Case 1: Change Management

COMPANY PROFILE
Company name: XYZ Limited

Brand name: Brand T

Employee profile:

CMD: Mr GJ (Age: 62)

Executive Director: Ms AJ

MD: Mr.RJ

GM: Mr GVR

Started granite business and identified

1991: the requirement for offering premium
merchandises and services

Set-up Garment factory, Export men's

2004: wear has a domestic brand for retail in
India.

Launched "Brand T"

2005:
Brand T located in southern India, the prominent manufacturers of Premium
Mens wear brand.
Philosophy of Brand: No compromises- exhibit itself in everything they do.
Staff: well experienced and qualified in their individual field- delivers finely
crafted products.
In addition to its flagship mens wear line, in 2013 company offered boys line
(7-14 age); girls toddlers up to (10 yrs.)
From 2013- strategic focus of the company shifted to their own branded retail
outlets( Brand T)
The brand has its presence in southern India and Mumbai, and currently
present in 14 retail outlets.
Problem: The company is facing huge loses on account of its exclusive range
of Brand T
Summary:
Brand T of XYZ Limited located in southern India, a prominent manufacturer of premium
mens wear. The manufacturing unit was one of its kinds and followed the best practices of
high class Europe apparel making. The philosophy of brand: No compromises exhibit itself in
everything they do. Initially the company dealt in construction and fabric and exported to
many major countries like Middle East, North America and Europe.

Brand T existed in the South Indian markets since 11 years and was doing very well. It had a
loyal consumer base, well established production department, experienced staff, quality
production, product diversification and what not. Gradually the company started facing
various pressures, therefore, curbed its expansion, resized to improve in yield, efficiency and
reduced operational costs. At few locations the retail stores were completely closed.
Company suffered due to low demand and below par capacity utilization. It also faced
numerous problems like competition from other manufactures and lack of critical mass of
industry in the vicinity which affected its long term business operations. Youthful top
management while had tremendous energy, experience was lacking. They encountered cut
throat competition in the market. The installed production capacity was not optimally
utilized; quality workforce was not available unless higher wage/salaries were paid; profit
margins were incredibly low and there was copying of designs. As a result of this, the brand
loyalty became low and the footfalls dropped. There was competition from low-price
products and stores, merchandising practices of competitors; low-quality consciousness
among customers etc.

Thus, they were in dilemma as to how to take the company further because initially they had
a good reputation and recognition in the market but now there was a question on their
existence.

Problem:
The XYZ companys apparel business continued to face various pressures, therefore,
it curbed the expansion plan for its Brand T
For years the factory installed capacity utilization was lacking but no long term
strategy was foreseen. It seemed change management of the business from export unit
to job work operator to store brand was not entirely professional and/or planned.
The company was suffering due to the cut throat competition, poor brand image in the
minds of the customers, low quality products, inconsistent merchandise and
insufficient marketing.
All these reasons had put the company into a dilemma as to how to take the company
further and make better its operations.
Major Issues:
The company suffered low-slung demand and below par capacity utilization.
The top administration was in effect all from family/more distant family individuals,
the technique making appeared to have its own particular liabilities.
Non-availability of experienced operators in the local market, the efficiency and the
quality viewpoints were not truly investigated.
Competition from other manufactures and lack of critical mass of industry in the
vicinity, affected the long term business operations
Youthful top management while had tremendous energy, experience was deficient.
CMD of the company mainly being engaged with the parent company; changes in the
factory top management from time to time and key staff turnover over the years
affected the consistency in long term business focus
Marketing and brand building had to be engaged upon.
Customer feedback and customer relationship management (CRM) was more of a
fringe activity.

Outside concepts and principles that can be applied:

The 4Ps of Marketing i.e., Product, Price, Place, Promotion and the concept of STP i.e.
Segmenting, Targeting and Positioning need to be carefully looked upon.

There was a need to look upon the assortment of merchandise and revise the quality
standards.
The price should be carefully decided after looking at the competitors price and that
price should be set that the customers are willing to pay.
The location of factory should be shifted to a place where sufficient resources are
available.
The marketing strategies need to be pondered upon. Rigorous advertising should be
done since the customers probably did not know about the brand.
The brand image or the brand should have been positioned in the minds of the
segment chosen.
The target market should be re-defined and the probable change in the customers
needs and preferences should have been found out by a Marketing Research.
Subtract while you add: There are a lots of things that initially work but may not be
profitable for longer. So it is required to give away old ways and add new strategies.
This was required by Brand T. There was need to adopt new Management practices
if the old ones were not working as per the expectations
Quantitative Data:
During FY 2013-14, the apparel division made revenues of 143 million INR and PBIT
of (118) million INR Garments exports contributing 60% in 2004-05.
Major garment exports from 2004-09
2015 Export revenue was 0%
2015 Domestic retail sale - 100% in apparel business
From peak sale of 350 million INR, current annual sale dropped to 100 million INR.
Major revenue from Mens Wear was 60%(shirts) , 40% (trousers)
Previous employee strength: 800 and Current employee strength:120
Employee turnover especially at the operator level went around 20-25%.
XYZ Ltd Share Holding- Exhibit 1
XYZ Ltd key Products/Revenue Segments for the year ending 31-Mar-2014 and 31-
Mar-2015 Exhibit 2
Group business financial details Profit & Loss - XYZ Ltd. Exhibit-3

Preferred action plan and advices:

The company should not compromise on the quality and on raw material issue the
company should try managing it by adding good suppliers who offer best fabrics at
best prices as possible so that they can average out the increase of prices.
The managers should be well qualified and experienced to handle the complexities of
the business operations.
The company should have a close look at the competitors, their management and
merchandising practices. The prices should be competitive and the customers should
be willing to pay that amount.
A proper mix of manufacturing and trend forecast should be ensured.
Continuous trainings for 30-40 operators in order to bring out best of their skills and
retain them.
They should be augmenting their retail presence with more number of their own
outlets
 Answer 1:
Central problem of the case is as follows:

The XYZ Companys apparel business continued to face various pressures; therefore, it
curbed the expansion plan for its Brand T. For years the factory installed capacity
utilization was lacking but no long term strategy was foreseen. It seemed change management
of the business from export unit to job work operator to store brand was not entirely
professional and/or planned. The company was facing various problems such as cut-throat
competition from the rivals, low quality products, poor brand image in the minds of the
customers, inconsistent merchandise, they lacked good company-customer relationship .The
machinery was under repair and the embroidery section was un -used. The young manager
was unable to manage the work due to lack of experience. These were the central problems
faced by the XYZ ltd. Company.

Answer 2:
Had I been the change management consultant, I would have taken the following
steps:
I would have devised a competitive price and a price that the customers would
be willing to pay.
The location of the plant would be shifted to a place where sufficient resources
would be available.
The quality standard would be defined and any item below the standards
would be rejected and not included in the merchandise.
There would be proper training for the employees by conducting special
seminars and practically making them understand the work.
The marketing strategies would be revised according to the target market and a
new research would be done to understand the market changes.
CASE 2: MOTIVATIONAL ORGANIZATIONAL REWARD
SYSTEM
Joseph joined a major project in the month of November at GLOBAL.INC, a leading
provider of end-to-end IT services and solutions for Global 1000 companies, with a work
force of 15000 located in Noida. Before joining here he was working as a trainee in a
company which was located in Bangalore.
Joseph was working with SIGMA which was also an IT company with a work force of 10000
employees. He always wanted to go back to his hometown and live with his parents as he was
a single child and as soon as he got a transfer to Delhi NCR he did not waste a single moment
in saying yes to the new project and headed towards Delhi. Many of his friends were also
moving out of Bangalore at the same time, which only made his decision easier.
He felt that Global offered better career prospects, as it was a new project and it offered them
to work on the current technologies that were in demand in the market. He was sure that he
would excel in his new position in the company. He left his previous job at Sigma and joined
as Assistant Systems Engineer at GLOBUS, with a handsome pay hike for becoming a
confirmed employee of the company. Globus also had international operations and there was
more than a slim chance that he would be sent to USA or the UK on a project.

Knowing that this would give him a lot of exposure, besides looking good on his resume, he
was quite excited about the new job. He joined Abhishek Mehta's five-member team at
Globus. He had met Abhishek during the interview sessions, and was looking forward to
work under his guidance. His team members seemed warm and friendly, and comfortable
with their work. He introduced himself to the team members and got to know more about
each other. Wanting to know more about his boss, He casually asked Shobhana, one of the
team members, about Abhishek. Shobhana said, "Abhishek does not interfere with our work.
In fact, you could even say that he tries to ignore us as much as he can. Joseph was surprised
by the comment but decided that Abhishek was probably leaving them alone to do their work
without any guidance, in order to allow them to realize their full potential.

At Sigma, he had worked under Shyam Reddy (Sr.Software Development Officer) and had
looked up to him as a guide and mentor. He always guided, but never interfered. He had let
Joseph make his own mistakes and learn from them. He had always encouraged individual
ideas, and let the team discover the flaws, if any, through discussion and experience. He
rarely held an individual member of his team responsible if the team as a whole failed to
deliver - for him the responsibility for any failure was collective. Joseph always appreciated
his never interfering attitude and always marked Shyam as an ideal boss. He thought if that
was the case, surely his non-interference would only help him to grow in his work.

Joseph found the atmosphere at the current office a bit dull. However, he was quite excited.
The team had been assigned a new project and was facing a few glitches with the new
software. He thought about the problem till late in the night and had come up with several
possible solutions. The next day when he went up to their team leader(Abhishek), before he
could even finish sharing his idea, Abhishek told that he was busy with other things, and that
he would send an email with the solution to all the members of the team by the end of the
day, and that they could then implement it immediately. Joseph was somewhat taken aback.
However, ever the optimist, he thought that he had perhaps already discussed the matter with
the team and came out of Abhisheks cabin and went straight to where his team members sat.
He thought it would still be nice to bounce ideas off them and also to see what solutions
others might come up with and told them of all the solutions he had in mind. Joseph waited
for the others to come up with their suggestions but not one of them spoke up. He was
surprised, and asked them at point-blank why they were so disinterested. Siddharth, one of
the team members, said, What is the point in our discussing these things? Abhishek is not
going to have time to listen to us or discuss anything. He will just give us the solution he
thinks is the best, and we will just do what he tells us to do; why waste everyone's time?
Joseph felt his heart sink, Was this the way things worked over here? he thought to himself.
However, he refused to lose heart and thought that maybe, he could change things a little. But
as the days went by, he realized that Abhishek was the complete opposite of his old boss.
While he was efficient at what he did and extremely intelligent, he had neither the time nor
the inclination to groom his subordinates. His solutions to problems were always correct, but
he was not willing to discuss or debate the merits of any other ideas that his team might have.
He did not hold the team down to their deadlines nor did he ever interfere. In fact, he rarely
said anything at all. If work did not get finished on time, he would just blame the team, and
totally disassociate himself from them.

The organisations long-standing reward practices were struggling too, to meet employees
expectations and they were raising a number of concerns. Not welcoming the ides of the
employees on one hand and insufficient rewards on the other hand by the management was
causing dissatisfaction among the subordinates. Abhishek was only concerned about his
image in-front of the board of directors. The company rarely increased the pay scale of the
employees and offered only the regular services. The working hours were hectic, making the
employees work for extra hours. Joseph found a complete contrast from where he had earlier
worked. Promotion was once in a blue moon and feedback or complaints from the employees
were never entertained.

After getting familiar with the whole scenario Joseph was in the state of dilemma. On one
hand he was happy with the fact that he is staying with his parents but on the other hand he
was not satisfied with the organizational structure of the company.

QUESTIONS:

1. What should Joseph do to resolve his situation? Had you been a team leader what all
changes you would have brought?
2. Comment on the organizations reward system and devise a new system that you
think would be suitable.
SUMMARY:
Joseph was elated as he got a new job in his home town and was much excited to revive his
old days with friends and family. Joseph was working with SIGMA previously and left that
job and joined GLOBAL.INC. Initially everything seemed perfect to him. He was excited to
work on his new project and during the course tried knowing about his boss from the team
mates. He received cold reactions from co-workers regarding their leader Abhishek as he
being ignorant to everyones efforts and ideas. His co-workers- Shobhana and Siddhartha
were not as happy as they should with his team leader Abhishek. At that time Joseph didnt
get carried away but slowly got familiar with the situation. He came to know the true colors
of Abhishek. Joseph started noticing everything. Abhishek was not at all cooperative and
never appreciated anybodys work. He never bothered what his team members were up to. He
neither appreciated nor noticed the team workers work. He was busy all the time impressing
his higher officials. Joseph was feeling bad for himself as he was not happy with that
environment. He did not even like the organizational structure of the company. Everything
seemed as a window dressing as compared to when he joined the office. He was working in
SIGMA where he was appreciated and the organizational structure was also very good. There
was no motivation for the employees and the reward system of the GLOBAL was disturbed.
Though, initially he was staying far from his family but his career was on track. But now,
what he expected and what he got was a total contrast.

Qualitative Data:

COMPANY PROFILE:
Previous company: SIGMA

Present Company: GLOBUS.INC

Team Head: Abhishek Reddy

Assistant system engineer: Joseph

Co-workers: Shobhana and Siddhartha

Quantitative Data:
Number of employees working with GLOBUS: 15000

Number of employees working with SIGMA: 10000

Outside concepts/principles that can be applied:
Organization should always make their employee feel as an important part of the
organization. So for this they should organise monthly get-togethers and have official
parties for good bonding with the employees.

Team leader should always listen to their worker for the smooth flow of the work.
There is nothing in impressing others if you cant keep happy your team members.

VALUE OF THE PERSON: Employees wants to be treated with respect and dignity
rather than being treated as economic tools.

Action plan and advices:

There should intrinsic as well as extrinsic motivation for the employees:

The employees should be heard and their work should be appreciated.

They should be recognised as an important part of the concern and their suggestions
should be considered.
Bonuses should be provided on a fixed basis depending upon the profits of the
business and amount of efforts put in.
Gifts should be given as a token of appreciation.
Salary hike and promotions should be there to assure long-term satisfaction of the
employees.

Answer 1:
Joseph should not be disheartened and find a way out to make things smooth in the
organisation. He should try to talk to the higher officials or the Board of Directors about their
team leader i.e. Abhishek. The team members should collectively approach the higher
officials and demand the change of the team leader. Working in autocracy with no ideas
welcomed from the team members is a frustrating scenario for the team, as in this case
wherein the team mates other than Joseph knew about the attitude of their team leader and
preferred not to waste their time on thinking any ideas for the project. Thus, this is an apt
solution for the problem faced by Joseph and his team mates.

If I was the team leader, following steps would be taken to motivate the employees:

The ideas of the team would be readily welcomed and taken into account.
The team be guided for the same and awarded for outstanding performances.
The work and efforts of the team would be significantly recognised.
Their opinion would be sort for managerial functions of the organisation to make
them feel as an important part of the concern.
Answer 2:
The reward system of the organisation is highly unstructured and basic. The employees are
not awarded according to their work calibre and the efforts they put in. Only regular Sunday
holidays were offered to them. Due to all this the employees probably felt highly de-
motivated to work and offer any ideas or plan to the team leader. There was no reward for
extra work. In addition to all this, the hectic working hours, no promotions and ignoring the
feedback of the employees added to the employee dismay.

A suitable reward system would be as follows:

Bonuses: There should either be a fixed bonus policy or bonus subject to the
performance of the employee or based on profits earned by the business.
Salary raise: This type of benefit is helpful to develop the skills and talents of the
employees and provide them a long-term satisfaction.
Gifts: These are offered a token of appreciation for achieving the desired goals of the
company. It boosts the self- esteem and makes the employee work even harder in the
future.
Promotion: The employee should be motivated in a fair and reasonable manner. This
affects the long-satisfaction of the employees and offers a title with increased
accountability and responsibility. This way the employee is motivated to work further
to gain the managements trust.

All these elements should be incorporated for an apt reward system of an organisation.