General Mangement

AEREN FOUNDATION’S Maharashtra Govt. Reg. No.: F-11724

SUBJECT : GENERAL MANAGEMENT

Total Marks : 80

CASE-1 : ATTEMPT ANY 4 CASES, EQUAL MARKS PER CASE (20 Marks)

Case on Discomfort in a factory and Management Decision Making

Mohan remembered the call from the head office as he puts down the telephone receiver. His boss

from head office he said, "I just read your analysis and I want you to go down to our plant in Kollakal

near Mysore right away. You know we cannot afford this plant any more - the costs are just too high.

So go down there, check out what would be our operational costs would be if we move, and report

back to me in a week."

Mohan knew the challenge quite well as the branch manager of the Good will Specialty Products. His

company is into manufacturing of special apparel for injured and people with other medical conditions.

He needs to deal with high-cost labor in a remote village not so sophisticated plant, unionized

manufacturing plant. Although he had done the analysis there were 480 people who made a living at

this facility and if it is closed most of them will find it very difficult to get another job in the small

town consisting of about 10 000 people.

Instead of the Rs.20/- per hour paid to the Kollakal workers the wages paid to the migrant workers near

Aurangabad will be much cheaper Rs.7/- hour working in sub human conditions. This provides a

saving of 15 lakhs to the company for a year, which, can now be used to meet the costs for training,

transportation and other matters.

After two days of talking with Migrant workers association and representatives of other companies

using the same services in the town, Mohan had enough information to formulate alternative plan for

production and the cost figures for production and transportation. What was bothering him was only

the thought that how is going to handover the termination of service notice to the Kollakal workers.

The plant in Kollakal had been in operation since 1930s...