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The reading and discussion on case will enable participants to appreciate importance of reward management in performance management system for both employee and organizational good; to develop insight on the effect of perceived discrimination on the motivation of employees; to internalize the effect of perceived unjust, subjective, non-communicative, non-transparent policies on the behavior and productivity of employees and overall organizational culture and climate; and to comprehend the importance of HR and OB issues with respect to performance management system for the benefit of employee morale, motivation and organizational culture.

The effectiveness of an employee is the key factor for the employer. All the profit that the company or the organization makes depends on the employees’ productiveness. The case needs to be understood in the overall context of performance management system (Ferreiraa and Otley, 2009) with focus on elements of appraisal and compensation via rewards and recognition as per objective standards. Performance management systems (PMSs) is a more general descriptor if the intention is to capture a holistic picture of the management and control of organizational performance. Performance management policies and practices refer to the processes of setting, communicating and monitoring performance targets and rewarding results with the aim of enhancing organizational effectiveness (Fee, McGrath-Champ and Yang, 2011). PMS includes both the formal mechanisms, processes, systems and networks used by organizations, and also the more subtle, yet important, informal controls that are used (Chenhall, 2003; Malmi and Brown, 2008). Otley (1999) proposed a framework which highlights five central issues which need to be considered as part of the process of developing a coherent structure for performance management systems. The five areas addressed by this framework include identification of the key organizational objectives and the processes and methods involved in assessing the level of achievement under each of these objectives, formulating and implementing strategies and plans, as well as the performance measurement and evaluation processes, process of setting performance targets and the levels at which such targets are set, rewards systems used by organizations and the implications of achieving or failing to achieve performance targets and types of information flows required to provide adequate monitoring of performance. While the case touches upon all the aspects of the PMS framework, it revolves round the reward episode and elaborates on the way it affects all stakeholders, those who got the benefit, those who felt discriminated and those were mere observers to the episode. Objective performance appraisals are needed to ensure that every employee produces the best performance and that the work performed is rewarded with reasonable increases in pay scales or special additional allowances or incentives. This system carries crucial importance as it helps managers to decide which rewards should be handed out, by what amount and to whom. Additionally, performance appraisals may increase an employee’s commitment and satisfaction (Wiese and Buckley, 1998) The case readers need to notice that when organizations fail to follow objective appraisal or reward standards, the same rewards become a cause of contention. The reward which was handed over to the employees in this case was in addition to the annual appraisal. Though the role of rewards has been well-recognized in motivating the employees to continue performing at high level and encourage others to strive for better performance, what needs to be recognized that rewards’ per say does not serve purpose. They need to be dealt within the context of performance management system. Using rewards to favor or discriminate a few employees by using subjective standards backfires and does no good as the person who is favored cannot take pride in it and is not motivated to perform better or equally well as he/she also knows that the work has no relation to the reward, it is personal favor, on the other hand, the one who is discriminated feel discouraged and demotivated to perform. Rewards have the potential to both help and harm the organization if dealt in a callous and careless manner. Use of rewards to favor or discriminate certain people due to subjective preference can be suicidal for the organization and irreparably damage the trust of the employees in the management. It has been well stated that fairness and objectivity are the core principles using an assessment of the nature and size of the job each is employed to carry out (Torrington et al., 2005). If any organization decides to include rewards as a motivating mechanism, it needs to cull out unambiguous and transparent criteria for rewarding. If employees perceive procedural or distributive injustice from the management, it is not only detrimental for the employee’ relations and teamwork, it also tarnishes the reputation of the organization and jeopardizes the culture of the organization. Reward management needs to be closely related to performance appraisals, job evaluations and overall performance management systems. The current case elaborates on one such instance where unjustified inequity in reward system not only disturbed the employees concerned but it had bred a negative image of the organization among other employees too, organizational citizenship was replaced with contempt and feeling of apathy.

Post graduate students and working professionals can benefit from this study.

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Human resource management.

Management, Information technologies.

Courses at the senior university level in social and organizational sciences.

This case aims to observe modes, levels and specific problems in application of information technologies in informing, information sharing and collaboration as important aspects in ensuring quality in control of the processes that occur at school. Some deficiencies in application of information technology within these processes have been identified and alternatives to solving them have been offered. The discussion concerning the solutions was performed according to the parameters that were singled out as important in the analysis of the problems. A school that is recognized in Zlatibor region and elsewhere in Serbia for its advanced development tendencies was selected for the case study. The proposed solutions are practically applicable in any work collective.

Modern management strategy in education; the importance of process management in insuring quality of whole management system; the importance of implementation of modern information technologies in school management system.

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The case discusses the issues related to Zee Tele Films Limited's claims that the Board of Cricket Control of India was “state” and could act arbitrarily in the award of telecasting rights. The “state” as defined in Article 12 includes “other authorities”, and these are subject to the constitutional limitations. The right to equality requires them to not act arbitrarily. A body which is an instrumentality or agency of the government is “other authority”. The term has been subject to judicial interpretation. The Supreme Court, by a majority judgement, in the Zee Tele Films Case ruled that the Board is not “other authorities” within Article 12 of the Constitution.

At three o'clock in the morning on September 10, 2001, Thierry Hautillac, a risk arbitrageur, learns of the final agreement between Pinault-Printemps-Redoute SA (“PPR”) and LVMH Moët Hennessy Louis Vuitton SA (“LVMH”). After a contest for control of Gucci lasting over two years, PPR has emerged as the winner. PPR and LVMH have agreed for PPR to buy about half of LVMH's stock in Gucci for $94 per share, for Gucci to pay an extraordinary dividend of $7 per share, and for PPR to give a two and a half year put option with a strike price of $101.50 to the public shareholders in Gucci. The primary task for the student in this case is to recommend a course of action for Hautillac: should he sell his 2% holding of Gucci shares when the market opens, continue to hold his shares, or buy more shares? The student must estimate the risky arbitrage returns from each of these choices. As a basis for this decision, the student must value the terms of payment and consider what the Gucci stock price will do upon the market's open. The student must determine the intrinsic value of Gucci using a DCF model as well as information on peer firms and transactions. The student must consider potential synergies between Gucci and PPR and between Gucci and LVMH. The student must assess the likelihood of a higher bid, using analysis of price changes at earlier events in the contest for clues.

Mr Qazi was sitting in his office in the Multan branch, reviewing his past month’s key performance indicators when he got a call from his Town Operations Supervisor, Mr Ahmed, based in Bahawalpur. Ahmed was recently promoted and transferred to Bahawalpur, from Multan branch. He informed Qazi about the huge inventory variances, which were not earlier reported by the previous Town Operations Supervisor, Mr Sagheer. Qazi was informed that differences were around 2.37% of total sales vs the allowable company limit of Zero inventory variance. Qazi was worried about whether to report these differences to higher management or not. He was very well aware that reporting might even cost him his job, and that of Sagheer too. He could not see any solution to the recovery of the inventory or cash against the same. Should Qazi take a risk and let go of Sagheer? Should he report the differences?

1. Demonstrate the fraud and integrity-related issues. Why and how happened? 2. Analyzed the role of organizational policies in the decision of blow the whistle. 3. Identify the behaviors that helped a whistle-blower. 4. Assess the ethical dilemmas in which professional duties may conflict with personal ethics. 5. Propose organizational policies to encourage whistle-blowing and to discourage the fraud or integrity-related issues.

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CSS 9: Operations and logistics.

BBA.

In any company, there are conflicts of interest and different opinions on the business strategy. However, a well-established system of corporate governance allows us to minimise those conflicts and enables most disagreements to be solved in a civilised way. The case provides an opportunity to examine the specifics of corporate conflicts in Russia and improves decision-making skills with a view to increase business efficiency.

This descriptive case was written using the secondary sources from the Russian and foreign media, as well as other publicly available information about Norilsk Nickel. No information was disguised in any way.

This case study is a story of a dramatic corporate conflict at the Russian company Norilsk Nickel, one of the world’s leading producers of precious metals. In 2008–2012, the company went through a painful conflict between the majority shareholders (oligarchs Mr Potanin and Mr Deripaska) for the control over the business. The case of Norilsk Nickel was indeed a crucial case for Russia which helped define the “rules of the game”. In 2019, however, the situation looked prone to the escalation of the old conflict. The fact that from 2018 both oligarchs were under the US sanctions added further tensions.

This case is most appropriate for courses in corporate governance, business ethics and doing business in Russia at the undergraduate or graduate level. There is a sufficient number of extenuating circumstances to make for a good discussion of strategic and tactical factors in this type of a corporate governance decision analysis. The complexity of the case is a perfect illustration of the Russian business environment: it is never easy in the Russian business environment to figure out what is important and what is not.

Zyne is a mid-sized Delhi-based firm engaged in the home linen business under the company’s brand name. Raman was the Managing Director of Zyne. In 2019, Prashanth the head of the second-best region (West) quit abruptly without grooming a successor. Prashanth’s team consisted of greenhorn executives whom he recruited from colleges. Raman has options of selecting a replacement for Prashanth from within the organization. Two candidates are in the reckoning, namely, Amit and Neha. Amit was 48 years old, a veteran in the business and associated with the Zyne group for over 15 years. He was a top sales performer in the Central region and was interested in relocating to the West. Twenty-seven-year-old Neha was industrious, talented and creative. Within three years of joining Zyne, she had proven herself as a go-getter with remarkable ability to develop strong channel partner relations. Raman had to decide whom to select from among the two or go for an outsider from the industry. Raman has to contend with selection issues related to insider vs an outsider. If one of the internal candidates is chosen how could he motivate the other to continue to perform and deliver? The case focuses on the challenges of recruitment of a Sales Manager (SM) in a small home furnishing business. Use of competency framing to validate the candidates is the high point of the case

By the end of case discussion participants should be able to understand the following: differentiate skills required in a sales leadership role as compared to that of a sales executive; evaluate the pros and cons of internal promotions versus hiring an outsider; apply the concept of competency framework to evaluate different candidates vying for the same position; and understand how a candidate not selected for the position understands the reasons thereof to enable improvements.

Started in 2010, Zyne Furnishings headquartered at Delhi, was in the business of selling home furnishings. Raman, a second-generation entrepreneur was Zyne’s Managing Partner. With help from his father Rajesh Gupta, Raman worked toward expanding Zyne’s business operations in India. Raman was facing a challenge because of the abrupt resignation of Prashanth, the Western Region SM. Prashant had done well in the region and assiduously built Zyne brand’s presence there. As Raman pondered over the ways of filling up the SM position, questions confronted him for which he did not have immediate answers. He had 30 days in which a replacement must be finalized. Raman looked at the file containing the applications of the two internal candidates, namely, Amit (Southern region) and Neha (Western region) who had applied for the position. What evaluation process should he adopt to ensure an objective assessment is done before deciding on which of the two candidates fit the bill? Given that it was the first week of January 2020 and the year-end targets had to be met by March, Raman knew time was running out. He had to take a quick call. Use of competency mapping to evaluate candidates is a high point of the case. This case can be used to enhance the participants understanding of the challenges of identifying the right candidate for a senior position and weigh the pros and cons associated with the selection. Motivating the rejected internal candidate through the procedural justice system adds value to the case.

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CSS 8: Marketing.

Financial management, strategic management.

The study can be used by business schools, companies/organizations, individuals, students of business management, in the area of financial and strategic management to study and analyse management strategies by a Government organization that has to balance social objectives and commercial viability.

Indian Railways (IR) has mixed operations – passenger and freight – that generate resources for its development expenditure, as well as fully covering its operational costs. This is in sharp contrast to most world railways that depend on a subsidy for operations and development expenditure. While IR would strive to increase earnings through higher throughput levels and generate more funds through its own resources, the constraints of fixed expenditure, largely comprising staff related expenses and fuel costs make it difficult to achieve the target. Operational and safety considerations dictate the need to ensure adequate provision for working expenses. Global developments significantly influenced the Indian economy after 2008-2009 and resulted in moderation in growth compared with the robust growth in preceding years. IR is presently passing through a difficult phase which began with the slowdown in the economy and implementation of the Sixth Pay Commission's recommendations. While earnings continue to grow both in the passenger and goods segments, the expenditure on account of increases in salaries, allowances and pensions has been much higher than after previous Pay Commissions. This case explores this difficult period for IR when there was a major increase in operating expenditure largely due to the implementation of the recommendations of the Sixth Central Pay Commission and because of the global economic slowdown.

These include: being able to analyse whether the turnaround phase of IR is over; and discussing the strategies to return IR to the path of growth.

Teaching notes are available; please consult your librarian for access.

The game of cricket that originated in Britain thrives on passion and the following it generates in India and other South Asian countries is tremendous. The Board of Control for Cricket in India (BCCI) is the apex governing body that controls all cricketing events in the India. Being the richest such body, BCCI is the most powerful national body among similar organizations across countries where cricket is played. The world of cricket saw a sea change with the introduction of the Indian Premier League (IPL) due to its unprecedented commercial success. The case describes the betting scandal that hit IPL, BCCI and its promoter in the middle of 2013. The scandal involved the son-in-law of the President of BCCI. The events following the scandal saw the Supreme Court of India, the highest judicial body in the country, to indict BCCI and its President of serious misgovernance. Set in this backdrop, the case highlights governance issues in the functioning of not for profit organizations such as BCCI. The case provides an opportunity to reflect on and discuss as to how such quasi-public bodies ought to be governed.

Public Finance

Masters level graduate studies for public and private sector managers.

The protagonist in this case is Mrs Maribeth Ocampo a manager of a reputable non-governmental organization (NGO) that plans to devise a position on the Philippines' Priority Development Assistance Fund (PDAF) (or more pejoratively called “pork barrel”). This NGO manager intends to tap the assistance of their local legislator to fund some of their projects. Her NGO has been working with farmers in provinces in the Bicol region and one of the recent projects of the group involves skills training for the female farmers, which aims to provide the latter with a greater variety of income source which they can tap during the lean season. Expenses associated with the project include costs of the training sessions (e.g. cost of session kits and honorarium of resource people) and assistance that will be provided to the female farmers to start their venture.

However, recent reports have surfaced which cast doubts on the accountability and transparency associated with the PDAF of the legislators. Some reports indicate the presence of commissions that NGOs must allegedly pay to the legislators in exchange for their access to the said funds, while a recent scam involves the creation of bogus NGOs that allegedly serve as conduits through which legislators can take advantage of their allocation. The NGO manager needs to decide on whether and to what extent to engage with legislators on tapping the pork barrel funds. She also needs to address the question: “What is the position of my NGO (and possibly all reputable NGOs more broadly) on pork barrel funds moving forward?”

This case aims to familiarize the manager with key public finance concepts such as discretion and accountability; and to develop her/his appreciation of the politics surrounding the public sector budget and, in particular, discretionary funds. The case is focused on Philippine legislators' discretionary funds, the PDAF. However, it can be used to discuss issues surrounding public finance concepts of transparency, accountability and citizens' engagement in the budget process in a much broader context within developing democracies.

The case revolves around the scandal surrounding the pork barrel funds of some legislators that were exposed for apparent abuse in early 2013. The scandal and its repercussions are still ongoing at the time of writing this case, so the authors expect to update this case moving forward. It aims to highlight an example of the role of public institutions and its respective challenges when it comes to critical decisions of keeping public financial a credible undertaking. It is also expected that this case will help develop an understanding of the pros and cons in the use of discretionary funds and help the student identify potential risks for abuse in public finance management with respect to these funds.

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