Restructuring an Organisation Model for an International Container Terminal Manager
Background and Challenge
The client was an international container terminal manager who had recently taken over a container terminal operator in India. As per the concessional agreement, the client was required to absorb 352 people. Before the takeover, however, the client wanted to map the 352 people on an organisation model they wished to adopt on a worldwide basis. This mapping was to be based on skill-sets, their job profiles at the time, and an assessment of the fit of each of 352 employees with the proposed organisation model. In addition, the client also wanted a compensation strategy for people in key positions, who would either be hired from India or would be staffed expatriates.
Approach and Recommendations
To restructure the organisation model and to create compensation strategies for some staff, UC undertook the engagement in two phases i.e. compensation strategy and organisation migration
- In the compensation strategy phase, UC adopted the following steps -
1) Benchmarked compensation levels, within and across industries
2) Conducted interviews with other ports, and tax and audit firms to understand pay structures, grades, legal implications, tax implications etc
3) Structured the compensation for key positions in accordance with the client’s worldwide policies and local Indian taxation laws
4) Structured salaries for expatriates and advised the client to seek legal opinions on key issues including the overall structure and employment
- In the organisation migration phase, UC adopted the following steps -
1) Finalised the organisation model to be adopted in India
2) Interviewed 352 people and assessed their overall fit to the new organisation model based on their qualifications, experience and their then job definitions
Interviews were conducted with transition managers appointed by the client. Interviewees were rated separately and transition managers were rated on skills and personal traits. Ratings were then collated and averaged to understand their overall fit
Interviews were facilitated through the preparation of guides customised for 23 role categories. These included planning (vessel planners, yard planners), operations (crane operators, shift supervisors, foremen), documentation (gate clerks, electronic data interchange operators) and technical (electrical and mechanical categories)
The client received a detailed understanding of the logistics industry, along with a business model and the financials of the segment that UC recommended they focus on.