Shruti Case Study

Case Study on Principles of Management
1) Mr. Singh the owner of Human Care Ltd.

Pays lesser fixed salaries to his Sales
managers but shares 20% of profits earned by
the company on sales of each sales manager.
He shared the profits for three years but once
the business took off and company started
earning good profits Mr.Singh thought that
managers were being paid very high incentive,
so decided not to share the actual cost with his
employees. This led to agitation amongst sales
staff. Two managers decided to discuss the
issue with Mr.Singh but another manager
Raman decided the another way. He reduced
the sales volume and started selling products
of other companies while working as an
employee of Human Care.
a) Name and explain the principle
Mr.Singh followed in the initial stage of
business.
b) State the values Mr.Singh ignored
when he decided not to share profits
with its employees as agreed.
c)Was action of Mr.Raman justified ?
Which values did he overlooked ?
2) 90% staff of Work Well Ltd. Consists of male
employees. The female employees are
employed for very basic job like receptionists
or assistants to superiors. The management is
of the opinion that female employees cannot
contribute at par with male employees. They
pay much lesser salaries to female staff
despite the fact that they work for same
number of hours.
a) Name the principle of management Work
Well Ltd. is violating.
b) State the values ignored by the
management of Work Well Ltd.
3) Meditech Services established a factory to
manufacture blood pressure monitoring
machines. The factory did not have proper
lighting or sanitation facilities. All the
machines were kept in one room. Mr. Bansal
the owner appointed unskilled workers so that
he could save labour cost. He laid down all the
plans and procedures to be followed. The
production incharge was asked to follow the
plan to produce a target of 2000 machines a
month. The owner told the production manager
that if he fails to achieve the target he would
lose his job. The production manager was
confused as there was no proper setup of
machines and even the workers were not
trained to manufacture blood pressure
monitors.
a) Name the scientific principle Meditech
Services should have followed before
starting production.
b) State the principles of management
Meditech Services ignored.
c)State the values management of Meditech
Services ignored.
4) A well known business enterprise is planning
to setup its new factory in a backward area to
avail incentives offered by the government.
The incentives and low labor cost will reduce
cost of production and increase company
profits. Due to farmer’s ignorance about the
market rate for their land, the owners could
acquire land from farmers at a much lower
rate. In return, they promised that all villagers
who wish to work would be offered jobs in the
factory. The factory also plans to set up its
own school and medical center for employees.
a) State the values or opportunities the
factory will attain.
b) State the values the business had ignored.
5) Shiva Ltd. was not performing well. After
detailed analysis, it was discovered that losses
were due to low productivity of workers. It was
found that workers of the Production
Department were not satisfied with the
behavior of Mr.Ajay, the production manager.
He forced the workers to work for long hours
without any rest therefore all the workers did
not perform up to their potential.
To improve the situation management decided
to replace Mr.Ajay with Mr.Vijay who had
recently completed his M.B.A. from IIM
Ahemdabad. Mr.Vijay did a detailed analysis of
work which involved heavy manual labour. He
fixed rest time for workers so that they could
recharge their energy for optimum use.
a) State the principle of management Mr.Ajay
has violated.
b) Name and explain the technique of
Scientific Management adopted by Mr.Vijay.
c)He further desires to find out the best ways
of doing a job. Suggest to him the technique
of scientific management.
d) State the values emphasized by allowing
small pauses to workers.
6) Tanya and Sharma having same educational
qualifications are working as managers in Alfa
Ltd.Tanya belongs to a rural area where
employment are very less whereas Sharma
belongs to an urban area.Ignoring other
differences between the two, management of
Alfa Ltd, appointed both of them as assistant
managers offering them same salary package.
a) Name and briefly explain the principle of
management being followed in the above
case.
b) Identify the values on which Management
of Alfa Ltd. Emphasizes between the two.
7) Kusaran is working in a Shoe manufacturing
company. The management asked him to work
overtime so that production can be increased
demand in the market. But he was not paid
adequate wages for extra time and so he never
contributed to his maximum.
a) Which principle of Fayol is violated in the
above case ?
b) Give two positive effects of following the
above principles.
c)Which values can be emphasized by following
above principle.
d) Which values are ignored in the above
situation ?
8) One of the principles of scientific
management emphasizes that to make the
employees learn the best method of
production, training to workers is essential. It
further emphasizes that each person should be
scientifically selected and the work assigned
to the employees should suit physical, mental
and intellectual capabilities.
a) Name and explain the principle of scientific
management involved.
b) Name the principle of scientific
management which is concerned with
selecting the best way of performing a job
through application of scientific analysis and
not by intuition or hit and trial method.
c)Name the value emphasized by following the
principle in part(a) above.
9) There was too much pollution in the city

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Case Study on Principles of Management

1) Mr. Singh the owner of Human Care Ltd.

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