Strategic Management

Name of the Student

Sneha PatilSiddharth Rokade

Noopur SainiGaurangi Samant

Roll No.

32383940

Case Study On

Sahni Auto Industries

Case Summary

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Sahni Auto Industries

Manufacturer & exporter of auto parts with annual turnover 1000cr , employee strength of 2000 in its Punjab factory and other offices in India & Abroad.

Mr. Amit Kapoor – The chief personnel manager. An automobile engineer, joined 5yrs back as product development manager. After successful performance of 4yrs was transferred to HR dept as CPM.

Mr. Amit Kapoor

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(continued….)

Mr. Vikas – MBA in HR, joined 3months back as , personnel managero Reports to Mr. Amit, handles all routine personnel & industrial

relations matters. Mr Vikas suggestion to Mr. Amit:

Link HR with company’s strategic goals & objectives. To improve business performance.

Develop organisational culture that promotes more innovative ideas.

Creating abundant social capital, so as Resilience to increase productivity based on trust & goodwill

Elimination of hierarchy & formal organisation structure.

Mr. Vikas

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(continued….)

Mr. Amit disagreed with Mr. Vikas, as for him, hr dept was just peripheral to the business.

This discussion resulted in numerous arguments between the both, wherein Mr. Vikas felt that person with MBA in HR is at far better position to handle hr dept.

Mr. Amit Kapoor was sent for an overseas assignment, he selected Mr. Balram, who was working as training manager in MNC for last 5 yrs as his successor over Mr. Vikas.

Mr. Vikas too had arguments with Mr. Balram over industrial relations, since Vikas felt that Mr. Balram do not have experience .

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(continued….)

Mr. Balram convince general manager to transfer Mr. Vikas, on learning this Mr. Vikas wrote letter to general manger , stating various instances where Mr. Balram had shown incompetence handling problematic situations.

But Mr. Balram convinced general manager that the allegations were not correct.

This made Mr. Vikas to write letter to the chairman stating all the incompetencies of Mr. Balram, which the chairman found that allegations were true.

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(continued….)

The chairman had a word with all three i.e., general manger, Chief Personnel manager and Personnel manager, asked them to forget the past & work in coordination with each other in an environment of trust & goodwill.

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Q1. Identify & discuss the major issues raised in the case.

The given case is related to human resource function. The major issues raised in the case can be defined as follows :

Human Resource Management functions are not aligned with the company’s strategic goals and objectives.

Lack of organizational culture High levels in the hierarchy thus fosters more formal organizational

structure Human Resources Department was treated as peripheral to the business

rather than an integrated function for strategic planning and implementation.

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Q2. Comment on the recruitment of the two Chief Personnel Managers

The first Chief Personnel Manager, Mr. Amit Kapoor is an automobile Engineer joined the company 5 years ago as Product Development Manager. After a successful stint of 4 years as Product Development Manager, he was transferred to Personnel Administration and Human Resources Department as the Chief Personnel Manager as a part of Career development plan.

Mr. Amit Kapoor

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(continued…)

According to us, we don’t see any disadvantage where a capable person without having formal HR qualification is transferred to the Human Resources Department.

Here we find that there is no such aim to bring some changes in the HR department; it is just a simple transfer of one position to another position.

Transferred

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(continued…)

The second Chief Personnel Manager, Mr. Balram was earlier working as Training Manager in a Multinational Company for the last 5 years. He also has no formal experience and qualifications in the HR management. I don’t think his appointment as chief HR manager was also on any merit or to infuse any efficiency in the HR function.

Mr. Balram

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Q3. Would you justify Mr. Vikas’s argumentative tendency with the Chief Personnel managers? Give reasons for your answer.

Yes, we agree with Mr. Vikas’s argumentative tendency with the Chief Personnel Managers with regard to the role of Human Resources department and Industrial relations in the company strategic management.

We also agree to his point that the Human Resource Management should be linked with the Company’s strategic goals and objectives.

It because HR is also as important as finance and marketing function. It helps the organization to achieve strategic goals and objectives. But one thing which we do not agree is that only a person having HR

qualification cannot manage HR department effectively.

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Q4. Do you agree with suggestions offered by Mr. Vikas to Human Resources Management with the company’s strategic goals? If yes, suggest prominent areas where Human Resources Department can play role in this regard.

Yes, I agree with suggestion offered by Mr. Vikas to Human Resources Management with the company's strategic goals. In the following area the HR department can play a role in this regard:

Create competitive environment

Facilitation of change

Diversified workforce

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(continued…)

Developing ethical work culture

Build core competency

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Thank You…..