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DEPARTMENT OF BUSINESS ADMINISTRATION

2013-2015

ORGANIZATIONAL

EFFECTIVENESS

AND CHANGE
ASSIGNMENT

TOPIC: ORGANIZATIONAL DESIGN CHANGE IN

MAHINDRA SATYAM

SUBMITTED TO: DR. AJAI PRAKASH

SUBMITTED BY: ANCHAL VERMA
MBA (HR) (3nd sem)

UNIVERSITY OF LUCKNOW

ACKNOWLEDGEMENT
I take this opportunity to express my profound gratitude and deep
regards to my guide Professor DR. AJAI PRAKASH for his exemplary
guidance, monitoring and constant encouragement throughout the
course of this thesis. The blessing, help and guidance given by him time
to time shall carry me a long way in the journey of life on which I am
about to embark.
I would also like to thank all my friends for their regular
encouragements and support. They were the driving force and also the
source of inspiration to me. I am grateful for their cooperation during
the period of my assignment.
Last but not the least; I would like to thank my parents for their
indomitable patience, sacrifice and support without which the
successful completion of this work would have been a distant dream.

ANCHAL VERMA

INDEX
S.NO.

TOPIC

PAGE NO.

1.

Introduction

2.

Merger with Tech Mahindra

3.

Top level changes

4.

Organizational changes

5.

Analysis

6.

Conclusion

7.

References

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INTRODUCTION
Mahindra Satyam (formerly Satyam Computer Services Limited) was an Indian IT
services company based in Hyderabad, India. The company was listed on the Pink
Sheets, the National Stock Exchange and Bombay Stock Exchange. It offered a
range of services, including software development, system maintenance, packaged
software integration and engineering design services. Satyam Computer Services
claimed to be the fourth largest provider of information technology services in
India, based on the amount of export revenues generated.
In June 2009, the company unveiled its new brand identity Mahindra Satyam
subsequent to its takeover by the $14 billion Mahindra Group's IT arm on 13 April
2009. It subsequently merged within Tech Mahindra on June 24 2013.
A part of Mahindra Group, Satyam Computers Services Ltd., was brought into
Mahindra & Mahindra family buying its 30% shares, saving the turmoil hit ship
from more injuries and destructions of big fiscal scandal. Mahindra Satyam is an
ICT (Information, Communication and Technology) company having major
business and market share created by providing services to most of the fortune 500
companies in 11 major countries of the world. Mahindra Satyam, formerly and
popularly known as Satyam Computers Services Ltd., was one of top five
multinational companies of India, represented by an acronym SWITCH (Satyam,
Wipro, Infosys, Tata Consultancy Services, Cognizant and HTC Technologies).
In spite of availability of the global leaders such as IBM, EDS, Accenture and HP,
the SWITCH companies were at an annual average growth rate of 42.4 per cent in
the year 2006. Mahindra Satyam Computers Services Ltd., one of the pioneers in
providing IT services to the big corporations in developed countries, headquartered
in Hyderabad, India, has strength of around 30,000 employees spread across
different nations. Recently acquired company is functioning under the large
umbrella of $7.1 billion Mahindra Group, Mahindra & Mahindra has a prominent
position in the markets of automotive products, aviation components, farm
equipments, financial services, hospitality, information technology, logistics, real
estate and retail.

Merger with Tech Mahindra

Mahindra Satyam's proposed merger with Tech Mahindra may be delayed all
because of legal issues, and ambiguity over jurisdiction between investigating
agencies and the government. The merger has been delayed due to two tax cases
pending with the Income Tax claiming over 27 billion for both. Tech Mahindra
announced its merger with Mahindra Satyam on 21 March 2012, after the board of
two companies gave the approval. The two firms have received the go-ahead for
merger from the Bombay Stock Exchange and the National Stock
Exchange. Competition Commission of India (CCI) approved the proposed merger
of Mahindra Satyam and other companies with Tech Mahindra. Mahindra Satyam
held its annual general meeting (AGM) on 8 June 2012 to consider the proposal to
merge the company with Tech Mahindra. It is mandatory for the firm to get the
AGM nod to go ahead with the merger.
The shareholders of both Tech Mahindra and Mahindra Satyam have unanimously
approved the scheme of amalgamation and merger of Satyam Computer Services
Ltd, Venturbay Consultants, C&S System Technologies, CanvasM Technologies
and Mahindra Logisoft Business Solutions with Tech Mahindra. Mahindra Satyam
chairman, Vineet Nayyar said, that the merger with Tech Mahindra was at the final
stage of getting approval from the Andhra Pradesh and Maharashtra High
Courts. The two firms had received the go-ahead for merger from the Bombay
Stock Exchange and the National Stock Exchange. On June 11, 2013 Andhra
Pradesh High Court gave its approval for the merger of Mahindra Satyam with
Tech Mahindra, after Bombay high court already gave its approval.
A new organisation chart would also come into force led by Anand Mahindra as
Chairman, Vineet Nayyar as Vice Chairman and C. P. Gurnani as the CEO and
Managing Director. Tech Mahindra on June 25, 2013 announced completion of
Mahindra Satyam's merger with itself to create nation's fifth largest software
services company with a turnover of USD 2.7 billion. Tech Mahindra got the
approval from the registrar of companies for the merger late in the night at 11:45
(pm) on June 24, 2013. July 5, 2013 has been determined date on which the
Satyam shares will be swapped for Tech Mahindra shares which was approved by
both the boards. Mahindra Satyam (Satyam Computer Services), was suspended
from trading with effect from July 4, 2013, following its merger with Tech
Mahindra .

Top-level changes at Mahindra Satyam

Tech Mahindra, which acquired scam-ridden Satyam Computer Services and
renamed Mahindra Satyam, has announced key leadership appointments.
A. S. Murty, who was made the Chief Executive Officer of Satyam Computer
Services after the scam broke out, will now be the Chief Technology Officer,
responsible for technology competence and innovation as well as creation of
technology assets and IP. He will also handle important special services such as
engineering, consulting and IMS.
In a series of organisational changes and initiatives aimed at sustaining the
recovery and positioning the company for long-term growth, Mahindra Satyam
appointed Rakesh Soni Chief Operating Officer. He moves from Tech Mahindra
into Mahindra Satyam and will head the delivery for the manufacturing, BFSI
(banking, financial services and insurance), emerging verticals and strategic
accounts. Mr. Soni will also lead the integration, corporate planning and strategy
portfolio.
Another significant appointment is that of Keshab Panda, who will head the
business development and operations for manufacturing, BFSI, emerging verticals
and strategic accounts.
A company release said that Atul Kanwar, who has been moved from Tech
Mahindra into Mahindra Satyam, will head the business development and
operations for the regional business groups (Europe, Australasia, Middle East,
Africa and India). Manish Mehta will head the delivery for these businesses.
T. R. Anand will head the business development and operations for telecom, media
and entertainment, tech infra and semiconductor verticals in addition to channel
business through alliance partners and Tech Mahindra and new technology
companies.
Ravi Bommakanti will head the delivery for these businesses.
Hari T will handle the dual role of Chief People Officer and Chief Marketing
Officer.

Organisational Changes
In a significant development, Mahindra Satyam announced a series of
organizational changes and initiatives aimed at sustaining the recovery and
positioning of the company for long term growth.
Key aspects of the new Organization Design include integrating sales and delivery
into a two-in-a-box collaborative model, strengthening industry verticals, regional
focus, competency groups, aligning business consulting capabilities and
rationalizing support functions into logical groups.
The new structure aims at simplifying the organization design in line with the
proposed business plans and eliminates duplication in roles, while ensuring
minimal disruption in customer facing leadership.
Customers will now be served by a single integrated business unit that combines
both relationship and delivery responsibilities and is dedicated to their specific
needs. This model is expected to increase account focus and responsiveness,
reduce overheads, and improve customer delight.
Company introduced the concept of FLCB (Full Life Cycle Business) and FLCL
(Full Life Cycle Leader). Whole company was divided according to the type of
business and each FLCB was handled by the FLCL. The FLCL was given the
authority and accountability of the whole business execution cycle, ranging from
smaller projects to the regional level projects, the FLCL of each FLCB was
expected to play the role equivalent to that of the CEO or an entrepreneur. The
FLCB consisted of Horizontal Competency Unit (HCU), Vertical Business Unit
(VBU), Regional Business Unit (RBU) and Strategic Support Unit (SSU) all these
units constituted a Matrix Structure of the company, because the FLCLs were
given the responsibility to handle the management level functionalities of the
respective unit, and also were expected to look after the progress of projects falling
under a particular unit. This division on the basis of different units clearly displays
that the company had a structure different from the standard services company in
respect of both nature of responsibility given to an individual and the kind of
inspirational behaviour which is expected to display at work.

Analysis:
At the time of crisis the companys prime concern was to retain its most important
assets, which were available in the form of employees well versed with
technological skills set. So it had to switch to system based approach while setting
goals or making project level decisions. The company had to understand the
necessity of the market at that time, although the company was going through its
worst phase the market was also facing the situation of recession and low gains, so
taking advantage of the same, the company promoted the idea of loyalty and
increased the ease at work for the employees, bringing the concept of fun at work
and total transparency about the strategic moves, company tried to involve as many
employees as possible in the form of representatives from the various departments
of the organisation and selected employees were also given a compensation plan
asking them to sign a bond for the span of one and half years.
As the management of Satyam was adopting a mechanistic approach of working, it
was bound to get more formal and lay down rules which would make the structure
of the organisation more standard and abiding to certain regulations. At the same
time, it had to concentrate on training and making its employees equipped with the
latest technologies, as per the required standards in the market; this high level of
specialisation was maintained by keeping its employees regularly updated by
providing webinars and training sessions. But, when the company was facing a
situation of financial instability, it had to reduce the level of formalisation that was
implemented in the organisation, in order to retain its employees, the company
provided many facilities to its valuable employees, such as freedom to work from
home, flexibility to adjust the working hours according to the work load and other
similar provisions.

Conclusion:
In this way, the organisation structure of Mahindra Satyam, like most of the
Software Industry companies is in a matrix form. The matrix structure is designed
by taking advantages of both the functional as well as product based structure and
minimising the setbacks faced in handling the customers as well as market. This
structure helps the company to cater the requirement of optimum utilisation of
resources, dividing the organisation according to the core competencies and
assigning the leaders to the same, projects would fall under each core competency,
thus avoiding the occurrences of same work done by different employees in
various departments. Mahindra Satyam falls in the category of numerically flexible
firms and zeroing down to the project level, most of the development projects in
the company used the Tuckmans (1965) integrative model. Because of the
economic down turn and fiasco the company had to make changes in the goal
setting theory, that is, it had to adopt interactive model instead of top down goal
setting theory. The company also focused in doing the right thing in order to
increase the effectiveness. It had to use the system based approach in managing the
resources at the time of crisis. The management of the company mainly focused on
dimensions such as formalisation and specialisation. Contingency factors that
influenced the changing of structure at Mahindra Satyam were the software
industrys environment, size of the organisation and also the technological
requirements. The companys financial problem was a real wave of astonishment
that it faced, so whatever steps it took for changing the structure were appropriate
and according to me were the best possible decisions taken in order to keep the
work going on under such troublesome situations.

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REFERENCES
http://www.ukessays.com/essays/business/motivation-and-organisationin-satyam-computers-business-essay.php
http://www.business-standard.com/article/technology/new-structure-atmahindra-satyam-109070100016_1.html
http://www.siasat.com/english/news/mahindra-satyam-announcesorganisational-changes
http://en.wikipedia.org/wiki/Mahindra_Satyam
http://www.thehindu.com/todays-paper/tp-business/toplevel-changes-atmahindra-satyam/article217594.ece