Case Study : Sarvodaya Structurals Ltd.

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Mahendra Bagri (Querist)
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24 May 2008
Case Study : Sarvodaya Structurals Ltd.

Sarvodaya Structural limited was engaged in the fabrication of heavy structural. The Company had six shops besides engineering, accounts, personnel, sales, and Administrative departments.

It employed 7000 men. The chief executive of the company was the General manage.

In one of the shops employing 1000men. 9000 tons of structural were fabricated every month. The day to day management of the shops was entrusted to the manager, who was assisted by the shop were preparation,. Marking and Finishing.

In the Marking and finishing sections the work was supervised by two foremen each The preparation section was under the direct supervision of the Senior Foremen who in addition planned and coordinated the work of all the three sections,. The preparation Section was responsible for the collection and classification of own and his satisfaction. You are anyway carrying out an in-process quality control, and you might be able to make good use of Govindan in view of his long technical experience of production work. Think it over and let me know by tomorrow.
Rao thought over the matter.

PMA company had been a successful enterprise until March 1972 at which time it suffered a sharp decline of profits : sale had fallen off and production cost had risen. The president adopted three measures which he hoped would improved the condition. First by creating an industrial Engineering department for establishing work standards on all production operations to determine which manufacturing costs were out of line and where remedial action should be taken. Rao,. 28byears old, who had been with the company for two years in the purchasing department was selected,. Rao had B.E. and MBA degrees to his credit. What he lacked in his business experience he made up by his eagerness to learn. He was ambitions and liked by his associated. He wanted a transfer from Purchasing to Productions for better opportunities for advancement
Secondly he consulted a Management consultation firm to make a study if the production Department. They pointed out that the chain of command was too long from production Manager through plant superintendent though /Assistant Superintendent to Foremen. The recommended the elimination of the position of Assistant superintendent.

Thirdly, he engaged an industrial Psychologist to appraise all the supervisory personnel.

Govindan had been with the Company for 20 years since its founding and during this period had worked on every production operation, and his last 11 years had been in supervisory capacity, His manners were rough and aggressive he had little formal education. The industrial Psychologist’s report about Govindan

contained the following points. :

1. Evaluation for the position of Assistant superintendent. : Not good enough.
2. Capacity for good human relations in supervision will have friction frequently.
3. N3eed for development counseling : counseling greatly needed.
4. General evaluation ; Govindan had a good ability profile. He suffers from a sense of inferiority. He does not like the responsibility of making decisions. His supervision is that of autocratic type. Though he has the ability, as far as his personality make up is concerned, he is out of place in the present position.

Questions. :

1. What is the problem in the case ? Explain.

2. Explain Govindan’s behavior and work experience visa-vis the psychologist report.

3. How do you see naik’s suggestion to Rao ? Give reasons.

4. What are Rao’s considerations is taking a decision ? What should he do ?
Explain.

mayur

mayur (Expert)
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24 May 2008 i think you have adopted this case study from company secretary course(final) paper 9 human resourse management and industrial relations........