Himanshu Kumar

A1802008700/C-25
Subject- LTT (BS-III)
 Eicher started operations in India in 1960. It managed to survive
and started making reasonable profits by 1973
 In 1982, Gov. of India implement credit squeeze by which
approx. 90% of tractors are purchased through bank financing
which adversely affect the sales for the next few years
 Eicher was largely a North based organization, this effect its
operations badly and company slipped from 1’st position to 3’rd
position
 Eicher was forced to cut down production and experienced
negative growth and losses for the first time in nine years which
considerably impact on the employees in the organization
 To solve the problem company’s HRD played a significant role in
improving the employee relations and organizational
effectiveness
 PROBLEMDIAGNOSIS
 MANAGEMENT DECISIONS

-APPRAISAL SYSTEM
-COMMUNICATION
-LEADERSHIP
-TEAM WORK
-DEVELOPMENT
-COMPENSATION
-WELFARE
 CONCLUSION
 Management decided to conduct a company wide attitude
survey to ascertain the main causes for this state of affairs
 Company decided to determine the attitudes of employees
towards 19 factors like appraisal system, relationships,
leadership, working conditions, team work, creativity,
development, union management relations, rewards, etc..
 Management decide following objectives as feedback-
* To review the history of employee relations in the company
* To identify the major areas of strengths and weaknesses of
employee relations in the company
* To make recommendations for strengthening employee
relations in the company
* To approve an action plan for implementation
 After looking at all the data through attitude survey,
interviews, SWOT analysis and the workshop, a number of
areas were identified for specific attention-
I. APPRAISAL SYSTEM

II. COMMUNICATION

III. LEADERSHIP

IV. TEAM WORK

V. DEVELOPMENT

VI. COMPENSATION

VII. WELFARE
 Management Development Group (MDG) and Supervisory
Development Group (SDG) would meet at least once in a year
to identify training and development needs, greater
commitment to appraisals and to increase consciousness in
superiors to develop their subordinates
 Management decide to began a process of education and
awareness building and the ways of judging subordinate
development skills for their appraisals
 Management developed a specially designed program on
“Feedback and Counseling Skills” by using the model “Client
Oriented Therapy” of Carl Rogers, to improve negative
feedback from Managers
 Attempt to establish performance appraisal and career
development were not just management tools but as
management values
 Communicate downward company plans and programs
 Give the employees an opportunity to communicate
upwards their concerns and feelings
 Provide a forum for generating new ideas and suggestions
for improvements
 Organization developed special strategies to suit different
occasions when it was necessary to inform employees
about company’s operations
 To allaying anxieties and doubts in the mind of employees,
company published House Journal including interviews and
news, at all locations
 TASK ORIENTATION- corporate management made
conscious change in leadership style to correct the
situation
 Starting from the Management committee downwards, a
conscious attempt was made to reorient our target setting
 Changes were made in Management Information System,
Control Systems, etc. to support decision making
 Company continued to rely on preventive approach but at
same time took quick steps to punish deviant behaviour
 Corporate management of company formulated a major
plan to restructure the Company’s operations and adapt
changes to make it appropriate for the situation
 Since company divisionalised into number of locations with their
own priorities and needs, team work had weakened. Company
take various steps to improve team work
 Norms of Meeting
Managers were encouraged to visit other locations and spent
more time with each other to generate better understanding and
team work
 Conflict Resolution
It was decided that Senior Management would not take up any
matter of conflict resolution which should be handled by their
juniors
 Training in Team Work
Residential training programmes for executives were drawn
from different locations on interpersonal, communication, and
team building skills
 SYSTEMATIC IDENTIFICATION OF NEEDS-
*Multi-prolonged effort launched by company to improve appraisal
system and process, MDGs and SDGs had started generating more
accurate and reliable data
 SEPARATE GROUP FOR DEVELOPMENT-
*A separate group was made headed by management
development, to cater training and development needs of
executives
*Number of training programmes were conducted to meet the
needs at organisational, group and individual level
*Workshop was held to define the quality policy of company
*Company wide survey was held to identify the perception of
executives about commitment of top management to quality
 EXECUTIVE COMPENSATION-
Suitable adjustment were made in salaries of all
executives to take care of gaps
 STAFF COMPENSATION-
It would assured that increased in compensation to staff is
always greater than increase given to workmen
 WORKMEN COMPENSATION-
Company give interim increase in wage to bridge the gap
 MEDICAL BENEFITS- Management decided to open clinics
in backward areas to benefits all employees
 HOUSING- Company purchase flats and arrange
cooperative societies for their employees
 SPORTS & CULTURAL ACTIVITIES- Number of inter-
divisional competitions were held in which all employees
actively participated
 WELFARE SCHEMES- Schemes to assist employees for
getter their daughter and sisters with collections from
employees
 On the whole the opportunity given by
company to its Human Resource
Department to practise their concepts and
their autonomy and encouragement given
by people have truly establish the fact-
“ A systematic process of change coupled
with an Integrated HRD system can go a long
way in improving organisational effectiveness ”
 Alternative Approaches and Strategies of HUMAN
RESOURCE DEVELOPMENT
Edited by- T V Rao
K K Verma
Anil K Khandelwal
E Abraham S J
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