Krishnamurthy, plant manager of frame manufacturing company, is the chairperson of the ad hoc committee for space utilization. The committee is made up of various departmental heads of the company. The general manager of the company has given Murthy the responsibility for seeing whether the various office, operations and warehouse facilities of the company are being optimally utilized. The company is beset by rising costs and the need for more space. However, before Okaying an expensive addition to the plant, the general manager wants to be sure that the currently available space is being utilized properly. Murthy opened up the first committee meeting by Reiterating the charge of the committee. Then Murthy asked the members if they had any initial observations to make. The first to speak was the office manager. He stated well I Know we are using every possible inch of room that we have available to us. But when I walk out into the plant I see lot of open spaces. We have people piled on top of one another, but out in the plant there seems to be plenty of room. the production manager quickly replied, We do not have a lot of space. Your office people have the luxury facilities. My supervisors dont even have room for descend a file cabinet. I have repeatedly told the plant manager we need more space. After all, our operation determines whether this plant succeeds or fails, not like you people in The front office pushing paper around. Murthy interrupted at this point and said, Obviously we have different interpretations of the space utilization around here. Before Further discussion I think it would be best if we have some objective facts to work with. I am going to ask the industrial engineer to provide us with some statistics on plant and office layouts before our next meeting.

QUESTIONS:

1. What perceptual principles are evident in this case?

2. If you were in Murthys position, how would you have handled the situation?