Indian Management Theory Case Studies

Dr. Dhaval Patel • 2025

LEVEL 1

The Simple Beginning

Understanding Basic Management Principles

🍽️ Case Study: The Village Dhaba to Highway Restaurant Chain

Meet Ram Singh (1960s):

  • Runs a small dhaba near his village
  • 2 employees: his wife (cooking) and son (serving)
  • No formal management - just family traditions

The Problem:

  • Customers complained about inconsistent taste
  • Sometimes dal was too salty, sometimes roti was burnt
  • Service was slow during rush hours
  • No system to handle money

Ram's Natural Evolution:

Standardization: Ram's wife started measuring spices exactly and used same cooking time for each dish. Result: Consistent taste every day.
Division of Labor: Wife focused only on cooking, son on serving and billing, Ram on purchase and supervision. Result: Faster service.
Work Study: Noticed customers waited longest for rotis, started making rotis in batches during expected rush hours. Result: Reduced waiting time from 15 to 5 minutes.
Incentive System: Started giving son extra money during busy days. Result: Son worked more enthusiastically.

🔬 THEORY EXPLANATION: Scientific Management (Frederick W. Taylor, 1856-1915)

"Scientific Management is knowing exactly what you want people to do and seeing that they do it in the best and cheapest way possible." - F.W. Taylor

Taylor's Four Principles Applied by Ram Singh:

1. Science, Not Rule of Thumb

Ram's Application: Measured exact spices instead of "andaaza" (guesswork)

Theory: Replace traditional methods with scientifically studied methods

2. Scientific Selection and Training

Ram's Application: Assigned specific tasks based on abilities (wife=cooking, son=serving)

Theory: Select workers scientifically and train them for specific tasks

3. Cooperation Between Management and Workers

Ram's Application: Worked with family members to implement new methods

Theory: Management and workers should cooperate for proper implementation

4. Division of Responsibility

Ram's Application: Separated planning (Ram) from execution (wife and son)

Theory: Management plans and supervises; workers execute

Why It Worked for Ram: Eliminated waste, increased efficiency, improved quality, higher profits through satisfied customers.

LEVEL 2

Growing Complexity

Classical School in Action

🧼 Case Study: Nirma - From Kitchen to Corporate Giant

Karsanbhai Patel's Journey (1969):

  • Chemist working in government job
  • Made detergent powder in his backyard
  • Sold door-to-door in Ahmedabad neighborhoods
  • Price: ₹3 per kg (vs ₹13 for Surf)
Scientific Study: Observed poor people couldn't afford expensive Surf detergent. Analyzed that multinationals had high marketing costs and fancy packaging.
Finding "The One Best Way": Tested different chemical formulations, standardized the exact recipe that cleaned well but cost less.
Scientific Selection and Training: Hired local people for specific tasks, selected retailers who understood local markets.
Systematic Organization: Assembly line manufacturing, quality control, systematic distribution coverage.

📋 THEORY EXPLANATION: Administrative Management (Henri Fayol, 1841-1925)

Fayol's 14 Principles Applied by Nirma:

Division of Work

Separate departments for production, sales, finance, R&D. Specialization increases efficiency.

Unity of Command

Each worker reported to only one supervisor, avoiding conflicting instructions.

Scalar Chain

Clear line of authority from top to bottom for faster decision-making.

Unity of Direction

All activities aimed at same goal - affordable quality detergent.

Fayol's Five Functions (POCCC):

Planning: Market research, production forecasting

Organizing: Structured departments, defined roles

Commanding: Direct leadership, clear instructions

Coordinating: Regular team meetings

Controlling: Quality checks, performance monitoring

LEVEL 3

Human Complexity

Neo-Classical School Implementation

💻 Case Study: Infosys - The People Revolution

The 1980s Context:

  • Software was emerging industry in India
  • Most Indian companies followed rigid hierarchical structures
  • Employees treated as "workers," not "knowledge assets"

Narayana Murthy's Revolutionary Innovations:

Email Culture: Any employee could email CEO directly. Monthly "Coffee with Murthy" sessions.
ESOP Revolution: Employees became shareholders, creating thousands of millionaires.
Learning Organization: Mysore training campus, continuous skill development.
Work-Life Balance: Family day celebrations, recreational facilities, sabbatical programs.

👥 THEORY EXPLANATION: Neo-Classical School (Human Relations Movement)

The Hawthorne Studies (Elton Mayo, 1927-1932):

Revolutionary Discovery: Workers motivated by social and psychological factors, not just money and efficiency.

Maslow's Hierarchy Applied by Infosys:

5. Self-Actualization: Innovation projects, learning opportunities, leadership development
4. Esteem Needs: Public recognition, awards, career progression
3. Social Needs: Team building, open culture, "Infoscion" identity
2. Safety Needs: Job security, medical insurance, clear policies
1. Physiological: Competitive salaries, free meals, transportation

Theory X vs Theory Y:

Theory X (Traditional)

People dislike work and avoid responsibility. Requires strict control and supervision.

Theory Y (Infosys)

People find work natural and seek responsibility. Participative management and trust-based.

LEVEL 4

Systemic Complexity

Modern Management Approaches

🏭 Case Study: Reliance Industries - The Systems Mastermind

Dhirubhai Ambani's Evolution:

Phase 1 (1960s): Simple spice trading - Linear thinking: Buy low, sell high
Phase 2 (1970s-80s): Entered textiles, realized raw material prices affect profits
Phase 3 (1990s-2000s): Created integrated petrochemical ecosystem
Phase 4 (2010s): Digital transformation with Jio launch

The Petrochemical Ecosystem:

Crude Oil → Refineries → Petrochemicals → Polymers → Fibers → Textiles → Retail

🌐 THEORY EXPLANATION: Modern Management Approaches

Systems Theory (1950s onwards):

Open System

Continuously monitored oil prices, government policies, technology changes

Synergy

Oil + Chemicals + Retail + Telecom = Integrated ecosystem

Feedback Loop

Market response influences future inputs and processes

Subsystems

Technical, Social, Economic, Environmental systems working together

Contingency Theory: "It Depends"

License Raj Era: Relationship-based strategy

Liberalization Era: Efficiency-based strategy

Digital Era: Innovation-based strategy

Quantitative Management:

Used mathematical models, statistical analysis, operations research, and decision trees for optimal decision-making.