Manohar Mills

The president of Manohar Mills sat at his desk in the hushed atmosphere, so typical of business offices, after the close of working hours. He was thinking about Ram, the manager in-charge of purchasing, and his ability to work with Nakul, the production manager, and Ritesh, the marketing and sales manager in the firm.

When the purchasing department was established two years ago, both Nakul and Ritesh agreed with the need to centralise this function and place a specialist in charge. Nakul was of the view that this would free his supervisors from detailed ordering activities. Ritesh opined that the flow of materials into the firm was important enough to warrant a specialised management assignment. Yet since the purchasing department began operating it has been precisely these two managers who have had a number of confrontations with the new purchase manager, and occasionally with one another, in regard to the way the purchasing function is being carried out.

From Nakul's point of view, instead of simplifying his job as production manager by taking care of purchasing for him, the purchasing department has developed a formal set of procedures that has resulted in as much time commitment on his part as he had previously spent in placing his orders directly with vendors. Further, he is specially irritated by the fact that his need for particular items or particular specification is constantly being questioned by the purchasing department. When the department was established, Nakul assumed that the purchasing manager was there to fill his needs, not to question them. On the other hand Ritesh sees it as, the purchasing function is an integral part of marketing function, and the two therefore need to be jointly managed as a unified process. Purchasing function cannot be separated from a firm's overall marketing strategy. However, Ram has attempted to carry out the purchasing function without regard for this obvious relationship between his responsibilities and those of Ritesh's, thus making a unified marketing strategy impossible.

In his previous position, Ram had worked in the purchasing department of a firm considerably larger than Manohar Mills. Before being hired, he was interviewed by all the top managers, including Nakul and Ritesh, but it was the president himself who negotiated the details of the job offer. As Ram sees it, he was hired as a professional to do professional job. Both Nakul and Ritesh have been distracting him from this goal by presuming that he is somehow subordinate to them, which he believes is not the case. The people in the production department, who use the purchasing function most, have complained about the detail that he requires on their requisitions. But he has documented proof that materials are now being purchased much more economically than they were under the former decentralised system. He finds Ritesh's interests more difficult to understand, since he sees no particular relationship between his responsibilities for efficient procurement, and Ritesh's responsibilities to market the firm's products. The president has been aware of the continuing conflict among three managers for some time, but on the theory that a little rivalry is healthy and stimulating, he has felt that it was nothing to be unduly concerned about. But now that much of his time is being taken up by much of what he considers to be petty bickering, the time has come to take some positive action.

1) Is Nakul's view of the situation realistic?

2) How do you evaluate Ritesh's position?

3) How might this conflict be associated with factors in the formal organisation?

4) What should the president of Manohar Mills do now?

20 MARKS