MBA Ist Semester Case Studies 1 Financial Planning Questions Answers Study Material Notes Sample Paper Unit wise division of the content solved case studies for practice Notes.
Case Study 1
MBA Ist Semester Case Studies 1 Financial Planning Questions Answers
Like other companies, Surat Alloy Steels Ltd. suffered difficult times in the decade of 1990s. In a company-wide attitude survey, in 1996, it was found that a number of frustrated middle managers felt that the company’s unattractive pay structure caused low employee morale. The chief executive officer of the company, Shiv Charan Das was not impressed by the survey report and did not care for the opinion of middle managers. As a result, the executives were disillusioned.
Shiv Charan had been a financial specialist and the board of directors assigned him the top job because they thought his financial experience could improve the financial situation of the company. At first, the movie seemed a good one. Shiv charan used his financial know-how to arrange creative financing for the company’s debt but that did not solve others serious problems.
Shiv Charan was a man with few people skills and he proved to be a poor planner. He tried to diversity and reorganise the structure which was met with resistance from the rigid centranseu structure. Shiv Charan was not comfortable with face-to-face communications and he issued periodic memos to increase productivity. All employees including both blue-collar and white-collar employees blamed Shiv Charan for the heavy losses of the company. Top management kept middle management at a distance and became isolated and ineffective.
Q.1. Which of the management functions does Shiv Charan perform well?
Ans. Shiv Charan performed financial management in a perfect manner because he had been a financial specialist and because of his financial experience, he became able to improve the financial situation of the company. Even, he used his financial knowledge to arrange creative financing for the debt of the company.
Q.2. Which of the management functions does he perform unsatisfactorily?
Ans. Shiv Charan has performed planning and organising unsatisfactorily because he only arrange the creative finance for the debt of the company but didn’t solve the other problem and that is why he proved to be a poor planner. He also tried to reorganise the structure which was met with the resistance from the rigid centralised structure.
Q.3. What do you think should be the role of middle management in this situation?
Ans. The employees of the company were not satisfied with the unattractive pay structure of the company and this lead to the low employee morale. So, the middle management should communicate the problems of employees to the top executives and the middle management should boost the moral of the employees and handle the situation boldly till the organisation overcomes the related problem.
Q.4. What do you think Shiv Charan should have done?
Ans. Shiv Charan should plan and organise the company’s structure by keeping all the problems in mind like that he should take the opinions and guidance of middle management because no business enterprise can achieve its objectives until and unless all the members of the unit make an integrated and planned effort. He should also make proper face to face communication with the employees rather than issuing periodic memos and he should also motivate the employees of the company.