Great Polyster Limited is the flagship company of the Great Group. Late Mr. Annasaheb Gawande floated this company in 1962. With rigorous efforts, honesty and innovative approach of Mr. Gawande and his son Srikant Gawande the company has grown.
The company and its employees have been working as one family. Even a bottom level employee enjoys easy access to the top authorities. This informal atmosphere has promoted the homogenous group with good productivity. It has also encouraged workers’ participation in management. The Gawandes have been kind enough in rewarding their employees directly or indirectly. Informal control gave easy performance appraisal from time to time. The family culture has made any type of change quite easy.
After the death of Mr. Annasaheb Gawande, things are changing fast. His grand daughters have started taking interest in the overall management of the company. One of them has acquired an MBA from a foreign University. A new management consultant has been appointed to suggest ways and means to increase the labour productivity, the new rulers believe in the hire and fire theory of management. This has started ruining the overall atmosphere in the company. Labourers are now treated as hired machines and hence maintained in a mechanical manner. Better facilities and equipments have been brought in, but the workers are unhappy.
Discuss the advantage and limitations of traditional resource management.