CASE STUDY.

INTRODUCTION
Case talks about Mr Parth handling a company which started with 15 employees and reached upto 150 now. the organisation is growing and old structure looks outdated.

FACTS
Company started in 1980 with 15 employees Today there are 150 employees Only Mr Parth manages all employees Employees receive high salary

ISSUE / PROBLEM
This is a case of centralisation of authority.

ANSWER 1
Manaerial questions in this case are
1. overload of work 2. outdated organisation structure 3. less employee supervision despite high salary

ANSWER 2
OLD ORGANISATION STRUCTURE
Advantages
Direct supervision and control Direct communication

Disadvantages
If employees increase, supervision and control becomes difficult Delayed decision making Focus diluted Over-dependence on one person

 NEW ORGANISATION STRUCTURE

Advantages
Focus on other issues Less dependence on one person Reduce burden on top management Improved motivation Better communication Effective control flexibility