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MS-22    June, 2007

MS-22 : HUMAN RESOURCE  DEVELOPMENT

1. Explain  the  concept  of  Career  Paths.  Briefly  discuss  various career  problems  faced  by the  professionals  in  their  career, with suitable  examples.

2. What is  Performance  Management  ?  How  are  Profit and Performance  linked to  each other  ?  Briefly  discuss  the major  methods  and  movements aimed  at  increasing organisational  performance.

3.  What  is  Compensation  System  ?  Discuss  in  brief  the characteristics  which should  be rewarded  and  explain  why. Explain  with suitable  examples.

4.  Discuss  the  concept  of HRD Audit,  and  briefly  describe  the methodology adopted  for  the  process. Explain  with example.

5.  Write short  notes  on any three  of the  following  :

(i)  Developing  Business  Ethics

(ii)  Coaching

(iii)  Re-organisation  of work

(iv)  HRD  and  Technological  changes

(v)                Approaches  to  Knowledge  Management

6.  Please  read  the  case  and  answer  the  questions  given  at the end.

Hara Food  Products  Company,  which was  founded  in 1955  to  manufacture  grocery  and other  food  products, had  in  the  course  of  years  grown into  a  vast enterprise having  offices  and branches  in  almost  all the  important cities  of  the  country.  Its annual  sales  amounted  to  about Rs. 50  to  60  lakhs  a year.

The company's  Head  Office  and  factory  were situated at  Calcutta. Its  products were  distributed  through  five zonal  sales  offices  which directed  25  district  sales  offices throughout  the  country.

The  administrative  responsibility of  each  zonal  office was  borne  by  a  manager  whose  duty  it  was  to  promote sales in  his  zone.  He  was  advised and  instructed  by  the Head  Office  from  time  to  time. Under  the  control  of  each  ZonalManager,  there  were four  functional  heads    viz.,  Personnel Manager,  Accounts Manager,  Sales  Manager  and  office  Manager.  These executives  advised  and  assisted the  Zonal  Manager  on various  functions  relating  to  the  zonal  administration. Each  functional  head  enjoyed  sufficient  freedom  and independence  in  respect of  his  work.

   On  matters  relating  to  sales,  the  Zonal  Manager received  advice  from  Sales  Manager.  The  latter  often formulated  policies,  plans  and  schedules  for  sales operations  and  submitted  his  views  on  all  the  matters concerning  sales  to  the  Zonal Manager. Many  a  times,  he also  issued  orders  and  instructions  to  the  District  Sales Managers  but  all  these  were  routed  through  the  Zonal Manager.  Ordinarily  all  his  views  and  advice  were accepted  and  approved  by  the  Zonal  Manager.

The  Sales  Manager was assisted  in  his work  by  three product  managers, who  were  considered to  be  experts  in their  respective fields.  Their  duty  was  to  travel  with  the

sales  supervisors  of  various districts and  study the  market for  the  company's  products;  survey  the  competitive position  of  the  company's  products;  study  dealer  and consumer  reactions, trend  in  sales,  etc.,  and  advise the district  sales supervisors  from  time  to  time  regarding  the steps  to  be  taken  for  promoting  sales  in  the  districts.

Every month  each one  of  them  submitted a  report  on  the sales  activities  of  the  company  to  the  Sales  Manager. The relationship  between  the  Product  Manager  and  the  Sales Manager  is  the  same as that  between the  Zonal  Manager and  the  Sales Manager.

   Directly responsible  to  the  Zonal Manager were five District  Sales  Managers  besides  the four functional  heads. Each District Sales  Manager  was responsible  for  sales  in his  territory.  In promoting  the sales  of the company,  each District  Manager was  assisted  by  five  sales  supervisors besides  several  salesmen.  The duties  and functions  of  the District  Sales  Manager  were  to  :

1.  Select,  train  and supervise  his sales  supervisors  and salesmen  in  consultation  with the  Zonal  Manager;

2.  Make a  study  of  the  nature of  consumer  demand, changing  markets,  existing  stocks  and  formulate  sales campaigns  and promotional  methods;

3.  Fix up  targets  of  sales  to  be attained  in  his territory from time  to  time;

4.  Formulate  credit  policies  to  be  followed  in consultation  with the Zonal  Manager;

5.  Develop  better  team  work  among  the  sales supervisors  and  salesm€o;

6.  See  that  the  customers  are  satisfied  with  the company's  services;  and

7  Do  such  other  functions and  duties as  might  be assigned  to  him  from  time  to  time  by  the  Zonal Manager

    every month  each district sales manager submitted a detailed  report on the sales activities  of the company in   his  district,  to  the  Zonal  Manager.  Ordinarily  these  reports were  passed  on  to  the  Sales  Manag  er  for necessary  action to  be  taken  with  respect to  each  district. on  the  morning  of  June  6,  1981   the  following conversation  took  place  over  phone  between  Mr.  Raju, the  Sales  Manager  at  the  South  zonal  office  and Mr.  Hari  one  of  the  District Managers in  the  Zone. Hari  :  "l  wish  to  bring  to  your  notice  an  important matter  that  needs  your  urgent  consideration.....  The Product  Managers  are interfering  too  much  with  the  sales activities  of  my  district. I  receive  frequent  complaints  from the  supervisors  that  they  are  not  able  to  carry  out  my instructions  due  to  unnecessary interfe  rence  from  these people.  If  this  state  of  affairs  continues  it  would  be  very difficult  to  maintain  our  sales.  The  morale  of  the supervisors  would  be  seriously  affected.  I  will  not  be responsible if  sales  go  down  this  year  in  our  area  on  this account.  You  must  take  some  steps  to  see  that  the relationship  between  the  line  and  staff  is  maintained  on good  terms.  "

Raju:  "Mr.  Hari,  you  need  not  worry.  I  shall call the Product  Managers  and  see  that  they  maintain  proper relationship with  you.  ..." Next  day  Mr.  Raju  called  all  the  Product  Managers and  after  discussing  routine  matters,  he  said,  "I  was  told.  by Mr  Hari that his sales  supervisors  are  complaining  that you  are  interfering  with their activities.  Definitely  you  are all expected  to  advise  them  on  the  steps  to  be taken for increasing  sales.  But  at  the  same  tirne  please  remernber that  you  have  to  play  only  an  advisory role.  While advising  these  people  you  must  also  see that  the  line

authority  is respected....  "

The  product  managers  did not  say  anything. In  the  subsequent  months Mr.  Raju did  not  receive any  complaint from  the  District Office. But  in  the  first week  of  October, while  scrutinising  the  sales  progress reports of  the  various  districts  for  the  previous  quarter, the  Zonal Manager found  an  unusual  decline in  sales  in the District  which  was  under  the supervision  of  Mr. Hari. The  Zonal Manager  called  Mr.  Hari  and  asked  him why  there  was so  much decline  in  sales  in  his  territory while all the  other districts  showed  very  good progress.

Hari  replied,  "....  during  the  past  three  months  the Product  Managers  did not seem  to  have  advised  our  men properly.  In  fact,  they  never  cared  to  advise  the supervisors  on the  recent  changes  and  the latest  trends  in the market.  They seem  to  be unwilling  to  co-ope  rate  with our men to  maintain  sales."

      by Mr  Hari that his sales  supervisors  are  complaining  that you  are  interfering  with their activities.  Definitely  you  are all expected  to  advise  them  on  the  steps  to  be taken for increasing  sales.  But  at  the  same  tirne  please  remernber that  you  have  to  play  only  an  advisory role.  While advising  these  people  you  must  also  see that  the  line authority  is respected....  "

The  product  managers  did not  say  anything. In  the  subsequent  months Mr.  Raju did  not  receive any  complaint from  the  District Office. But  in  the  first week  of  October, while  scrutinising  the  sales  progress reports of  the  various  districts  for  the  previous  quarter, the  Zonal Manager found  an  unusual  decline in  sales  in the District  which  was  under  the supervision  of  Mr. Hari.

The  Zonal Manager  called  Mr.  Hari  and  asked  him why  there  was so  much decline  in  sales  in  his  territory while all the  other districts  showed  very  good progress. Hari  replied,  "....  during  the  past  three  months  the Product  Managers  did not seem  to  have  advised  our  men properly.  In  fact,  they  never  cared  to  advise  the supervisors  on the  recent  changes  and  the latest  trends  in the market.  They seem  to  be unwilling  to  cooperate  with our men to  maintain  sales."

     When  asked about  this  by  the  Zonal  Manager,  one  of the  Product  Managers  said,  "We  used  to  give  advice  to this  district  office  also as we  usually  do  with  other  district offices.  On  a  complaint,  seems from  Mr.  Hari,  we  had been  told  by  Mr.  Raju  that  we  were  exceeding  our authority  and  unnecessarily interfering  with  the  activities in  the  district.  We  had  been  asked to  restrain  ourselves. The  District  Manager takes advice  directly from  the  Zonal Sales  Manager.  We  have  got  nothing  to  do  in  this matter....'

Questions

(a)  What  is  the  problem  in  the  case  ?

(b)  Analyse the  causes  which  led to  the  problem.

(c)  As  a  member  of  the  management team,  what  would you  do  to  solve  the  problem  immediately  ?

(d)  Suggest  a  suitable  organisation  structure  for  this company  so  that  such  problems  do  not  occur  in future.