherr et al., 2004) and that they can be particularly beneficial if they
restore historically forested lands, use native species, and employ ecologically sensitive techniques for ground
preparation, planting, and management (Orlando et al., 2002). However, ecological science is increasingly
emphasising the need to recognise trade-offs in the provision and management of ecosystem services (RaudseppHearne et al., 2010). Bckstrand and Lvbrand (2006), for example, highlight the risk of prioritising singlespecies plantations that would offer large volumes of carbon offsets at the expense of other services, such as nontimber forest products. This approach could also increase erosion associated with poor land management and
road building, reduce underground water supply and degrade soils and water quality if fertilisers are excessively
used (FERN, 2001).
Besides the interaction of carbon forestry activities with their local (through reforestation) and global (through
accounting) environment, another analytical domain of carbon forestry research has addressed the relationship
with the local context, particularly through the lens of institutional analysis (Corbera and Brown, 2008).
Succinctly, institutions are a major determinant of the relations between humans and the environment that can
be generally described as systems of rules, decision-making procedures, and programs that give rise to social
practices, assign roles to the participants in these practices, and guide interactions among the occupants of the
relevant roles (Young et al., 1999). Institutions can take the form of formal legal rules, or they may be informal
norms or conventions. Carbon forestry projects can thus be shaped by formal institutions such as agricultural
and forestry policies, and by informal institutions such as traditional practices for natural resource management
(Corbera et al, 2007a). Land tenure regimes have a particular relevance in the design and implementation of
project activities, as do the type of activities promoted by the project (i.e. conservation, reforestation or forest
management). For instance, operating the project on individual, privately owned plots over a large territory or on
a large area under communal property would result in different project transaction costs and benefit sharing
arrangements (van Kooten et al., 2004). A land tenure regime involving multiple resource users with specific
bundles of rights and divergent land-use management interests can also challenge project design and
implementation (Corbera and Brown, 2010; Corbera et al., 2011). Complex land tenure systems are the common

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rule in developing countries as multiple and overlapping rights are often found in one single location (Lynch and
Alcorn, 1994) and ambiguities within law, customs and conventions are frequent (Ribot and Peluso, 2003).
Projects can also contribute to create new institutions and modify existing ones. They can alter access relations
over natural resources, including subsistence and marketed products, thus affecting rural actors unevenly and
inducing social conflict (Brown and Corbera, 2003). Projects can also reinforce the socio-political status of local
elites acting as intermediaries between the project and the community, which can translate into new natural
resource management rules that are unfavourable to already marginalised resource user groups and households
(Lele, 2003). More positively, however, they can facilitate the establishment of farmer groups and cross-scale
social networks connected through land-use management and labour contracts driven by carbon trading, as well
as promote the exchange of forest management best practice across participant landowners and communities
(Corbera and Brown, 2010). Carbon forestry projects have thus been regarded as vehicles for rural development
that can contribute to the diversification of livelihood by providing labour opportunities, new income sources
and support community well-being, facilitating local demands (e.g. tenure security) and funding infrastructure
(Boyd et al., 2007a/2007b; Jindal et al., 2008; Bozmoski and Hultman, 2009). Furthermore, if landowners and
communities undertake carbon accounting and monitoring, projects can allow local people to become familiar
with satellite positioning gadgets and related software, contributing towards their integration into a knowledge
and technology-driven global society (Skutsch, 2010).
Q3 Goals and Objectives and how a Blue Ocean Strategy can help shape the future direction of the
organization.
Ans Blue Ocean Strategy is a book published in 2005 and written by W. Chan Kim and Rene Mauborgne,

Professors at INSEAD and Co-Directors of the INSEAD Blue Ocean Strategy Institute. Based on a study of 150
strategic moves spanning more than a hundred years and thirty industries, Kim & Mauborgne show that
companies can succeed not by battling competitors, but rather by creating blue oceans of uncontested market
space. These strategic moves create a leap in value for the company, its buyers, and its employees, while
unlocking new demand and making the competition irrelevant. The book presents analytical frameworks and
tools to foster organization's ability to systematically create and capture blue oceans
he book is divided into three parts:
1. The first part presents key concepts of blue ocean strategy, including Value Innovation the simultaneous
pursuit of differentiation and low cost and key analytical tools and frameworks such as the strategy canvas, the
four actions framework and the eliminate-reduce-raise-create grid.
2. The second part describes the four principles of blue ocean strategy formulation. These four formulation
principles address how an organization can create blue oceans by looking across the six conventional
boundaries of competition (Six Paths Framework), reduce their planning risk by following the four steps of
visualizing strategy, create new demand by unlocking the three tiers of noncustomers and launch a
commercially-viable blue ocean idea by aligning unprecedented utility of an offering with strategic pricing and
target costing and by overcoming adoption hurdles. The book uses many examples across industries to
demonstrate how to break out of traditional competitive (structuralist) strategic thinking and to grow demand and
profits for the company and the industry by using blue ocean (reconstructionist) strategic thinking. The four
principles are:
1. how to create uncontested market space by reconstructing market boundaries,
2. focusing on the big picture,

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3. reaching beyond existing demand and
4. getting the strategic sequence right.
3. The third and final part describes the two key implementation principles of blue ocean strategy including
tipping point leadership and fair process. These implementation principles are essential for leaders to
overcome the four key organizational hurdles that can prevent even the best strategies from being executed.
The four key hurdles comprise the cognitive, resource, motivational and political hurdles that prevent people
involved in strategy execution from understanding the need to break from status quo, finding the resources
to implement the new strategic shift, keeping your people committed to implementing the new strategy, and
from overcoming the powerful vested interests that may block the change. [2][3]
In the book the authors draw the attention of their readers towards the correlation of success stories across
industries and the formulation of strategies that provide a solid base to create unconventional success a
strategy termed as Blue Ocean Strategy. Unlike the Red Ocean Strategy, the conventional approach to
business of beating competition derived from the military organization, the Blue Ocean Strategy tries to
align innovation with utility, price and cost positions. The book mocks at the phenomena of conventional
choice between product/service differentiation and lower cost, but rather suggests that both differentiation
and lower costs are achievable simultaneously.
The authors ask readers What is the best unit of analysis of profitable growth? Company? Industry? a
fundamental question without which any strategy for profitable growth is not worthwhile. The authors justify
with original and practical ideas that neither the company nor the industry is the best unit of analysis of
profitable growth; rather it is the strategic move that creates Blue Ocean and sustained high performance.
The book examines the experience of companies in areas as diverse as watches, wine, cement, computers,
automobiles, textiles, coffee makers, airlines, retailers, and even the circus, to answer this fundamental
question and builds upon the argument about Value Innovation being the cornerstone of a blue ocean
strategy. Value Innovation is necessarily the alignment of innovation with utility, price and cost positions. This
creates uncontested market space and makes competition irrelevant. The following section discusses the
concept behind the book in detail.
Q4 Recruitment and Selection Techniques

Ans Employers need to ensure that the right people with the right skills are recruited for
roles within their organisation. Recruitment selection involves two main processes: shortlisting
candidates and assessing candidates against job-related criteria to make a final selection
decision. (See What is recruitment selection?)

Effective selection is essential to recruit people with the right skills and experience to drive
the organisation forward. Employers spend a lot of time and money recruiting new staff, so it is
important that they follow good practice and get it right first time. (See The business case for
effective selection)

Employers should consider the "reliability" and "validity" of the methods they use as part of
the selection process. This means that the selection methods should be consistent and measure
what they are intended to measure. (See The reliability and validity of different selection tools)

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There is no "one-size-fits-all" solution to selection and employers should choose the

combination of selection tools most appropriate for the role. (See Choosing between different
selection tools)

Employers should ensure that the opportunity for self-selection by applicants runs
throughout the recruitment and selection process, and that there is effective two-way
communication between the employer and the candidate. (See Self-selection by applicants)

Competencies can underpin each stage of the selection process, from preparation of the
job description and person specification to shortlisting, testing and interviewing. (See Competencybased selection)

Screening is the first stage of the selection process and is particularly important in cases of
volume recruitment. Employers need to screen out unsuitable candidates so that shortlisting can
commence. (See Screening candidates)

Shortlisting against the job-related criteria is a key early stage of the selection process. If
the employer carries out the shortlisting stage effectively, this means that it will need to interview
and test only the most suitable candidates for the role. (See Shortlisting candidates)

Telephone interviews can be used at any stage of the selection process, but are particularly
useful when the employer wants to screen out the least suitable candidates for the role.
(SeeTelephone interviewing)

Employers commonly use interviews as part of the selection process. They should use a
structured interview format to help avoid unintentional bias creeping into the process.
(SeeSelection interviewing)

Many employers use psychometric testing to support the selection process by testing
candidates' ability, aptitude or personality. The employer should ensure that tests are fair, effective
and administered by a trained professional. (See Psychometric tests)

Work-sample tests can provide the employer with a powerful prediction of future
performance because they allow assessment of candidates performing the same or similar tasks
to those performed in the role for which they have applied. (See Work-samples tests)

A presentation exercise could be useful if the employer wishes to assess candidates' verbal
communication skills. (See Presentations)

An assessment centre involves the employer using a range of selection tools to assess
candidates. Assessment centres can be expensive but, if well designed and administered, can
produce high levels of validity. (See Assessment centres)

If used in the right way, recruitment agencies can provide valuable support to employers in
their search for the right candidates. (See Using agencies for selection)

The employer needs to decide which individuals are responsible for the final selection
decision and how they should make this important decision. (See Making the final selection
decision)
Q5 Key ingredients of Leadership with examples.

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Ans There are crucial behaviors important people, successful executives, and true leaders use to move processes and
people forward. These behaviors are the key ingredients of leadership. The more of these ingredients leaders take to
heart, teach, and expect of others, the more power they will have to achieve their objectives.These behaviors or
ingredients are simple, sensible, positive, sincere, and very doable. You could call them the Be-attitudes of Leadership
because, you see, they start with "be," and they are attitude-driven behaviors. Here are the top five ingredients:

1. BE POSITIVE
Behave in positive ways.
Teach others to have fun and celebrate some success every day.
Use positive declarative language.
Eliminate negative words and phrases.
Example: In normal conversation, when someone says something with which we disagree, we invariably respond by
saying something like, "You're wrong," or "It's simply not done that way," or some similar negative approach. You may
explain what is correct or how you really do things, but your listener is still dealing with the insult or non-communication
of your negative comment. This makes it almost impossible to hear your constructive language. Negative comments
almost always put us on the defensive even though we have important, positive, constructive things to say.
2. BE CONSTRUCTIVE
Insist on constructive behavior.
Seek to make and solicit positive, constructive suggestions.
Seek out useful and challenging questions to answer.
Critique the performance and achievements of others constructively.

Example: Ask anyone to criticize and critique your appearance, preparation, proposal, presentation, personality, anything,
and you're guaranteed to get dozens of minor negative comments, most of which you couldn't change even if you wanted
to. In fact, most critiques are designed to elicit negative, unhelpful information and are too little, too late.
If you want constructive results seek and insist on constructive suggestions. There will be very few, but they will be more
useful. If you are constructive and seek positive, constructive suggestions, you automatically control and, therefore,
powerfully manage how decisions are made.
Constructive criticism is an oxymoron.

3. BE OUTCOME-FOCUSED (This means always focus on the goal.)

Commit to generating and maintaining forward momentum.
Focus on today and tomorrow.
Recognize that the past holds very few important lessons.
Select an achievable, understandable, time-sensitive, worthwhile goal; then go for it.
Work in the future tense.
Example: Focus on tomorrow and only take from yesterday, positive, useful, constructive elements and ideas that can
move the process forward, promptly. Whatever you did with others on various projects, problems, and situations before
you read this article no longer matters. Focusing on the future allows you to build tomorrow without all the problems, and
misunderstandings of the past. Applying this single concept will cut the time you spend in any meeting you attend or
sponsor in half. A good portion of most meetings is spent explaining to those who weren't at the last one what went on
and what has to get done. Then it's necessary to re-explain things because some of the people who were at the last
meeting have a different perspective than you do, even though they were there. What little time remains is finally used
to get something done and move ahead (because everybody notices that time is running out).

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Outcome focus saves precious time, reduces mistakes and misunderstandings, and acts as a positive force for moving
ahead.

4. BE A FINISHER
Do what you can.
Focus on completion.
Avoid endless and mindless projects.
Break down the barriers to completion.
Forecast and then overcome the institutional resistance to completion.
Studies of management failure and management success show that the ability to finish a few small but core projects can
be the difference between success and failure. Fortune magazine cites the failure to complete their own projects and
programs as the single most frequent reason why CEOs are fired.
Most CEOs will tell you that when they analyze organizational to-do lists, for every 100 projects there are only three to
five deserving or needing completion. For every 20 development concepts, only two are worth the effort, energy, and
expenditure, and half of those will fail.
Start things you can and will finish. Terminate those things that can never be finished. Off load those processes that take
away the time, resources, and key attention of your most valuable people.

5. BE RELENTLESS IN SEEKING POSITIVE, INCREMENTAL, PERSONAL IMPROVEMENT EVERY DAY

Break problems into solvable, doable parts.
Resolve each increment of the problem promptly.
Prepare to be lucky, but remember luck is limited.
Watch for the big break.
Crises occur explosively but are resolved incrementally.
Example: Everything we do, know, or create came into being incrementally . . . recognizable increments usually occur in
the correct order.
The most credible leaders and managers are those who relentlessly and intentionally: Learn and grow every day.
Help those they serve to achieve some positive incremental progress every single day.
Identify and talk about the positive increments that those they work with, supervise, or lead achieve everyday.
Assess what they've learned, then teach it to others.

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CASE STUDY - 1
Questions:
Q1. Who were the winners and who were the losers in this conflict?
Ans An arbitrator was appointed to act as mediator and due to his recommendation; some of the cuts in wages were
restored. The management offered to restore the balance of the cuts at the time when the previous labour contract would
expire and a new contract would be signed.

Q2. Is the conflict between union and management inevitable? What preventive steps can be taken to
avoid the possibility of worker strike? Explain your viewpoints.
Ans . The new contract was signed by all the unions at all other Hormel plants, except the one in Austin, and hence the
strike. Because of the worker 's strike, the plant was shut down.

The plant remained closed for nearly five months. The strike had not yet been settled when the management at
the Austin plant decided to reopen the plant, and accordingly, some union members returned to work. Many
other workers refused to return to work and formed a picket line and the local union urged its members not to
cross the picket line.
Q3. If you were hired as a mediator, after the union went on strike, what step would you recommend in
order to minimize the negative impact of this conflict?

Ans The management started to hire new workers to replace those who were on strike. There was conflict between
the employees and the workers on strike, so much so that at one time, there was a danger of physical violence and
local police had to be called in to restrain the workers who were on strike.

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CASE STUDY - 2
Answer these questions:
Q1. Reflect on the behaviour of Mr. Mashroo.
Ans Mr. Mashroo : Why I have not been promoted, Sir? Since last year you are assuring me to continue working hard
and that I would be promoted this year. This year too, you have not promoted me. What is the matter? (Mr. Chatterjee
felt insulted at Mr. Mashroos behaviour as some guests were waiting outside his cabin.)
Q2. What are the problems in this organization as seen in this situation?
Ans
Mr. Mashroo: How can it happen, Sir? How can they change the performance rating that you have given? Then in
that case I would like to meet HR Head to know the reason.
Mr. Venkatraman: You may meet HR Head, but it is too late for this year. (Next day, Mr. Mashroo goes to meet Mr.
Ashok Motiramani, Head of Human Resource Department.)
Mr. Mashroo: Good Morning, Sir. I have a problem regarding my promotion. I am the only person in the marketing
department who had for the past five years achieved beyond the target. But this time I have not been given promotion.
Mr. Venkatraman told me, that he had recommended by promotion, but it seems HR department has revised the list
and I am deprived of promotion.
Q3. What would be suggest to Mr. Mashroo as his next course of action?

Ans Mr. Venkatraman: Mr. Mashroo, dont feel annoyed. I was just informally discussing with Mr. Chatterjee that if you
started working on your problems you would become VP in few years time. But as far as this promotion is concerned,
I have already given you 4 rating in your performance and recommended you for the same. I think that HR department
might have made certain changes in the grading and that may have worked against your benefit. Why will I harm you
in getting the promotion; after all, you are the high performer in the company.

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