Management Function & Behaviour

CASE STUDY Mr. R.K. Mishra owns a small trading company in Varanasi by the name of RKM Enterprises. The company provided raw material to the manufacturers of silk sarees. The business enterprise is also engaged in supply of silk sarees and other silk garments produced by local weavers to the big stores in major cities. In addition they have substantial export orders. The company is mainly a family based enterprise. Mr. R.K. Mishra is the Director and his son Ritesh is looking after finance department. The son is also assisting his father in other strategical matters. Key decisions are taken by the Director himself after occasional discussions with Ritesh. The existing employee strength is more than 200 with 15 offices spread across the country. During the last one decade of its existence, the business has grown considerably. In fact, the turnover surpassed Rupees 100 million in the year 2003-04. However, since then the business faced stiff competition from other traders. In last one year the orders that have been received have reduced substaintially. Rohit, younger son of the Director is holding a management degree from Banaras Hindu University. He has recently left a job with an MNC located in Mumbai and joined his father’s business to help in solving the problems. After joining, Rohit made several changes in the organisation. A major restructuring drive was carried out. The authority to take several major decisions was transmitted to lower levels. Organisation structure ws also made flatter. Instructions were given to all managers to consult their subordinates before taking any decisions. He was determined to see that the company was professionally managed.

Questions

1. “The management of RKM Enterprises is not professional and is family based”. Analyse and comment.

2. Analyse the changes brought in by