Himanshu KumarA1802008700/C-25Subject- LTT (BS-III)

Eicher started operations in India in 1960. It managed to survive and started making reasonable profits by 1973

In 1982, Gov. of India implement credit squeeze by which approx. 90% of tractors are purchased through bank financing which adversely affect the sales for the next few years

Eicher was largely a North based organization, this effect its operations badly and company slipped from 1’st position to 3’rd position

Eicher was forced to cut down production and experienced negative growth and losses for the first time in nine years which considerably impact on the employees in the organization

To solve the problem company’s HRD played a significant role in improving the employee relations and organizational effectiveness

PROBLEM DIAGNOSISMANAGEMENT DECISIONS -APPRAISAL SYSTEM

-COMMUNICATION -LEADERSHIP -TEAM WORK -DEVELOPMENT -COMPENSATION -WELFARECONCLUSION

Management decided to conduct a company wide attitude survey to ascertain the main causes for this state of affairs

Company decided to determine the attitudes of employees towards 19 factors like appraisal system, relationships, leadership, working conditions, team work, creativity, development, union management relations, rewards, etc..

Management decide following objectives as feedback- * To review the history of employee relations in the

company * To identify the major areas of strengths and weaknesses

of employee relations in the company * To make recommendations for strengthening employee

relations in the company * To approve an action plan for implementation

After looking at all the data through attitude survey, interviews, SWOT analysis and the workshop, a number of areas were identified for specific attention-

I. APPRAISAL SYSTEMII. COMMUNICATIONIII. LEADERSHIPIV. TEAM WORKV. DEVELOPMENTVI. COMPENSATIONVII. WELFARE

Management Development Group (MDG) and Supervisory Development Group (SDG) would meet at least once in a year to identify training and development needs, greater commitment to appraisals and to increase consciousness in superiors to develop their subordinates

Management decide to began a process of education and awareness building and the ways of judging subordinate development skills for their appraisals

Management developed a specially designed program on “Feedback and Counseling Skills” by using the model “Client Oriented Therapy” of Carl Rogers, to improve negative feedback from Managers

Attempt to establish performance appraisal and career development were not just management tools but as management values

Communicate downward company plans and programs Give the employees an opportunity to communicate

upwards their concerns and feelings Provide a forum for generating new ideas and suggestions

for improvements Organization developed special strategies to suit different

occasions when it was necessary to inform employees about company’s operations

To allaying anxieties and doubts in the mind of employees, company published House Journal including interviews and news, at all locations

TASK ORIENTATION- corporate management made conscious change in leadership style to correct the situation

Starting from the Management committee downwards, a conscious attempt was made to reorient our target setting

Changes were made in Management Information System, Control Systems, etc. to support decision making

Company continued to rely on preventive approach but at same time took quick steps to punish deviant behaviour

Corporate management of company formulated a major plan to restructure the Company’s operations and adapt changes to make it appropriate for the situation

Since company divisionalised into number of locations with their own priorities and needs, team work had weakened. Company take various steps to improve team work

Norms of Meeting Managers were encouraged to visit other locations and

spent more time with each other to generate better understanding and team work

Conflict Resolution It was decided that Senior Management would not take up

any matter of conflict resolution which should be handled by their juniors

Training in Team Work Residential training programmes for executives were

drawn from different locations on interpersonal, communication, and team building skills

SYSTEMATIC IDENTIFICATION OF NEEDS- *Multi-prolonged effort launched by company to improve

appraisal system and process, MDGs and SDGs had started generating more accurate and reliable data

SEPARATE GROUP FOR DEVELOPMENT- *A separate group was made headed by management

development, to cater training and development needs of executives

*Number of training programmes were conducted to meet the needs at organisational, group and individual level

*Workshop was held to define the quality policy of company *Company wide survey was held to identify the perception of

executives about commitment of top management to quality

EXECUTIVE COMPENSATION- Suitable adjustment were made in salaries of all

executives to take care of gaps STAFF COMPENSATION- It would assured that increased in compensation to staff is

always greater than increase given to workmen WORKMEN COMPENSATION- Company give interim increase in wage to bridge the gap

MEDICAL BENEFITS- Management decided to open clinics in backward areas to benefits all employees

HOUSING- Company purchase flats and arrange cooperative societies for their employees

SPORTS & CULTURAL ACTIVITIES- Number of inter-divisional competitions were held in which all employees actively participated

WELFARE SCHEMES- Schemes to assist employees for getter their daughter and sisters with collections from employees

On the whole the opportunity given by company to its Human Resource Department to practise their concepts and their autonomy and encouragement given by people have truly establish the fact-

“ A systematic process of change coupled with an Integrated HRD system can go a long way in improving organisational effectiveness ”

Alternative Approaches and Strategies of HUMAN RESOURCE DEVELOPMENT

Edited by- T V Rao K K Verma Anil K Khandelwal E Abraham S J

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