1. Case Study

2. Read the following case and answer the questions given at the end. Ram Bansal was the Administrator of Ambawadi Community Hospital. The Finance Controller, Ramesh Ahuja, reported to him and directed the financial affairs of the hospital. Ahuja’s general attitude was that of a tight- fisted guardian of finance. He was rigid in attitude, not wanting to approve any action that was a departure from routine or at variance from policy. Bansal was the type who desired to take action, regardless of the restrictions of past practice or policy. The differing attitudes of two men had led to conflicts in the past, and on two occasions Bansal had warned, “if you can’t follow my orders, Ramesh, I am going to fire you”. Ahuja held his ground and usually won his arguments, contending that his approach was proper accounting practice and, therefore, not subject to challenge by Bansal. One afternoon Bansal approached Ahuja and commented, “Ramesh, here’s merit wage increase that I just put through for Rita Agarwal. She’s the best floor supervisor we have, and she deserves an increment. She threatened to leave unless we gave her a raise. I promised this on her next pay cheque, so as to be sure to put it through at once.” Ahuja looked at the merit increase form and commented, “Mr. Bansal, you know I can’t put this through. It is contrary to our policy. She is already getting the top rate allowed for her category.”

3. Bansal: “That doesn’t make any difference. Put It through. I’m the administrator of this hospital, and when I say ‘do it’, then put it through. Ahuja: “I can’t do it. It’s against our policy”. Bansal: “I’m the boss here, and I say do it”. Ahuja: “I’m not going to violate the policy”. Bansal pointed his finger at Ahuja and talked so loudly that it attracted the attention of others in the office. “Who’s the boss here, Mr. Ahuja?” Ahuja : “You are”. Bansal : “Then put this raise through”. Ahuja : “No”.

4. A shouting match developed between them that diverted the attention of the whole office. Finally, Bansal said, “Ramesh, I have had enough. You are fired”. Ahuja : “You can’t fore me for that”. Bansal : “I just did it. You are through”. Bansal did not retract his action. Ahuja was removed from the payroll and he left the hospital in the afternoon. Questions: – Discuss the leadership style used by Ram Bansal. How effective is his style? – What changes would you advise in such a style? – To what extent were Ramesh Ahuja’s needs being considered? – What kind of organizational climate was being created?