Meenachil Konkretes: Persuading without Power

Abstract

Michael, Managing Partner of Meenachil Konkretes, a small rural unit in Kerala, India, that manufactured concrete blocks, found that the plant did not achieve full production because of absenteeism among his workers. As they divided the earnings equally among themselves, they rejected Michael's suggestion to increase the team size or induct others, fearing a dent in their earnings. He had to find a way to persuade them to change their work practice.

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

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Resources

Video 1. Meenachil Konkretes Production Process

Transcript

Download the transcript here.

Exhibit 1: The block-making process (Photograph taken by Casewriter)
(a) Workers putting raw materials into the cement mixer

Figure
(b) Concrete mixer in operation

Figure
(c) Mixture being brought and put into the block-making machine

Figure
(d) Blocks being made

Figure
(e) Full yard at the end of the day

Figure
(f) Casting yard being cleared of day-old blocks

Figure
(g) Curing

Figure
Exhibit 2: Different types of cavity and solid blocks

Figure

Source: Photograph taken by case writer

Exhibit 3: The process of making concrete door/window frames

Assemble the Mould→

Tighten the Mould→

Grease the inside of the Mould

Inspect and make sure that steel frame is equidistant from the walls of the Mould

←Insert Steel Frame into Mould

←Prepare Steel Frame (Steel rods will have been straightened and cut into right sizes in advance)

Prepare Concrete Mixture with a special consistency→

Pour Mixture into Mould→

Get Air Bubbles out

Pour Liquid Cement on Top of Mixture in Mould

← Leave it for 3 hours to Dry

← Level Mixture in Mould

Smooth the Surface with a Special Trowel →

Leave Mixture in Mould overnight →

Unscrew Walls of the Mould the following morning

Keep Frame Immersed for 7Days

←Gently Lower Frame into Tank of Water

← Smooth Sharp Edges of Concrete Frame

Clean and Apply Primer to Steel Rods that Would Form the Grill for Windows →

Once Dry, Fit Steel Rods (in Window Frames) Hinges (Both Window and Door Frames)→

Transfer Frames to the Stock Yard—

Source: Case writer’s observation

Exhibit 4: Cost of production (per bag of cement), April 2012

Inputs

Rs

Cement (1 bag)

350

Stone chips 6mm, 0.18 cubic metre

143

Stone chips 12mm, 0.20 cubic metre

154

Sand/crusher dust, 0.14 cubic metre

160

Labour (at Rs 11 per stroke)

88

Power

3

Tax

19

Loading (blocks onto customer trucks) *

35

Breakage/waste

15

Interest payments

7.50

Admin expenses

20.50

Maintenance of plant & machinery

6

Sundry expenses

17

Total ( for approximately 8 strokes)

1018

Inventory holding costs (3 weeks) not calculated

Dues from customers – not included

* The customer price of blocks included loading; the workers’ “piece rate”, however, did not include it. Therefore they were given extra money for loading. The charges varied from55 paise to 110 paise per block based on its size and weight.

Source: Records of Meenachil Konkretes

Exhibit 5: Meenachil Konkretes production and payments, January to April 2012

2012 Month

Week

Workers per day

Cement bags used per day

Wages for production

(Rs, per worker per day)

Extra Earnings (Rs, per worker per day)

Total earnings (Rs, per worker per day)

January

Week1

10.67

50.40

416.06

195.68

611.75

2

11.00

50.58

387.04

211.41

598.46

3

10.33

46.83

398.94

198.58

597.52

4

10.67

39.17

323.05

174.51

497.56

5

10.00

46.29

379.64

139.66

519.30

February

Week 1

10.25

46.75

401.37

215.44

616.71

2

10.00

47.58

418.70

272.15

690.85

3

11.00

47.00

376.00

182.67

558.67

4

9.50

44.67

413.79

116.89

530.68

5

10.67

52.33

431.59

166.69

598.28

March

Week 1

10.67

52.33

431.59

127.54

559.13

2

11.00

53.00

411.65

188.74

600.40

3

10.50

47.58

398.77

176.48

575.25

4

11.00

50.58

404.64

148.40

553.05

5

10.83

48.00

393.03

187.46

577.49

April

Week 1

10.50

47.00

393.90

134.50

528.40

2

8.80

49.60

496.00

138.66

634.66

3

8.83

40.58

404.42

244.84

649.26

4

9.50

50.00

467.09

126.95

579.98

Jan-April

10.30

47.91

407.75

176.17

583.02

Note: Wages for production @ Rs. 11 per stroke; Extra earnings from unloading and loading

Month

Workers per day

Average no. of bags of cement used per day

Wages for production (Rs, per worker per day)

Extra Earnings (Rs, per worker per day)

Average daily earnings per worker

January

10.53

46.75

380.95

183.97

564.92

February

10.28

47.67

408.29

190.77

599.04

March

10.80

50.30

407.94

165.72

573.06

April

9.41

46.80

440.35

161.24

598.08

Jan to April

10.25

47.88

409.38

175.43

583.78

Note: The minor discrepancies in the totals are due to rounding off of decimal points.

Source: Records of Meenachil Konkretes

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

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