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XIBMS – PK Mills

PK Mills

PK Mills manufactures woolen clothes. Over the years, it has earned an envious reputation in the market. People associate PK Mills with high quality woolen garments. Most of the existing employees have joined the company long back and are nearing retirement stage. The process of replacing these old employees with younger ones, drawn from the nearby areas, has already begun. Recently, the quality of the garments has deteriorated considerably. Though the company employs the best material that is available, the workmanship has gone down. Consequently, the company has lost its customers in the surrounding areas to a great extent. The company stands, in the eyes of general public, depreciated and devalued. The production manager, in a frantic bid to recover lost ground, held several meetings with his staff but all in vain. The problem, of course, has its roots in the production department itself. The young workers have started resisting the bureaucratic rules and regulations vehemently. The hatred against regimentation and tight control is total. The old workers, on the verge of retirement, say that conditions have changed considerably in recent years. In. The days gone by, they say, they were guided by a process of self-control in place of bureaucratic control. Each worker did his work diligently and honestly under the old set-up. In an attempt to restructure the organizational set-up, the managers who have been appointed afterwards brought about radical changes. Workers under the new contract had very little freedom in the workplace. They are expected to bend their will to rules and regulations. Witnessing the difference between the two \’cultures\’ the young workers, naturally, began to oppose the regulatory mechanism devised by top management. The pent-up feelings of frustration and resentment against management, like a gathering storm, have resulted in volcanic eruptions leading to violent arguments between young workers and foremen on the shop-floor. In the process production has suffered, both quantitatively and qualitatively. The production manager in an attempt to weather out the storm, is seriously thinking of bringing about a radical change in the control process that is prevailing now in the organization.



(a) What are the core issues the case?

(b) Do you agree with the statement \”The problem, of course, has its roots in the production department itself”? Reason out your stand.

(c) Critically evaluate the finding that old supervisors complain and new workers to resist any type of control.

(d) What type of control system would you suggest to the company to improve the production?