Hey..m posting a case study on Organization Development for discussion on the same..
The Tale of Two Mehtas
Lachhman Das Mehta and Bishan Das Mehta were two employees of Weighit Corporation. They had both joined the corporation within one month of its starting operations. Lachhman Das Mehta (LDM), was senior to Bishan Das Mehta (BDM), by 20 days. This had happened 15 years ago, but LDM always made it a point to remind everybody that he was the senior Mehta. This was necessary because the two Mehtas had nothing in common except their names. As a matter of fact, they both disliked each other immensely and would be glad to spite the other at the smallest pretext. LDM was tall, dark, bald and had a serious bent of mind. He had joined the stores stream in the company after leaving his studies before the first year examination of the two year M.Com programme. He had risen to be the Chief Store Keeper of the Company. BDM was short, fair, jovial and fiercely hard working. He had studied upto the 12th class and thereafter joined a course for diploma in electrical engineering. Unfortunately, he lost his father in a road accident two months before his final examinations and had to give up his studies at that critical juncture. The principal of the institute, where he had studied, had given a certificate that BDM would have certainly passed with flying colors, if he had appeared for the final examinations. BDM had joined the purchase department of Weighit Corporation Limited and had become the Chief Buyer, a few days after LDM had become the Head of the Stores Department.
Weighit Corporation Ltd. was in the business of manufacturing mechanical weighing machines and weighbridges of different capacity. Weighit Corporation Ltd. boasted that they had a suitable high quality-weighing machine for every user, may it be a jeweler or the dispatch clerk of a large cast-iron foundry.
Dr Kirti Jain was recruited as the General Manager in charge of Weighit Corporation Ltd. The year was 1984. Dr Jain used to work with the competitor Nikhil Weights and had gone to the UK for a two year training/work experience. He had just returned from abroad but did not rejoin Nikhil Weights due to unsatisfactory terms offered by that company. Weighit Corporation Ltd. clinched the recruitment deal by offering liberal terms to Dr Jain. Two main reasons for hiring Dr. Jain were:
1. The costs of various models of weighing equipment manufactured by Nikhil Weights were usually 5 to 7 percent lower than the costs of the similar machines made by Weighit Corporation Ltd. The management of Weighit Corporation Ltd. wanted to find out the cause of the lower costs and neutralize the advantage enjoyed by the competitor.
2. The customers had been wanting modern electrical/electronic weighing machines, which had been available in the developed countries for some years. It was hoped that Dr Kirti would help set up manufacturing facilities for suitable state-of-the-art electrical/electronic weighing machines.
Nikhil Weights soon realized their mistake in letting Dr Jain join the competitor. They tried to reach Dr Jain with A better offer than Weighit Corporation Ltd Dr Jain held out, at the same time, went slow about starting the new production line at Weighit Corporation Ltd However, to show that he was a loyal employee to his new employers, Dr Jain introduced cost reduction measures at Weighit Corporation Ltd Kirti stated that materials were responsible for 55 percent of the cost of the weighing equipment made in India. He argued that 7 to 10 percent reduction in material costs through proper material management practices. He advocated a systems approach to avoid sub-optimisation. He wanted to create a Material Management Department headed by a Material manager to whom all sub sections like purchase, stores, materials planning and forecasting, etc. would report. Everybody agreed with this suggestion and organizational changes ere introduced.
This flamed a war between the two Mehtas. Both claimed to be most suitable for the post of Materials Manager. LDM asserted that he was senior all through his service with the company to BDM. He held a B.Com degree and had studied through M.Com first year, while BDM was only a 12th standard pass. BDM pointed out that he was almost a diploma holder in electrical engineering and the corporation would need electrical engineering skills for the materials management department, especially when production of the new weighing equipment is taken up. BDM also spoke about the honest hard work put in by him all through his service. It became evident to Kirti that promoting anyone of him will seriously demoralize the other and introduce conflict in the running of the new department. He wondered whether he should recruit a Materials Manager from outside or should keep the organizational changes in abeyance for sometime.
Render your views and reasons for the same.