Introduction.
New Holland Tractors (India) Pvt. Ltd. was established by Mr. Palani Kumar as India's most modern tractor plant, with products that were technologically way ahead of competitors. Initially it began as a tractor-manufacturing unit for UK based multinational major, Ford, in joint venture with Escorts Tractor Ltd. In 1998 it launched production with a state-of-the-art plant at Greater Noida in Uttar Pradesh. This was the time when many new competitors entered the market.
Vision of Mr. Palani Kumar
Mr. Palani Kumar was a highly knowledgeable and experienced person who visualized a team and process based structure to establish a barrier less flexible organization and enhance greater communication for speed of decision and action, focus on deliverables rather than on activities, inculcate result orientation and establish clearly defined measures of efficiency. Mr. Kumar's three point agenda was
- Farmer's education to enable them to implement and make full use of the product
- Right product selection , meeting the requirements of the Indian customers
- Putting in place a nimble, flexible and agile organization
The organization and the Project sets off.
The process orientation at NHI meant applying individual expertise, initiative, drive, etc, in the context of business processes and team work. The organization structure was lean and flat so that even the Chief Managers were easily available. High standards were set in every aspect of business with team work as the guiding radar. There were cross-functional teams and team work was given the highest priority. At the same time work pressure and stress levels were high.
During the induction period of the new recruits they were sensitized enough with intensive training to work effectively and efficiently in teams.
Problems generated
1. Performance appraisal system - The performance of an individual was based on 60-40 plan wherein an employee was...