CASE STUDIES IN MANAGEMENT

CASE STUDY 1[This case has been analyzed below]

Shri Hari Narayan Barua was the most reputed lawyer in Assam. He was extremely intelligent and very rich. Hari Narayan Babu, as he was popularly called, was persuaded to marry a pious and diligent woman at a young age. His wife bore him a son, named Archit, but could provide little intellectual companionship to her husband. The son inherited a razor sharp intellect from his father in addition to having an analytical mind and a questioning nature. Father and son developed a deep and satisfying relationship.

During his travels with his father, young Archit could not help but notice that many men grew their facial hair at a late age. Father and son would often discuss the merits of this phenomenon. They marveled at the youthful appearances that these men continued to have till advanced ages. They also noticed that these men avoided the nuisance of having to shave. Archit soon became Dr. Archit K. Barua, skin specialist, and worked on his pet project – facial hair. At the age of 26, he developed a composite medical treatment that could divert the nutrition from facial hair to hair on the head. This treatment deferred the growth of facial hair, reduced the quantum of growth on the face and improved hair growth on the scalp. This could counter baldness, though the medication could not totally cure baldness.

The medication consisted of a powder, which was to be applied on the face for keeping the face clear and smooth and a tablet, which was for diverting the nourishment to the hair roots on the head. Both these medicines were to be taken on alternate days for three months and thereafter once a week for six months.

Hari Narayan Barua was overjoyed with his son’s invention. He offered himself as the first customer, mainly to improve his balding pate. The drugs were submitted to the government for testing and certification confirming their fitness for ‘human consumption without any ill-effects’. Hari Narayan Babu‘s connections at the right places ensured that the clearance came quickly. He had enough wealth to fund the setting up of a factory for producing these wonder drugs. On his 28th birthday, Archit got the factory and a duly registered company as a birthday gift.

Mr. Edward Dexson, a retired general manager, marketing of Hindustan Tele Systems Ltd. and a few youngsters were recruited for marketing the powder and tablets. The marketing team decided that the distribution channels/sales network should be in place before production started in full swing. Names of the distributors/retailers would be needed during the advertisement campaign. However, the marketers could not identify what distribution channel should be adopted for these products. The idea was so novel that the marketing team was not clear about the target segment. Even prolonged discussions yielded no unanimous solution. Finally, Mr. Dexson ruled that the facial powder should be sold through barbers (since it was related to shaving) and the tablets should be marketed by medical stores/chemists. Distributors, normally covering a state, were to be appointed. They would deal with the retailers on the one hand and with the company headquarters (located at the factory) on the other. Both the Baruas were not happy with these decisions, but they knew little about marketing or distribution channels and so on. They, therefore, had little choice.

REQUIRED:

Discuss the correctness of Mr. Dexson’s plans and, if required, suggest a distribution channel, which in your view, would be suitable for this product. Give arguments to support your recommendations.

[ This case study should take you not more than 25 minutes ]

SUGGESTED SOLUTION:

Place is one of the Ps of the classic marketing mix. Decisions about place can be made if the target segment has been identified. This will depend on the product and its price. Promotion would be needed to inform/induce the customer. Identifying the distribution channel for normal and conventional products is relatively easy. The problem arises when totally new products/concepts have to be sold. This case study deals with such a problem.

1. The Problem:

To suggest a suitable distribution channel for selling a composite treatment for reducing/eliminating facial hair and diverting nutrition from the facial hair to the hair on the scalp.

2. The Case:

(a) Dr Archit K. Barua has developed a composite treatment consisting of a tablet and a powder. The powder reduces/eliminates the growth of facial hair and the tablet diverts nutrition from the facial hair to the hair on the head. The period of treatment is nine months.

(b) These medicines have been tested by the government and found fit for human use without any harmful effects.

(c) A factory for manufacturing these medicines and a company with its head office co-located with the factory have been set up.

(d) The marketing team wants the distribution channel to be in place before production or advertisement start. Their proposal is to employ state-level distributors and make the facial powder available through barber shops and the tablets through chemists/medical stores.

3. Assumption:

(a) The full course of treatment is priced fairly high, ie., Rs 9,000 which an ordinary man on the street cannot afford.

(b) The diversion of nutrition from the facial hair to the scalp will improve hair growth on the head, but the treatment cannot eliminate baldness.

(c) Commission paid would be at par with the best offered in the country and would thus induce the best establishments to join the distribution chain.

(d) The company will spend liberally on advertisements and sales promotion.

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4. Boundary Limits:

The distribution channel is to be identified for the whole country.

5. Possible Solutions and their Evaluation:

Solution 1:The proposal made by the marketing team.

MeritThe marketing team has planned this solution.

Demerits:(a) The powder and the tablets are a complete treatment and their sales should not

be effected through two different sources.(b) Barbers will not be able to handle the sales to the type of clients expected as per

the assumption.(c) One distributor per state may not be adequate.(d) Separate sources of sale may create the impression that these are two separate

treatments and some customers may be tempted to try only one part of the treatment.

Solution 2:Sell the medicines directly from the headquarters of the company, ie., postal marketing.

Merits:(a) The customer would feel that the company cares and that he is in direct touch with

the specialists.(b) The course of medicines will be given properly.(c) The company will get feedback about the product directly from the customers.(d) No commission needs to be paid to distributors and retailers.

Demerits:(a) Losses, damages or delays may take place in transit.(b) This mode of distribution can be suitable if the number of customers is small.(c) It might create the impression that it is a complicated mode of medication which

requires guidance from the company.(d) Very little medical advice can be given from the factory because of the distances

involved.

Solution 3:Retailing through elite departmental stores, chemists, beauty parlours, etc. Distributors should be appointed based on the turnover expected; bigger cities and developed areas may have greater sales and may require independent distributors. Smaller turnover territories may have a distributor covering a larger geographic area.

Merits:(a) The product is readily available at outlets usually frequented by the type of people

who can afford a course of this expensive medicine.

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(b) Potential customers will feel assured since they consider these outlets to be dependable.

(c) This type of medication is likely to have some snob value and buying it from a reputed outlet will satisfy the ego.

(d) There are least chances of getting adulterated medicines if bought from a good shop.

Demerit:Rate of growth of sales may be restricted due to the medicine being available only from outlets which are believed to be charging higher prices.

6. Best Solution:

A combination of the second and third solutions may be the best course to follow, i.e., sell the medicine directly from the factory and also appoint elite stores, chemists, beauty parlours, etc. as retailers. Distributors should be appointed depending upon the sales expected in an area.

7. Implementation and feedback:

Adequate advertisements must be released. Effective test marketing would improve the confidence of the retailers and distributors. A comprehensive feedback mechanism must be built in order to get the customers’ reactions. Direct sales will do this to some extent, but more communication channels should be planned for this purpose. This is needed to ensure that the concept is accepted by the potential users.

8. Conclusion:

A composite distribution network has been suggested to position the product as a sophisticated medicine. The distribution channel also tries to provide some feedback from the customers.

CASE STUDY 2

For Dr. Swaminathan, a veteran University professor and a renowned Management Guru of Management, it was quite natural and routine to be invited to lead a symposium. This one was for top two hundred scientists and their assistants employed in the nation’s only largest atomic energy research and development centre.

No sooner had Dr. Swaminathan started delivering the key-note address, dwelling upon the nature and role of management in improving the effectiveness and efficiency of a scientific organization like the one in which he had been honoured as a guest, a pleasant grey-haired gentleman got up from his seat. Introducing himself as the head of the laboratory and a Noble Prize winner too, he said, “Professor, we are quite interested in what you have to say. It may even he having some intellectual content in it. But I feel that while management may apply to Tatas and Hindustan Unilever, and even to government agencies, it does not apply here. We are scientists and researchers, and we do not need or want management.” The professor was taken aback by such an intervention and comments. He also felt irritated and isnsulted.

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Issues for discussion:

(a) If you were in the place of the professor, what would you say at this point?(b) Does the scientist have an accurate idea of what managing is?(c) Explain why an intelligent scientist like him made such a statement?

CASE STUDY 3

Balraj Thakur, the President of Krishi Kalyan Corporation, in a relaxed mood, leaned back in his chair and reflected with deep satisfaction on the success of his company, a producer of farm machinery. He had just returned back from a distributors’ meet. The distributors had strongly urged that new models be introduced to meet the changing requirements of the customers.

Mr. Thakur, an IIT graduate, was trying to work out the implications of the distributors’ suggestions. It would require additional investments in research and development. Design changes would necessitate changes in the highly automated production line which would be quite costly indeed. It would also imply stocking of many more spare parts and, may be, mechanics also might need to be retrained.

Suddenly, a number of previous staff meetings flashed in his mind confirming the commonly held view that sales and marketing people generally always demanded a greater variety of models without realizing the costs involved. After all, the company has been doing pretty well with limited number of models.

The next moment, the President decided against introducing new models. Instead, he thought it would be appropriate to try for improving the current models and reduce the cost and price. He strongly felt that the customer just wants value for money and no more. In order to confirm his view, he asked his secretary to connect him to his consultant friend.

Issues for discussion:

(a) How would you state the mission of the enterprise?(b) Identify the opportunities and threats for Krishi Kalyan Corporation.(c) How would you go about evaluating the strengths and weaknesses of the firm?

Which factors do you think are critical for success or failure?(d) “For success, an organization must act as an open system:. What does it mean

and how does it apply to Krishi Kalyan Company?

CASE STUDY 4

“Our company will never have organization charts and job descriptions of any kind whatsoever” declared Mr. Shantanu, the founder President of Libaas Limited, a medium-sized manufacturer of men’s wear. “We are a successful and fast growing concern, where I want all our managers and employees to work as a single integrated team. I

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believe organization charts and job descriptions make people believe that they own specific positions and tend to keep themselves restricted to the requirements of job positions. We have progressed because we all pulled together and came up with creative low cost designs. We are no Tatas and Birlas with complicated organization charts. In fact, I never want us to be of that type.”

While the company controller vehemently supported the President’s view, the manufacturing head ridiculed him and described his suggestion as most silly. “As a matter of fact,” he said, “I just cannot run my shop without a chart and job descriptions which I do have hidden in my desk where Mr. Shantanu can never see them.”

Issues for discussion:

(a) What do you think of Mr. Shantanu’s view?(b) Do you support the manufacturing head’s view that he must have organization

charts and job descriptions? Why?(c) What are the implications of not having organization charts and job descriptions?

What purpose do they serve?

CASE STUDY 5

Ravi Prakash accepted the new promotion with mixed feelings. He had some doubts about how much he would like the new assignment. He had really enjoyed his former job which was an outgoing one involving regular interaction with salesmen – trouble shooting, helping them with special customer problems and so on. It matched well with his extrovert nature.

Ravi’s new job in marketing research involved working with statistics, industry marketing reports and so on. He badly missed his old routine and colleagues. He had a private office now where he felt secluded and alone.

After a recent experience, Ravi also felt that he did not have the educational background necessary for the new assignment. It happened so far that the first report which he submitted to his division head had considerable number of errors. The division head was quite polite and suggested some changes. He even said no to worry as everyone has to learn new things gradually. But Ravi was highly disturbed. The more he thought about it, the more he wanted to go back to the old job. But he hesitated to put up his request for fear of humiliation and the possibility of being disqualified from any further promotion.

Issues for discussion:

(a) As Ravi’s boss, how would you correct the situation?(b) Why has this situation arisen? How could have been avoided?

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CASE STUDY 6

Golden Electronics has an excellent corporate image and it is considered a privilege to be associated with the company. The employees too feel proud to be part of it and the turnover rate is significantly low. The company expects total loyalty from its employees and even tries to influence their conduct after work.Miss Yogita, a bright young management graduate working for the company for over 10 years, was a highly respected executive who had done very well as a divisional sales manager during the past five years. She was also considered as a fit case for promotion.

One fine morning, Yogita was summoned by her boss who told her in very clear words, “I have come to know that you have been going steady with Mr. Shekhar, General Manager of National Electronics. Now this can create serious problems for us as National Electronics happens to be our only competitor.” He further reminded Yogita of the unwritten company policy that demands complete loyalty from all its employees.

Within a week, Miss Yogita found herself transferred to a non-managerial position without any loss in pay. She found that even her best friends in the company were avoiding her. She personally felt strongly that the company had no moral right to intrude into her private life and suggest whom she could see and could not after working hours.

Issues for discussion:

(a) Can a company demand loyalty to the extent indicated in the case? Would your stand be the same if Miss Yogita had access to important company trade secrets?

(b) What would you do in Miss Yogita’s position?(c) What would you do in the boss’s position?

CASE STUDY 7

While walking through the machine shop, Mr. Prabhakar, the production manager, observed an unusual and uncomfortable calm. It was just two days ago that Vitthal, one of the four supervisors working under Mr. Prabhakar had handed out a week long suspension order to a machine operator stating that the operator had refused to carry out his order in the disciplinary report.

As Vitthal was out of his office, Mr. Prabhakar approached the workers and asked what was on their minds. They expressed their deep concern about the suspended operator. They said it was unjust and unfair. They said the MR. Vitthal had deliberately issued the order to work on an unsafe machine just to elicit refusal and take disciplinary action on justified grounds.

The two definitely did not get along very well. During the discussion, Mr. Prabhakar came to know that three persons had previously been hurt while operating the particular machine which the operator had refused to work on.

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Issues for Discussion:

(a) Should Mr. Prabhakar have talked directly to the workers?(b) Identify the organizational issues involved in the situation.(c) What should Prabhakar do now?

CASE STUDY 8

“Our problems of control are now finally over,” said the Director if Information Systems to the President of Excel Corporation Ltd. “With our new computer installation, data gathering, department and plant terminals, high speed printers and video display stations, every responsible manager can find out what is happening in his or her area as it happens. Delayed reports shall now be a thing of the past. I am sure you will find that the investment we have made in these systems is the best expenditure this company ever made. We will soon have real-time control, and we’ll be able to work to the desired standards, in exactly the way a thermostat keeps our offices at a desired temperature.”

“I hope you are right,” responded the President. “But, I wonder.”

Issues for discussion:

(a) What do you understand by real-time control?(b) Was the Director of Information Systems right? Why or why not?(c) What would you suggest to be done?

CASE STUDY 9

Vinay was appointed four months ago as the Manager of the Research and Development Department of Frontline Engineering Company. The Vice President of the company who took the decision strongly believed that the R & D Department could use with advantage the expertise of the person who was experienced in production problems. Vinay had been a production supervisor, and had an excellent reputation for getting the job done. He was quite systematic in his working, and was known for his ability to solve problems prior to their reaching the higher authorities. The main emphasis of the Department was to conduct practical research for the purpose of developing marketable products. Top management believed that Vinay would do well in this assignment in view of his sound production background.

Vinay could never believe how unorganized the researchers could be. They would come to work at 10.00 A.M. and leave at 3.00 P.M. He did not realize that many of them worked till late night. These employees were all dedicated researchers and professionals in their own right. According to them, it was not necessary that a task had to be defined in detail for the job to be executed efficiently.

Vinay felt that these conditions were not conducive to maximize productivity. He had learnt on the production line that efficiency was the direct result of the organization and structure of tasks. If it worked in one situation, it would work in another.

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To start with, Vinay installed a time clock. He believed that punctuality of the staff, and their presence during the working hours of the day was a prerequisite for success. The researchers in the R & D Department expressed disbelief in this decision. Prior to Vinay becoming the manager, most of the researchers were recognized as being quite productive. Many of them actually liked to work on Saturday evenings, because the activity level of the plant was lower, and they could concentrate better. Without realizing this, Vinay was actually telling the members to reduce their work time per unit of production by one-fourth.

On arrival for work on the following Monday, Vinay was pleased to see that all the researchers clocked in at the right time. They stayed at their desk throughout the day, and left promptly at 5.00 P.M. He hoped that everything was going to be great. The employees had accepted him as their supervisor. The expectations turned out to be short-lived. People throughout the company began calling on him asking why their particular project was not finished. When he checked with the persons concerned, he found that they had been working on it but did not have the time to complete it. This was so in almost all the cases.

Vinay came to the conclusion that the researchers were negligent, and therefore, issued numerous letters requiring explanation. In the meanwhile, several employees resigned to join other firms. The situation continued to deteriorate, and no useful work was being conducted in the Department. When the Vice President finally asked Vinay what was causing this inefficiency, he responded: “They are a bunch of super-ego people but I would bring them to book” . The Vice President was not sure that this was the problem. He seeks your advice.

Issues for discussion:

(a) What considerations did the management have in mind while appointing Vinay as the Manager of the Research and Development Department?

(b) How would you describe the leadership style of Vinay? How appropriate was this style to the management of the research and development department?

(c) What style of leadership can be regarded to be the most effective in a group of researchers?

(d) If you were the Vice President of Frontline Engineering Company, what action would you take to improve the situation?

CASE STUDY 10

Sunrise Private Limited, an engineering firm engaged in the manufacture of spares and components of critical nature needed for transporters and engineering industries, had consistently an impressive track record as a market leader. Mr. Raghavan, an MBA from Harvard with a Mechanical Engineering background, had been in charge of the Mechanical Engineering Section since 1994. He was promoted as the Chief Executive of the Division in 2004. This was in recognition of his outstanding contribution to the development of new product lines, especially in the area of compressor-cum-vacuum pumps. In fact, the firm earned a good name in the export market and also bagged an

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award in 2003-04. Moreover, Mr. Raghavan was known for his honesty, integrity, leadership and decisiveness. He was a brilliant engineer and always worked hardto be a step ahead of his competitors in the field. He was virtually a think-tank, and the management was very proud of him.

During the last six months, he spent long hours redesigning the export model-T compressor-cum-vacuum pump set. After his interactions with his foreign collaborators, he was convinced that with a little more effort, the company could successfully redesign the model, thus saving production costs as well as improving the efficiency by 16-20 per cent. He depended entirely on Mr. Harihar, a Foreman of exceptional ability and tenacity. Moreover, Mr. Harihar was good at human relations and commanded respect from his immediate subordinates. Since the fabrication of the new model was in its infancy, everyone concerned felt it undesirable to let others know what was happening in this regard on the shop floor, and therefore it was clear to both the foreman and the persons working under him, that the matter would not be brought to the notice of Mr. Shekhar, the new Works Manager, a recent induction into the company. They were one with their new job and were always delighted with any word of appreciation from their Chief, Mr. Raghavan, when he visited the shop floor.

Mr. Shekhar was young and energetic with a flair for mechanical engineering products. He had no knowledge of management, but always laid stress on proper supervisory activities. He knew his job well and always expected others to perform their duties as scheduled. He could never tolerate indiscipline. His colleagues had nicknamed him “The real fire-brand”.

One evening, before going home, Mr. Shekhar went to the shop floor, where he found six machinists and helpers engaged in fabricating a spare part of the pump set as per the order of Mr. Raghavan. He was very happy to find people so much involved in their work. However, this enthusiasm vanished when he discovered that what they were engaged in was not a normal part of their work. “Damn it. What the devil are you up to?” He asked in annoyance. The workers were perplexed. They did not know what to say. However, Mr. Harihar soon appeared and explained the on-going project and the benefits its success would bring to the company.

The Works Manager got very angry with Mr. Harihar and reprimanded him severely in the presence of all. Mr. Harihar felt confused and hurt. As though this was not enough, he received a show cause notice demanding an explanation within 24 hours. This was adding insult to injury. He had no alternative, but to report to the Chief, but to his bad luck, he found that Mr. Raghavan had already left on foreign tour, and was expected back a month later. Exasperated and hurt, Mr. Harihar went to the General Manager and handed over his letter of resignation, which was accepted.

Mr. Harihar was known for his honesty, simplicity and hard work. Only due to his devotion to duty, he had risen to the foreman’s position from the level of an ordinary helper within a space of 10 years. His one weakness was that he was very much sensitive and would never compromise on issues affecting his personality and dignity.

News of Mr. Harihar’s resignation spread like wild fire. The workers, technicians and others sympathetic to his cause, were alarmed, and all of them eagerly awaited the outcome.

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Issues for discussion:

(a) Was the General Manager right in accepting Mr. Harihar’s resignation?(b) Was it advisable to keep Mr. Shekhar in the dark about the on-going project,

especially when he was the Works Manager?(c) How do you assess the action taken by Mr. Shekhar? Was it a hasty decision?(d) What repercussions would this incident have on the employees of the firm?(e) What form of remedial action is called for on the part of the management?

CASE STUDY 11

Beacon Appliances Ltd. (BAL), a giant-size company, was set up in 1979 as a family-owned enterprise, by Govindbhai, a migrant from Gujarat. At that time, the product range manufactured at the Vikhroli plant included toasters, electric kettles and irons.These were all sold under the brand name “Beacon”. By 1990, BAL had established itself as the No. 2 player, with a 15 per cent share of the appliances market, while its arch rival, Avon Electric Appliances, had a 20 per cent share of the market. In the mid-nineties, Govindbhai’s son, Jayant Mehta, 33 years of age, joined the family business, and started looking after the “Appliances line”, with Govindbhai concentrating on diversification. In 1999, a company making typewriters and letter-weighing machines was acquired. An office stationery division was set up in 2000. A year later, an export division was established; this had an annual turnover of Rs 7 crores on 2006-07. BAL had also entered into the construction and hosiery businesses, but these turned out to be misadventures. Govindbhai passed away in 2004. In the meantime, Avon Appliances, through technical collaboration with a British firm, intensified their marketing drive. In order to counteract Avon’s move, BAL entered into a technical tie-up with a French firm. BAL launched a wide range of premium products like microwave ovens, steam irons, hair driers and electric shavers. These products gained ground in the metros. The turnover rose from Rs 47 crores on 1990-91 to Rs 246 crores in 2005-06 and to Rs 339 in 2006-07.

Although the company had an image of good quality products with an established brand, Jayant Mehta was worried on account of two things, namely, (1) Firstly, the declining trend in the growth of the sales volume coupled with falling gross profit margins. (2) Secondly, the high cost of operations at the Vikhroli plant. However, he handled the whole situation at his individual level, and never took other people in the organization into confidence despite their loyalty to the organization.

Sometimes in 2007, Jayant Mehta suddenly got attracted to the idea of going in for a major restructuring programme. He was partly influenced by what he had heard of the need for restructuring the organization, and partly, by a reference to the concept of “BPR” (Business Process Reengineering) during the course of conversations with other corporate executives. He thought that perhaps this was the magic wand that could turn BAL into the No. 1 player. He engaged a consulting firm to undertake the restructuring exercise.

After an in-depth study, two options were presented to Jayant Mehta: (a) To undertake a cost reduction exercise at the Vikhroli plant including a Voluntary Retirement Scheme, and (b) closure of the appliance manufacturing at Vikhroli, paving the way for

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outsourcing. Jayant adopted the second option, and entrusted the implementation task to the consultants. They selected three vendors and appointed three production engineers from the existing staff to serve as business managers, to be stationed at the vendors’ premises to monitor and ensure that the products supplied by them conformed to the quality norms laid down by BAL.

While the BPR process was on, Jayant called for the consultants and said: “In a couple of weeks, your team would finish the project and leave. I get the feeling that there are still some loose ends.” His apprehensions were:

(1) This was entirely a new way of doing business, and BAL did not have the managerial skills necessary to handle third party activities.

(2) BPR was being pushed through the company too aggressively, and the existing staff had become passive members of the organization in the process.

(3) Te results would entirely depend on change in the people’s mindset within the organization.

Issues for Discussion:

(a) Was the decision to go in for BPR justified?(b) Which alternative should have been tried first?(c) Was the restructuring plan of the organization pushed through too aggressively

without considering the people factors?(d) Was the decision to implement the scheme through the consulting firm a wise one?(e) What remedial measures, in your opinion, are called for?

CASE STUDY 12

In a large State Electricity Board, the maintenance of records and decision making in the personnel department was a gigantic task. While the individual service records of senior engineers were maintained at the central office, those of the junior engineers and operating staff were scattered all over the State. All decisions concerning senior engineers were taken at the central office. Some decisions concerning creation of posts, promotions and inter-regional transfers of junior engineers were also taken at the central office. Moreover, requests for posts from the field officers were also finally approved at the central office. In the case off senior engineers am attempt was made to put individual records on the Cardex system. However, this experiment could not succeed for a variety of reasons. Consequently files had been developed for their promotions and transfers.

The General Manager- Personnel, felt that to keep track of a vast number of personnel and to enmesh the organizational needs with those of individuals, it was necessary to obtain all relevant data with respect to each individual and to process all personnel data with the help of modern digital computers. He felt that computerized information would result into the following advantages:

(a) More objective assessment of manpower requirements and availability of skill in the organization;

(b) More speedy and efficient handling of personnel issues such as appraisal, training, promotions and transfers;

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(c) Availability of more accurate information regarding increments, efficiency bars, retirement dates and benefits.

The General Manager- Personnel was aware of the fact that within the organization operational data on power generations and distribution thereof was being analysed with the help of computers by a group of specially trained staff. He, therefore, requested this group to help him prepare a proposal on computerized manpower information system.

The salient features of the proposal were as follows:(a) A beginning may be made with computerized data for all engineering staff.(b) Two data files may be developed. The master file may contain all the basic data,

while the secondary file may contain data which requires updating at quarterly intervals.

(c) For several purposes, the programme could be relatively simple, while special programmes would have to be prepared for certain purposes. In some cases, the computer may have to just scan its memory and print the outputs.

(d) The cost of the project would include the initial cost of hardware and necessary accessories, development of software, creation of data bank, periodical updating of data and the systems development for special reports requested by the Personnel Department. The cost would also include salaries and benefits for staff associated with this activity.

Issues for discussion:(a) Is the computerized system in line with the existing culture of decision making in

the organization?(b) In what way could the computerized system actually affect decision making on

the part of officers of the Personnel Department?(c) What would be the possible favourable reactions of the engineering staff to the

new proposal?(d) What would be the possible unfavourable reaction of the engineering staff to the

new proposal?(e) Should a cost benefit analysis be undertaken before the implementation of the

proposal?

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