CASE STUDY

WINTER
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GROUP MEMBERS

Case Study Analysis Presented By: Adeel Musaddiq Muhammad Bilal Usman Hamid Qasim Shafiq

EMBA -II

Problems / Issues
1 2 Increased Production Cost Informal Policy Practices

Management Style
Non-Availability of Trained Manpower

Continued..
5 6

Market Share Employee Retention

7
8

No Formal Appraisal Procedure

Discriminatory Practices

IMPORTANT PROBLEM / ISSUES

Retention of Trained Employees

Informal Policy Practices

Increased Production Cost

STATISTICS / FACTS / DATA

Kansai has captured 75% of the Market Share in Automotive Sector

Kansai has 20% share in Decorative Sector

Company had just 90,000 Employees at the End of Fiscal Year 2007 Year 2011 saw a high attrition rate, due to poaching by competitive firms Energy Tariffs has risen by 13% over the past year. The fuel prices has risen by 12%

QUALITATIVE STATEMENTS

1. Automotive division is the strongest division of kansai paints Pakistan.

2. Joint venture of two companies.

3. Increase of costs due to energy crisis. 4. Non-existence of formal process and procedures. 5. Non-existence of trained and competent technical manpower. 6. Automotive paints are the cash cow for the company. 7. No proper employee retention. 8. No structured performance appraisal policy.

9. Kansai was a men's organization.

IMPORTANT QUALITATIVE STATEMENTS

Automotive division is the strongest division of kansai paints Pakistan.

Non-existence of formal process and procedures.

Non-existence of trained and competent technical manpower

The Core Problem

P1 P2

P3

Retention of Trained Employees

Why the Core Problem?

1. With anticipated future growth the presence of trained employees was necessary. 2. Training took time and company resources. 3. Skilled workers were hard to find.

Solutions

1. Training should be coupled with an increase in the incentives because we find that employees were leaving for slightly better salaries from the competitors. 2. Incorporation of an effective and uniform appraisal process so that no employee may be appraised unjustly primarily at the discretion of the management style of the respective manager. 3. Development of an appraisal system based upon competencies and skill development so that each employee may be motivated to be trained and get the resulting benefits in doing so. 4. Independent appraisal department to eliminate the element of bias. 5. Market intelligence to know what the competitors are offering to their employees and thus plan proactively.

Conclusion & Recommendation

1. Growth is not possible without trained employees and training comes at a cost. Employee retention is the only answer in such a scenario. If better package is something that causes the employee to leave then a better package is the only way to retain him.