Desman Company was making many types of equipment for Armed force of US. They had 20 different plant situated In the central part of the country. All 20 plant were following their own purchasing procedures, central management never completely co-ordinate these procedures and they were encouraging these procedures. In late 1940, company faced difficulty in procurement of raw materials, so Mr.. Manson, President of the company appointed Mr.. Post as the Vice President of purchases. Lot of freedom was given to Mr..
Post and Mr.. Larson was assigned as assistant of Mr.. Post. Mr.. Larson has worked in many departments of the company for many years and knew most of the plant executives personally. Mr.. Post decided that he would ask plant executives who were handling purchases in their individual plants to clear with head office all the purchases contracts exceeding 10000$. When he proposed the plan to Mr.. Manson and board of directors they agreed to it and then later on he draft a later considering this facts in later and situation to all Purchase Executive.
He sent a later to all the purchasing executive eating to report the central unit before purchasing Inventory costing more than $10000. On which he got a reply from many of them. Which mostly stated that they agree to what he has said and they will think on it. This showed that there reply was very lineman and they didn’t care for his order and they did not take this as an order.
Problem Statement: Consequences faced because of highly decentralized system in the company. Situation Analysis: The case under study Is based In a post-independence(near 1960) scenario.
The mall focus of the government is to boost the economic development throughout the action. In such situation the government of Bombay Province has come with a plan, to build earthen dams on rivers Lookout and Stomata, in order to increase the agricultural yield of the area(Exhibit-1). The government announced the plan to people of the area. This plan had a plenty for people in economic terms but It was against their sentiments. This plan besides affecting their houses was affecting the Beneath Temple’. This temple being of utmost importance to villagers made them angry.
Thus, irrespective of its various benefits plan faced a great opposition from lagers. There were several problems faced by this plan such as: PROBLEMS Firstly, it was suspicious belief of villagers towards the government. This plan would be affecting their livelihoods. They were not sure about their re-settlement plans. The land they were living Is very much ferule and moreover they are emotionally connected to it. They were not sure about the productivity and profitability of the land they’ll receive in compensation. Secondly, it was a fight between ‘economical development’ and ‘sentiments of people’.
The plan with any proposal whether reports-A(Exhibit-2) or proposal-B(Exhibit-3) will increase the agricultural production, thus boosting economic development. While plan with any proposal villagers. Thirdly, location of ‘Beneath Temple’. The location of temple has a great historical and religious value attached to it. It is believed that this land has connection to Boring Irish , who holds great importance in heart of villagers. Thus, government can shift the temple but can’t do the same with the importance of the land. This step would also affect the tourism by affecting the annual fair at the temple. This in return would harm the…