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Applications of Organizational Behavior Learnings

To

My Previous Organization

Mahindra & Mahindra

Submitted By: Sunanda Lal

Roll No: MSEP13GLSCM071


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INTRODUCTION

Organizational Behavior describes the way people think, feel and act in an

organization. I have a work experience of three years from 2010 to 2013 in

Mahindra & Mahindra which is an Indian Automobile manufacturing company.

When the course of organization behavior was being done I was able to very

clearly relate every topic to my past experiences.

With this three years of experience in the corporate world I have been a keen

observer of the Organizational characteristics like Leadership Styles,

Communication methodologies, Innovation, Value addition to work culture and

so on.

In this report I have tried to present a correlation of Organizational Behaviour

learnings to my past employer Mahindra and Mahindra (Auto Sector).


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HISTORY OF MAHINDRA & MAHINDRA LTD.

Mahindra & Mahindra ltd. was established in the year 1945 by J.C.Mahindra

and K.C.Mahindra. It was done in collaboration with Ghulam Mohhamed

wherein they set up a steel company in Mumbai.

The focus of Mahindra was to cater to the Indian market by manufacturing

rugged vehicles for Indian terrains. They had collaborated with various

International auto manufacturers to gain expertise in research, development

and manufacturing efficiency. A recent example is Renault from France.

Though the Joint Venture no more exists, but Mahindra did learn a lot from

them.

Today after six decades, Mahindra has evolved from a humble Indian start up

to a US $16.2 billion corporation employing more than 155,000 people around

the globe.


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Sl. No. Name Designation1 Anand Mahindra Chairman & Managing Director Mahindra & Mahindra2 Bharat Doshi Executive Director & Group CFO3 Rajeev Dubey President Group HR, Corporate Services, and Aftermarket Sector4 Pawan Goenka Executive Director & President Automotive & Farm Equipment Sectors5 Hemant Luthra President Systech Sector6 Anoop Mathur President Two Wheeler Sector7 S.P. Shukla President Group Strategy, Defense Sector, and Chief Brand Officer

8 Ulhas Yargop President Information Technology Sector & CTO, Mahindra Group9 Anita Arjundas CEO Real Estate Sector and Managing Director, Mahindra Lifespace Developers

10 Zhooben Bhiwandiwala Executive Vice President & Managing Partner Mahindra Partners Divis ion11 S Durgashankar Executive Vice President - Mergers & Acquisitions12 C.P. Gurnani Managing Director and Chief Executive Officer Tech Mahindra13 Ruzbeh Irani Chief Executive International Operations, Automotive & Farm Equipment Divisions14 Ramesh Iyer Managing Director Mahindra & Mahindra Financial Services and CEO Financial Services Sector15 Rajesh Jejurikar Chief Executive - Tractor and Farm Mechanisation16 Romesh Kaul Global CEO Gears Business, Systech Sector17 Harsh Kumar Managing Director Mahindra Intertrade & Mahindra Steel Service Centre18 Yoo-il Lee President & CEO, Ssangyong Motor Company

19 V.S. Parthasarathy Group CIO, EVP Group M&A, Finance and Accounts,20 K Ramaswami Managing Director, Mahindra Forgings21 Rajiv Sawhney CEO, Mahindra Holidays & Resorts India Ltd.22 Pravin Shah Chief Executive Automotive Division23 Ashok Sharma Chief Executive - Auto & Farm Strategy, Agri and Allied Business24 Rajan Wadhera Chief Executive Technology, Product Development and Sourcing, Automotive & Farm Equipment Sectors

BOARD OF DIRECTORS

OWNERSHIP

Mahindra (2013, para1) list its board of directors as


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Automotive After-Market Sector Farm Equipment Sector Financial ServicesSector

Infra Dev. Sector IT Sector MahindraSystech

SpecialityBusinesses

Mahindra Partne

Domestic OperartionsMahindra SparesBusiness

Domestic Operartions

Mahindra &Mahindra FinancialServices Ltd(MahindraFinance)

Mahindra Holidays &Resorts

Tech Mahindra Forgings Mumbai Mantra Mahindra Odyss

International OperationsMahindra FirstChoice

International OperationsMahindraInsurance BrokersLtd.

Mahindra LifespacesDevelopers Limited

BristleconeEngineeringServices

MahindraDefence System

Mahindra Intertrad

Mahindra SsangyongMahindra FirstChoice Wheels Ltd.

Mahindra GujaratTractor

Mahindra RuralHousing FinanceLtd (MRHFL)

Mahindra World City StampingsMahindra Steel SerCenter

Mahindra Navis tarAutomotives Limited (MNAL) Mahindra Agribusiness

Mahindra

InfrastructureDevelopers

Steel

Mahindra MiddleE

Electrical Steel SerCentre (MMESSC)

Mahindra Navistar EnginesPrivate Limited (MNEPL)

Mahindra PowerolAcres ConsultingEngineers

Ferrites Mahindra Logistic

Mahindra 2 Wheeler Mahindra USAContractSourcing

Mahindra Retail

Mahindra Australia Telematics

Mahindra China Tractors Composites

CastingsGears

BUSINESSES

BUSINESSES

With the growth of the independent India Mahindra has grown along with it.

Started from steel today Mahindra is present in approximately 141 business

and industries. The table below shows a summary of the same

The Annual Report of Mahindra & Mahindra (2012-13, para 31) gives the

following list of business


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LOCATIONS

The headquarters of Mahindra are located in the financial capital of India

Mumbai. The locations of the manufacturing plants are

1. Nashik

2. Haridwar

3. Zaheerabad

4. Mumbai

5. Chakan, Pune

The Research Center is located in Chennai, Tamilnadu.

From all these locations Mahindra caters to its domestic market and

International market as well. Today Mahindra is present internationally as

shown in the following depiction


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ORGANISATION STRUCTURE

Below mentioned is the structure of my team that was led by the Sr. GM who

reports directly to the Vice President Strategic Sourcing


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LEADERSHIP STYLE

Leadership Styles can be linked to the type of power the person holds. These

can be analyzed as follows

1. Leader with legitimate power : This power is based on the designation a

person holds. The position gives the authority to the person to take

critical decisions. The Sr. General Managers, Vice Presidents and Sr. VPs

project this leadership style.

2. Leader with Referent power : There are people who do not hold a very

senior level position but still are looked upon for adding value to decision

being made. These people are liked by the team mates due to their

charismatic power.

3. Leader with expertise power : There are experts in various departments.

For instance someone is expert in Research and Design some in styling

of vehicles and some in Operations. These people hold very good

positions due to their expertise and lead teams.

I have come across people like these values and virtues. My Sr. Vice

President is a very charismatic person with wonderful orator skills. His vastexperience in the automotive sector gives him the expert skills to lead seven

functions at a time. Also he is efficient and has not failed because he is

flexible, understands people and their behavior and is very capable to lead

teams.


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CULTURE

Mahindra launched its new brand called Mahindra Rise in the year 2010, the

very same year when I joined this organization. A culture was being created

with the three pillars of Mahindra Rise. People were made to realize the

importance of these by incorporating these in every aspect of their work

culture. The three pillars are

The brand pillars motivate the people to work towards a better world by

1. Accepting no limits : Every day was a challenge and people worked

towards numerous projects. Being an Indian startup Mahindra required

great efforts on the R&D fronts. There were great achievements made like

launch of first SUV with three cylinder engine the Quanto was launched.


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Many failures were faced in this engine during the R&D period but was

overcome and now Quanto is on the Indian roads.

2. Alternative Thinking : Mahindra focusses on efficient and green supply

chain. Stringent norms are followed to make environment compliance

vehicles that follow the emission standards like BH IV, Euro V and also

ELV compliance is followed in every part that is sourced. Mahindra REVA

has a plant running on solar energy being the only plant of this sort in

India. Also launch of NXR the electric vehicle is a move towards

alternative thinking.

3. Driving Positive Change : This related to the Corporate Social

Responsibility. Mahindra focuses on Concious Capitalism and works for

various causes like Mahindra Harlayi planting trees all across India,

Supporting girl child by program called Nanhi Kali.

Social Culture

Mahindra promotes corporate culture that is still feeble in Indian

companies. People are trained on Business etiquettes, RelationshipManagement, Dining etiquettes etc. Also focus is on work life balance.

People are encouraged to come and leave on time.

Work Culture

Daily morning meetings and monthly review meetings are must for every

department. The communication is very transparent. C1 communication

meet is held every year where the leaders communicate regarding the

performance of the firm in the last financial year. People are encouraged

to take decisions and given authority in their work.


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GROUP DYNAMICS

For every new project a team is formed. The team formation happens by the

following

The goals are well defined for every new project which are

Roles

Procedures

Relationship

TaskInterdependence

Alignment

S- Smart M-Measurable

A- Acheivable

R- Reviewable T- Time Bound


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TEAM BUILDING INITIATIVES

As every organizations success is based on the employees performance it is

very important that the people are aligned towards the goal. This process is

called working as a team and various initiatives are made for Team Building.

This is done so that people know about each other and understand each other

well. This will maximize their output when they work as a team. The various

team initiatives in Mahindra include

(i) Sports Club : People are actively involved in sports activities like

football and cricket. The inter department matches are held regularly.

(ii) Mahindra Employee League : This team is formed by combination of

3 departments each. Employee compete on cultural fronts.

(iii) Department Outings : Every HOD has been allocated by a budget to

conduct team activities. Teams go for holidays together.

(iv) Human Resource Department Initiatives : The HR team is on a

continuous program on team building. Every department has their HRrepresentative. They have their performance targets related to their

respective departments.

(v) Mahindra Adventure : Employees and the people from outside the

organization compete in an off-roading competition. This is for two

reasons team building and also to promote the rugged vehicles from

Mahindra.


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CHANGE MANAGEMENT INITIATIVES

A major change that occurred in the recent past is the opening of Mahindra

Research Valley at Chennai, Tamilnadu in 2010. This is a dedicated research

facility to support the research for the projects. People from all other locations

were transferred to this place and the change management process is stillgoing on. Major challenge was to relocate the entire the family. An

administration team was form specifically to facilitate this. There were cases

where employees were not ready to move from their current locations. This was

managed by giving hikes in salary, incentives and new job roles. This change

management faced both supporting and restraining forces.

Another change management aspect is the recent collaboration with Ssangyong

a Korean SUV manufacturer. The CFTs are formed to have cross learning. Thisis an opportunity and also a challenge. The challenge is the cultural difference

between Indians and Koreans. This gap is bridged by various workshops

conducted on both ends.


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POLITICS AND CONFLICT MANAGEMENT

This aspect is present in every organization. As we learned that there are

negative as well as positive politics. As a graduate engineer trainee I was

allocated a mentor. This helped me understand my roles and responsibilities. I

came across various political situations. An example is assignment to projects

in when the projects are mid-way and no other senior wanted to take the

responsibility. Also there were cases where the credit of a success was taken

away by a senior. When there occurs a failure no one was ready to take the

accountability.

I do no point that this is an issue of the organization, this depends on the

individual. There are people with inherent qualities of a spy, back-stabber and

buck passer. It depends how we deal with them and the work done. Overallpersonality development is also looked upon by the HR department. Trainings

like conflict management and negotiation skills are conducted for the same.


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INNOVATION & CREATIVITY INITIATIVES

The world is looking for innovation. Today we see that companies like Nokia

and Blackberry collapsed due to incompetency of innovation. Mahindra realizes

this and focuses towards Innovation as one of its core values.

Every individual from a shop floor associate to the Vice President is encouraged

to think alternatively and generate innovation ideas. Various initiatives are

(i) Indigenous Automation : Any idea that helps automating with the

local and domestic resources is appreciated. The Indian term for this

is Jugaad which means make shift arrangement. These ideas are

tested thoroughly and implemented.

(ii) Cost Cutting Ideas : Any cost cutting idea is welcome. If successful apart of the savings are given to the employee.

(iii) I4 Idea Generation : This is a competition held across all locations

where people are allowed to post ideas on the intranet called

mconnect. The selected idea wins and is awarded. After this the

person gets a team to work on the same and implement.

(iv) Styling & Design competition : Employees compete to come up with


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a new vehicle design. The focus is on the exteriors. Mahindra XUV

5OO was derived from one of the winning designs of this platform.

CRITIQUE ON CURRENT INTERNAL SCENERIO

As mentioned above Mahindra Research valley was established in Chennai.

This is in the south-east part of India. The current working force was major

from west and north of India. Many people were unwilling to move, but they

were transferred. Here were cases where people belonging to south India who

were willing to move were not transferred. This led to high attrition rate.

Also this research valley is in the outskirts of city. Though accommodation was

provided, but it was in more interior parts. This lead to high level of

frustrations among employees as they had to travel a lot for basic necessities.

The effect of this was seen in the Gallup Survey reports.


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SUGGESTIONS AND RECOMMENDATIONS

Mahindra in all perspectives is a very good organization. The systems and

structures are well defined. The focus on people and process has led to its

success. The above mentioned critique on the current scenario are some of the

initial hiccups of change management faced by every start up either small or

big. At present Mahindra is in the change phase of Change Management

system as suggested by Kurt Levin. In this stage if Mahindra is able to

overcome the restraining forces, it will proceed towards the re-freezing process

which will make Mahindra a star performer.

Recommendations are:

1. To encourage the people to stay back the problem of their inconvenience

to daily necessities is to be resolved. Mahindra can have a tie up with

some supermarkets to open their outlets nearby.

2. To make movement easy Shuttle service can be provided.

3. Similar efforts can be made to understand the problems faced by peopleand resolve them.

This is how Mahindra can attain further success by working on its

Happy Triangle as shown

Employees

HAPPYTRIANGLE


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REFERENCES

1. Mahindra, (2013). How we got here . Retrieved from

http://www.mahindra.com/Who-We-Are/How-We-Got-Here

2. Mahindra, (2013). Our Leadership. Retrieved from

http://www.mahindra.com/Who-We-Are/Our-Leadership/Group-

Executive-Board
http://www.mahindra.com/Who-We-Are/How-We-Got-Herehttp://www.mahindra.com/Who-We-Are/How-We-Got-Herehttp://www.mahindra.com/Who-We-Are/Our-Leadership/Group-Executive-Boardhttp://www.mahindra.com/Who-We-Are/Our-Leadership/Group-Executive-Boardhttp://www.mahindra.com/Who-We-Are/Our-Leadership/Group-Executive-Boardhttp://www.mahindra.com/Who-We-Are/Our-Leadership/Group-Executive-Boardhttp://www.mahindra.com/Who-We-Are/How-We-Got-Here

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