ORGANIZATIONAL

DEVELOPMENT
AN ANALYSIS OF PRINCE AUTO INDUSTRIES
AKASH PHOULAD
RAHUL SHAH
PRINCE SHARMA
 Abstract
Automobile manufacturing sector is the backbone of any country providing employment
directly and indirectly to people and improve their life style and economy of the country.
Global competition in automobile manufacturing sector demands higher productivity and
quality levels and cost competitiveness. In order to achieve higher quality level and cost
competitiveness, automobile manufacturing sector in this country is forced to go in for
adapt downsizing and restructure the current system.
In automotive sector, two wheelers are made to as high as 70% of the total vehicle
population. In order to sustain in the local as well as global markets, motorcycle
performance improvement has become essential which directly or indirectly warrants
improvement in its components performances. In this context, the present study attempts
to understand and assess the performance of “PRINCE AUTO INDUSTRIES” and possibility
of improving it by suitable modification.
 Introduction
India is the second largest manufacturer and producer of two-wheelers in the world. It
stands next only to Japan and China in terms of the number of two-wheelers produced
and domestic sales respectively. The Indian two-wheeler industry made a small
beginning in the early 50s when Automobile Products of India (API) started
manufacturing scooters in the country. Until 1958, API and Enfield were the sole
producers. Two wheeler parts market in India and export potential for motorcycles parts,
challenges for Indian two wheeler parts manufacturers. Problems associated with
various segment of the company are discussed.

The manufacturers have to plan and go deeper into all the prospects in the market
before taking any step. The long term outlook for the two wheeler automobile parts
industry in India seems to be very promising. This study was carried out to scan the
importance of structured organisation for motorcycles parts companies in order to gain
larger market share and higher profit.
 Company Profile
Manufacturer of Two wheeler auto parts
Industry – Automotive Industry
Type - Sole Proprietorship
Operating since -2006
Number of Employees: 60 currently working
Branches: Manufacturing unit located in Bawana Industrial area
assembling & Packaging and Warehouse unit located in
Krishna Vihar.
 What are we into
Product line
Head light assembly
Visor glass
Tail light Assembly

Supply type
Multinational Auto ancillary companies
Aftermarket
 Level of Changes
HUMAN RESOURCE MANAGEMENT
- Sense of responsibility
- Recruitment of skilled employees
- Resistance to change
- Development of formal structure
INFRASTRUCTURE OF ORGANIZATION
- Changing of setup
- Cleaned environment
DEVELOPMENT OF PROFESSIONAL MANAGEMENT SYSTEM
WASTE MANAGEMENT
- Reducing the manufacturing wastage
- Reducing rejection rate
 Level of Changes (explained)

HUMAN RESOURCE MANAGEMENT

Sense of responsibility – Considering work as responsibility needs to be built up for dedication
and motivation to do the work.
Recruitment of skilled employees - It is important to get right employees at right time, right
place and for right work.
Resistance to change – To adapt any modification in organization isn’t easy at once. But, it is very
important to grow substantially.
Development of formal structure – A formal structure ensures that flow of communication and
protocol is maintained in an adequate manner for error free performance in the company.
Continued
INFRASTRUCTURE OF ORGANIZATION
Changing of Setup: Enhancement of machines, common areas, labour rest areas, and
managed physical structure.
Cleaned Environment: A clean and hygienic environment is very important for
maintaining safety of the employees.

WASTE MANAGEMENT
Reducing the manufacturing wastage: Wastage can incur cost to company if not taken
care of. During manufacturing, raw materials tend be inferior or may be not made as
expected. Hence, it is important to figure out where we need to improve and reduce the
cost of wastage.
Reducing rejection rate: When finished goods do not meet the set benchmark, these are
considered rejected item. Hence, rejection of goods adds on cost of production.
 Plan of action
HUMAN RESOURCE MANAGEMENT
- Showcasing the difference between duty and responsibility along with the
intent to create more inclination towards the task.
- Conducting analysis of current employees, finding the error, and making
the amendments.
-Awareness seminar for employees to explan the benefits of adapting
change.
- Formalizing the communication channel by appointing supervisors who can
precisely understand the labor issues and work in coordination with top
level management.
Plan of Action (Continued)

INFRASTRUCTURE OF ORGANIZATION
-Discarding machines that require frequent maintenance and care with new and latest
machines.
-Regular cleanliness and dumping of waste materials.
-Fixed audit of frequently used areas and making required changes according to the need.

WASTE MANAGEMENT
- Making a report of annual manufacturing waste and the cause.
- Designing strategy on the basis of report to reduce the waste by using right material in right
quantity.
-3 Levels of quality check before dispatching the final product to the market.
 The Nadler-Tushman Congruence Model

Input
An organisation in fact consists of four elements that work together in order to
process input into output. This process is referred to as the transformation
process: natural resources, components or other means are processed and turned
into something new. 
Continued

Transformation
The transformation process takes place continuously within the organisation.
The organisation’s environment is not as stable. Organisations are exposed to
countless threats and opportunities and need to use their means in such a
way as to achieve maximum profitability. Threats and opportunities can be
identified using the SWOT model and other environmental factors can be
identified using PESTEL.
Output
The finished products or services are then delivered to the external market.
The market’s reaction is important to the organisation, which will always
consider and process it in the form of feedback.
 Implementation of model in our business
Work – the work task are divided and given to employees which are
specifically skilled to perform it as giving a technical task to a non skilled
employee can result in wastage of resources, damage, etc. These tasks
are aimed to fulfil the objectives of company.

People - in our company we have employees of very long experience like

10 year, 15 years which are currently working also. We reward and
compensate employees on the basis of their work performance, we
provide advance money in every month which keeps staff motivated.
Continued

Organizational structure: the reporting lines follow a structutre where top

management provide task for employees, supervisors need to get work done
from employees monitor their work performance, then employees need to
work on the task provided by top management.

Culture: the people ‘s attitude working in our company different as they

come from different background, most of the employees come from village
areas out of which majority are unskilled so it become relatively easy to
understand the culture background which employee have and we need them
to adapt to organization values & code of behaviour which they need to
follow.
Lewin’s Three Phase Model
 Implementation of model in our Business

Unfreezing - many people in the company naturally resist change, we

need to spread awareness so that they must accept the change at
current level. We need to highlight importance of this change to face
competition in market and get a advantage in market place.
Communication is especially important during the unfreezing stage so
that employees can become informed about the imminent change. The
idea is that the more we know about a change and the more we feel it is
necessary and urgent, the more motivated we are to accept the change.
 Continued

 Changing - we need to make change becomes a reality, change is a process that

must be carefully planned and executed. During the changing step people begin
to learn the new behaviors, processes and ways of thinking. The more prepared
they are for this step, the easier it is to complete, for this reason, education,
communication, support and time are critical for employees as they become
familiar with the change., Employees should be reminded of the reasons for the
change and how it will benefit them once fully implemented.

 Refreezing - the changes made to organizational processes, goals, structure,

offerings or people are accepted and refrozen as the new norm or status quo. This
is very important to ensure that people do not revert back to their old ways of
thinking or doing prior to the implementation of the change. Efforts must be
made to guarantee the change is not lost; rather, it needs to be cemented into the
organization's culture and maintained as the acceptable way of thinking or doing.