CASE ANALYSIS TRADITIONAL MANAGEMENT OR PROFESSIONAL? GROUP 6 SHAYEESTA SAIFI JALIL HUSSAINI PRAMOD MURUDDUDDI NIKITA JAMES
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CASE ANALYSIS
TRADITIONAL
MANAGEMENT OR
PROFESSIONAL?
GROUP 6
SHAYEESTA SAIFI
JALIL HUSSAINI
PRAMOD MURUDDUDDI
NIKITA JAMES
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CORE PROBLEM
The company wasn’t able to deliver with the present management system.
ABOUT MR. KHANNA
• Worked as salesman for a pharmaceutical concern before starting his own
company.
• He did not believe in external recruiting.
• He believed in loyalty and relied on goodwill of his employees.
• Was easily flattered.
• He was forced to appoint Mr. Kalra due to the circumstances.
• He lacked patience and the ability to logically reason out situations.
ABOUT MR. KALRA
• He is an independent person
• He brought about drastic changes in the organization.
• He was an authoritarian.
• He was a man of action and wanted to see results being delivered.
PERIPHERAL PROBLEMS
• Not believing in recruiting managers from outside:
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Mr. Khanna did not believe in recruiting managers from outside rather he
believed in internal recruitment ie. He promoted his old employees from within
the organization to the ranks of managers. This led to the problem that the
managers were not professionally trained and lacked the expertise required to
perform the job of a manager.
• Promoting employees based on personal loyalties:
Mr. Khanna promoted employees on the basis of loyalty rather than skill,
qualification or capability which proved to not be in the companies favor.
• Poor sales:
Poor sales turnover was probably one of the most important reasons as to what
forced Mr. Khanna to appoint a professional manager.
• Traditional management:
Mr. Khanna was only a salesman for a pharmaceutical company and then he
later went on to start up his own company and managed all its functions in the
way he knew best. With no professional help he stuck to his traditional ways of
managing and wasn’t willing to change thus he wasn’t able to keep up with the
current market competition.
• Older employees found it difficult to cope up with the stringent changes,
but young managers appreciated these moves:
After the appointment of Mr. Kalra he brought about drastic changes. He was an
authoritarian and wanted only productive and capable people to be working
under him. The older employees were habituated to the easy life where whether
the delivered or not they would be getting their pay cheque and now with Mr.
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Kalras strict methods, they found it difficult to cope up. Yet there were few
younger managers who appreciated the changes Mr. Kalra brought about
showing that the older ones were clearly lazy and inefficient.
• Mr. Kalra brought too many changes in a short time, and it wasn’t easy to
change the whole company this soon:
According to us Mr. Kalra was doing a pretty good job because it turned out that
his job was not only to bring up sales but there were so many other aspects that
were lacking that he needed to handle first before he could look at achieving the
anticipated sales target.• Management was weak:
Considering that they were lacking in many aspects of the company. The
employees were complacent and inefficient yet they were in the company. There
was no strict action taken against unproductive employees. They were unable to
be a uniting force striving to achieve a common goal, with the evident example of
marketing and production departments not coordinating with each other.
• Marketing was weak:
Mr. Khanna was merely a salesman before he started his own company and
started handling its marketing. Things would have been fine as long as it was a
limited area he was marketing to. Now that they have taken the company to the
national level and had plans for expansion and widening market activitiesobviously the work load would increase and Mr. Khanna wouldn’t be able to
handle it. Besides his current traditional ways of management proved to be
inadequate to the company.
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• Lack of young employees, new ideas:
Young employees have a driving force of self motivation to achieve more in life.
They are young and dynamic they often come up with new ideas, they work
harder because they want to reach higher positions in the company.
• Lack of coordination between the production and the marketing
department hampering sales, leading to losses. Which Mr. Kalra pointed
out before getting fired:
Clearly there was lack of coordination within the company. The different
departments were not working in accordance with each other. Communication is
one of the basic and most essential factors in any organization and this was
lacking in NLPL.
ALTERNATIVE SOLUTIONS
• Promoting employees by their performance and intelligent :
This is a basic and essential factor that he promotes employees based on their
capability, performance and intelligence in order to achieve the company’s
targets.
• Give opportunity to younger managers:
He should be more open to external recruitment and give opportunity to
younger employees.• Coordination between Marketing and production department:
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It is very important that they start coordinating between different departments so
that every department is aware of what needs to be done within what time to
achieve the desired output or sales.
• There should be no personal consideration in the way of managerial
functioning. And act professional:
There should be professional handling of employees. Employees should also act
professionally and not let any personal considerations come in the way of
business. It is vital that they maintain an atmosphere of this sort and have a chain
of command wherein even if they have problems they have to follow a certainprocedure in order to maintain a certain level of respect in the organization.
• Mr. Khanna should’ve given more time to Mr . Kalra and explain to him
that he has to be more careful about expenses:
Mr. Khanna’s employees were complacent and couldn’t keep up with the
stringent changes and therefore tried to sweet talk their way into Mr. Khanna
taking up his old job back which actually worked. This comes to chow that Mr.
Khanna was a man who was prone to flattery and was also gullible. Mr. Kalra
had many other things to put into place wth the oraganisation as well which he
clearly did therefore we felt that if he gave Mr. Kalra a little more time he would
definitely have delivered but he was impatient and also his colleagues letters and
talks got the better of him.
• Mr. Khanna shouldn’t be thinking about his older employees and their
complains about Mr. Kalra. he should think more about his company and
it’s future, even if it means recruiting new e mployees and replacing them
with his loyal older employees.
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Mr. Khanna should set his priorities straight. He needs to know for a fact that, the
progress of his company comes first. If he thinks that promoting an old employee
to a higher rank will benefit his company then he should go ahead and do it,
provided he is taking such a step on the basis of the employee’s capability. But if
he realizes that he needs to hire someone from outside because he needs certain
skills that his current employees don’t have then he needs to take a decision and
do it. But whatever he does, he needs to think about he bigger picture, about the
company as a whole and not let personal relationships come in the way.
• Mr. Khanna didn’t analyse the situation very well:
Mr. Khanna didn’t bother to reason out why his employes were disatified, or why
they couldn’t cope up with the changes but instead he took the easy way out to
find fault with the newly appointed manager as it was easier to just blame him
and fire him rather than ruin his long personal relationships with all his other
employees working under him in the organization . He didn’t pay much attention
to the good that Mr. Karla brought about but instead he payed more attention to
where he was lacking.
• Professional managers:
With the expansion plans and with the widening of the scope of marketing
activities we feel that it is essential from him to have a professional manager
atleast in the marketing department for sure as he would not be able to handle it
himself. This time around he could work together with the manager instead of
giving him full command and authority. In this way he would know exactly what
was being done and why, thus he would be more supportive of it.