MAGNUM ENGINEERING PVT.LTD

Presented by: Asim Abdul Majeed Jrrar HaiderEhsan UllahImran NadirArsalan MirFarhan Ahmed

MAGNUM ENGINEERING Magnum engineering is private

company. Managing Director was Rammohan. Magnum engineering was started as a

small firm, primarily to meet out export orders.

In order to meet the demand abroad and in domestic market Mr. Ramohan started to outsource the production.

This approach created a dependence on suppliers.

Magnum started making certain products that were catering to a small market.

At this point of time Mr. Rajan who is Mr. Rammohan’s brother joined the company as its technical director.

Mr. Rajan brought in a lot of technical strength and improved the image of the company.

Mr. Rajan and Mr. Ram toured abroad and stuck an alliance with a world famous bearing manufacturer.

This was good opportunity of its life time. Gradually magnum be came very popular

on the bearing market and came to be associated with the foreign brand name.

Mr. Ramohan was a good negotiator and Mr. Rajan was a good administrator in handling the financial matters.

In Order to arrange more capital the firm

went public and Mr Ram arranged loan from the banks.

Mr Ramohan used traditional approach in handling the administration of the firm.

His behavior towards his decisions was inconsistent.

Magnum started Hiring professional managers to head various department.

Mr Ram painted a very rosy picture about the company and its future to them.(High Hopes among Managers)

Once they joined the organization all of them were in for a surprise.

They were not given any powers. They were faced with problems like: Lack of decision power No delegation Centralized authority Overburdening of work (low level managers

like clerks were not hired) Mr ram believe in open office system but

mostly managers were confused about this system.

The project for producing bearing was delayed due to mismanagement.

Then Mr.ram and mr rajan circulated a note to increase the efficiency of managers.

The note further demotivated the managers.

Against on this Note mangers submit a joint memorandum as an answer to this

note

MEMORENDUM 1. Integrate all department with each other.2. Due to lack of clear directive and

delegation.3. Department have no coordination within

the organization.4. Everyday the management comes with

new urgent assignment for every new executive.

5. lack of implementation of work plan.6. Already existing workload.7. Meeting without any agenda and purpose.

Still, after the complains by the managers Mr. Ramohan had a rigid attitude.

This further infuriated the managers. Some started to think about switching

their jobs. Effected productivity. Delays in financial transactions due to

traditional approach of Mr. Ramohan. Blamed the managers for the delay. The company was in crises.

ANALYSIS:What is the basic problem with Ram? Rigid Autocratic Inconsistent Denial Traditional Approach Dissatisfaction of employees 2nd line management Capital management

Do you the feel the executive should have given the work plan demanded by the management.? Lack of Communication ranging from

executive to employees Lack of Adequate resources

(forecasting) Lack of Training Lack of job Planning No agenda in meetings

What do you feel will be the action take by individual manager after the above episode?

If not fulfill their demands managers will quit

Change his attitude Leadership style (Autocratic to

Democratic)

If you are Mr. ram how would you have tackle the problem ? Opinion discussion Autocratic to Democratic Sufficient generation & efficient

alocation of funds Ethical issues would be addressed Meeting with clear agenda Welcome new challenges Add line management Add proper Job description Motivation