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Mr. Rajiv Singhal, Chairman of the Board of Directors of Loha India Ltd., (a steel manufacturing company) had just been visited by several other directors of the company. The directors were upset with recent actions of the company president, Mr. Ganesh Thakur. They demanded that the board consider firing the president.
Mr. Thakur, recently appointed as president, had undertaken to solve some of the management-employees problems by dealing directly with the individuals, as often as possible. The company did not have a history of strikes or any other form of collective action and was considered to have good work culture. However, Mr. Thakur felt that by dealing directly with individuals, he could portray the management’s concern for the employees. An important initiative of Mr. Thakur was to negotiate wages of the supervisors with each supervisor. In these negotiation meetings he would not involve anyone else, including the Personnel Department which reported to him, so as to take unbiased decision. After negotiation, a wage contract would be drawn up for each supervisor. This, he felt, would recognize and reward the better performers. Mr. Thakur successfully implemented the process for most of the supervisors, except those working in night shift. For them he had drawn up the contracts unilaterally benchmarking the wages of supervisors of night shift with that of supervisors of the day shift.
For several days Ram Lal a night shift supervisor, had been trying to seek an appointment with Mr. Thakur about his wages. He was disgruntled, not only over his failure to see the president, but also over the lack of discussions about his wage contract prior to its being effected. As a family man with six dependents, he felt his weekly wage should be higher than that granted to him.
Last Thursday afternoon Ram Lal stopped by the president’s office and tried to see him. Mr. Thakur’s secretary refused his request on the grounds that Mr. Thakur was busy. Infuriated, Ram Lal stormed into the president’s office and confronted the startled Mr. Thakur, with his demands for a better wage. Mr. Thakur stood up and told Ram Lal to get out of his office and express his grievance through official channel. Ram Lal took a swing at the president who in turn punched Ram Lal on the jaw and knocked him unconscious.
[1] The most likely premise behind Mr. Thakur’s initiative regarding individualised meetings with the supervisors seems to be
(A) Involvement of company’s president in wage problems of employees will lead to a better goodwill towards the management among the workers.
(B) Employee related policies should allow scope for bargaining by employees which leads to unsatisfied employees.
(C) Individual agreements with supervisors would allow the management to prevent any possible collective action by the supervisors.
(D) Management will be able to force supervisors to accept lesser wages individually in this way.
(E) He would be able to know who the trouble makers in the plant are by interacting with the supervisors.[2] Out of the following, which one seems to be the most likely cause of Ram Lal’s grievance?
(A) His disappointment with the management’s philosophy of having one to one interaction as the supervisors were in a way being forced to accept the wage contracts.
(B) His being in the night shift had worked to his disadvantage as he could not interact with the management regarding his problem.
(C) He was not allowed to meet chairman of the board of directors of the company.
(D) Employment in the night shift forced him to stay away from his family during the day time and therefore he could not interact with his family members much.
(E) All of these.[3] The most important causal factor for this entire episode could be:
(A) Trying to follow a divide-and-rule policy in his dealings with the supervisors.
(B) Paternalistic approach towards mature individuals in the organisation.
(C) Legalistic approach to employee problems.
(D) Inconsistent dealings of Mr. Thakur with supervisors.
(E) Inadequate standards for measurement of supervisors’ on-job performance.[4] The situation with Mr. Lal could have been avoided if Mr. Thakur had
1. Delegated the task of negotiation of wage contracts for night shift employees to Personnel department.
2. Created a process for supervisors working in the night shift so that they could have an opportunity to interact with him.
3. Created an open door policy that would have allowed employees to see him without any appointment.
4. Postponed the decision of wage revision for supervisors in the night shift for two months, since supervisors were rotated on different shifts after every two months.
The option that best arranges the above managerial interventions in decreasing order of organisational impact is:
(A) 4, 2, 3, 1
(B) 4, 3, 2, 1
(C) 4, 3, 1, 2
(D) 4, 1, 2, 3
(E) 2, 3, 1, 4
[5] Apart from the supervisors working the night shift, executives of which department will have the most justified reasons to be disgruntled with Mr. Thakur’s initiative?
1. Production department – for not being consulted regarding the behaviour of the supervisors on the shop floor.
2. Finance department – for not taken into confidence regarding the financial consequences of the wage contracts.
3. Marketing department – for not being consulted on the likely impact of the wage contracts on the image of the company.
4. Quality control – for not being able to give inputs to Mr. Thakur on how to improve quality of steel making process.
5. Personnel department – for it was their work to oversee wage policies for employees and they had been ignored by Mr. Thakur.
(A) 1 + 2 + 3
(B) 1 + 4 + 5
(C) 1 + 3 + 4
(D) 1 + 2 + 5
(E) 3 + 4 + 5[6] Which of the following managerial attributes does Mr. Thakur seem to lack the most?
(A) Emotional instability under pressure
(B) Proactive problem solving
(C) Ethical behaviour
(D) Independent decision making
(E) Emotional stability under pressure
asked in XAT
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