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6. Case Study:- A Failure to Communicate Could you come to my office for a minute, Bob?’ Asked Terry ( the plant manager ). Sure, be right there,” said Bob Gemson. Bob was the plant’s quality control director. He had been with the company for four years. After completing his degree in mechanical engineering, he worked as a production supervisor and then as maintenance manger prior to promotion to his present job. Bob thought he knew what the call was about. “But letter of resignation catches me by surprise,’ began Terry. “1 know that Wilson products will be getting a good man, but we sure need you here, too”. “J thought about it a lot, ‘said Bob, “but there just doesn’t seem to be a future for me here. “ “Why do you say that’?” asked Terry. “Well,” replied Bob, “the next position above mine is yours. With you only thirty- nine,. I don’t think it’s likely that you’ll be leaving soon. “The fact is that I am leaving soon,’ said Terry. “That’s why it’s even more of a shock to know that you are resigning. I think I’ll be moving to the corporate offices in .Tune of next year. Besides, the company has several plants that are larger than this one. We need good people in those plants from time to time, both in quality control and in general management.” “Well, I heard about an opening in the Cincinnati plant last year,” said Bob, “but by the time I checked, the job had already been filled. We never know about job opportunities in the other plants until we read about them in the company paper ‘All this is beside the point now. What would it take to get you to change your mind?” asked Terry. “I don’t think I can change my mind now,” replied Bob. “I’ve already signed a contract with Wilson.’ Questions (a) Evaluate the communication system at this company. (b) What actions might have prevented Bob’s resignation?
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From the following information you are to prepare a Cash Budget for the period from July to December 2008. (i) The estimated sales and expenses are as follows: June July Aug. Sep. Oct. Nov. Dec. Sales 35,000 40,000 40,000 50,000 50,000 60,000 65,000 Purchases 14,000 16,000 17,000 20,000 20,000 25,000 28,000 Wages & Salaries 12,000 14,000 14,000 18,000 18,000 20,000 22,000 Expenses 5,000 6,000 6,000 6,000 7,000 7,000 7,000 Interest Received 2,000 - - 2,000 - - 2,000 Sale of Fixed Assets - - 20,000 - - - - (ii) Sales are 20% in cash and balance on credit. 50% of the debtors are collected in the month of sales and the remaining in the next month. (iii) The time lag in payment of purchases and expenses is 1 month. However, wages and salaries are paid fortnightly with a time lag of 15 days. (iv) The company maintains a minimum cash balance of Rs. 5,000. The cash balance in excess of Rs. 7,000 is invested in government securities in multiples of Rs. 1,000. Short falls in cash balance are made good by borrowing from banks. The interest received as well as paid is to be ignored.
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