Mr. Avinash was appointed as general manager, administration in Phoenix Industries Ltd. He joined the company only about two years back. Prior to joining this company, he served another company for two years. He did his M.B.A from a reputed institution. He considered himself as a high flier. After getting promotion as general manager, administration, he felt quite excited and was quite enthusiastic about his new job. The post of general manager was sufficiently at high level. However, because of young age and lack of adequate experience, Mr Avinash was considered as junior executive by most of his subordinates.
The administration department of the company had four major subunits: purchasing, record maintenance, printing and secretarial services. Each subunit was headed by a manager. These four managers were directly reporting to Mr. Avinash. They had combined experience of over 80 years with ana average age of 45 years. Most of them had been with the company for a fairly long period time and that too with their present units. Since Mr. Avinash was quite less experienced and young, these four managers viewed his appointment with hesitancy and suspicion. Also, they had liking for the previous general manager and were sorry to see him leave the company.
The new general manager, Avinash started holding weekly meetings of the department. However, he noticed that managers were hesitant to speak in the meetings, he was the only one to speak. He made some changes in the operating procedures that he felt would increase efficiency and announced them in weekly departmental meetings. There were no reactions to the changes, but later he noticed that the managers continued to follow the old procedures. He talked to them individually but felt that they were not opening up to him. The problem continued.
After about two months, Avinash started receiving complaints from other departments about the services they received from administration department. These complaints mostly related to printing and purchasing. Avinash believed that his department should provide the best possible services and, therefore, admonished his managers in a weekly departmental meeting. He still received little response from them. He continued to receive complaints and was becoming increasingly frustrated. On one day, he became very upset at the third complaint that week over jobs done in the printing unit. He stormed out of his house down to the printing unit. The manager of the printing unit was out. Avinash called over the chief print operator, chewed him out, and told him to re-do the job on the same day. When printing unit manager returned and learned what happened, he immediately called a meeting with the three other managers and described the events to them. On this commented the manager-purchasing unit, “we have to do something. Avinash is too young, incompetent, and is a tyrant.” “ I agree, the dictates to us in departmental meetings, and now he goes behind our back to our employees. He shows no confidence in us. I am fed up with this situation,” said manager-secretarial services. Finally the manager-maintenance chimed in, “I don’t think we have much choice. Avinash is regarded high by top level management. We cant talk to him and higher up, and if we continue doing things this way, our careers will be ruined. Therefore, I think that we should look for some other job opportunities.” They all reluctantly agreed with this statement and meeting ended.
1. Describe the nature of the problems in this case
2. Explain what could have been done to prevent the problems