Presented By : GROUP 3
CASE SUMMARY
Public Sector Company (70 Years Old)
2500 Employees
PRODUCT MARKETS
Communication Equipment
Market Leader (50+ Years)
Largely Government Buyers
Instrumentation Products
New Entrant (2 Decades)
DEREGULATION OF THE SECTOR
12 Product-Lines | Avg. 3 Models
Slow Product Development
Employee Attrition
SITUATION ANALYSIS
NIL
Strong Control Mechanisms
Centralized Structure
Hierarchical Decision Making
"Efficiency over Customer"
PORTER'S FIVE FORCES
Rivalry: Mod-High (Several Public and Private Players)
New Entrants: High (Recent Deregulation)
Supplier Power: Low-Mod (Public Sector + 70+ years)
Buyer Power: High (Lack of Innovation)
Substitutes: Low-Mod (High Switching Costs)
PROBLEMS IDENTIFIED
LONG-TERM
Strategy: There is no proper strategy for the product lines. Marketing constantly requires modifications in
products or new products to be manufactured but it is very costly to design new products or make
modifications for the R&D department which is under Manufacturing. New products are introduced but
only a few months after the competitors.
Threat of Competition: In the instrumentation field, NIL is an emergent player and there is a lot of
competition among private players.
Threat of New Entrants: The government has deregulated the communication sector and many private
players are expected to enter the defence products industry.

IMMEDIATE
Technology: The company is facing issues with resource wastage due to a lack of MIS.
HR Systems: Some of the training programs seem to not deliver the intended results most probably
owing to the sudden change in the market (deregulation) and new products (instrumentation).
Structure: NIL has a functional structure. As a result, the operations are very much controlled and
centralised but there is a lack of coordination among the various functions due to the formation of silos.
SOCIOGRAM
ORGANIZATION-LEVEL
DIAGNOSTIC MODEL
STRUCTURAL
CHANGE

Matrix of
Products
(Product Lines)
and
Functions
(Manufacturing
and Marketing)
TECHNOLOGICAL
CHANGE: MIS
STRATEGIC FOCUS
HR SYSTEMS
 PROPOSED CHANGES
Restructuring the Revising L&D Implementation of
Organization Practices MIS
Goals 3
To adopt a partial/loose To support upskilling of To attain operational and
matrix structure in order to existing employees and resource efficiency
improve the coordination capability building (through JIT) and
between departments and programs for the new continuous flow of
decentralize the recruits. Also, familiarizing information for quality
operations with increased the employees on the decision making.
integration. usage of MIS.
CHALLENGES AND WAYS TO OVERCOME THEM
Data Security
Because of the proposed techno-structural
changes and due to the implementation of
an organizational level MIS, the data of the
communication equipment business line
will be shared across the organization which
might undermine confidential information
of the clients if the MIS is compromised.
This can be overcome by limiting the access
of communication equipment business line
information to the senior most people in
the communication equipment BU. The
generic information will be available to
everyone but sensitive information will be
shared with only select people. Apart from
this, the company will also invest in network
firewall and encryption measures.
Resistance to Change
Just like any other major change intervention, this
will also face major resistance and backlash from the
employees.
This can be dealt with by explaining the employees
about the change, assuring them and phasing out
the whole process of change.
Ambiguity in Chain of Command
With the loose matrix structure, comes the
ambiguity in the reporting. Since the power
dynamics between the functional manager and the
project manager may not be as clearly defined
within the matrix, confusion about the specific
managerial roles may arise.
This can be dealt with setting proper boundaries and
establishing norms that define roles and
responsibilities.
IMPLEMENTATION PLAN & FEASIBILITY
MD

1. There is a lack of coordination among the various

PERSONAL operating functions.
STAKES 2. The bottom line of the company is affected.
3. There is employee turnover in the company.

1. A decentralised structure would improve the coordination

and communication among the various functions.
EXPECTED 2. A new MIS system would reduce resource wastage and
OUTCOMES improve the bottom line of the company.
FOR SELF 3. Training of the employees would help in reducing the
turnover.
GM, Manufacturing
1. Reduction in Employee Productivity: Numerous trainings and
leadership initiatives are hindering employee productivity rates.
2. JIT: New technologies like JIT will help reduce raw material
PERSONAL inventory but at the cost of training time and effort.
STAKES 3. Heading R&D: My department is running the R&D Division.
4. Consultation: MD should take into consideration our views as well
rather than going against my advice with some change
management initiatives.

1. Decentralized Structure: Centralization was important from my

viewpoint, but proposed changes are partial/loose matrix which
would still be helpful to centralize cost structure.
EXPECTED 2. Management Training: More effective training to be in place.
OUTCOMES 3. Communication & Coordination: Appropriate communication &
FOR SELF collaboration with the Marketing department to effectively judge
inventory levels and new product concepts seem to work with the
newly proposed structure & MIS(JIT) in place.
GM, Marketing
1. Communication: Pushing deadlines for delivery of several orders
and delay in the innovation of products.
2. Motivation: Loss of reputation and lagging behind in innovation
PERSONAL has lowered employee morale.
STAKES 3. Autonomy: 'Whiz Kids' - Product Managers with knowledge of
Product Operations.
4. Integration: Bringing R&D under Marketing Function to address
product innovation issues.

1. Decentralized Structure: Partial Matrix Structure allows for

Product Managers to make judgements based on Marketing and
Manufacturing recommendations.
EXPECTED 2. Management Training: Training to address the changing business
OUTCOMES environment and impact on employees.
FOR SELF 3. Communication & Coordination: Implementation of MIS forms the
base for developing internet presence and tie-ins with buyers
having automatic inventory ordering capability.
GM, Finance
1. No tied up money - This JIT inventory implementation will no longer
have the money unnecessarily tied up inventory.
2. Decentralization - The new structure decentralizes the power
structures and makes it difficult to institute a tighter centralized
system of financial control.
PERSONAL 3. Interest Savings - Lower inventory levels lower the interest burden.
STAKES Interest Savings can boost the bottom line and help fund other
projects.
4. Apprehensions about the MIS - There are reservations about the MIS
because it would call for large-scale technological change and there
have been instances where the implementation of MIS has terribly
gone wrong.

1. Better Bottom Line -The interest savings, better inventory planning

EXPECTED and use of MIS will add to our bottom line.
OUTCOMES 2. Loss of power and reduced financial control - Since the proposed
FOR SELF CGM position is not instituted and the organization is decentralized. I
lose out on financial control and my power is limited.
GM, Human Resources

1. Decentralized structure works better in a constantly changing

environment, an organization that regularly confronts
differentiated customer needs.
PERSONAL 2. Talent deployment – Training and development programs help
STAKES in building capabilities and in industries with such fluctuating
priorities, allowing employees to transfer between different
duties may also help reduce turnover rates and burnout.

1. Breaking the silos - As a result of restructuring and

EXPECTED decentralizing, the coordination between the departments
OUTCOMES would increase.
FOR SELF 2. Lower attrition rates – upskilling and building capabilities would
encourage employees to realize their career growth prospects.
THANK
YOU
GROUP 3
2021PGPH015 CHANDRAVANSHI SHUBHAMKUMAR PAWANKUMAR
2021PGPH005 DEEPTHI U PADVETNAYA
2021PGPH040 MRUDUL MANOJKUMAR
2021PGPH016 PRABHA MISHRA
2021PGPH024 PRAKHAR RAJ
2021PGPH034 RITUPARNA SENAPATI