Case Analysis: Group 3

About:
First invention led to the foundation of Ingersoll Rand originally known as Ingersoll Rock Drill
Company which was steam power rock drill. At the early stage company was into developing
of mechanical products like hammer driller, clay digger, riveting hammer, grinder etc.
It developed and was the early adopter of some tools like first portable compressor,
centrifugal compressor under brand Centac, gas compressor, launched indigenously built
hydraulic drifter drill.
However, the company was known for mechanical rock drill product which had narrowly
focused industrial image, so to adapt to some change CEO of that time changed its logo
which made limited success. To further rebrand its image, it identifies a strategy to change
its image which was to inspire progress by unleashing the potential in people and
technology. By 2011 company operated in various other business unit such as Climate
Solution, Resident Solution, Industrial technologies and Security Technologies.
It was attracted toward Asian market particularly India because of the lower cost of
production. IR India established ETC (Engineering and Technologies Centres) to support
different product development of different business. ETC was established to fulfil the need
of different SBUs where it was divided into two functions mechanical product engineering
and control engineering. Normally person employed to particular SBUs would not be
reassigned to new SBUs because they worked on specific domain products.
There were lot of confusion and misunderstanding and delay in project delivery due to
change in initial configuration. Different SBUs had different system for product
enhancement which did not align with the system of ETC. Talent prospect was weak with
unidentified senior successor, so new HR team was established to identify the problem
which had some interesting reveals about companies’ policies and management system.
STAR model to analyse various issues

Strategy:

 To establish ETC to support product development of different business unit in India.

 To develop right organisation configuration to grow and sustain in India.
 Diversify its image from only mechanical construction heavy machinery to diversified
industry.
 Ambitious goal of accelerating innovation, leverage key India based competencies,
design energy efficient competitive product and solution for India and emerging
market.

Structure:

 ETC was divided into two function: Product engineering and Control engineering.
 Product engineering dealt with production and design of product whereas control
engineering was engaged in using the sensor to measure the output performance
housed with software development team
 New employee who joined the ETC would not get reassigned to different SBUs
because they worked on special product domain so there was need to support these
employees by providing ample number of projects.
 The engineering services team and technical publication team which were at the
lowest level of the business hierarchy, did not see themselves as important parts of
the organization.

Processes:
 Work flow generally include mechanical and control unit reporting to the ETC Head
 Periodic update of status was required during the process which different SBUs wanted from
ETC
 Development process were required for the employee in which IR India used to lack behind.
 HR initiative to understand the employee pain point using feedback system where employee
addressed the managerial discretion on training nomination and need for technical training.

Reward:
  Bi annual performance review for promotion.
 Strong emphasis on development planning meeting between employees and their
managers but manager did not actively participate.
 Technical training programs required for the employees and engineers which HR
struggle to identify.
 Promotion of technical job to people management role but some employee
preferred their technical role.

People:

 Power distance between engineering service, technical publication team and the
hierarchy.
 Technical knowledge and training were required for engineers to align with the
global IR company.
 HR team wanted ETC to be efficient in terms of people and process in order to create
in best class and implemented “Your ideas our Future”.

Problems faced by ETC:

 Conflict due to confusion and misunderstanding and delay in project delays due to
change in project configuration at later stage in the SBUs
 It was difficult for ETC to align own system with different SBUs because every SBUs
had different system.
 SBUs would ask for periodical update of project from ETC which it found difficult to
answer
 To address the query about status of project meeting of all counterparts involved
was called requiring numerous meeting to obtain status of single project. The update
was sent by mail which was difficult for the manager to obtain the status in
dashboard.
 Mangers did not actively participate in development planning process.
 Talent prospect was weak at the leadership level and no future leader of ETC had
been identified.
 There was lack skill in engineers where the technical training was required but HR
found it difficult to address because they had little expertise of understanding that.
 There was power distance between hierarchy and various unit.
 Employee who were unhappy or did not get promotion in biannual performance
used to leave the company.
Why these problems existed:
 Mangers and management behaviour toward not participate actively in learning and
development processes.
 Training was generally managerial nomination and the choice of employee training
was left at mangers discretion.
 There was no potential successor and non-availability of data on key talent successor
 HR potential not to identify and address the understanding of what kind of skill
competent for technical training.
 Non-alignment of the system of the ETC with the system of different SBUs because
each had different system.
 Whenever asked for update of the project different functional unit found difficult to
answer.
 Change of the project at later stage carrying lot of confusion and misunderstanding
which ETC did not address any proper solution

2. What implications does the case have for multinational corporations

operating in India and for their product development initiatives?
 India offers a lower cost of production and therefore is lucrative for foreign
companies to set up their manufacturing units in India. In the case also, it's been
mentioned that Ingersoll Rand wanted to move to India for the production of four
product families and this transfer increased during the that time recession in 2008-
09.
 India also provide competencies in advanced software design and the same was one
of the goals for Ingersoll Rand when the ETCs were started in 2004. This shows India
as a potential hub for software design technologies and can be leveraged by
multinational companies.
 India expected to be world's fastest growing economy in 2023. India is set to be the
world's fastest growing major economy in the year ahead, as a post-pandemic retail
boom and recent bank balance-sheet repairs lure new investment. Even the Trane
company realised this and thereby wanted to leverage the residential segment with
their split air conditioner.
 The case also says that India is a price conscious market and thereby it is important
to develop relevant products to capture the available gaps in the market
 Also, during the initiate taken by HR of “Your ideas and our future” employee
mentioned about learning technical skill which shows the employee keen interest to
work towards common goal.
About Group

Name Roll No
Abhishek Kumar Singh H002-22
Ashish Abhishek Minz H013-22
Kuldeep Singh H036-22
Maniratnam Porwal H039-22
Monica Rohini H042-22