Case No.

1
New Manager

Jai-Bharat Machine tools was renowned company in

manufacturing equipment and tools. Currently
company is facing problems like low quality, high
rejection, low productivity and low profitability.
Although there are orders from domestic as well as
from foreign companies, company could not dispatch
the consignments on time. New manager has been
arrived at the company, who is having professional
management degree and keen on execution of his
formal educational knowledge in management. He had
meeting with the top level management and discussed
the proposal of reorganization with them. After getting
their approval he has called a meeting of all supervisors
to communicate the plan to them. He has organized
training to supervisors in similar industry, that why they
can understand how to implement the plan effectively.
To improve productivity number of rules and
regulations are imposed on the workers. It is not
allowed to do any Informal communication and
chitchatting in the premises. Everyone has to comply

given target and also deductions from the wages for the
rejections. Productivity is declining day by day. In the
reorganization process, all activities in the organization
are disturbed and getting difficult to manage.
Environment of confusion and chaos caused disputes
between supervisors and workers. Dismissal of few
workers made the situation too worst to correct. The
company was at the door step of the closure and now
supervisors are together to find out the way to come out
from this situation.
Analyze the research problem and suggest appropriate
solution.

Case No.2
Mr. Dravid was appointed as a Factory Manager in a medium automobile spare parts manufacturing
concern. He had previously worked in a number of concerns and was a man of very progressive ideas.
After taking over charge, he made a general survey of the organization and could at once make out that
the whole set up was in a muddle and the concern was having a turnover which was far too low in
proportion to the invested capital. He approached the management with a series of proposals for
complete reorganization of whole set up. The proposals necessitated an initial investment of money,

but with promises of future dividends. The management thought that it was worth the gamble and told
Mr. Dravid to go ahead.
Mr. Dravid then called a meeting of the senior staff of the concern and the representatives of the
workers. He explained to them the uncommercial and outdated system of their present work. He also
told them that the main object of the joining the concern was to run it in a most efficient manner so that
the management and the employees would get maximum benefit of their joint efforts.
He then started introducing some changes in the organization with a view to improving the existing
working conditions. In the beginning there were resentment and dissatisfactions, but after a few days,
things were again running smoothly as a result of the remarkable improvements.
Mr. Dravids next step was to order out some modern automatic equipment and machines. As soon as
new machines arrived in the Plant there was a general unrest among the workers. They feared that
there would be a general retrenchment as a result of the high productive automatic machines. Few was
multiplied by rumours ultimately restating in a sitdown strike and some of the bad elements went to the
extent of damaging the equipment.
Mr. Dravid was not prepared for such a violent reaction, but with cool mind, he immediately called the
representatives of the workers and assured them that there would not be any retrenchment at all. After
having his assurance the workers resumed their work.
Mr. Dravid then in consultation with Management and the trade union leaders introduced an incline
scheme whereby the workers could earn more money if their production was more than the specified
targets.
In the beginning the workers still worked with a sense of fear as they suspected some trap in the newly
introduced scheme but slowly they realized their own folly and started increasing their production.
After a year, the production figures reached a fantastic limit and Mr. Dravid was then proud enough to
call a meeting of the staff and the workers and explained to them how the overall picture of their
concern had changed and how the management had benefited and how all the workers were happy.
The management and the employees had earned the reward of the modern way of working in the life
and there was the feeling that the concern belonged to the workers and the workers belonged to the
concern.
For the last couple of years, the Company is making a good profit and the employee are getting god
wages. There are other facilities such as the profit sharing bonuses, free medical treatment, subsidized
housing facilities, free schooling for children. Etc.
Questions
1. What has contributed significantly to Mr.Dravids Success?
2. What enabled Mr. Dravid to win over workers and union?
3. How far was the fear of workers regarding automation and incentive scheme justifiable?
4. Which qualities and personality traits made Dravid so Successful?