This case discusses issues at an automotive components company that manufactures automatic filters. The company was facing problems like low productivity and insufficient manpower. Workers were demoralized due to a lack of communication from management and unclear company policies. This led to rumors and tensions between workers and management. When engineers inspected the factory, workers feared it meant layoffs were coming. Lower productivity affected orders and created further tensions until the production manager clarified the situation in a meeting. However, the workers remained unsatisfied and threatened a protest strike due to ongoing communication issues.

1. CASE STUDY
MGN-502
• Supervised by:-Mr.Sandeep
• Submitted by:-Group 1
• Candidates name:- Arpit
Atul Sharma
Parth kapil
Vishal patidar
Section-E1105
Allotment date-22-08-
13
Submission date-7-09-
13

2. COMPANY NAME:-
AUTOMOTIVE COMPONENTS LIMITED
Main product:-Automatic filters

3. CASE OVERVIEW
 Company name:-Automotive components limited.
 Main product:-Automatic filters for automobile industry.
 Company is facing several problem like lower productivity and less man
power.
 Their main problem is internal threats from union workers of company.
 The company is facing shortage of power and need to replace their
machineries .

4. There centralization of management is being followed in the
company.
There is lack of flow of information from higher level of management
to lower level of management.
There are misconceptions between union workers and managing
committee of company.
Workers are unaware of company’s policy and its strategy.
Workers are unaware of the criteria for short term analysis done by
the company.
Foreman doesn’t know the reason of inspections.

5.  Lack of co-ordination between the foreman and manager.
 Foreman blames manager for the tense environment of
workshop.
 Manager is unaware of the rumour prevailing in the workshop.
 Manager is unable to illustrate foreman’s the actual condition and
position of company.
 There is communication gap between the managing committee
and worker’s union.

6.  The productivity is decrease due to demoralisation of workers.
 The opaque policies of company increases the
misconception between workers and manager.
 The manager fails to influence the workers by his plans.
 The manager doesn’t take the rapid action.
 He did not introduce any instantaneous measure to cope with
the situation.

7.  The workers were not satisfied by the management.
 They were afraid of being laid-off and retrenchment.
 They threaten management by going on one day protest strike.
 These all internal threats affects the productivity of company
 Growth rate of the company decreases due to this situation.
 There is lack of flexibility in management to deal with the
dynamic environment.

8. SUMMARY
 This case shows scenario of a company which is major manufacturer of
automatic filters.
 In this case we discuss about the tense within the workshop of the
company.
 Where production decreases due to misconception between the workers
and managing committee.
 One day there was an inspection done by two engineers.
 Those engineers were from reputed engineering firm.
 They were inspecting about the machinery layout in the workshop.

9.  Foreman and workers were unaware about real motto of the
inspection.
 Three days, after inspection management put a notice, asking the
members to shutoff the lights and machine during lunch break.
 In the next week there spread a rumour that company fails to
discharge its contractual commitments.
 There are technical defects in the company, and it looses one big
deal.
 There is going to be closure of plant for certain period of time.
 Workers and foreman thought inspection was to check their
performance.

10.  There prevails a misconception in the workers.
 They thought that the company is going in loss.
 They feared from being laid-off or retrenchment.
 This created a tense environment in the workshop.
 They enquired foreman about the situation, but foreman was
himself unaware of the situation.
 Foreman blames the production manager for the tense
environment of the workshop.

11.  The workers became nervous and productivity dropped.
 The union leader criticised the approach of manager and
threatened the management with the strike.
 On the news of lower productivity, production manager visited the
workshop.
 He was amazed by hearing the rumour of layoffs and retrenchment.
 He asked foreman to narrate whole story.
 He asked foreman to tell workers that the rumour is not true.

12.  The foreman kept quiet being unaware of the truth.
 Later that day ,manager called a meeting of union bearers, senior
workers and foreman.
 He informed them about the visit of engineers ,that it was to replace the
old machinery with new one.
 The notice was put to save the power as there is shortage of power, and
that had nothing to do with the visit of engineers.
 He clarifies that there was cancellation of order due to some technical
defects at buyers side.

13.  He told them that company had secured a bigger deal and instead of laid
off and retrenchment ,they are going for more recruitment.
 The workers were not satisfied by the managers word.
 All his announcements can’t convince the workers.
 Manager didn’t take instantaneous action other than meeting that day.
 After two days, union gave notice to production manager that, they are
going for one day protest.
 This activity created a crisis condition for the company. As there is
decrease in man power and result in less productivity.

14. COMPANY PROFILE
Company Name :- Automotive Components Limited
Main Product :- Automatic Filters.
Market growth: -
(1)-It depends on automobile industry growth
(2)-Its demand depends upon the productivity of automobile company.
Business Type: -Manufacturer
Industry Type: -Waste Filtration And Separation

15. Company Description:- It is automatic filter’s manufacturer,
supplier , designer .
Mission : -
(1)- Achieving greater heights.
Vision :-”Client is of utmost importance”.
(1)-Providing optimum quality to clients.

16. PROBLEMS
1. Internal threats by workers to go on strike.
Reason : -
1.Lack of flow of information from high to low level of
management
2. Unawareness of company policies.
3. Centralization of management.
4. Lack of convincing power of production manager.

17. 2. Lower productivity .
Reason : -
1. less man power
2. Uncertain atmosphere of workshop
3. Fear of laid off and retrenchment
3. Deal loss.
Reason :-
1. decline of productivity
2. Lack of resources

18. 4. Shortage of power .
Reason : -
1. Less availability of non renewable source of energy
2. Machine layout implemented in the company is outdated
3.Wastage of power during lunch brakes.

19. ADVICE FOR PRODUCTION MANAGER
He should communicate with union leader personally regarding this matter.
He should provide special facilities to the union leader.
New salary package for the workers.
Should follow decentralization in management.
Goal of company should be made clear to the workers.
Use the system of synergy.

20. ANALYSIS OF MANAGER’S WORK:-
Production manager to deal with the problem
 He tries to convince the workers but his words were not enough.
The lower productivity shows that he fails in effective and efficient
management.
He fails in delegating effectively.

21. REASONS FOR HIS FAILURES:-
 Lack of Social Skills.
Unable to take rapid actions.
Communication gap between him and foreman.
Less interaction with the foreman.
Unaware of workshop atmosphere.
Poor leading skills.

22. SOLUTIONS FOR MANAGER:-
 Need to be in Contact with leader of worker’s union and
foreman.
Need to take rapid action against problem, like proposing a
new salary package for workers very next day.
 Need to inform the co-worker and lower grade officials about
the visit of any external group and motive of their visitation.
Personally visit workshop at regular interval of time.

23. SOLUTIONS FOR COMPANY:-
(1) They need to change their management policy.
Justification:-
 Company needed to follow Decentralization of
management.
 They need to flexible policy for the dynamic conditions.
 They need to introduce new policy for salary and medical
aid.

24. (2) DISPLAY BOARD IN THE WOKSHOP:-
Justification:-
It will show company’s future prospective.
It’s set of rules and regulation and chain of command.
Growth of company to motivate the workers.
It will make management system more transparent.

25. (3) Monthly analysis of workers.
Justification:-
It will help in increasing the efficiency and effectiveness of
management.
It will introduce the competitive environment.
Workers will try put their best to get the benefit from the company.

26. (4) Flow of information:-
Justification:-
If the foreman should know about the companies deals.
He/she should consult with the manager about the current
scenario.
He/she can convey the information if asked .It will avoid the
misconception between the managers and workers.
Manager must be in direct contact with his subordinates.

27. By this case study we learn that a manager must need
to overlook the internal threats and problem he/she
can face in different scenario.
They need to be assure of the problems of workers
before implementing their strategy and plan.
Planning,organizing,leading and controlling are the
major skills that a manager needs in his professional
life.

28. Any Questions???