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CASE : MANEK-JACOBSEN LIMITED
Manek-Jacobsen Limited, an Indo-Swedish company, dealt principally with the import and distribution of a wide range of engineering and consumer goods its head office was in Mumbai and it had branches in many important cities in India. With the changing pattern of the country`s economy after independence Manek-Jacobsen expanded very quickly, relying less on imports and more on selling goods manufactured indigenously.
The company`s management changed, as well ; most of the Swedes in senior and middle management posts were replaced by their immediate subordinates. This was the first time that Indians had held these positions, though they had been technically qualified to do so. Since the new managers had never expected to reach these positions they were caught unprepared. The business, however did not suffer. In fact, it grew tremendously in what was essentially a seller’s market.
This was in 1954. In April 1962, the management of Manek-Jacobsen appointed a General Manager to look after personnel—an area which they recognised as of growing and vital importance. He was to deal with industrial relations, personnel administration and management development.
The new General Manager attacked his job with zest, forming new personnel policies and streamlining procedures. He brought in a management consultant who conducted training sessions on organisation and human relaltions, for senior and middle-level management. Appraisial was also discussed. As a result of this discussion, management decided to reconsider its appraisal policy.
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Questions
1. Identify the problems involved in the case.
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2. Suggest measures to solve the problems.
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3, Give pros and cons of your solution.
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