Group Assignment on

PCO (Part 1 & Part II)

And Confidential File

Submitted to: Prof C P Shrimali

Submitted by:
Pritam Kumari (29NMP42)
Aditi Kohli(29 NMP04)
Reema Arora(29NMP67)

Part I (ENGAGING A CONSULTANT)

1. Analyze the information provided and identify the causes of various problems highlighted?

As per problems highlighted in the case probable causes could

be:
Industrial Sickness due to non-recovery of cash: Increased
industrial sickness among the assisted units.The entrepreneurs
dont repay money & disposal of sick unit to recover loans causes
socio- economic-political implications.
Paperwork - Too much of paperwork mostly repetitive in nature is required to be
done.
Over-progressive targets- Higher targets leads to setting up of unfeasible
units.
Systematic project appraisal or monitoring - Inadequate operating systems and procedures,
records management, MIS etc.
Proper Manpower - No planned development of manpower due to little exposure and
training.
Unsystematic Working - No standard procedures for sanctioning loans, personal & office administration,
stores and purchase and promotional activities.
2. Evaluate the terms of reference as given in letter of May 30, 1983, and point out the items which were not
clear and could lead to problems.
Items which were were not clear and could lead to
problems:

Item (II) mentions about seeking assistance from SIDC without clarifying what sort of assistance. The ToR
only mentions about 2 executives for assistance.
Item (VII) includes training of the staff in Phase-I whereas while mentioning the charges for Phase - II
includes training in Phase -II.
The ToR fails to lay down the parameters to measure effectiveness of each of the solutions provided by PCO.
The ToR does not promises to increase the percentage of sick units from 93% presently.
The ToR promises to apprise SIDC of progress every fortnightly but fails to set milestones in terms of
percentage of completion of work in each or alternate fortnight.
3. Prepare a sample terms of reference, based on given data for discussion in the class. If felt necessary, you
may like to make assumptions on additional information.

I refer to our meeting of yesterday held in your office when I had an opportunity of talking to you and
your colleagues and getting acquainted with the ambitious programme of activities your organization has carved
out for the future. During the discussions, it was observed that your organization could avail of the services of
Premier Consultants in respect of the following:

PhaseI
I)

Reorganization of the office systems and procedures including records management.

II)

Formulation of appropriate procedures for appraisal and monitoring of projects while seeking assistance
from your organization mainly in terms of what type of defaulters are there and having which type of
causes.

III)

Design of management information system for the departmental units of the corporation.

IV)

Design of management information system for purposeful direction and control of promotional activities
of the organization.

V)

Design of MIS for the marketing activities in the selected areas.

VI)

Restructuring the functions of the different departments and the regional offices for making it more
effective. Phase-II

VII) Preparation of manuals in respect of (a) Sanction of Loan/ financial assistance (b) personnel and
office administration (c) stores and purchase activities (d) promotional activities.
ix)

Design of an appropriate computer installation.

We feel that a sound foundation of an organization is built on systems and procedures and a beginning could
be made straightaway with simple task concerning general administration and gradually detailed work
could be undertaken for more important areas associated with providing infrastructures and financial
assistance to the industries by the corporation. It is also felt that merely listing out how things should be done
serves no purpose unless, a working system and procedure in a given context is installed and gradually
upgraded for higher level of efficiency. This demands intensive effort to design and tailor appropriate systems
and in still ability and confidence among staff executives to change to the new methods of working.
If you agree with the above approach, the Premier Consultants would like to undertake the assignment of
analyzing, developing improved patterns, installing new systems and also train your staff and executives for
improving overall performance.
The team of Consultants would give interim reports almost every fortnight about progress of assignment
and eventually prepare manuals which could codify how things are to be done and this would give a strong
foundation and structure to the organization to achieve its objectives.
As agreed during the discussions, it would be desirable to associate at least two executives of your
organization with consultants so that they would get trained in this process to maintain and sustain the systems
after they have been introduced.

The first phase of the assignment would take about six months to complete and the total professional fee
payable to Premier Consultants would be Rs.1.25 lacs, including the cost of travel. It is expected that your
organization will

provide free lodge, boarding, local transport for our consultants and assistance of two of your executives on
whole time basis.
The phase-II of the assignment which would require manuals preparation and installation of the computers.
This could be taken up sometime next year after the revised systems have set in.
The professional fee for preparation of the manuals, training/retraining of your staff and executives and
providing guidance for installation of computers would be Rs.50,000/-.
If you agree to our above observations and decide to entrust the task to us we would be able to commence
Phase-I of the assignment in beginning of July 1983. We would like the first installment of professional fee
of Rs.50, 000/- to be paid in July 1983 and other Rs.50, 000/- to be paid at the second stage of the assignment in
September 1983 and the remaining Rs.25, 000/- at the conclusion of the first phase of the assignment in
December 1983.
Should you decide about Phase-II of the assignment, we may be in a position to take it up in March-April 1984
and it is expected to take about six months to complete?
We look forward to the pleasure of associating ourselves with your mission of rapid industrialization of the
state. Yours Sincerely,
sd/Dr. A.
Prasad

Part II (MANAGING A CONSULTANCY ASSIGNMENT)

1. Professional Ethics of consultants and issues relating to code of conduct.

An intellectual discipline, capable of formulation on theoretical, if not academic, lines, requiring a good
educational background, and tested by examination. A foundation in private practise, so that the
essential expertise and standards of the profession derive from meeting the needs of individual clients on a
person to person basis, with remuneration by fees from individual clients rather than a salary or stipend
from one source. An advisory function, often coupled with an executive function in carrying out what has
been advised or doing ancillary work such as supervising, negotiating or managing; in the exercise of both
functions full responsibility is taken by the person exercising them. An outlook which is essentially objective
and disinterested, where the motive of making money is subordinated to serving the client in a manner not
inconsistent with the public good. Advisory services (including concomitant executive functions) on matters
requiring expert intellectual knowledge and concerning the physical or mental health of an individual, or the
protection or advancement of the rights or property of an individual or body corporate, are best provided by a
private practitioner whose competence and integrity are vouched for by an independent body representative of
such practitioners. One or more societies or institutes rep- resenting members of the profession, particularly
those in private practise, and having the function of safeguarding and developing the expertise and standards of
the profession. A code of professional ethics laid down and enforced by the professional institute or institutes.
2. Organizational aspects of Managing the assignment. How you would have handled the situation. How
the assignment should be closed?

As far as organizational aspects are concerned the progress on the study seems to be extremely slow. In the last
four months, nothing beyond receiving a few formats from the Premier Consultants. The internal systems of
Sarkari Industrial Development Corporation continued to be at odds-and-ends. The need to improve the
corporation' internal working is paramount and Premier Consultants as of now do not seem to be close to even
analyzing what the problem is. Putting off the implementation of procedures in the hope that new
suggestions would be able to improve the things better. Unfortunately, this has not happened. Management
is afraid that unless some more interest is shown by organization, the purpose will be vitiated and
implementation will become difficult. The matter of management trainees has not yet been discussed by
our Board of Directors. While realization of the need of having trainees in the corporation, this is not the
primary problem. Management would request, therefore, kindly to look into the matter personally and see that
the study proceeds along the lines and adheres to the schedule when it was planned.