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Case One – An Indian Manufacturing Company |
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The facts |
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A medium sized organisation designing, fabricating and finishing bus-bodies were OEMs to a large auto manufacturing major, who were producing and marketing heavy and medium sized commercial vehicles. This organisation had about 500 employees working either directly with the company or through contractors. The sales turnover was around Rs 40 crores. The promoters had a history of breaking up with their erstwhile partners, who stood out as one of the competitors in the fray when it came to all diversification plans to manufacture customised luxury vehicles. Therefore the organisational activity was focussed around the OEMs and the manufacture of customised luxury vehicles was a one off activity. The orders for these customised luxury vehicles were procured from around the vicinity and even the full region was not addressed. |
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The employees were very apprehensive of where the organisation was moving forward to and therefore also very apprehensive about their career growth. Having a background of trading initially, the management was not very conversant with organisational systems. The employee morale was low and there were many instances of erratic decision making processes. Road- blocks in terms of day to day achievements were many, including the translation of the customers’ requirements on to the shop-floor. Although the promoters looked forward to a higher turnover, it was not forthcoming in the performances of individuals, teams and eventually the organisation. |
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The Whole-time Director of the Company was an enthused post graduate from a leading business school with almost two years of experience of handling the helm and the Managing Director was a conventional businessman having grown into an industrialist from a trader, and hence our interventions were sought. |
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The Interventions |
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STEP 1
After having conducted an informal survey of the organisation, discussions were held with the promoters to conduct a formal diagnostic study. The results of the studies showed that
1. the organisation lacked a direction
2. the people were not aligned with the organisational goals, which were actually not in place
3. the work methods were not only not contemporary but also not clearly laid out
4. there was no team spirit and everyone strived to achieve individual excellence resulting in politicking and organisational achievements underplayed
5. the HR department needed support to act as a change agent |
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STEP 2
PERCON helped in the formation of the Apex Level Committee, which was comprised of the Managing Director, the Whole Time Director and the General Manager.
The Apex Level Committee was apprised of the purpose of the formation of this Committee, i.e., ratification of the policies that are evolved, to crystallise the vision of the organisation as also focus on the immediate mission and values that they would cherish to instil. PERCON assisted in training the members of this committee for these tasks and counselled them on narrowing their thoughts down to what they should be codified as. They were also told about their own strengths which they could afford to exploit and the areas for improvement. Psychometric tests helped tremendously to allow them to introspect. They were also informed as to how they should coordinate with the next level Committee.
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STEP 3
The next level committee, i.e., The Executive Level Committee was formulated and set up with the help of five HODs, the Production Head, the Quality Head, the Design Head, the Marketing Head and the Admin. (HR) Head. They were identified as the ‘doers’ in the organisation, who outweighed the others in the influence over the various informal and formal work groups. They were also those who could take on the challenges posed by the restrictive forces (those opposed to ‘change’). Each one had spent a good number of years with the organisation, since the parting of ways took place with the business partners. This Committee became the focus of attention for evolving the methods of work which were to be implemented after they were ratified by the ALC. They were individually counselled and eventually taken through a training programme highlighting the role of the ALC and the ELC. |
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STEP 4
A specific exercise was undertaken through counselling and training to ignore the criticism of the interventions, because the members of the ELC were to anchor the cause of the interventions. A “Field Force Analysis” was carried out with the help of the members themselves through questionnaires and interviews. This exercise revealed the strength of the resistance and assisted in formulating a strategy to overcome the same. It was discovered that there were only two such supervisors who had spent a number of years with the business, had direct access to the promoters and were also advanced in age, who really were opposed to the idea whilst the others were on the fence. There was a concerted effort to discuss the issues along with the other problems which were mostly system and attitude related with the ALC members, so that proper ‘go ahead’ signals were accorded to evolve those systems and attitudes.
- A three day outbound MDP was planned to encourage teamwork, self discipline, time management and the importance of methods.
- A time bound plan was laid out for the ELC members to evolve the methods of work in different functions and codify them.
- Training sessions to be conducted with the team members by the ELC members were planned. It was ensured that the facilitators for the sessions were across the functions.
- Intermittent and regular audit and brainstorming sessions were planned with the ELC members to watch the progress
- The Directors specifically decided on their own not to encourage direct access of the junior staff unless absolutely necessitated by circumstances.
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STEP 5
This step comprised of the various execution and implementation moves of the plan in STEP 4. The interventions on these lines were carried out for the following eight months. |
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STEP 6
The functional manuals were tabled with the ALC for its observations and approval. Changes were incorporated accordingly. Audit was carried out to observe the conformance of the methods. |
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STEP 7
An Assessment Centre Process (comprising of simulations, psychometrics, interviews and observations from previous performance records) was instituted so as to understand the competences and the changes that have come about therein. A report, recommending the changes with regard to responsibilities and accountabilities, was then prepared with the involvement of the ALC. Discussions between the members of the ALC and those of the ELC were facilitated for the implementation programme of the reviewed responsibilities and empowerment. |
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STEP 8
With the renewed organogram in place and based on the Assessment Centre Report the HR department was asked to initiate competency mapping for future, after the team was trained on the concept. The ALC and ELC brainstormed and evolved the ‘dictionary of competences’ relevant to the organisation. The proficiency profiling was evolved through the job descriptions laid out and the matrix evolved for the level of competences in each job/function. |
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We wound up the project here because we felt that the organisation’s self reliance was becoming more sustainable.
The next year Balance Sheet showed a turnover of more than Rs250 crores; amidst other reasons, the interventions had a major role to play.
Consistency in growth was reaffirmed with the turnover taking a leap every year, the current turnover being around Rs 400 crores. |
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