ORGANISATIONAL STRUCTURE OF MAHINDRA GROUP

Radhika Agarwal Gaurav Biswas Rajdip Dhang Varsha Singhania Bandita Nawar Simanta Hazarika

INTRODUCTION


Ghulam Mohammed one of the founders of Mahindra & Mohammed in 1945 Founded as a steel trading company until they bring the Willys Jeep onto the Indian roads The name changed to Mahindra & Mahindra in 1947 due to the emigration of Mr.Ghulam Mohammed to Pakistan They follow an unique business model of creating empowered companies Today their operation span 18 key industries

JOURNEY OF MAHINDRA & MAHINDRA

1945- 49 - Mahindra Brothers (J.C. Mahindra and K.C. Mahindra) and Ghulam Mohammed join hands to set up Mahindra & Mohammed Limited , starts the assembly line for manufacturing of Jeep 1956 62 - Mahindra & Mahindra Shares listed on the Bombay Stock Exchange 1962 Mahindra Ugine Steel Company established a joint venture with Ugine Kuhlmann, France 1986 Tech Mahindra established a JV with British Telecommunications Plc., leading the way for the groups entry into Information Technology

1995 Mahindra Holding & Finance Limited became a subsidiary of Mahindra & Mahindra to carry out business

1997 - Mahindra World City Developers Ltd. established to set up integrated townships 1999 Mahindra & Mahindra Financial Services Limited became a subsidiary of Mahindra & Mahindra 2001 - Mahindra Infrastructure Developers Limited established for development and management of infrastructure projects 2005 Mahindra Renault JV established - a joint venture with Renault to manufacture and market Logan, a mid-sized sedan, in India 2006 Mahindra Finance became the first Mahindra Group Company in 23 years to be listed and was oversubscribed 27 times 2008 - Mahindra lays out the foundation to enter the two-wheeler segment by acquiring the assets of Kinetic 2009 -Mahindra & Navistar sign JV for manufacturing commercial vehicles in the country.

MAHINDRA GROUP SECTORS

1. Automotive 2. Farm Equipment 7. Two wheelers 3. IT 8. Defence 4. Aftermarket 9. Hospitality 5. Financial Services 10. Systech 6. Real Estate & Infrastructure

BOARD OF DIRECTORS

NAMES
1. 2. 3. 4. 5. 6. RAVINDRA KULKARNI-DIRECTOR DEEPAK PAREKH-DIRECTOR M.M MURUGAPPAN-DIRECTOR ARUN K NANDA-DIRECTOR DR. ASHOK GANGULY-DIRECTOR ANAND MAHINDRA-VICE CHAIRMAN&MANAGING DIRECTOR 7. NADIR GODREJ-DIRECTOR 8. ARUN DAS GUPTA-DIRECTOR 9. KESUB MAHINDRA-CHAIRMAN 10. ANUPAM PURI-DIRECTOR 11. NARAYAN VAGHUL-DIRECTOR 12. BHARAT DOSHI-EXECUTIVE DIRECTOR

ORGANIZATIONAL STRUCTURE KEY ELEMENTS

Specialization Departmentalization Chain of command Span of Control Degree of centralization Formalization

Work

WORK SPECIALISATION

Mahindra is a highly differentiated organization because of the technical expertise required in the manufacturing and service industries. It exploits the division of labour to gain cost leadership in the industry. It has a complex organization because of the multiple sectors it operates in and the wide variety of products and services it offers.

Bureaucratic structure - 1947 Decentralized 1991 - 2008 Rise new vision - 2011

DEPARTMENTALISATION
Matrix

Structure

Cross

functional teams boards

Shadow

Emphasis

on development of young managers

DEGREE OF CENTRALIZATION
Highly

decentralized to support innovation with the width of Mahindras business with tradition

Consistent

Blend

ANAND MAHINDRA SAYS..

We have defined our core values, and there are the annual retreats (a conference for senior executives where the priorities of the organization are presented and discussed). These mechanisms help me compose the music so that many soloists can play in my orchestra. The players know what is not negotiable: THE PACE, THE TEMPO, and THE TRADITIONS. I have to write the music and then stick to my role of conducting the orchestra rather than trying to play the music myself.

CHAIN OF COMMAND

All SBUs directly under CEO Decentralized structure many mentoring programs, workshops held All SBUs operations are independent of each other

SPAN OF CONTROL

Number of organizational levels decreased Wider span Consistent with the organizations management who are experienced

FORMALIZATION
Two

separate blocks process highly

Production

formalized
Managerial

hierarchy highly decentralized

LIMITATIONS
Lack

of adequate data in the library

Appropriate

information not available on Mahindra & Mahindra website of opportunity to collect primary data structures not available

Lack

Organizational

RECOMMENDATIONS

Consolidate the existing businesses first Focus more on services sector Open management institutions Try to maintain uniform corporate image Prohibit the making of another Enron

CONCLUSION

From the organizational chart of the top management, a fair idea of the dimensions of the structure can be obtained. the span of control is well within efficient levels considering the size of the group the employees are encouraged to take decisions regarding their own work responsibility which makes them feel important and empowered. The management have to bring in more transparency with regard to the communications with the employees and union. Necessary training for the employees and managers

Thank you!