How should a supervisor go about setting up policies in a newly formed group

Principles and Practice of Management


How should a supervisor go about setting up policies in a newly formed group


Case Studies

Case (20Marks)

You supervise a group of 15 people of various specialties who were drawn from other groups in the company and brought together six months ago to work on a project. The work requires constant interaction between the various specialists in the group. They were cooperating well until two weeks ago when, on March 1, you brought up the subject of scheduling their summer vacations. You told them to decide among themselves when each one should take his vacation, since they knew which people could be absent at the

same time without disrupting the work. You gave them sheets listing the amount of vacation each was entitled to because of length of service. The periods are one week, two weeks, three weeks, and four weeks. You reminded them that company policy forbids split vacations, offseason vacations, and vacation scheduling that disrupts production. Although seniority governs vacation scheduling for hourly workers in the shop, it has never been established as a policy in salaried groups such as yours. The company has always stated that the requirements of would govern the scheduling. Since you turned over the vacation scheduling to your group, the opportunists are buzzing around making deals that will fix themselves up with the choice schedules. People are aligning first with

one faction and then with another, whichever will give them best deal. A few are refusing to deal on the grounds that their seniority or status should entitle them to first choice. All this political maneuvering is taking up time and interfering with the cooperation that is essential to the progress of the work.

Answer the following question.

Q1. What should you do now in these circumstances?

Q2. How should a supervisor go about setting up policies in a newly formed group?

Q3. What cautions should a supervisor observe in bringing subordinates into decision making?

Q4. How much time should be allowed between bringing up a problem like this and forcing it to a solution? Explain.

Case (20Marks)

YES BANK (Yes Bank), one of the new generation private sector banks, was set up in India after reforms were introduced in the banking sector in the 1990s. Yes Bank entered the market in late 2004 when the banking space in India was already overcrowded with a number of public sector banks, private sector banks, and cooperative banks. Foreign multinational banks, which were

Growth constrained, were also waiting eagerly for the sector to open up further in 2009 to make a major foray into this emerging market. However, despite being a late entrant, Yes Bank drew the attention of its competitors and analysts by the speed at which it

grew and by increasing its operations throughout the country.

Answer the following question.

Q1. Give an overview of the case.

Q2. Explain how Yes bank differentiated from its competitors and used it to turn its late entry into an advantage.

Case (20Marks)

The L. J. Thomson Company, a large chain store operation, recently reorganized their structure after a sixmonth study by an outside management consulting firm. Prior to the reorganization each branch outlet sold company and other products for both retail and

wholesale. Retail sales were made to customers who came to the branch while wholesale sales were made by sales representatives who called on customers in the branch marketing area. These sales representatives handled large sales to other retailers and industrial firms who bought in large quantities. The consulting firm suggested separation of the wholesale and retail business into profit centers so sales could be more carefully measured and costs more accurately determined. Wholesale sales representatives were moved out of the branches and combined with the sales force from adjacent marketing areas into regional wholesale sales offices. Because the

retail branches maintained the stock of merchandise, they performed the warehousing

and shipping function for the wholesale selling force. In addition returns and adjustments were handled by the retail branch since it retained the clerical force in existence before the reorganization. Ben Dixon was the manager of one of the new retail branches. He had been in charge before the reorganization, and he resented his assignment to the retail branch, believing that wholesale sales were easier and more profitable. He was particularly angry to be saddled with the responsibility for warehousing, shipping, returns, and adjustment. Clerical work was costly and he simply didn’t believe that the transfer credits to cover costs which the branch received for handling all but the  sales function for wholesale selling would really fully compensate the retail branch. He felt he was in a “no win” situation, believing it virtually impossible to show a profit. He was telling anyone who would listen that the new organization would not work.

Answer the following question.

Q1. Was the new organization structure a sound one? Explain.

Q2. Should Dixon give it more time before concluding that he was in a “nowin”

situation? Explain.

Q3. Could his opinion be based on the fact that he resented the retail assignment? Justify.

Q4. Could the organization have been designed differently? Explain.

Case (20Marks)

The case “An Enduring Family Business In A Competitive Industry – Columbia Restaurant Group” talks about the way the HernandezGonzmart family operated, surmounted business challenges and grew the 110 year old family restaurant business in Ybor City, Tampa, Florida. The case starts out by providing in detail the background of Columbia Restaurant Group and the efforts of the founding member of the business, Casimiro Hernandez Sr. It then chronicles the initiatives undertaken by his son, Casimiro Hernandez Jr. to ensure business survival, during the Great Depression. The case also mentions the efforts of the soninlaw of Casimiro Hernandez Jr. Cesar

Gonzmart to save the business during a period of decline in Ybor City. The efforts of Richard Gonzmart, who represented the fourth generation of the family to take the business out of a debt crisis and ensuring that it was in tune with the times, were also provided.

Answer the following question.

Q1. Explain the intricacies of the dynamics in a family business.

Q2. Discuss the need for family businesses to have effective leadership to make path breaking decisions during times of crisis.

Q3. Debate the need for a longstanding family business to maintain its uniqueness and also be in tune with the times.

Q4. Explain the importance of succession planning and outsiders in bringing the required business skills to the family business.

How should a supervisor go about setting up policies in a newly formed group


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