Milk Products Ltd., is engaged in collecting, processing, and distributing milk and milk

products in a large city in south India, Most of the products of the company are such that

these have to be distributed on daily basis. The company has a crew of distributors who

approach the fixed customers, both bulk buyers and individuals.Mr.K.Ramesh joined the

crew of distributors after graduating in commerce. The distribution Manager was quite

impressed by Mr. Ramesh but initially could not offer him a better job than that of a

distributor. However, he promised to give him better opportunity whenever available.

Mr.Ramesh joined gladly.

The distributors are employed on monthly salary basis. In order to ensure distribution of

the products, the company has a provision of over time pay. Normally crew members

work slowly in the beginning just to accumulated over time pay. The lace becomes hectic

towards the end of the day with some over time to meet the distribution schedule. There

is not group leader but there are several old timers who influence new comers regarding

the work rules. Mr. Ramesh did not like this method of working but had to follow the

group to be a good team mats. He gathered that over the years, the company had paid

around sixty percent overtime unnecessarily

After a year impressed by the work of Mr.Ramesh and his overall suitability, the

distribution manager offered him the position of distribution supervisor. The basic duty

of the supervisor was to look after the distribution system and to develop new customers

in a given area. Beside Ramesh, there were four other supervisors also. Ramesh was sure

of making distribution system effective, as he was aware above the delaying tactics of the

crew. He was quite sure about cutting the over time cost and impressing upon the

distribution manger about his capability. He talked to the distribution manager about

fixing the quota of work per day in two parts before lunch id after lunch. The distribution

Manager felt convinced and introduced the systems. However the efficiency dropped

down considerably and no crew member was near the target.

a) What were the reasons for the decreased efficiency in the new system

b) Advise Mr. Ramesh and distribution manager about the future course of action