Cases

Organisation Review for an Industrial Trading House

Background and Challenge

The client is a medium sized trading house, involved in the import of high density graphite, thermal insulation EDM wires, mould polishing stones, korless copper tubes, investment casting powder, powdered respirators, chemicals, solvents, pharmaceutical raw materials, aerospace forgings, rolled components, railway products, etc. The company currently has a network of branches in major Indian cities and is organised across eleven divisions, segmented on the basis of products which operate as individual profit centres. The divisions are abrasives and power tools, ceramic, EDM Products, jewellery equipment and manufacturing supplies, graphite/ insulation, machine tool accessories, and electrical. This 100+ team consists of 45 white collar and 55 blue collar personnel, and has an annual turnover of Rs. 16-17 crore, with Rs. 4-5 crore coming from the group’s indenting business.

There was a lack of human resource practices leading to people issues such as poor delegation of work at branch offices, a lack of effort on the training of people, an inability to identify the right people, etc. These problems were amplified by high employee turnover, especially at the Delhi office. Besides, departments such as stores were overloaded with work. Other issues included poor employee loyalty towards the company and poor values.

Approach and Recommendations

UC followed the below procedures for this project:

  • Identified and analysed key issues with respect to

    1) The current organisation structure

    2) Processes impacting the organisation

    3) People impacting the organisation

     

  • Identified and highlighted the engaged, not engaged and dis-engaged status of employees and corrective actions to be taken thereof
  • Identified, evaluated and recommended the organisation design in alignment with the strategy and size of the company
  • Identified the organisation structure options and evaluated the options based on a set of pre-defined tests
  • Recommended an organisation structure that would be appropriate for the company and outlined the transition phases the company would have to undergo in adopting the recommended structure
  • Prepared detailed job descriptions, people profiles and key performance measures for each position.

Results

UC identified and analysed key issues, and recommended solutions to the trading house.