Groups 1 & 14
Limit your response to 1 side of the A4 sheet for each
1. You are operating a small restaurant. You hire an advertising firm to handle promotions and advertising. Describe the nature of relationship between your restaurant and the advertising agency. What kind of alliance will you form with the agency?
2. Describe the different stages of an organization life cycle and their features.
3. Describe, with an example the concept of programmable and non-programmable decisions. How is this concept relevant to organization culture?
Real Broking Services (RBS) is a financial services firm that is owner managed. Sukhi is the owner and a first generation entrepreneur in this business. Sukhi belongs to a business family but the business interests of the family are mainly in chemical trading. Sukhi is a professionally qualified financial planner. He has done his post graduation in Portfolio Planning and Investment Management and also worked for very reputed financial services firms like Franklin Templeton and Grindlays. RBS has now been operating successfully and profitably for fifteen years. RBS serves clients across the state of Gujarat. The client base comprises of mostly businessmen and Non-resident Indians (NRIs).
RBS employs a staff of twenty five personnel. 15 of these staff members are customer service personnel, there are 3 accountants, 1 Office Manager (OM) and 1 Accounts Manager (AM) and 4 Financial Planners (FP). These FPs are all professionally qualified, techno-savvy, between 35-40 years of age and paid at market rates.
RBS has about 100 loyal customers whose investment portfolio is being managed by RBS.
All employees are satisfied with the quality of the work environment. However, the FPs have a constant grievance that they are hardly allowed to meet the customers, except in the presence of Sukhi. There is hardly any delegation of authority so that every small move requires approval when they believe even informing will do. Also all the customer service personnel report only to the OM, though on account of the informal and relationship oriented work environment, the work does not suffer ever.
The OM and the AM are loyalists who have grown in RBS. Each of them has individually has put in nearly 12 years of service in RBS.
Sukhi has now seen business opportunities in related businesses and would like to diversify. Therefore, he is now seriously considering delegating authority to the FPs and also of appointing a Services Manager (SM) to whom the FPs will report. He has worked out with the FPs that if each of them is allotted certain clients and the CS staff are attached to the SM to whom the FP also report, this might go a long way in making work more interesting and challenging. Simultaneously he is going to re-engineer RBS’s business process to make the outcomes more identifiable and help track individual and organization performance. The customer service personnel may also be involved in customer dealing by the FPs. In the second phase, Sukhi is also considering distributing the gains from some deals within the office staff. The compensation package of FPs will be accordingly redesigned.
a. List the changes that RBS is planning to introduce. (5 marks)
b. Explain conceptually the impact of this change on the organization of RBS. (15 marks)
c. Describe the resistance that the owner may face and identify the sources of this resistance/s identified by you. (15 marks)
d. Suggest steps that Sukhi may take to counter this resistance so that the change is smoothly and effectively introduced. Base your response on Lewin’s Force-Field Theory of Change. (20 marks)
Limit your response to two sides of an A4 sheet
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