CASE STUDY

IMPLEMENTING NEW SYSTEM AT

PRESENTED BY:
SAKSHI TYAGI
NIKITA BAISLA
[M.B.A 1st year]
 CASE OVERVIEW
• The past three years at VXM software have been very
good as the company grew well in terms of business
and growth rate.
• The founder CEO, Vijay Kamath, has embarked upon a
massive expansion plan.
• He has planned to grow into international market and
double their turnover within the next three years.
• His focus has been on developing products and
expansion strategies.
• he was impressed by the concept of loans by venture
capitalists.
• Within five months, the deal was finalised and the company
received a loan of 20 crores to put in their expansion plans.

• The business from international market started coming in

slowly but by the end of the year 1998, the business from this
sector rose to almost double.
• Anjali Mehta, the Human Resource Chief said, 'We are using a
model for assessing human assets in our organisation.
Accordingly we have annual employee satisfaction survey and
very effective performance appraisal system
 PROBLEMS:
• Vijay, however, felt that the focus on increase
in business had led to other problems like
those of performance and quality.
• While the company was busy in creating and
maintaining products, they have so far
ignored performance on other non-financial
parameters such as employee turnover,
customer retention, etc.
1. Employee turnover
Causes of Employ turnover problem :
Customer Retention problem :
 FOCUS ON THE ISSUE :
1. Customers - The many issues related with this were how clients
see the organisation. their needs, reducing lead time and
developing relationships.
2. The strengths, i.e. the competitive advantage the company has,
their efforts in marketing and product development and how they
can build upon internal resources, etc.
3. The financial perspective and the measures to improve their
performance.
4. The perspective of learning, emphasis on training and
development.
Skewed model :
 Findings
• he linked the phases of the implementation with the
performance appraisal system.
• His employee turnover rose high and the software developers
were worst hit.
• Six months after the implementation, "The development
technique of the package is flawed.
• They get the same reports as we were getting earlier with our
individual divisional systems.
• The human resources and quality systems which produce
monthly evaluation reports still do the same.
• Also the data we are generating in skewed is enormous but is
not working for us".
Questions:
Q.1Why is Vijay Kamath facing these problems and not
getting the expected result?

• There approach doesn’t recognizes that there

is a central core of knowledge about managing
which exists in management such as line and
staff, patterns of departmentation, span of
management, performance appraisal and
various managerial control techniques.
• They did not recognizes Accurate process to
analyse the actual performance against the
standard performance
Q.2 Could the external consultants have made it
more successful?
• Yes, they are expertise of that specific area.
They can guide them through the
implementation process.
 conclusion
• Vxm must use the organisational approach the
approach recognizes that the actual problems
managers face . It also helps in managing
which exists in management such as line and
staff, Performance appraisal and various
managerial control techniques.
• They also need to hire the external consultant
can guide them through the implementation
process.
THANK YOU