Case study 4 (10 marks) Liz Biz Ltd. is a company dealing with consumer products. They have 200 workers and around and 25 managers who guide, monitor and support the worker. The company has a policy of allowing leave as per the necessity of the workers. Workers are usually given paid leave during the festivals and special occasions. Recently, on one of the festival, the company suddenly received a big order and it had to be placed and delivered in the given time. As the festival season is arriving, the workers are keen to take holidays while management is forcing them to work overtime and complete the order. There was a decision taken by the management in this regard. A meeting was called by the Human resource manager with the workers and managers to inform them about the changes in the incentive plan. It was decided that if the workers worked over time, they will be given double payment and if they work on holidays also, they will be paid triple the times of the salary. Workers took limited holidays and started working willingly without any pressure. They accepted the offer and were able to increase their earnings by working overtime even on holidays to complete the order. During the Board of Directors meeting, the HR manager was asked to update the management about the reasons for achieving higher output and meeting timely supplies without any confrontation with the workers. The Human Resources manager quoted, "I just used a carrot with no sticks approach". Based on the case, answer the following questions: 1. Define the two problems in Liz Biz Ltd. (2 Marks) 2. Do you think that the decisions taken by the management are correct? Justify your answer with relevant reasons. (4 Marks) 3. Determine two elements of directing (Leadership) that the Human Resource manager stated in his quote. (4 marks) Case study 3 (10 marks) ALI AND BROTHERS is a lamp manufacturing company which produces Halogen lamps and Neon lamps under two different divisions. The company has a Human Resource department, Finance department and Manufacturing department. Mr Rashid is the Chief executive officer. Mr. Mohammad is the head of the Halogen lamps division and Mr. Khalid is the head of the Neon lamps department. Ms Reem is human resource manager for Halogen lamps division with an experience of 10 years and Ms Maryam for Neon Lamps division with an experience of 4 years. Finance department for Halogen division was handled by Mr Nawaz and for Neon lamps Mr. Arif with an experience of 6 years and 8 years respectively. They had a common manufacturing department for both the products which is headed by Mr Salim. Neon is having an additional department; the HR department handled the Research and Development department as well. The marketing department was handled by Ms. Huda. As the demand of the Halogen lamp is increasing ALI AND BROTHERS is thinking to restructure the Halogen lamp division, which will help them to satisfy the market needs and cut the cost to the company. Based on the case, answer the following questions: 1. The company follows decentralization as organization model'. Explain how this model provides benefits to ALI AND BROTHERS company. (2 Marks) 2. Do you think that there is a need to restructure the Halogen lamp division? Justify your answer. (3 Marks) 3. As a consultant, construct a matrix organization structure for ALI AND BROTHERS and discuss how this structure supports the organization. (5 Marks) Case study 2 (10 marks) Al-Naamani Ltd was a leading water heater manufacturing company. Mr. Khalil is the owner of the company. Now, he is struggling to survive, grow and earn profits for the company. It was a leading company in this field and had very less competitors, but gradually it started facing problems due to insufficient resources for production. In the initial years of its operations, the profits earned by the company were very high, but lately the revenue earned was just sufficient to meet its cost. Mr. Khalil is worried and needs to do something to increase the profits to grow and survive. He, along with his other department heads, analyzed the reasons behind the decline in revenues. After analysis, the company decided to reduce the labor costs by shifting the manufacturing unit to a backward area where labor was available at a very low rate and reduce the production cost of electric water-heaters slowly. This will not only help in covering the risks but also help in meeting other objectives. Based on the case, answer the following questions: 1. Identify the issues faced by Al-Naamani Ltd. (2 Marks) 2. You as a management expert identity the two objectives of management discussed in the case. (4 Marks) 3. Evaluate both the decisions taken by Al-Naamani Ltd. to reduce the cost of production and earn profits (4 Marks) Case study 5 (10 marks) Safa LLC. is a furniture manufacturing company. Mr. Rahil is the Human Resource manager of the company. He always makes sure that his employees are happy and giving their best performance. He emphasized on building good interpersonal relations by sending the right information through proper communication to all the employees of the organisation. One day he sends an email saying that the company has arranged a two days picnic for all the employees on a weekday and all should respond to the email so that necessary arrangements can be made. Next day Rahil received the responses, and they all agreed to join for the picnic. On the day of the picnic, surprisingly Rahil found that only 50% of the employees have joined and the rest were missing. Rahil was very much annoyed with this behaviour of his employees which has costed the company as well. Next day a meeting was called on an urgent basis, and the employees who did not join for the picnic were asked to give justification for their absence. Majority of them said that, the information was received about the picnic, but their email had an unqualified assumption. Based on the case, answer the following questions: 1. Identify the elements of communication discussed in the above case study. (2 Marks) 2. Do you agree with employees stating about the unqualified assumptions in the email? Determine the reason for this unqualified assumption that became a cost to Safa LLC. (4 Marks) 3. Unqualified assumptions will disturb the culture of Safa LLC. Debate. (4 Marks)