Case study

Span of Management

Delhi Computers Ltd.

Summary

Delhi computers ltd. (DCL) is a computer manufacturer, specialising in nonstop 2 systems

founded in 1991. The system promises neither go down nor fails to fulfil this promise, the system

employs two computers so that one computer fails another takes its place.

Banks, airlines, insurance and manufacturing firms buy DCL products. As a high tech firm DCL

has to reply on a group of creative and dedicated people. To ensure this DCL’s chairman Mr.

Sudhir Dhami has instituted a set of unique managerial practices that emphasis on creativity.

Summary He believes that corporate environment nurtures creativity. The company has no reserved parking

spaces, dress code, time clocks or organisational charts. DCL rewards more in engineering than in

managerial.

DCL hires best in the industry even minor positions are filled with adequate care and caution and

once candidates are hired, they are expected to go through an orientation period. DCL’s

management philosophy is based on the notion that employees should be treated with dignity and

be given full responsibility for job and by sharing this responsibilities as well as rewards and

demands loyalty, trust and commitment of its employees.

Summary

The layers of management between employees and executives are bare minimum and are not

confined by formal structure. Most of employees have terminals on their desks, which are linked

with to DCL mainframe computers.

Due to this type of management style encourages informal contacts among employees. Finally the

work week ritual ends in party on Friday afternoons and including Mr.Dhami all employees go to

canteen to talk informally.

Summary

DCL doubled its sales almost every year between 1992 to 1997. Around 800 employees in 1997. But

since 1997 growth has slowed. The informal management style has led to a lack of internal controls.

Controls were also needed in production management, manufacturing and international marketing.

DCL needs to be creative in introducing a new and improved product at the same time needs to

exercise control over product developmental costs, inventory and sales.

The challenge is now to exercise management control without losing the creative, entrepreneurial

culture.

Question Answer for discussion

1.How would you evaluate DCL’s informal management style?

Informal management style: Informal organization refers to the natural grouping of people on the basis of some

similarity in an organization. The informal organization means natural groupings of people in the work situation. Whenever, people work together, they evolve some sort of grouping or pattern of

relationships among them which is not according to what is prescribed by formal organization.

1.How would you evaluate DCL’s informal management style?

In this case DCL’s informal management can be evaluated as below:As it is a technical based company they should rely on creative people

so in this case for development of creativity informal type of management is most important.

Mr. Dhami believes that corporate environment nurtures creativity.

1.How would you evaluate DCL’s informal management style?

The company has no reserved parking spaces, dress code, time clocks or organisational charts.

The layers of management between employees and executives are bare minimum and are not confined by formal structure.

Finally the work week ritual ends in party on Friday afternoons and including Mr. Dhami all employees go to canteen to talk informally.

 2.Do you think DCL’s style of management would work in a large company? Explain.

No, Informal management style cannot work in large company. As we can see in this case from DCL doubled its sales almost every year between

1992 to1997. Around 800 employees in 1997. But since 1997 growth has slowed. The informal management style has led to a lack of internal controls.

Controls were also needed in production management, manufacturing and international marketing.

 2.Do you think DCL’s style of management would work in a large company? Explain.

As employees of company increases it is hard to reach and connect each and every employee.

So it is getting difficult to manage each and every division like marketing, finance etc.

Because of informal management there are chances of conflicts among groups and no one will be there to solve it.

Such type of situation may affect reputation of the company in the market.

3.Do you think DCL should introduce some form of formal communication structure?

Yes we think that DCL should introduce some form of formal communication.

As we all know the formal organization refers to structure of well-defined jobs, each bearing a definite authority, responsibility, and accountability.

In this case because of increase in number of employees DCL should adopt formal management style.

3.Do you think DCL should introduce some form of formal communication structure?

It is very difficult to manage employees when number of employees are more.

As the company is technical base they can make formal management style and can do decentralization so that environment of creativity can be managed up to certain levels.

3.Do you think DCL should introduce some form of formal communication structure?

Activities can be carrying out in a proper manner with formal management style.

Informal groups are more powerful in nature so that they can create problems for a company in future so for future aspects Mr.Dhami should introduce formal management style.

Conclusion

Formal and Informal organisation

Fish Out of the pond

Summary

In the case there is one person Sandeep Mulye who has finished the ITI Diploma from a leading

technical institute in Delhi in 1998. He joined as trainee in Shanker Foams.ltd. Because of his

brilliant interview performance he was asked to report to warehouse supervisor Suresh Kumar.

After interview Suresh assign Mulye to a small group of eight workers who were responsible for

various work like loading trucks that supplied the materials and carried back the foam mattresses,

furniture, pillows etc. to various marketing centers.

Summary

Mulye was surprised that workers are not doing their work properly. While doing their work they

play hide and seek and do gossip. Mulye found himself unloading the truck alone. While group

members around elsewhere.

These things Mulye discuss with his crew members. He said that he don’t like this type of waste

in the work place. Be sincere to your job instead of standing around and talking. His group

member does not help him to unloading operation. He said that because of wasting time on

useless activates they cutting off the profits and own bonus also.

Summary

The workers replied if you don’t like our company better hang outside. If you plan to complain,

you better hold your tongue and indecent haste. Otherwise you may have cost to feel sorry later

on.

The crew virtually boycotted Mulye form their social network, such s taking tea and lunch

together, celebration of festival in company quarter etc. being bachelor he found this a bit to

hard.

Summary

He pick an argument with Shanker Dada’s thus: “What’s wrong with you guys? I am just trying to

do my job. I don’t like others to run around without spot on their shirts. Any way I am not going

to stick my neck out for long here.

Shanker Dada’s reply, “comrade Mulye, if you had been here as long as we have, you would be

just like us.”

 

Question Answer for discussion

1) Employing some of the theories, explain the possible reasons for the group formation of this crew. What types of groups exist in this case?

In this case if we see in an organization point of view this is a formal organization structure but these workers

are working together since so long they have developed informal groups among themselves.

Possible reasons to develop informal groups:

Psychological fatigue of routine tasks :

Simple and routine tasks in the factory can have undesirable influence on the workers under such conditions

person can become bored by their tasks and indifferent to their work and may experience psychological

fatigue of routine tasks.

In this case as workers are doing work of loading trucks, carry back foam, furniture, pillows etc… and this is

their routine work so there is a psychological fatigue of routine tasks.

1) Employing some of the theories, explain the possible reasons for the group formation of this crew. What types of groups exist in this case?

Desire to socialize with others:

Informal groups provide social satisfaction. Affiliation with informal group is more than just

friendship; it is a sense of belonging. it gives a man recognition, status and future opportunity to

relate to others.

Source of protection:

Informal groups serve as a balancing function by giving satisfaction to individual that the formal

structure can’t give. In an informal group the rules for behaviour set by groups not by managers

 

2) Examine the role the supervisor is playing in encouraging or discouraging the group to do well on the job?

According to our point of view the role of the supervisor is discouraging here because

Suresh (supervisor) should have informed Mulye about situation happening among workers.

Suresh work is to supervise their all workers but he did not do his work properly.

Suresh even don’t introduce Mulye to other eight workers so it’s little bit difficult for Mulye to

make bonding with other worker.

3) Why Mulye has not been accepted by the group? Do you agree with Shanker Dada’s Statement? Why or Why not?

Why Mulye was not accepted by the Group?

Being the Technician, Mulye was surprised when he saw the worker indulge in gossip, playing

hide and seek and eat where there was work.so Mulye found himself alone. So he quickly

indicates this to crew members.

As per the case Mulye has not been accepted by the group because of many counter arguments

between him and workers. This is will present through role play

3) Why Mulye has not been accepted by the group? Do you agree with Shanker Dada’s Statement? Why or Why not?

Do you agree with Shanker Dada’s Statement? Why or Why not..?

Shanker Dada’s statement is ‘comrade Mulye, if you had been here as long as we have, you

would be just like us. And yes, we are agreeing with Shanker Dada’s statement. Because group

think Philosophy say that” Some members begin to worship the group. They come to believe that

what they seek must be “good” because the group has decided so. Thus, they develop a delusion

of rightness. Conformity is induced, in which an individual loses his identity and becomes subject

to wilful control of an informal leader, when may manipulate the group towards selfish or

undesirable ends. 

Conclusion

Thank you