YANTRA succession planning. • Workers and Executive cadre

YANTRA NIRMAN
NIGAM LIMITED
EMPLOYEE PERFORMANCE
~ MOTIVATIONAL FACTORS ~ COMPANY PERFORMANCE ~ A Study

Team:

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·      
Sindhu Vijayan.

·      
S P Piyush Krishna.

·      
Anil Kumar Murari.

 

·      
ABSTRACT

The company has
been under declared as a sick unit by the government and referred to BIFR
(Board for Industrial & Financial Reconstruction) to assist the process of
revival of the company. As the company is undergoing severe production crisis, extreme
financial stress due to increase in financial liabilities towards vendors,
statutory payments and differed payment of salaries to employees. The study is
enables us to understand the underlying motivational factors, de-motivational
factors and group dynamics that dictates the company’s performance.

 

·      
COMPANY:

YANTRA NIRMAN
NIGAM LIMITED a leading PSU
which has pioneered the technique to produce large scale industrial special
purpose machines. We analyse the conditions that have caused production losses,
financial turmoil and proposed solutions as a remedy to rectify an ongoing
endeavour to revive the company.

 

·       PROBLEM &
CHALLENGE:

It is imperative
that satisfied employees are highly productive and play a significant role in
any major turnaround of a company. But given the situation in the company some
of the factors are given below which pose an open challenge questioning the
very existence of the company.

 

•      
This
is been attributed to long production cycles, low production ratio (rework and
design modification) and under realization of payments from customers.
De-motivated employees.

•      
Multiple
implementation of VRS at (Year / Year) without proper due diligence process
thereby eroding creamy work force.

•       Loss of trained
and highly skilled workers. No recruitments and employee exit due to
(VRS/Retirements/Resignations/Transfers).

•       Complete absence
of succession planning.

•       Workers and Executive
cadre employees are been paid as per 1997 pay scale.

•       Vested interest
and undue interference from Unions and political parties

•       No promotions and
salary increments. Non payment of monthly salaries and retirement benefits to
employees.

•       Differed payment
to statutory authorities.

•       No employees
training and development activities.

•       Workers
self-centred approach towards peak production period – misuse of employees
benefit program.

•      
Long
legal battles for settlement of terminal benefits to employees and payment to
vendors.

•      
Obsolete
technology – Machines used for manufacturing are >= 20 years old with
constant repairs and often go beyond repair

•      
Non
Government

 

According to – (https://www.uvic.ca/gustavson/globe/about/founder/index.php)
Peter B. Gustavson School of Business – University of Victoria – GLOBE project
Global Leadership and Organizational Behaviour Effectiveness Research Program.

 

Path-Goal Theory
of Leader Effectiveness – the essence of the theory as “the meta proposition
that leaders, to be effective, engage in behaviours that complement
subordinates’ environments and abilities in a manner that compensates for
deficiencies and is instrumental to subordinate satisfaction and individual and
work unit performance”. (1) 

 

 

                                                                                          
(2)

 

 

·       PROPOSED SOLUTION:

•      
Change
in the leadership style is the need of the hour; it is evident that
authoritarian style of leadership and rigid organization structure were decision
making authority is on the top only.

 

•      
These
have to be replaced by more decentralised process and facilitate sub-level decision
making authority to critical function to avoid delays.

 

•      
Government
has to facilitate FDI (Foreign Direct Investments) and considerable changes in
board and make provisions for due representation from a) subject matter experts
b) industry experts c) investing company / country.

•      
Government
to write-off all debts and payment of dues

•       Due to the non
availability funds at the disposal of the company. The following measures are
need of the hour and may be adopted to generate additional funds for the
company,

•       Disposal of unused
machinery and scarp.

•       Lease of unused
waste land and buildings.

•       Request for funds
from government.

•       Company needs to
implement higher pay scale (From 1997 to 2017).

•       On time payments
of monthly salaries and benefits.

•       On time promotions
and increments.

•       Trainings and
development has to play a pivotal role in increasing the competency of the
existing staff.

•       Aggressive
recruitment policy has to be implemented, to arrest the brain drain.

•       Company at a board
level has to scrape the policy of extending the retirement period of employees
from 58 to 60 years as it favours the few. On the other hand increase the
retirement age to 60 years.

•       All the employees
who are nearing the retirement age (less than 4 years to retire) a
comprehensive buddy policy has to be implemented, where it is mandatory for the
outgoing employee to train his successor.

•       No peak production
period.

 

 

References:

 

(1) 
https://www.uvic.ca/gustavson/globe/about/founder/index.php

(2) 
In
Decision making: An organizational behaviour approach, ed. J. M. Pennings.
Princeton .N.J Markus Wiener Publishers

 

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