Case Study: Ceylon Fertilizer - Managerial Dilemma Essay.

Dominant Features of the Case and the Action taken by Mr. Muthu

Please read the case given and answer the questions that follow:

Ceylon Fertilizer is a urea-manufacturing unit having a capacity of 500 tonnes per day. The total work force of the plant is around 2,000. Being a self-contained plant, it has its own workshop in order to take care of regular maintenance work. The workshop functions in two shifts a day under a shift in charge for each shift who is in the cadre of AEE. The workers have been grouped into two groups, i.e., Relay ‘A’ and ‘B’. The shift routine changes once a week, Sunday being a weekly holiday. Besides the two shifts, there are a group of people under a Senior AEE attending in general shift hours.

The Relay ‘A’, consisting of 18 workers is placed under the charge of Shri Muthu who is a graduate in mechanical engineering. After undergoing training for a period of six months in various divisions in fertilizer, he had acquired a thorough knowledge of works to be undertaken by the Workshop. After being as a Relay Supervisor for 3 years, he has been recently promoted to the post of AEE, who is the shift in charge. When he joined the workshop, he found that the tasks were done with application of thumb-rules and higher officers had to be satisfied with such a quality of work.

Shri muthu, on witnessing this, started to instruct his workers in various theoretical aspects of welding, machining etc., which he had studied in his college. They all highly appreciated the skill and techniques he had taught. The workers now learnt to do things in a better way. Thus, he gained the confidence of workers. As he was able to finish his work in time and in a better way than Relay ‘B’, more work orders were allotted to his group. A few workers in his group started to grumble and the Foreman came and told Mr. Muthu that the “other relay workers do not have much work-load and our workers too do not want to strain much and they are murmuring over getting more work”. Mr. Muthu, however, convinced the Foreman that extra work should be taken as a credit and recognition, and they should do their best. After this had happened some workers even tried to get transferred to the other-Relay One morning, Mr. Muthu was making arrangements for the work to be taken and was giving instructions to his the work to be taken and was giving instructions to his foreman. Turner, Kali, came and told him, “Sir, father of Fitter Sami expired last night and we all want to go and attend the funeral,” and added, “It is customary for the men in workshop to attend such funerals and the shift-incharge has to arrange a lorry or any conveyance for the people to go to Sami’s house, which is nearly eight kms. From the plant.” Since Muthu joined the company, this was first such instance occurring and as he had to finish some urgent work orders, he told the worker Kali, “You all need not go to the funeral. I can, however, permit a few of you as representatives of Relay ‘A’ to go and offer condolences to Sami’s family.” Further, he regretted that he would not make any arrangements for conveyance. This statement created a turbulence among the workers and a group of workers stopped the work and started demanding that they be allowed to attend the funeral or else they wanted to stop work in the coming shifts. Foreman hurried up to AEE Mr. Muthu to explain the turbulent situation in the shop- floor. On hearing this, Muthu told his Foreman, “I have given you an alternative and I have already told the urgency of work and I am going to allocate the work as per planning schedule. If the work is not done, I may have to take action against you.” Then the group of workers started discussing among themselves as to what to do next. A turner came forth and said, “You are not considerate enough to human matters and if you are still adamant we may prefer half-a-day wages-cut as we must go and attend the funeral. Anyhow you have to make arrangements for our conveyance.” Mr. Muthu at this instance noted that a small group, who were usually complaining about the workload and were murmuring, were keenly interested in the affair. He decided to face the situation as a matter of prestige. He decided to face the situation as a matter of prestige. He issued the gate pass t whoever wished to go, still emphasizing that he would not arrange any conveyance. Nearly 25 per cent of the workers remained and the others collected money from all for the funeral and went off.

On that day Mr. Muthu, could finish only a part of the work as planned and he had to explain what had happened in his Relay, to his boss.

When he came the next morning, it was rumored that only a few of the workers attended the funeral and the others had gone to the cinema theatre near the village. Mr. Muthu got irritated by the workers behavior and started writing memos to those who had received the gate pass the previous day. Some workers got annoyed by this action of Mr. Muthu and they approached the union to intervene. The news had spread to other divisions and there was an air there was an air of protest at all places in the Fertilizer Plants.

a) What are the dominant features of this case and what is your view of the action taken by Mr. Muthu?

b) What are the weaknesses and strong points, as you consider, of Mr. Muthu as a Manager and how would you have tackled the situation, if you were Mr. Muthu?

1. What are the various determinants of organizational culture? How does leadership influence the culture of an organisation?
2. Describe the responsibilities of a professional manager towards customers and society. Illustrate your answer with suitable example.
3. Why do people generally resist change? Identify the major factors which play a significant role in this process. Discuss, what are the common strategies for change and its management.
4. Define Motivation. Examine two factor theory of motivation by Herzberg. Analyze how far it is applicable in organizations.
5. “Managers are known by the work they do and the function they perform.” Elaborate and critically evaluate the statement.
6. Explain Theory ‘X’ and Theory ‘Y’. How can a subordinate manage a Theory ‘X’ Manager in an organization?

1. Describe conflict avoidance, conflict diffusion and conflict confrontation strategies with the help of suitable examples.
2. Distinguish between decision making under risk and decision making under conflict or competition. Support your answer with suitable examples.
3. Examine leadership and leadership styles.
4. What is MBO? Explain its process by mentioning the merits and demerits.

1. a. Dominant Features of the Case and the Action taken by Mr. Muthu

The dominant features of the case lay in performance of the task through the application of the thumb rules so that the work quality is able to satisfy the higher level officers.

Mr. Muthu, a graduate in mechanical engineering, has been in charge of Relay ‘A’ that comprised of eighteen workers. As an AEE, he began to provide instructions on the different theoretical aspects that included machining and welding that honed the skills and techniques of the workers. This enabled the workers to put things in a better way and complete the work faster in comparison to other relay. This also led to higher order allotment for Relay ‘A’ compared to Relay ‘B’.

1. b. Weakness and Strong Points of Mr. Muthu as Manager. Ways I would handle the situation if I was Mr. Muthu. 

Weakness:

1. Mr. Muthu pressurized the workers in doing additional work and termed it as recognition and credit.
2.  He lacked worker management skills as did not allow all the workers to attend the funeral on account of completion of certain urgent orders which portrayed him as a man without humanistic values.

Strengths:

1. He enhanced the skills of the workers by teaching them techniques and skills of machining and welding.
2. He is a strict and dedicated manager who gives more importance to work than other things.

If I would be in Mr. Muthu’s place then I would have provided certain recognition and rewards to the workers for working overtime. Besides, I would have arranged a conveyance for the workers to attend the funeral on condition that they would come back, work overtime and work on the orders that were urgent.

2. Various Determinants of Organizational Culture. Influence of Leadership on the Culture Of Organization 

There determinants of the organizational culture include (Abdullah et al. 2014):

1. Organizational Policies Adopted:  The policies influence a particular dimension of the organizational culture. For instance, when the policies of an organization announces that employees would be the first beneficiaries of the enhanced profit followed  by shareholders then the organizational culture is that of a higher reward orientation that portrays higher level of progress and development.
2. Present Economic Condition: This determines the working style and the spending pattern of the organization. For example, at times of prosperity, the budgets will remain more liberal due to the increased propensity of the company to take risk.
3. Values Adopted by Managers: This has an influence on the organizational culture as the values results in actions and shaping decisions. Values also seem to define the perceptions of an organization that includes paternalistic, impersonal, informal, friendly or hostile.
4. Structure of the Organization: This has an impact on the perception of the internal environment. For example, a participative structure of an organization has an organizational culture that is quite different from the bureaucratic structure

The Style of leadership is found to influence the organizational culture as it determines the different dimensions of organizational culture (Nanjundeswaraswamy and Swamy 2014). For instance, when the organization is characterized by the authoritarian style based on higher power motivation then the leaders are found to exercise control and authority, criticize the poor performance and emphasize the cost reduction. In such cases, the dimensions of the organizational culture would include a  lower individual autonomy, higher position structure, lower reward orientation, higher control and  lower level of support and warmth.

3. Responsibilities of Professional Manager towards Customers and Society. Illustration with Example

Understanding the needs of the customers has been the foremost responsibility of the business firms. And hence their responsibility lies in providing desired quality products at reasonable prices and making them easily available to the customers (Michelucci, De Marco, and Tanda 2016). The responsibility of the professional managers towards the customers lies in putting across the appropriate match between the quality and the price. The measurement of quality of a product depends on the characteristics of the chosen product (Saleem et al. 2015). In case of spices, the quality is measured in terms of fragrance, freshness, purity, color and cleanliness. For example, the combination of best quality and price by the managers has served as the winning combination for the economic recovery of Japan.  

Weakness and Strong Points of Mr. Muthu as Manager. Ways I would handle the situation if I was Mr. Muthu.

Managers also have responsibility towards society and the surroundings. It has been found that firms often behaves irresponsibly  by polluting the environment through release of toxic effluents and harmful gases into the nearby river, seas or lakes and also dump waste materials into the surrounding lands(Crane,  Matten and Spence 2013). Bhopal tragedy has been a prominent example of such instance where leakage of poisonous gas led to the death of innocent people. A responsible manager should ensure that operations of a firm does not cause any disturbance, disruption, obstruction and destruction to flora and fauna, human and animal life, monuments and historical buildings.

4. Reasons for People Resisting Change. Identification of Major Factors in the Process. Discussion of Common Strategies for Change and its Management

Employees resist the change for protecting the coworkers. It comes from the sole expression of sympathy towards the peer group (Lozano 2013). Managers are also sometimes found to resist change for protecting the interest of the work groups and their friends. The major factors responsible for resisting change are mentioned as follows (Appelbaum et al., 2015):

1. Lack of Job Security within Organization: Change within an organization setting might resist the technological and administrative changes there resulting in job elimination or reduction of the managers, peers and employees.
2. Fear of Unknown:  Any organizational change will instill fear amongst its employees. Besides, changes might also result in surprises within the organization.
3. Presence of Organizational Politics: Some people resist the change as a part of the political strategy in order to prove it as a wrong decision.

The common strategies for Change and its management are as follows (Skogland and Hansen 2017):

1. Executive and Employee Buy-in:  Any important change within an organization should have employee and executive support. This will ensure that the new initiative to be not effective but also successful. Absence of a mandate has sabotaged changes related to various procedural, structural, marketing and sales.
2.  Undertaking Efficient Communication: There are instances when organizations are divided into the silos and hence communications becomes a necessary thing when implementing change which might vary from deployment of complicated technology to new brand and marketing strategies to implementation of changes in corporate culture. Enough time should be taken for addressing entire company and provide customary update on the business changes.
3. Fairness in accountability: The procedural, process or structural changewithin organization puts across action items where an individual or group holds the responsibility of specified task. Hence, this might be clarified while implementing the change.

5. Definition of Motivation. Herzberg’s Two-Factor Theory of Motivation. Analysis of its Application in Organizations

Motivation refers to the desires, needs, wants or the drive within individuals. It is the means of stimulating the people towards actions for accomplishing the goals (Pakdel 2013).

Hertzberg’s two-factor theory of motivation mentions that there exist two factors within organization that makes adjustments for influencing motivation within workplace (Alshmemri, Shahwan-Akl and Maude 2017). These factors include:

• Motivators: These factors would encourage the employees in working harder
• Hygiene Factors: These factors would not encourage the employees in working harder but would cause de-motivation of employees in their absence.

As far as its application within organization is concerned, the theory helps in encouraging the managers not to be biased while considering the factors for motivating employees but instead consider the two factors for optimally satisfying and motivating the employees for deriving the best. According to the two-factor theory managers could eliminate job dissatisfaction by:

• By fixing obstructing and poor policies
• Ensuring supportive, non-intrusive and effective supervision
• Supporting and creating  a culture of dignity and respect for the members
• Ensuring competitive salary and wages
• Provides job security

10. Examination of Leadership and Leadership Styles

Leadership represents the ways of motivating group of individuals for acting towards the achievement of common goal (Daft 2014). In business setting this implies directing the colleagues and the workers with strategy for meeting the needs of the company. There are various styles of leadership. Some of them are mentioned as follows:

• Autocratic Leadership Style: In this case a single person remains in control of everything including decision making.
• Democratic Leadership Style: Here, the leaders listen to the opinion of others but acts as the final decision maker.
• Transformational Leadership Style: Here the leaders are authentic, self aware, humble and empathetic and wants every individual to accomplish and succeed the shared vision.
• Transactional Leadership Style: This represents a reward punishment model. The team members with highest productivity are usually rewarded a gift.

11. Definition of MBO? Explanation of the Process by Mentioning Merits and Demerits

MBO stands for Management by objectives and is a strategic management model which focuses on the improvement of performance of organization through the mention of defined objectives agreed upon by both the employees and management (Gotteiner 2016). As per the theory, participation in action plans and goal setting not only encourages participation but also the commitment amongst employees along with aligning the objectives across organization. The term had been coined by Peter Drucker in the year 1954.

Merits:

• The process helps in deriving suggestions of improvement from all the levels of the management.
• The process aids the managers to possess a clarity of idea regarding the areas of work and standards required
• The process highlights the needs for improvement in the employee performance.
• The process ensures greater participation that improves communication and morale and makes the individuals aware of the organizational goals.

Demerits:

• The process takes few years to become effective
• The process sometimes leads to appraisals based on the personality traits instead of the performance.
• The process might lead to ill feeling amongst the employees due to enforcement of goals and responsibilities.

References: 

Abdullah, N.H., Shamsuddin, A., Wahab, E. and Hamid, N.A.A., 2014. The relationship between organizational culture and product innovativeness. Procedia-Social and Behavioral Sciences, 129, pp.140-147.

Alshmemri, M., Shahwan-Akl, L. and Maude, P., 2017. Herzberg’s two-factor theory. Life Science Journal, 14(5), pp.12-16.

Appelbaum, S.H., Degbe, M.C., MacDonald, O. and Nguyen-Quang, T.S., 2015. Organizational outcomes of leadership style and resistance to change (Part One). Industrial and Commercial Training, 47(2), pp.73-80.

Crane, A., Matten, D. and Spence, L.J., 2013. Corporate social responsibility in a global context. Chapter in: Crane, A., Matten, D., and Spence, LJ,'Corporate Social Responsibility: Readings and Cases in a Global Context, 2, pp.3-26.

Daft, R.L., 2014. The leadership experience. Cengage Learning.

Gotteiner, S., 2016. The Optimal MBO: A model for effective management-by-objectives implementation. European Accounting and Management Review. Issue, 2, pp.42-56.

Lozano, R., 2013. Are companies planning their organisational changes for corporate sustainability? An analysis of three case studies on resistance to change and their strategies to overcome it. Corporate Social Responsibility and Environmental Management, 20(5), pp.275-295.

Michelucci, F.V., De Marco, A. and Tanda, A., 2016. Defining the role of the smart-city manager: an analysis of responsibilities and skills. Journal of Urban Technology, 23(3), pp.23-42.

Nanjundeswaraswamy, T.S. and Swamy, D.R., 2014. Leadership styles. Advances in management, 7(2), p.57.

Pakdel, B., 2013. The historical context of motivation and analysis theories individual motivation. International Journal of Humanities and Social Science, 3(18), pp.240-247.

Saleem, A., Ghafar, A., Ibrahim, M., Yousuf, M. and Ahmed, N., 2015. Product perceived quality and purchase intention with consumer satisfaction. Global journal of management and business research.

Skogland, M.A.C. and Hansen, G.K., 2017. Change your space, change your culture: exploring spatial change management strategies. Journal of Corporate Real Estate, 19(2), pp.95-110.