Wednesday, October 31, 2012

Prof. Paresh Shah (Faculty IIPM, Ahmedabad) assesses the role of organisational structure as an instrument of change

When Suparshwa joined, the production manager (Ravi Barot), finance manager (Vaidya), and HR and administration manager (Nancy) used to report to Mrugesh, the chairman and managing director of the company. The production manager is supported by production supervisors, maintenance in-charge, and hardware and software engineers.Finance manager is supported by accounts manager and banking officer. For the taxation matter, the consultants’ services are used from time to time. Nancy was looking after the security arrangement, in addition to time-keeping and time-booking activities. Suparshwa had been given the independent status as marketing manager, and was being supported by sales manager and sales staff. Suparshwa used to directly report to the chairman.

The total strength of employees, including officers, was around 200. The head office was situated in Ahmedabad, where the chairman would spend nearly half his day. In the remaining time, he used to visit the plants. Nancy and Suparshwa were stationed at the head office. Ravi used to visit each plant alternate day in a week, and that way he would monitor the performance of all the three plants.

The crack in the structure of business began in 2004, on account of increase in the competition from domestic and overseas players in the Indian market. The competition era forced the MTC to widen the customer segment base, and to take over additionally a few dealership and agency position. As part of the strategy of long-term survival, MTC also tied up to undertake outsourcing work. Coordination between various functions and locations became very difficult leading to delays at every stage. Hence, Nancy proposed to introduce the concept and implementation of Management by Objectives (MBO) for officer and above cadre during 2007.

In 2008 end, Suparshwa got married to Nancy. Read more....

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