BITM Semester 1 – Foundation of Business Management – Unit 3: Organizing

List out four principles of organizing.

Differentiate between decentralization and delegation of authority.

Read the following case carefully and answer the questions that follow:

Dreams Pvt. Ltd. is Birgung based company, producing eco-friendly handicraft goods, selling to both domestic and international markets. The company has experienced stable progress over the last four years, but with increasing competition from machine-made imports and shifting consumer preferences, its demand has begun to decrease. The Founding Managing Director, Mrs. R. Yadav, realizes that the company must advance its strategies to maintain growth. She calls a management team meeting to address pressing challenges.

At the meeting, the managers discuss possibilities: expand product lines, invest in digital marketing, or focus solely on exports. Each option has risks. Expanding product lines requires additional investment in new designs and raw materials. Digital marketing demands high skill manpower. The production team must be reorganized to accommodate new designs, raw material sourcing, and quality checks. A new marketing unit must be formed, with employees trained in digital platforms and e-commerce. However, internal resistance arises, as some employees fear that new changes will disrupt their current routines. Focus on exporting requires company concentrate on quality standards and international networking. The company needs to make timely decisions considering financial limitations and competitive pressures.

To implement changes, Mrs. Yadav needs to implement unique leadership style balancing determination and care. Some senior employees wish for a traditional style, while fresher get-up-and-go for revolution. Mrs. Yadav must balance this generational gap, afford a shared vision, and persuade team that the new strategy warrants long-term survival and growth. In this regard, employee motivation becomes another critical matter. Skilled handicrafts workers feel undervalued and demand reasonable reimbursement, while marketing staff want growth opportunities and appreciation. Some employees suggest performance-based incentives, while others expect non-financial motivators such as skill development and flexible working arrangements. The management must propose appropriate motivational methods that keep employees engaged and dedicated to the change.

Questions: [4 × 5 = 20]

$\quad$ a. Sketch the synopsis of the above case with major issues and problems.

$\quad$ b. How should the company restructure to introduce the new eco-fashion line and digital marketing?

$\quad$ c. What leadership style do you suggest to Mrs. Yadav in managing changes in the new situation, and why?

$\quad$ d. Develop motivational strategies that can help keep employees engaged and committed to the company’s changing situation.