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RAMIREDDY SUBBARAMI REDDY ENGINEERING COLLEGE: KADANUTHALA

Management and Organisational Behaviour Case study -1 Bharat engineering works limited

Bharat engineering works limited is a major manufacturer of industrial machineries besides other engineering products. It has enjoyed considerable market preferences for its machineries because of limited competition in the field. Usually there have been more orders that what the company could supply. However, the scenario changed quickly because of the entry of two new competitors in the field with foreign technological collaboration. For first time, the company faced problem in marketing its products with usual profit margin. Sensing into the likely problems. The chief executive appointed Mr. Arvind Kumar as general manager to direct the operations of industrial machinery division. Mr. Kumar has similar assignment abroad before coming back to India. Mr. Kumar had discussion with he chief executives about the nature of the problem being faced by the company so that he could fix up his priority. The chief executive advised him to consult various heads of departments to have first hand information. However he emphasized the company lacked an integrated planning system while members of the board of directors insisted on introducing this in several meetings both formally and informally. After joining as a general manager, Mr. Kumar got briefings from the heads of all departments. He asked all departments. He asked all departmental to identify major problems and issues concerning them. To marketing manager indicated that in order to achieve higher sales, he need more sales managers and sales professionals. His concern was lack of engineering support to sales marketing efforts. The company had to adequate engineers but they were spared under three separate engineering groups. Sales people had no central organisation which had responsibility to provide sales support. Therefore, same jobs were being done outside at higher cost or with lower quality. Beside he needs a generous budget for demonstration system which could be set on trail basis to customers to win business. The production manager complained about the old machines and equipment used in manufacturing. Therefore, cost of production was high but without corresponding quality. With competitors had better equipment and machinery, Bharat engineering neither replaced its age plant nor got it reconditioned. Therefore, to reduce the cost, it was essential to automate production liens by installing new equipments. Director of research and development did not have any specific problem and, there fore did not indicate for any change. However the principle scientist in R&D indicated on one day that the director of R&D, through very nice in his approach, did not emphasize short term research project which could easily increase production efficiency to the extent of at least 20 percent with in a very short period. However, such projects did not involvr4e any major capital outlay. Mr. Kumar got himself convinced about the managerial process going on in the division and type of problems being forced. Questions: 1. Discuss the nature and characteristics of management process followed in company? 2. What are the real problems of industrial machinery division of the company? 3. What steps should be taken by Mr. Kumar to overcome these problems? //KRMR//