Presented by

Group 1

TIMELINE OF ABC BEARINGS LTD.

1994

Raghu Srinivasan became the Head of Chennai

Plant.

2009

Raghu Srinivasan was relieved at the age of 65.

2009

Succession of John Marker in Raghus Place

2011

Chaos in ABC, India. 30% drop in top line and 20%

drop in bottom line

2012

Negotiations between the Management and

Employee Union went sour. Lock-out of ABC India
Factory

Major Changes brought in by John Marker

New Team of Leaders from Germany
New ambitious Vision to Increase market share to
60% by 2012 and export 30% to neighboring Asian
countries
Revision in policies
Introduction of air cooled bearings to the product
portfolio

LEADERSHIP LAPSES IN ABC BEARINGS

Effective Communication
Preference to communicate
through
emails and newsletters than
face to face
communication to managers
and workers.
Downward flow of ideas through
hierarchy
did not occur.

People Development

Managing Vision
Considerable time spent on developing ideas for
vision.
Failure of subordinates to communicate or implement

ideas further.

Business Acumen

Setting up of air cooled bearing plant against

Lack of demand in India.
Lack of expertise.
Advice of floor managers against air cooling
bearings.

Ethical Compliance
Cross cultural issue
Offence taken by lady manager over hand shake
was resolved in a hasty manner.
Failure to honor and respect local culture

Regulatory Compliance
Failure to get proper authorized visa.
Huge penalty incurred by company.

Build Culture
Replaced top management by his own German
counterparts.
Delegated work to subordinate where his presence
was required.

WHAT WENT WRONG?

Lack of succession planning
Improper handover of power and authority from Raghu to John
Lack of representation of any domestic employee in the strategic
team
Lapses from management in involving people in setting the vision
for the organization
Improper and inefficient vertical communication between the
management and the employees
Imposition of stringent rules without consultation
Resistance to change from the employees
No empathy and commitment towards the employees

WHAT COULD HAVE BEEN DONE?

Involvement of Neelu in top management
Culture sensitization
Building of an empathetic relationship between the top
management and the employees
Balancing of stakeholders expectations in line with the
organizational goals
Developing future leaders
Adherence to legal compliances

RECOMMENDATIONS
Creation of a new parallel position
Operational Decision John
People and Management Decision- Neelu
Inclusion of third party to resolve strike issue
Addressing employee demands effectively
Building rapport with employees
KT for management for better understanding of the local culture
Developing future leaders to avoid similar situation in future
Timely rewards and recognition
Adherence to the legal compliances for future deployment of foreign nationals
Standardizing the mode of communication in terms of language and the path