Page 50 - DMGT514_MANAGEMENT_CONTROL_SYSTEMS

Unit 3: Behavioural Considerations

Notes
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Case Study Victor Automobiles

ictor Automobiles was established in the year 1985 and employed more than
3,000 people in its production and operations plants. Its four plants were located
Vat Chennai, Noida, Kolhapur and Bhubaneswar. The operations manager of the
Kolhapur plant, Vikas Kapoor was considered to be one of the toughest bosses to work
with. He gave the employees stringent deadlines and never bothered to find out if
employees were having any difficulty in completing their work. The employees felt the
environment was too tense and were unhappy that there was no career growth. There was
a heavy turnover of employees at the Kolhapur plant.
Sensing that something was wrong, the top management transferred Kapoor to another
branch, and appointed Jaychandran as the operations manager of the unit. Jaychandran
had 20 year of experience as an operations manager. His style of control was different
from that of Kapoor’s. He set strategies in consultation with the workers and designed
plans to solve problems jointly. He did not believe in blaming a particular individual for
its occurrence. When he found that an employee’s performance was moving in an
undesirable direction, he met the employee personally and looked for the reasons for this.
He then developed an appropriate solution to the problem. The reward system under
Jaychandran was not based on one or two specific measures of performance, but on the
employee’s overall performance. His style was not to punish employees for past actions
but to help them improve their performance in the future.
He believed in the philosophy of management by walking around, and made it a point to
spend some time talking to employees and listening to their problems. He felt that such
informal communication would help boost the confidence of the employees in their
employers.
Jaychandran held the view that through MBWA, the values and culture of the organization
could be instilled in the employees and the problems of the employees too could be sorted
out.
Questions
1. The managerial styles used by Kapoor and Jaychandran were different. What effect
do these managerial styles have on control systems?
2. The case discusses managerial styles and their impact on control systems. What are
the various factors a manager has to consider before finalizing on a particular style?

3.10 Summary

 In this unit we have studied the concept of goal congruence and informal factors
influencing it.

 In broad sense individual actions to achieve personal goals should also help to achieve the
organization goal.
 This serves the purpose of Management in achievement of high level of goal congruence.

 Managerial style is an organizational concept which is related to corporate culture.
 The prime functions of a controller are the responsibility which involves completely
designing and operating the management control system.

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