TEAM POETRY TO PROSE

SIBM PUNE
Ankit Deshpande
ankit.deshpande13@sibmpune.edu.in

Anant Sagar
anant.sagar13@sibmpune.edu.in

Dhruv Talwar
dhruv.talwar13@sibmpune.edu.in

8888886937

8308829216

8888886823

Problem Identification using Dunlops Model

CONTEXT Economic :TF:increased costs & reduced market share , centralized to overcome the above TIU: reduce time to market and improve product quality ICU: space constraints, steady expansion plans. Legal: LTS finalisation Social: Aging workforce, new opinion Leaders, increasing conflicts, radical differences in work and organisational structure. ACTORS Unions: 7 different unions; TF: Blue collared A- Old Workers, B- Lack of leadership , CDisruptive leadership, ICU: Blue collared, Lack of leadership TIU: White collared, Inflexible on food and working conditions Management: cultural integration resulting in more efficient production business cycle Government: Strong Legal Regulations OUTCOMES Lack of business alignment due to poor communication Infusion of younger workmen replacing aging workforce Disparity in working conditions between different units. cafeteria food and conveyance certain disruptive union leaders Pensions vs Allowances Union conflicts

Suchita Prasad Leading the Way

CHANGE
- Use LTS to institutionalize the change, issue a notice of change under Section 9A - Facilitate integration using Works Committee - Design appropriate drivers, e.g., cross-functional training

STRATEGY - Merge the 3 SBUs to form an Industrial undertaking - HUL East India F &

S U C H I T A

P R A S A D

B Centre - Assess financial performance as a whole for the centre - Create a Total Reward Strategy linking overall performance to variable pay - Basket of flexible customised benefits, e.g., pensions vs. allowance

CULTURE - Create common organisational purpose and principles

- Act local: employee intake, environment and celebrations - Creating an Employee Zone of Tolerance - Amalgamate unions under same parent body; reduce political influences (Section 24 Trade Unions Act)

Forming HULs Total Rewards Strategy

TANGIBLE

Pay/ Reward

Benefits - Create a flexible benefits plan allowing for choice between pension and allowances -Provide a Integration Bonus to Incentivize change

- Decide fixed pay as per role and unit - Link Variable Pay to Individual rating as well as Combined performance of units as a whole. -Reward change agents

INDIVIDUAL
Learning and Development - Develop a cross functional training program in different business units - Create a uniform career development program for all employees across SBUs Work Environment - Build common recreation facilities for all employees - Create 2 different cafeterias; one with slightly better quality and higher prices; make them accessible to all employees

CULTURAL

INTANGIBLE

Create Urgency: Use the present LTS negotiation as a platform for change. Communicate the benefits of integration to all major stakeholders e.g. Unions, Corporate office through an open dialogue.

Form a Powerful Coalition: Setup an Integration Committee consisting of strong opinion leaders including Union Leaders, Political leaders, managers and well known employees across management levels in all 3 units to communicate the need for integration at all levels. Act them to act as Change agents catalysing this transition.

Create a Vision: In short term the aim could be to assimilate ICU within TF reducing the number of unions to 3. TIU could be integrated in long term. Institutionalize these changes with help of LTS highlighting changes in organisational structure and work practices.

Communicate: Discuss the changes through a process of collective bargaining as well as a continuous dialogue. Set common organisational purpose and principles for all employees and ask change agents to demonstrate the same at work.

Managing Obstacles: Incentivize the process by putting forward a total reward strategy linked to integration. Identify Potential Resistors e.g. Disruptive Union Leaders and create an exit plan for them. Manage employee mood by providing them continuously with information and maintaining transparency.

Create short term wins: Provide a one time bonus to every worker willing to change to new system. Give recognition to those who take initiative. Create few enabling structures such as a new cafeteria as proposed to show benefits related to proposed change. Also celebrate local festivals together to increase bonding.

Build on the Change: Learn from initial problems in LTS negotiation with tea factory to improve process when you negotiate with other units. Try to move to tougher challenges like integration of TIU only after you can build a zone of tolerance between employees in different units.

Create Anchors for Change : Get the top leadership to endorse the change. Revamp the recruitment strategy to give a greater emphasis on local talent. Try to place the change agents in key roles to reinforce the effects of integration in future.

A Culture Integration Model

Outcomes
To improve business performance, increase alignment and reduce conflicts At present, employees are loosely coupled by Bengali culture and a common premises; however, they differ in terms of work practices, organisational structure and compensation policies; differing views on LTS Assessment of Present Behaviour: ICU unit workers have a weak culture, lacks processes ; TF and TIU workers have strong culture with heavy influence of unions, also inflexible and at times disruptive Develop a set of common behavioural competencies for new organisation- Cost and Quality Driven, Competitive, Consensus building, Collaborative etc. Identify Key Drivers Local Values, Financial Incentives, Political influence, Recognition, LTS etc. Develop appropriate programs- Organize a common management day, Integrate unions under same political bodies, Celebrate common festivals, Hire more talent from Local population, introduce a new performance management system etc.

Behaviours

Drivers

Implementation

Carry out due diligence and institute a change management plan ; pace of change to be decided after conducting a gap analysis Reinforce change continuously by rewarding change agents and negotiating with resistors e.g. The leader of Union C should be exited if he tries to stall the integration process.

Implementing Change @ F&B HUB

LTS as negotiating platform Set up integration committee
ICU with TF in short run TIF in the longer run Establishing common org. practices

one time bonus to every worker new cafeteria Local festivals to enhance bonding Learn from initial negotiation to carry future LTS negotiations build a zone of tolerance top leadership to endorse the change Local recruitment strategy Change agents in key areas

Final Outcome
Business cycle advantages

Financial

Social

Stakeholders

Brand
Creating a positive social image Increasing brand recall vis a vis competitors Establishing brand visibility in new markets