Organizational Behaviour Csa

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ORGANIZATIONAL BEHAVIOR

ASSIGNMENT

CASE STUDY ANALYSIS OF


SCHNEIDER ELECTRIC INDIA: LEADERSHIP CHALLENGES
AND
DR. AMITA JOSHI AT SAMUEL DRUGS LIMITED

SUBMITTED TO: SUBMITTED TO:


Dr. P. C. Bahuguna
Department of General Management
School of Business
UPES, Dehradun.
CASE ANALYSIS OF SCHNEIDER ELECTRIC INDIA: LEADERSHIP
CHALLENGES

Major Causes of the Problem

 Achievement of new implied Production targets from 5000 units to 27000 units:
The original target of 5,000 units was increased to 7000 and later to 27000 in the next
two months and as the Operations was already struggling just to achieve its original
production target, the latest order represented a massive challenge both for the plant and
for its director.

 Challenges in Coping up with Workplace Issues:


Initially, the senior plant managers had to report to their counterparts at the main plant in
Bangalore but this decentralized form of supervision led to a lack of unity of command in
the individual plants, adversely affecting the operations.
Large number of Schneider operators had been relocated from Bangalore to Rudrapur in
order to run the new plant and train the local hires. These workers had to face a variety of
issues in their new city, such as language barriers and difficulty adapting to the extreme
weather conditions of Rudrapur, resulting them to either quit the organization or return
back to Bangalore. This situation created a mindset of panic and insecurity among the
relocated employees, and their performance lacked a sense of ownership and
responsibility.
The Rudrapur plant employed over 450 workers, 20 per cent of whom were permanent
staff; the remaining80 per cent consisted of temporary local hires. Since the local workers
offered and formal training, they found it difficult to match the productivity of the
operators who had come from the mainplant. This lack of preparation and some human
resources (HR) issues resulted in demotivation among the workers.

 Production Related Issues:


Rudrapur was located a significant distance from other manufacturing hubs, so it faced
the problem of long lead times for delivery of materials. Due to the situation of high
production targets and low labour productivity, there was a pileup of inventory of raw
material in plant and work in progress.

 Quality Related Issues:


The defect rate of the products produced was high, with customers returning back their
products back to the company in large numbers. For that reason, no corrective actions
were undertaken by the head office or by plant management.

Problem Analysis and Solutions


After Mishra took the responsibility of as Plant director in Rudrapur Plant,

 He took the revised targets of 5000 units to 27000 units as a challenge despite his
colleagues pressurizing him of formal discussions with head office to reduce the targets.
 He improved the ongoing culture at the workplace by analysing the faults in quality by
substituting the Quality Head, convincing the HR with his quick decision making skills
and past experiences in tackling with the production techniques despite of him not having
much of experience in managing workers at plant level.
Also he improved the way of communication by daily rounds and mingling up with the
workers seeking their ideas and strategies in improving the overall production efficiency.
 To cope up with the production related issues, Mishra strongly believed that the product
should have high quality and high reliability. He believed that customer satisfaction will
drive maximum sales, lean manufacturing will minimize resource wastage and will
motivate the workers, and well trained and informed workers will work more engaged
and produce high productive results. He implemented the same in his organization. He
introduced Collar based segregation system among the employees and promoted the
experienced employees to train the vice versa thereby motivating both the sectors and
improving the employee engagement towards production. He also was patient in hearing
ideas from his employees in improving the overall production standards.Also he gave the
rights to his senior employees to find out solutions for the ongoing problems, ultimately
producing a strong bond with him among the employees.
 As Quality standards were not initially up to the mark, he warned the then Quality head
and upon his failure recruited a much more capable Quality Head thereby also
concentrating on keeping the quality of the products at par.

Mishra’s skill of quick decision taking at the right time with reducing the risk level is an
example of how a leader should be. His way of tackling problems and perceiving problems as
challenge to himself is appreciable and something to be taken as a lesson in life.
CASE ANALYSIS OF DR. AMITA JOSHI AT SAMUEL DRUGS LIMITED

The case depicts the conflict that Dr. Amita Joshi (CEO of Samuel Drugs Limited) and Rajesh
Mishra (CEO of Eastern Pharmaceuticals Limited and the Marketing Head of Samuel Drugs
Limited) are in. When Amita came to know that Samuel Drugs had lost the bid to EPL on a
major tender of supplying generic drugs in bulk to Ministry of Health of the Indian Government,
her transition toa conflict situation happened swiftly as she was quick to realize that Rajesh
Mishra was the person behind this arising issue. Though EPL was the subsidiary of Samuel
Drugs Ltd. whose parent company is The Houston Group, the company might do well overall in
short run, the breach of trust portrayed by Rajesh Mishra left Dr. Joshi surprised and betrayed
that seems to be disgusted as to how a person in whom she had put a lot of trust and faith could
turn into an opportunist and display such an act of unethical behavior in the organization, which
in the long run, might create a void between forecasted future performance and the real
performance of her company.

Now Dr. Joshi and Rajesh Mishra clearly seem to have arrive at a stage of a conflict that is of
cognition and personalization, where Dr. Joshi appears to be emotionally involved in the conflict
having displayed signs of frustration and tenseness. The root causes of this conflict between the
two Chief Executing Officers can be because of the different attitude and sense of perception that
might be attributed through factors of communication, structure and personal variables that
provide for a way to the conflict. Lack of communication, conflict of interest on part of Rajesh
Mishra due to the organizational structure of the Houston Group, and the clear differences in
personal characteristics andpersonality traits of both CEOs have led to the unfortunate situation
of conflict, that arise owing to differences in personalities and leadership styles of both persons
and in addition to this the responsibilities that are bestowed upon the shoulder of the CEO.

Now after visualizing the heat of the moment, Dr. Joshi needs to negotiate by appropriately
deciding on her intentions for a favorable outcomewith respect to the Houston Group, Samuel
Drugs and EPL, in the long run.
Probable Solution:

So there should be proper enlisting of organizational goals that should not be surpassed by any
kind or type of personal interest, the employees should thrive towards excellence taking the
organization as a whole. The solution could be through making use of or focusing on conflict-
resolution technique like for example

 Problem solving (face to face meeting of the conflicting parties of identifying the
problem and resolving it through open discussion), or
 Superordinate goals (creating a shared goal that cannot be attained without the
cooperation of each of the conflicting parties), or
 Smoothing superordinate goals (playing down differences while emphasizing common
interests between the conflicting parties), or
 Authoritative command (management uses its formal authority to resolve the conflict and
then communicates its desires to the parties involved), or
 Altering the human variable (using behavioral change techniques such as human relation
training to the attitudes and behaviors that cause conflict), or
 Altering the structure variables (changing the formal organization structure and the
interaction patterns of conflicting parties through job design, transfers, creation of
coordinating positions and the like).

Dr. Amita might also demotes or transfer Mr. Mishra to the other subsidiary of the company for
displaying such an act of unethical behavior in organization as she and the company can’t afford
to lose a skilled employee so he couldn’t be fired, but using contacts gained through the
company’s business for just to pursue personal interest should not be encouraged.

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