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Applications of Organizational Behavior Learnings
To
My Previous Organization
Mahindra & Mahindra
Submitted By: Sunanda Lal
Roll No: MSEP13GLSCM071
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INTRODUCTION
Organizational Behavior describes the way people think, feel and act in an
organization. I have a work experience of three years from 2010 to 2013 in
Mahindra & Mahindra which is an Indian Automobile manufacturing company.
When the course of organization behavior was being done I was able to very
clearly relate every topic to my past experiences.
With this three years of experience in the corporate world I have been a keen
observer of the Organizational characteristics like Leadership Styles,
Communication methodologies, Innovation, Value addition to work culture and
so on.
In this report I have tried to present a correlation of Organizational Behaviour
learnings to my past employer Mahindra and Mahindra (Auto Sector).
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HISTORY OF MAHINDRA & MAHINDRA LTD.
Mahindra & Mahindra ltd. was established in the year 1945 by J.C.Mahindra
and K.C.Mahindra. It was done in collaboration with Ghulam Mohhamed
wherein they set up a steel company in Mumbai.
The focus of Mahindra was to cater to the Indian market by manufacturing
rugged vehicles for Indian terrains. They had collaborated with various
International auto manufacturers to gain expertise in research, development
and manufacturing efficiency. A recent example is Renault from France.
Though the Joint Venture no more exists, but Mahindra did learn a lot from
them.
Today after six decades, Mahindra has evolved from a humble Indian start up
to a US $16.2 billion corporation employing more than 155,000 people around
the globe.
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Sl. No. Name Designation1 Anand Mahindra Chairman & Managing Director Mahindra & Mahindra2 Bharat Doshi Executive Director & Group CFO3 Rajeev Dubey President Group HR, Corporate Services, and Aftermarket Sector4 Pawan Goenka Executive Director & President Automotive & Farm Equipment Sectors5 Hemant Luthra President Systech Sector6 Anoop Mathur President Two Wheeler Sector7 S.P. Shukla President Group Strategy, Defense Sector, and Chief Brand Officer
8 Ulhas Yargop President Information Technology Sector & CTO, Mahindra Group9 Anita Arjundas CEO Real Estate Sector and Managing Director, Mahindra Lifespace Developers
10 Zhooben Bhiwandiwala Executive Vice President & Managing Partner Mahindra Partners Divis ion11 S Durgashankar Executive Vice President - Mergers & Acquisitions12 C.P. Gurnani Managing Director and Chief Executive Officer Tech Mahindra13 Ruzbeh Irani Chief Executive International Operations, Automotive & Farm Equipment Divisions14 Ramesh Iyer Managing Director Mahindra & Mahindra Financial Services and CEO Financial Services Sector15 Rajesh Jejurikar Chief Executive - Tractor and Farm Mechanisation16 Romesh Kaul Global CEO Gears Business, Systech Sector17 Harsh Kumar Managing Director Mahindra Intertrade & Mahindra Steel Service Centre18 Yoo-il Lee President & CEO, Ssangyong Motor Company
19 V.S. Parthasarathy Group CIO, EVP Group M&A, Finance and Accounts,20 K Ramaswami Managing Director, Mahindra Forgings21 Rajiv Sawhney CEO, Mahindra Holidays & Resorts India Ltd.22 Pravin Shah Chief Executive Automotive Division23 Ashok Sharma Chief Executive - Auto & Farm Strategy, Agri and Allied Business24 Rajan Wadhera Chief Executive Technology, Product Development and Sourcing, Automotive & Farm Equipment Sectors
BOARD OF DIRECTORS
OWNERSHIP
Mahindra (2013, para1) list its board of directors as
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Automotive After-Market Sector Farm Equipment Sector Financial ServicesSector
Infra Dev. Sector IT Sector MahindraSystech
SpecialityBusinesses
Mahindra Partne
Domestic OperartionsMahindra SparesBusiness
Domestic Operartions
Mahindra &Mahindra FinancialServices Ltd(MahindraFinance)
Mahindra Holidays &Resorts
Tech Mahindra Forgings Mumbai Mantra Mahindra Odyss
International OperationsMahindra FirstChoice
International OperationsMahindraInsurance BrokersLtd.
Mahindra LifespacesDevelopers Limited
BristleconeEngineeringServices
MahindraDefence System
Mahindra Intertrad
Mahindra SsangyongMahindra FirstChoice Wheels Ltd.
Mahindra GujaratTractor
Mahindra RuralHousing FinanceLtd (MRHFL)
Mahindra World City StampingsMahindra Steel SerCenter
Mahindra Navis tarAutomotives Limited (MNAL) Mahindra Agribusiness
Mahindra
InfrastructureDevelopers
Steel
Mahindra MiddleE
Electrical Steel SerCentre (MMESSC)
Mahindra Navistar EnginesPrivate Limited (MNEPL)
Mahindra PowerolAcres ConsultingEngineers
Ferrites Mahindra Logistic
Mahindra 2 Wheeler Mahindra USAContractSourcing
Mahindra Retail
Mahindra Australia Telematics
Mahindra China Tractors Composites
CastingsGears
BUSINESSES
BUSINESSES
With the growth of the independent India Mahindra has grown along with it.
Started from steel today Mahindra is present in approximately 141 business
and industries. The table below shows a summary of the same
The Annual Report of Mahindra & Mahindra (2012-13, para 31) gives the
following list of business
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LOCATIONS
The headquarters of Mahindra are located in the financial capital of India
Mumbai. The locations of the manufacturing plants are
1. Nashik
2. Haridwar
3. Zaheerabad
4. Mumbai
5. Chakan, Pune
The Research Center is located in Chennai, Tamilnadu.
From all these locations Mahindra caters to its domestic market and
International market as well. Today Mahindra is present internationally as
shown in the following depiction
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ORGANISATION STRUCTURE
Below mentioned is the structure of my team that was led by the Sr. GM who
reports directly to the Vice President Strategic Sourcing
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LEADERSHIP STYLE
Leadership Styles can be linked to the type of power the person holds. These
can be analyzed as follows
1. Leader with legitimate power : This power is based on the designation a
person holds. The position gives the authority to the person to take
critical decisions. The Sr. General Managers, Vice Presidents and Sr. VPs
project this leadership style.
2. Leader with Referent power : There are people who do not hold a very
senior level position but still are looked upon for adding value to decision
being made. These people are liked by the team mates due to their
charismatic power.
3. Leader with expertise power : There are experts in various departments.
For instance someone is expert in Research and Design some in styling
of vehicles and some in Operations. These people hold very good
positions due to their expertise and lead teams.
I have come across people like these values and virtues. My Sr. Vice
President is a very charismatic person with wonderful orator skills. His vastexperience in the automotive sector gives him the expert skills to lead seven
functions at a time. Also he is efficient and has not failed because he is
flexible, understands people and their behavior and is very capable to lead
teams.
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CULTURE
Mahindra launched its new brand called Mahindra Rise in the year 2010, the
very same year when I joined this organization. A culture was being created
with the three pillars of Mahindra Rise. People were made to realize the
importance of these by incorporating these in every aspect of their work
culture. The three pillars are
The brand pillars motivate the people to work towards a better world by
1. Accepting no limits : Every day was a challenge and people worked
towards numerous projects. Being an Indian startup Mahindra required
great efforts on the R&D fronts. There were great achievements made like
launch of first SUV with three cylinder engine the Quanto was launched.
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Many failures were faced in this engine during the R&D period but was
overcome and now Quanto is on the Indian roads.
2. Alternative Thinking : Mahindra focusses on efficient and green supply
chain. Stringent norms are followed to make environment compliance
vehicles that follow the emission standards like BH IV, Euro V and also
ELV compliance is followed in every part that is sourced. Mahindra REVA
has a plant running on solar energy being the only plant of this sort in
India. Also launch of NXR the electric vehicle is a move towards
alternative thinking.
3. Driving Positive Change : This related to the Corporate Social
Responsibility. Mahindra focuses on Concious Capitalism and works for
various causes like Mahindra Harlayi planting trees all across India,
Supporting girl child by program called Nanhi Kali.
Social Culture
Mahindra promotes corporate culture that is still feeble in Indian
companies. People are trained on Business etiquettes, RelationshipManagement, Dining etiquettes etc. Also focus is on work life balance.
People are encouraged to come and leave on time.
Work Culture
Daily morning meetings and monthly review meetings are must for every
department. The communication is very transparent. C1 communication
meet is held every year where the leaders communicate regarding the
performance of the firm in the last financial year. People are encouraged
to take decisions and given authority in their work.
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GROUP DYNAMICS
For every new project a team is formed. The team formation happens by the
following
The goals are well defined for every new project which are
Roles
Procedures
Relationship
TaskInterdependence
Alignment
S- Smart M-Measurable
A- Acheivable
R- Reviewable T- Time Bound
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TEAM BUILDING INITIATIVES
As every organizations success is based on the employees performance it is
very important that the people are aligned towards the goal. This process is
called working as a team and various initiatives are made for Team Building.
This is done so that people know about each other and understand each other
well. This will maximize their output when they work as a team. The various
team initiatives in Mahindra include
(i) Sports Club : People are actively involved in sports activities like
football and cricket. The inter department matches are held regularly.
(ii) Mahindra Employee League : This team is formed by combination of
3 departments each. Employee compete on cultural fronts.
(iii) Department Outings : Every HOD has been allocated by a budget to
conduct team activities. Teams go for holidays together.
(iv) Human Resource Department Initiatives : The HR team is on a
continuous program on team building. Every department has their HRrepresentative. They have their performance targets related to their
respective departments.
(v) Mahindra Adventure : Employees and the people from outside the
organization compete in an off-roading competition. This is for two
reasons team building and also to promote the rugged vehicles from
Mahindra.
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CHANGE MANAGEMENT INITIATIVES
A major change that occurred in the recent past is the opening of Mahindra
Research Valley at Chennai, Tamilnadu in 2010. This is a dedicated research
facility to support the research for the projects. People from all other locations
were transferred to this place and the change management process is stillgoing on. Major challenge was to relocate the entire the family. An
administration team was form specifically to facilitate this. There were cases
where employees were not ready to move from their current locations. This was
managed by giving hikes in salary, incentives and new job roles. This change
management faced both supporting and restraining forces.
Another change management aspect is the recent collaboration with Ssangyong
a Korean SUV manufacturer. The CFTs are formed to have cross learning. Thisis an opportunity and also a challenge. The challenge is the cultural difference
between Indians and Koreans. This gap is bridged by various workshops
conducted on both ends.
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POLITICS AND CONFLICT MANAGEMENT
This aspect is present in every organization. As we learned that there are
negative as well as positive politics. As a graduate engineer trainee I was
allocated a mentor. This helped me understand my roles and responsibilities. I
came across various political situations. An example is assignment to projects
in when the projects are mid-way and no other senior wanted to take the
responsibility. Also there were cases where the credit of a success was taken
away by a senior. When there occurs a failure no one was ready to take the
accountability.
I do no point that this is an issue of the organization, this depends on the
individual. There are people with inherent qualities of a spy, back-stabber and
buck passer. It depends how we deal with them and the work done. Overallpersonality development is also looked upon by the HR department. Trainings
like conflict management and negotiation skills are conducted for the same.
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INNOVATION & CREATIVITY INITIATIVES
The world is looking for innovation. Today we see that companies like Nokia
and Blackberry collapsed due to incompetency of innovation. Mahindra realizes
this and focuses towards Innovation as one of its core values.
Every individual from a shop floor associate to the Vice President is encouraged
to think alternatively and generate innovation ideas. Various initiatives are
(i) Indigenous Automation : Any idea that helps automating with the
local and domestic resources is appreciated. The Indian term for this
is Jugaad which means make shift arrangement. These ideas are
tested thoroughly and implemented.
(ii) Cost Cutting Ideas : Any cost cutting idea is welcome. If successful apart of the savings are given to the employee.
(iii) I4 Idea Generation : This is a competition held across all locations
where people are allowed to post ideas on the intranet called
mconnect. The selected idea wins and is awarded. After this the
person gets a team to work on the same and implement.
(iv) Styling & Design competition : Employees compete to come up with
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a new vehicle design. The focus is on the exteriors. Mahindra XUV
5OO was derived from one of the winning designs of this platform.
CRITIQUE ON CURRENT INTERNAL SCENERIO
As mentioned above Mahindra Research valley was established in Chennai.
This is in the south-east part of India. The current working force was major
from west and north of India. Many people were unwilling to move, but they
were transferred. Here were cases where people belonging to south India who
were willing to move were not transferred. This led to high attrition rate.
Also this research valley is in the outskirts of city. Though accommodation was
provided, but it was in more interior parts. This lead to high level of
frustrations among employees as they had to travel a lot for basic necessities.
The effect of this was seen in the Gallup Survey reports.
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SUGGESTIONS AND RECOMMENDATIONS
Mahindra in all perspectives is a very good organization. The systems and
structures are well defined. The focus on people and process has led to its
success. The above mentioned critique on the current scenario are some of the
initial hiccups of change management faced by every start up either small or
big. At present Mahindra is in the change phase of Change Management
system as suggested by Kurt Levin. In this stage if Mahindra is able to
overcome the restraining forces, it will proceed towards the re-freezing process
which will make Mahindra a star performer.
Recommendations are:
1. To encourage the people to stay back the problem of their inconvenience
to daily necessities is to be resolved. Mahindra can have a tie up with
some supermarkets to open their outlets nearby.
2. To make movement easy Shuttle service can be provided.
3. Similar efforts can be made to understand the problems faced by peopleand resolve them.
This is how Mahindra can attain further success by working on its
Happy Triangle as shown
Employees
HAPPYTRIANGLE
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REFERENCES
1. Mahindra, (2013). How we got here . Retrieved from
http://www.mahindra.com/Who-We-Are/How-We-Got-Here
2. Mahindra, (2013). Our Leadership. Retrieved from
http://www.mahindra.com/Who-We-Are/Our-Leadership/Group-
Executive-Board
http://www.mahindra.com/Who-We-Are/How-We-Got-Herehttp://www.mahindra.com/Who-We-Are/How-We-Got-Herehttp://www.mahindra.com/Who-We-Are/Our-Leadership/Group-Executive-Boardhttp://www.mahindra.com/Who-We-Are/Our-Leadership/Group-Executive-Boardhttp://www.mahindra.com/Who-We-Are/Our-Leadership/Group-Executive-Boardhttp://www.mahindra.com/Who-We-Are/Our-Leadership/Group-Executive-Boardhttp://www.mahindra.com/Who-We-Are/How-We-Got-Here