Principles

Of
Management-II
Topic – M.B.O., skills & recruitment

Submitted t0: sumi ma’am

CASE STUDY
 Magnus Ltd is an established company. It has been into consumer durable
industry since past twenty five years. Magnus Ltd has five manufacturing units
across India. Out of which the one situated in downtown Mumbai is Rs 200 crores
consumer durable manufacturing unit. It had 900 employees. The Indian rural
market is gaining immense importance and attention these days, as this market is
going under an evolutionary phase and is developing and thus is beginning to
become a demand generating centre for consumer durables. In the light of the
situation, the visionaries of Magnus Ltd have foreseen huge demand for their
products in rural areas and they also know that they are the most competent
company who would be able to meet the expected increase in the demand. The
management thinks that to meet the demand they will have to establish a new
production unit in the interiors of Palghar.

The entire Magnus team is channelizing its efforts and resources in

meeting this opportunity. To start the new production unit they are in immense
need of new talent and human resource, who would work at the new production
unit. But as the production unit is in the interiors they are apprehensive about the
fact that whether they would be able to get sufficient resources. Also they have
shortlisted Mr. Vijay and Mr. Suri who they think are the right persons to head the
new production unit. Mr. Vijay has been known for his achievements in the
organization. He has completed his mechanical engineering with first class. He
has been with the company since past ten years. But Mr. Vijay is not a great
leader. He is known for achieving his goals individually and is not easily
approachable, whereas Mr. Suri is in the company since past three years. Mr. Suri
is an MBA. Though he is not technically as sound as Mr. Vijay, his team is happy
with the way Mr. Suri is leading them because he motivates them by giving them
incentives, arranging social gatherings etc.

Magnus Ltd has the challenge to meet the expected demands in the rural
areas and to arrange for the required sources to do the same.

FACTS OF THE CASE STUDY:

• Magnus Ltd, an established company, been into consumer durable goods
since twenty-five years.

• Out of five manufacturing units across India, one situated in downtown

Mumbai is Rs. 200 crores consumer durable manufacturing unit having 900
employees

• The Indian rural market is going through an evolutionary phase and thus
beginning to become a demand generating centre for consumer durables.

• The company has foreseen huge demand for their product in rural areas
and they know that they are the most competent company who would be
able to meet their demand

• The decision to establish a new production unit in the interiors of Palghar

takes place.

• The team is channelizing their efforts and resources to meet this

opportunity.

• They are in need of new talent and human resources who would work at the
new production unit.

• They are furious about the fact whether they would be able to get sufficient
resources as the unit is in the interior of Palghar.

• Mr. Vijay and Mr. Suri who work in the company are shortlisted to head this
new production unit.

• Mr. Vijay has completed his mechanical engineering with first class. He has
been working with the company past 10 years but is not a great leader. He
is known for achieving his goals individually and he isn’t easily
approachable.
 • Mr. Suri is an MBA. He is in the company since three years. He is not as
technically sound as Mr. Vijay but he is a good leader as he motivates his
team by giving them incentives, arranging social gatherings etc.

ANALYSIS:

1) How do you think MBO will help in achieving goals? Prepare a workable MBO
system.

MBO is a result-oriented process of management. Management by

Objectives (MBO) is a way of managing which focuses on the accomplishment of
well-defined objectives rather than on tasks and activities. The specific expected
results guide the direction of the operation and are also the standards of
performance against which the subordinate is appraised.

MBO emphasises on participative management which motivates all

employees. MBO is based on the assumption that people perform better when
they know what is expected of them and can relate their personal goals to
organizational objectives. It tends to make each employee a manager of his or her
own particular work. It diminishes the authoritarian practice of deciding and
telling the subordinates exactly what to do. The individual plays a greater role in
her or his work decisions and purposes. It improves the superior-subordinate
relationship is improved. The subordinate has greater freedom and plays a very
supportive role. It leads to personality development of both the superior and the
subordinate. This helps the performance to be more effective and satisfying
which helps in achieving the overall objectives of the organization.
M.B.O. Plan for new production unit of Magnus Ltd.

a. Establish objectives:

• To meet the increasing demand in the rural areas, Magnus Ltd had the
challenging objective to start a new manufacturing unit.

• For the convenience of distributing the goods, it was decided that the
unit would be located at Palghar.

b. Plan actions to be taken:

• The unit has to start producing within a time span of three months.

• Planning recruitment procedures for employees

• Selecting prospective employees

• Arranging for the required machinery

• Providing on-the-job training

• Arranging for accommodation and/or transportation

• Formation of departments:

 Production
  Sales

 Marketing

 Finance

c. Conduct periodic reviews:

• Incentives, bonuses & regular payments

• The units produced should be sufficient enough to meet the demands of

the consumers.

• The unit must be established within the span of three months.

• The employees should be well-motivated by giving them incentives,

arranging for social gatherings, job enrichment, increasing the payment,
promotion, etc.

Q2. Who do you think is an apt leader for the new production unit? Explain with
respect to managerial skills.

A skill is an individual’s ability to transfer knowledge into action. A

manager occupies an executive position and is required to possess certain
managerial skills so as to perform his duties in an efficient manager. The
managerial skills include three major skills:

• Conceptual skills: this includes having the ability to visualize the

enterprise as a whole, to see the “big picture”, to envision all the
functions involved in a given situation or circumstances.

• Human skills: it includes the ability to work with others and to win
cooperation from people in the work group.
 • Technical skills: it involves specialized knowledge and competence in the
use of distinctive managerial tools and techniques.

All managers need to possess such skills. The intensity of skills varies as
per the level of management. The top managerial level usually requires more
human and conceptual skills than technical know-how. On the other hand, the
lower organizational levels require more technical and human skills than
conceptual skills.

The management at Magnus Ltd. has shortlisted Mr. Vijay and Mr. Suri as
the right persons to head the new production unit. Mr. Vijay has been with the
company since ten years. He is known for his achievements in the organization.
He has completed his mechanical engineering with first class. He is extremely
witty and has an outstanding presence of mind. However, he is not a great leader.
He is very aggressive. He is known for achieving his goals individually and is not
easily approachable.

Mr. Suri is in the company since past three years. Mr. Suri is a MBA by
qualification. He is one of the most loyal and hard working employees in Magnus
ltd. Though he is not as technically sound as Mr. Vijay, his team is happy with the
way Mr. Suri is leading them. He motivates them by various monetary and non-
monetary factors like giving them incentives, arranging social gatherings etc.

For a new venture to be successful, the manager needs to have a

democratic approach. The employees have to be motivated on a regular basis. He
has to be easily approachable in case of any difficulties faced by the employees.
The manager should encourage social gatherings so that the employees get to
know each other better and which will eventually build a team-spirit.

According to us, Mr. Suri is apt for handling the new unit because he has
the required human skills and conceptual skills. Though he was not technically
as sound as Mr. Vijay, he had enough technical know-how required to manage the
unit efficiently. Mr. Suri possessed the conceptual requirement that enables an
executive to recognize the interrelationships and relative values of the various
factors intertwined in a managerial problem. Mr. Suri had the required
interpersonal skills to create favourable atmosphere and to win cooperation of
employees willingly. On the other hand, Mr. Vijay was highly technical but did not
posses human skills which are required the most at the managerial level.

Q.3) As Magnus Ltd. is facing apprehensions about recruitment process, draft an

apt recruitment process so that it will draw more applicants.

According to Edwin Flippo, “Recruitment is the process of searching for

prospective employees and stimulating them to apply for jobs in the
organization.” Recruitment means the process of searching for job and obtaining
applicants for jobs, from among whom the right persons can be selected. Before
recruiting, the position requirement must be clearly defined.

Sources of recruitment:-

Sources of recruitment are the outlets through which the suitable and interested
candidates are available. Available sources of recruitment are as follows:
• Internal Factors:

o Promotions.

o Transfers

o Former Employees

• External Factors:

o Press Advertisements.

o Casual applicants.

o Recruitment through Management Consultants and Private

Employment Exchanges.

o Deputation of Personnel.

o Walk-ins, Write-ins and Talk-ins.

We as the management of the aforesaid company will prefer for newspaper advertisements as a
potential source of recruiting the required employees.

JOB CLASSIFIEDS

A reputed manufacturing company, Magnus Pvt. Ltd. with more than three decades in
the field of consumer durables, requires for their Palghar Unit

• Assistant Manager: MBA in operations and/or HR with atleast five years of work
experience, preferably with formal management qualifications.

• Production executive: should have a minimum of three to five years of

experience with proven track record. He will be responsible for maintaining the
quality and on-time production.
 • Sales executive: should have a minimum of two years experience. The

incumbent will be responsible for improving market share of existing product and
to develop innovative strategies and identify new product opportunities.

• Stores manager: should have a minimum of five years experience. He will be

accountable for managing the inventory levels.

• Finance manager: preferably a CA/MBA with proven managerial experience.

Expertise in implementing/working with global accounting softwares.

• Computer technician: professional having an aptitude/inclination towards

computer related problems and software applications.

Excellent remuneration package with accommodation for deserving

outstation candidates is offered.
Please walk-in for interview with prior appointment only and also e-mail
your C.V. to hrmmagnus@gmail.com. Candidates must carry two copies of
typed CV and Xerox copies of certificates and two photographs.

Contact: Magnus Pvt. Ltd.

101, Rimson estate, Mindspace, chincholi, Malad (west), Mumbai-400064. Meeta -

9880880889

By: Group no#1

Sr. No: NAME ROLL No.

1. Nikita Monga 04
2. Sharmi Nagardas 07
3. Shraddha Rajani 15
4. Aashna Shah 21
5. Priyesh Shah 29
6. Sachet Sharma 36
7. Yashraj Singh 40
8. Saisha Verma 49
9. Archita Poddar 53