DESERT COOL LTD.

Desert Cool Ltd. is an old company engaged in manufacture and distribution of ice cream with the help of a workforce of about 300. Because of increasing business, the company needed to strengthen its accounting procedure parti­cularly through computerisation. For this purpose, the company decided to hire a new manager, designated as Assistaft Commercial Manager. The company invited applications through press advertisement and after receiving applications, it appointed a selection committee consisting of three members of top management including Commercial Manager, Mr. Rajesh. The com­mittee interviewed several candidates and finally selected Mr. Vishwanath as the new Assistant Commercial Manager.

After joining the company, Mr. Vishwanath showed great dedication to his work. He used to put extra efforts and even worked during holidays as he did not have any family responsibility. He gained the reputation of being a dedicated employee, his strong point being his knowledge of accountancy and computers. He was reporting to Mr. Rajesh, the Commercial Manager who was quite impressed with his working.

The accounting procedures of the company were in need of considerable improvement. Mr. Ajay Kumar, the Managing Director of the company, directed Mr. Rajesh to get the needful done for introducing a computerised accounting system. Since most of accounting work related to sales, no separate accounting department existed and the work was performed under the direc­tion of the Commercial Manager. Mr. Vishwanath was mainly appointed to strengthen the accounting procedures and so he was asked to prepare a project report so that necessary changes could be made. In order to get the first hand information about the problem, Mr. Vishwanath began meeting Mr. Ajay Kumar without the knowledge of Mr. Rajesh. However, there was no attempt to have secret meetings. Mr. Ajay Kumar would just call Mr. Vishwanath in for a report without bothering to tell Mr. Rajesh. The members of the management team had formed a tight-knit group and appeared satisfied with the company. They all worked together and the company prospered in spite of keen competition in the market.

Mr. Rajesh was gradually losing contact with the progress of the project as Mr. Vishwanath was almost reporting directly to the Managing Director though he was placed under the Commercial Manager. Mr. Rajesh was now visibly upset over the development and also worried about Mr. Vishwanath's increasing area of influence. He started feeling humiliated.

QUESTIONS

1. Explain the crux of problem in this case.

2. Could Mr. Rajesh have prevented Mr. Vishwanath from acquiring greater power in the company ? If so, how ?

3. Suggest the course of action now available to Mr. Ajay Kumar to restore team spirit among the members of the management.