QUESTION 2

(25 marks)

Read the following case and answer questions that follow.

CIC LOGISTICS Pty (Ltd)

Sinha is a senior employee of CIC Logistics Pty Ltd having its headquarters at Delhi and branches at all major cities in the country. The managing partner of the firm asked Sinha to head its Southern branch at Bangalore. The firm has been quite successful since its inception in 1950s, but has witnessed high turnover among its younger staff in the last five years. The managing partner is convinced that the problem is not salary, because a recent survey indicated that the firms salary structure is competitive with that of other major firms. Driven by this incomprehension, the managing partner wanted Sinha to find out the real reasons. Having settled in Bangalore, Sinha met the four Senior Managers to determine why the branch has had such a high attrition rate amongst the younger staff. Krishna, age 46, stated that the younger staff lacked dedication and failed to appreciate the career opportunities provided by the firm. Gowda, age 52, said the younger employees were always complaining about the lack of meaningful feedback on their performance, and many mentioned that they would like to have a mentor in the organisation to assist with their development. Gowda further explained that the firm does provide performance rating to its staff and the previous Manager had always maintained an open-door policy. Manohar, aged 39, said that he has received complaints that training was not relevant and was generally dull. He explained that various persons in the firm who worked in training from time to time acted mainly on guidance from Delhi. Radha, aged 35, said she believed that the root of the problem is the absence of an HR department. However, she said that when the idea was mentioned to the managing partner in Delhi, it was completely rejected.

1. Identify and classify problems faced by CIC Logistics Pty Ltd and develop solutions for them. (12 Marks)
2. What organisational structure do you think CIC Logistics Pty Ltd is currently using?

Explain what type of organisational structure you would recommend and why?

(8 marks)

3. State disadvantages of the organisational structure currently utilised by CIC Logistics Pty

12. (5 marks)