Case Study No: 01.

Date:

Name of Case Study: Kolar Community Hospital

Ram Bansal was the administrator of kolar community hospital. The finance controller, Ramesh Ahuja,
reported to him and directed the financial affairs of the hospital. Ahujas’s general attitude was to be a
tightfisted guardian of finance. He was rigid in attitude, not wanting to approve any action that was a
departure from routine or a variance from policy.

Ram Bansal was the type who desired to take action, regardless of the restrictions of past practice or
policy. The differing attitudes of the 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 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 making the top rate allowed for
her classification"

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 attention of others in the office:
"Who's the boss here, Mr. Ahuja?"
Ahuja : "You are".
Bansal : "Then put through this raise"

Ahuja : "No".

A shouting match developed that diverted the attention of the whole office. Finally Bansal said,
"Ramesh, I have had enough. You are fired"

Ahuja : "You can't fire me for that".

Bansal: "I just did it. You are through"

Bansal did not retract his action. Ahuja was removed from the pay- roll and left the hospital that
afternoon.

Questions:

1. Discuss the leadership style used by Ram Bansal. How effective is his style ? What changes would
you advise ?

2. To what extent were Ramesh Ahujas’s needs being considered?

3. What kind of organizational climate was being created?