Magnum Engineering, founded by Rammohan as a small firm, grew by outsourcing production and forming international alliances, but faced internal challenges due to centralized authority and mismanagement. Professional managers complained about a lack of decision-making power and poor communication, leading to decreased productivity and employee dissatisfaction. Despite attempts to improve efficiency, Rammohan's rigid and autocratic leadership style discouraged managerial initiative, creating a crisis within the company.

1. Presented by:
Asim Abdul Majeed
Jrrar Haider
Ehsan Ullah
Imran Nadir
Arsalan Mir
Farhan Ahmed

2.  Magnum engineering is private company.
 Managing Director was Rammohan.
 Magnum engineering was started as a small
firm, primarily to meet out export orders.
 In order to meet the demand abroad and in
domestic market Mr. Ramohan started to
outsource the production.
 This approach created a dependence on
suppliers.

3.  Magnum started making certain products that
were catering to a small market.
 At this point of time Mr. Rajan who is Mr.
Rammohan’s brother joined the company as
its technical director.
 Mr. Rajan brought in a lot of technical
strength and improved the image of the
company.

4.  Mr. Rajan and Mr. Ram toured abroad and
stuck an alliance with a world famous
bearing manufacturer.
 This was good opportunity of its life time.
 Gradually magnum be came very popular on
the bearing market and came to be
associated with the foreign brand name.
 Mr. Ramohan was a good negotiator and Mr.
Rajan was a good administrator in handling
the financial matters.

5.  In Order to arrange more capital the firm
went public and Mr Ram arranged loan from
the banks.
 Mr Ramohan used traditional approach in
handling the administration of the firm.
 His behavior towards his decisions was
inconsistent.
 Magnum started Hiring professional managers
to head various department.
 Mr Ram painted a very rosy picture about the
company and its future to them.(High Hopes
among Managers)

6.  Once they joined the organization all of them
were in for a surprise.
 They were not given any powers.
 They were faced with problems like:
 Lack of decision power
 No delegation
 Centralized authority
 Overburdening of work (low level managers like
clerks were not hired)
 Mr ram believe in open office system but mostly
managers were confused about this system.

7.  The project for producing bearing was
delayed due to mismanagement.
 Then Mr.ram and mr rajan circulated a note
to increase the efficiency of managers.
 The note further demotivated the managers.

8. Against on this Note mangers submit a joint
memorandum as an answer to this note

9. 1. Integrate all department with each other.
2. Due to lack of clear directive and delegation.
3. Department have no coordination within the
organization.
4. Everyday the management comes with new
urgent assignment for every new executive.
5. lack of implementation of work plan.
6. Already existing workload.
7. Meeting without any agenda and purpose.

10.  Still, after the complains by the managers
Mr. Ramohan had a rigid attitude.
 This further infuriated the managers.
 Some started to think about switching their
jobs.
 Effected productivity.
 Delays in financial transactions due to
traditional approach of Mr. Ramohan.
 Blamed the managers for the delay.
 The company was in crises.

11. What is the basic problem with Ram?
 Rigid
 Autocratic
 Inconsistent
 Denial
 Traditional Approach
 Dissatisfaction of employees
 2nd line management
 Capital management

12. Do you the feel the executive should have
given the work plan demanded by the
management.?
 Lack of Communication ranging from
executive to employees
 Lack of Adequate resources (forecasting)
 Lack of Training
 Lack of job Planning
 No agenda in meetings

13. What do you feel will be the action take by
individual manager after the above episode?
 If not fulfill their demands managers will quit
 Change his attitude
 Leadership style (Autocratic to Democratic)

14. If you are Mr. ram how would you have tackle
the problem ?
 Opinion discussion
 Autocratic to Democratic
 Sufficient generation & efficient alocation of
funds
 Ethical issues would be addressed
 Meeting with clear agenda
 Welcome new challenges
 Add line management
 Add proper Job description
 Motivation