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    PGDM Rural Management Feb2021: Case Study Analysis Assignment

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    Swarna RS
    Kamta Prasad founded Tongue Teasers Pvt. Ltd. in 1964 and grew it into one of Delhi's top bakeries over 50 years. However, as the company expanded, his paternal and controlling leadership style became a hindrance. He hired five competent managers but closely supervised their work, limiting their autonomy. As a result, their motivation declined and performance suffered. When sales dropped, Kamta threatened to withhold bonuses and salaries. This caused three managers to resign. A consultant found that employees respected Kamta but disliked his style. Kamta refused the consultant's help, realizing too late that he knew baking but not people management.

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    PGDM Rural Management Feb2021: Case Study Analysis Assignment

    Uploaded by

    Swarna RS
    132 views1 page
    Kamta Prasad founded Tongue Teasers Pvt. Ltd. in 1964 and grew it into one of Delhi's top bakeries over 50 years. However, as the company expanded, his paternal and controlling leadership style became a hindrance. He hired five competent managers but closely supervised their work, limiting their autonomy. As a result, their motivation declined and performance suffered. When sales dropped, Kamta threatened to withhold bonuses and salaries. This caused three managers to resign. A consultant found that employees respected Kamta but disliked his style. Kamta refused the consultant's help, realizing too late that he knew baking but not people management.

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    Kamta Prasad founded Tongue Teasers Pvt. Ltd. in 1964 and grew it into one of Delhi's top bakeries over 50 years. However, as the company expanded, his paternal and controlling leadership style became a hindrance. He hired five competent managers but closely supervised their work, limiting their autonomy. As a result, their motivation declined and performance suffered. When sales dropped, Kamta threatened to withhold bonuses and salaries. This caused three managers to resign. A consultant found that employees respected Kamta but disliked his style. Kamta refused the consultant's help, realizing too late that he knew baking but not people management.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    132 views1 page

    PGDM Rural Management Feb2021: Case Study Analysis Assignment

    Uploaded by

    Swarna RS
    Kamta Prasad founded Tongue Teasers Pvt. Ltd. in 1964 and grew it into one of Delhi's top bakeries over 50 years. However, as the company expanded, his paternal and controlling leadership style became a hindrance. He hired five competent managers but closely supervised their work, limiting their autonomy. As a result, their motivation declined and performance suffered. When sales dropped, Kamta threatened to withhold bonuses and salaries. This caused three managers to resign. A consultant found that employees respected Kamta but disliked his style. Kamta refused the consultant's help, realizing too late that he knew baking but not people management.

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    © All Rights Reserved
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    PGDM Rural Management Feb2021: Case Study Analysis Assignment

    Tongue Teasers Pvt. Ltd. Has been a family-owned company in the business of bakery for five decades. The
    company was founded in 1964 by Kamta Prasad in Delhi. Initially, the company started with 10 employees and
    made only one standard type of, biscuit—the glucose biscuit. Over the years it has prospered and now it produces
    over 45 types of bakery items. The company’s slogan is ‘Celebrate with Tongue Teasers’. By the end of 1990, it
    was one of the top bakeries of Delhi, and its manpower went up by fifty times (to 500). Two more factories in
    Delhi—two in Jaipur and one in Chandigarh---were also started.
    Kamta Prasad had a paternal leadership style. Right from the beginning, he treated his employees as his children
    and looked after all their needs. In fact, he was like a controlling as well as nurturing parent. He looked after each
    and everything all by himself and supervised everything from purchase of raw material to production and sales. He
    did not like to delegate much to his employees, since he believed that they were not capable enough to take any
    responsibility. Initially, he could manage easily, since the factories were located only in Delhi and the number of
    employees was less. But as the company grew, he had no option, but to hire more people to manage. So, he hired
    five very competent persons, who had expertise in the field of bakery and had been trained at the top hotel
    management institutes in India as well as in other countries.
    All the five employees—Samir Jain, Raj Mehra, Shivsunder Vyas, Shilpa Khanna, and Ratna Shah—were
    appointed as heads of various departments. They were highly motivated and committed, and were full of new and
    innovative ideas. All of them worked very hard to develop the business, and as a result the sales rose to an all time
    high. But, as usual Kamta Prasad supervised them closely and wanted them to work according to his instructions.
    After some time, all of them got fed up with his interferences, since they could not work autonomously. As a result,
    their motivation levels dropped down and their performance too was affected. Sales dropped and Tongue Teasers
    started losing its customers to its competitors. Kamta Prasad got concerned and called a meeting of all the
    functional heads, giving them a warning that unless and until their groups did something to increase the revenues
    of the company, they could hand in their resignations. He also said that only the best performing group would be
    entitled for bonuses; and the salaries of the groups not performing well would be held up. All five functional heads
    were furious and their morale further went down. A week after this meeting, Samir resigned, followed by Raj and
    Shilpa. Kamta Prasad was shocked, because his intention was to boost their morale. He was convinced in his
    heart that all of them were very competent.
    He consulted with a Management Consultant Shekhar Kapoor, and help him with his declining sales and revenues.
    Shekhar conducted a short survey and interviewed various employees, including the five functional heads. He was
    astonished to find that all of them respected Kamta Prasad, but did not like his leadership style. When Shekhar
    shared it with Kamta Prasad, he naturally got furious and told him that he did not want his services anymore and
    could deal with the problem himself. He left saying that, “it’s your company, you are ultimately responsible, so you
    have to take the decisions; I can only say that you know everything about cookies, but nothing about people. Kamta
    Prasad sat shocked and thought to himself, ‘Where did I go wrong?’
    Questions
    1. Analyze Kamta Prasad’s leadership style and where he went wrong, in view of the situational theory of
    leadership?
    2. Using your knowledge of leadership theories, recommend a solution to solve the problem at Tongue
    Teasers.

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