CHAPTER 7 DATA ANALYSIS AND INTERPRETATION

Transcription

1 CHAPTER 7 DATA ANALYSIS AND INTERPRETATION This chapter analyses and interprets data extensively through two sources of data gathering: 1) Tables 1 to 25 analyse the data gathered through multiple choice modified Garvin Questionnaire. This is presented in Section I below. 2) Section II analyses data gathered through open ended questionnaire (Tables 26-31). 3) These tables cover 15 variables relevant to learning organizations. This chapter presents classification and interpretation of data through 31 tables. First, 25 tables presented have are based on the data interpretation made from the modified David Garvin questionnaire. This questionnaire breaks down the learning organization variables into three parts of 33.3 percent each and gives an overall index of a company and its four departments as a learning organization or learning departments. Each company was studied as a learning organization and was measured into five parts (1) Overall company learning index (2) Manufacturing department learning index (3) R&D department learning index (4) Marketing department learning index, and (5) Finance department learning index. All tables contain analysis of data for each table separately. The learning organization index for each company and departments is composed of three equal parts as follows : 1) Supporting learning environment 2) Concrete Learning Processes and Practices and 3) Leadership that Reinforces Learning. The tables are based on an open-ended questionnaire. Both questionnaires are given in appendix to this thesis. 174

2 I. LEARNING ORGANIZATION INDEX OF COMPANIES AND THEIR DEPARTMENTS Table 1 It analyses and ranks companies as learning organizations broken down into three equal parts: Supportive learning environment, concrete learning process and practices and leadership that reinforces learning. Arvind Mills (89.9%) and Zydus Cadila (82.9%) have rank 1 & 2 respectively while IPCL (60.8%) has the last rank. The reason for the same are given at the end of this table. Table 2 The manufacturing departments of all companies are ranked from 1 to 9 on the basis of their learning scores. Arvind Mills (90.3%) and Essar Gujarat (84.1%) are ranked one and two. A detailed analysis is given at the end of this table. Table 3 It gives ranks of R&D departments of the companies and have GHCL (91.8%) and Essar Gujarat are ranked 1 st and 2 nd while IPCL (62.9%) is ranked last. Detailed analysis is given at the end of the table. Table 4 It gives the rankings of the companies based on their learning scores of their manufacturing and R&D departments. No consistency has been found in this ranking. E.g. Zydus Cadila has 2 nd overall rank but its manufacturing department has 7 th rank and R&D department has 8 th rank. Table 5 It calculates Spearman rank correlation among companies rankings and the ranking of their departments. No statistically significant correlation has been found among the ranks of the different companies or their departments. Table 6 A comparison between manufacturing departments of two pharmaceuticals companies under study is made. The analysis for the same is given at the end of this table. 175

3 Table 7, Table 8, Table 9 make inter-company comparisons of two textiles, three chemical and two engineering companies on the bases of this learning scores in their manufacturing departments respectively. This is analyzed at the end of each table. Table 10, Table 11, Table 12 and Table 13 The above tables make comparisons of R&D departments of 9 companies composed of 2 pharmaceuticals, 2 textiles, 3 chemical and 2 engineering companies on the bases of their learning scores. Analysis is given at the end of each table. Table 14 deals with ranking of the marketing departments of all nine companies. Table 15 ranks the finance departments of all nine companies on the basis of their learning scores. The analysis of the same is done at the end of each table. Table 16 ranks the marketing and finance departments of companies on the basis of their learning score and finds that there is no consistence among the scores of these departments. The detailed analysis in given at the end of this table. Table 17 Calculates Spearman rank correlation co-efficient among companies on the ranking of their marketing and finance departments and finds no statistically significant correlation among them. Table 18, Table 19, Table 20 and Table 21 compare the learning scores of marketing departments of the companies under study in two pharma, two textiles, two engineering and three chemical companies. Each table is analyzed in detail. Again Table 22, Table 23, Table 24 and Table 25. Compare the learning scores of the companies in pharmaceuticals, textiles, chemical and engineering departments in their financial departments. An analysis for the same is made at the end of each table. 176

4 About the Reading and Interpreting the Tables The following explanation about the construction of the tables wil facilitates their interpretation. 1) The learning organization index was prepared on the basis of response to 36 questions. The questionnaire was broken down into three parts I. Supportive Learning Environment (14 questions) II. Concrete Learning Processes and Practices (16 questions) and III. Leadership that Reinforces Learning (6 questions). The weightage of each question was adjusted so that all three parts got an equal weightage of 33.3 percentage. For an example, Part III which is about leadership that reinforces learning had only 6 questions but in order to get equal weightage to the leadership issue, each question in this section was given a weightage of 5.6. Part I had 14 questions and each question was given a weightage of 2.4 and similarly Part III with 16 questions was given a weightage of 2.1. This was done to ensure that all three constituents of learning organizations get equal weightage. 2) Supportive learning environment (Part I) was broken down into (a) Psychological Safety (5 questions), (b) Appreciation of differences (3 questions), and (c) Openness to new ideas (6 questions). Concrete Learning Processes and Practices (Part II) was broken down into five subparts: (d) Experimentation (2 questions), (e) Analyses (2 questions), (f) Information Collection (4 questions), (g) Education and Training (3 questions) and (h) Information Transfer (5 questions). Part III which is Leadership that Reinforces Learning was treated as a whole with 6 questions. Tables give numerical scores as well as percentages. The companies and departments are ranked according to the percentages. The concepts and ideas used in the table have the following meaning. a) Psychological Safety means sharing of ideas and concepts among employees without fear of losing jobs. 177

5 b) Appreciation of differences means not merely tolerating but welcoming the differences of opinions among employees and also acceptance of different points of views. c) Openness to new ideas means employees welcoming new ideas and new ways of doing things without experiencing stress. d) Experimentation means permitting employees to experiment with new ways of working and experimenting with new products or services. e) Analysis means encouraging debates and discussions and seeking out disagreements rather than suppressing them. f) Information collection means collecting systematic information about customers, competitors and suppliers and about technological trends. g) Education and Training means employees getting periodic training and training being valued as very important by the company. h) Information transfer means learning from other colleagues, from other departments, from experts as well as communicating information and knowledge to decision makers in the company. i) Leadership that reinforces learning means managers and supervisors in the company listening attentively to their subordinates, getting inputs from them, and providing time to employees for reflection and improving performance. It also means that manages do not think that they are always right and that they know the best all the time. 178

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7 Analysis for Table 1 Overall Ranking of the companies as learning organizations 1. Arvind Mills has overall rank 1 and IPCL has overall rank 9 as a learning organization. 2. Arvind Mills has the best supporting learning environment and the next best supporting learning environment are at Zydus Cadila and Torrent Pharma. 3. Zydus Cadila has best learning processes and practices, followed by Arvind Mills and Reliance Textiles Ltd. 4. Both Arvind Mills and Reliance Textiles Ltd report best leadership that reinforces learning. 5. Psychological safety was highest in Arvind Mills followed by Zydus Cadila and Torrent Pharma and was lowest in IPCL. Psychological safety score is given in column (a) in the table. 6. Openness to new ideas was highest in Arvind Mills followed by Zydus Cadila, Torrent and GACL. Openness to new ideas score is given in column (c) in the table. 7. IPCL and GHCL are at the bottom in leadership that reinforces learning. 8. Arvind Mills and Zydus Cadila have top (equal) score in (d) experimentation with new ideas and concepts and (f) Information collection. 180

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9 Analysis for Table 2 Ranking of the Manufacturing Departments of the companies as learning organizations 1. Arvind Mills and GACL are at that top and bottom respectively as learning organizations in their manufacturing departments. 2. Arvind Mills and Essar Gujarat indicate best supporting learning environment in their manufacturing departments while IPCl has the lowest score this respect. 3. Arvind Mills, GHCL, Welspun Gujarat and Essar Gujarat report a high level of concrete learning processes and practices. 4. Arvind Mills, Essar Gujarat, Reliance Textiles Ltd and Torrent Pharma report having a leadership that reinforces learning in their manufacturing departments to a greater extent than remaining companies. 5. GACL has lowest score in leadership that reinforces learning followed by IPCL and GHCL which also have next low scores in this component. 182

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11 Analysis for Table 3 Ranking of the R and D departments of the companies as learning organizations 1. GHCL and IPCL are at the top and bottom of the learning organizations in their R & D Departments. 2. GHCL, Essar Gujarat and Arvind Mills have high scores on supporting learning environment. 3. GHCL, Reliance Textiles Ltd., Arvind Mills, and GACL have high scores on concrete learning processes and practices in their R & D departments. 4. GHCL, Essar Gujarat, Arvind Mills, and GACL have a leadership in their R & D which reinforces learning to a greater extent than the rest of the companies. 5. Psychological Safety was highest in GHCL and Reliance Textiles while openness to ideas was highest in GHCL and Essar. 6. Welspun Gujarat scores lowest in (c) openness to new ideas from employees in its R & D departments. 7. Both GHCL and Essar Gujarat have high scores in (c) on openness to new ideas from their employees in R & D departments than other companies under study. 184

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13 Analysis for Table 4 Ranking of the companies and their departments under each indicate of the learning organizations 1. The above table clearly indicates the wide variations among different departments of the companies in terms of their learning practices and processes. For an example, Arvind Mills which has an overall rank third in R & D. GHCL which has an overall rank 8 as a learning organization has first rank in its R & D and 5 th rank in Manufacturing department. Essar Gujarat has 2 nd rank in manufacturing R & D though its overall rank is There is also a wide variation between the scores of manufacturing departments and R & D departments within the same companies which shows high score in manufacturing is not necessarily a high score in R & D departments. 3. This implies that learning companies culture is not evenly spread among the different departments in the companies. Thus differences are seen within the departments of the companies and across the companies. 4. No company has rank no. 1 manufacturing as well as R & D departments simultaneously. 5. Zydus Cadila shows a wide variation in its ranking across its departments. Its overall rank as a learning company is 2 but its rank in manufacturing department is 7 and in R & D is No company has been found with first rank in its overall rank and both its departments at the same time. 186

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15 Analysis for Table 5 Spearman rank correlation among companies and their departments 1. There is no statistically significant co-relationship between overall rank of the company and its manufacturing departments rank (P 12 =.5) 2. There is no statistically significant co-relationship between company s overall ranking and its ranking of R & D department (P 13 =.1) 3. There is no statistically significant correlation among company s manufacturing department and its R&D departments (P 23 =.45) 4. The high ranking of one department of the company does not imply high ranking of its other departments or its overall high ranking. 188

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17 Analysis for Table 6 The learning organization 1. Torrent pharma has higher scores in all the three companies of the learning organization than Zydus Cadila. 2. Torrent pharmaceuticals provides its employees much higher Psycological Security than Zydus Cadila. 3. Torrent Pharma has better leadership that reinforces learning than Zydus Cadila. 4. Torrent pharma has higher scores on (e) education & training and (h) information transfer than Zydus Cadila 5. Torrent pharma has also higher scores on (d) experimentation than Zydus Cadila. 190

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19 Analysis for Table 7 Index of Learning Organizations (Manufacturing departments) 1. Arvind Mills has a higher score in the first two components of a learning organization but has an equal score with Reliance Textiles in the third component (i.e. Leadership that reinforces learning). 2. Arvind Mills provides much higher psychological safety to its employees than Reliance Textiles. 3. Arvind Mills has much better information transfer system than Reliance Textiles. 4. Reliance Textiles and Arvind Mills have equal score on (f) Information Collection (d) experimentation and (g) education training. 192

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21 Analysis for Table 8 Index of Learning Organization (Manufacturing departments) 1. Essar Gujarat has higher scores in first and third components of the learning organization and has an equal score in second component in learning organization i.e concrete learning processes and practices. 2. Essar Gujarat also provides higher psychological safety to its employees than Welspun Gujarat. 3. Essar Gujarat scores higher on (a) psychological safety, (c) openness to new ideas, and (f) information collection than Welspun Gujarat. 4. Welspun Gujarat has a larger score on (h) information transfer than Essar Gujarat. 194

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23 Analysis for Table 9 Index of Learning Organization (Manufacturing departments) 1. GHCL has higher scores than other two companies in first and second components of learning organization. 2. GHCL and IPCL have an equal score in the leadership that reinforces learning. 3. GACL scores lowest in the second and the third component of the learning organization. 4. GACL is second in the first component of learning organization i.e. supporting learning environment. 5. IPCL is lowest in the first component of learning organization i.e. supporting learning environment. 6. GHCL has better information collection system than two other companies. 196

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25 Analysis for Table 10 The Learning Organization (R & D) 1. Torrent pharma has higher scores in first two components of the learning organization but lower score than Zydus Cadila in third component. 2. Torrent pharmaceuticals facilitate lesser experimentation for employees than Zydus Cadila. 3. Zydus Cadila has better leadership that reinforces learning than torrent pharma. 4. Zydus Cadila and Torrent Pharma have equal scores in (b) appreciation of differences expressed by their employees. 198

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27 Analysis for Table 11 The Learning Organization (R &D) 1. Arvind Mills scores higher in first and the third components of learning organization but is lower than Reliance Textiles in concrete learning process and practices. 2. Arvind Mills is far superior in providing leadership that reinforces learning to Reliance Textiles. 3. Arvind Mills has higher scores on Analysis (which means encouraging debates and discussion among employees) than Reliance Textiles. 4. Arvind Mills & Reliance Textiles have equal scores in (d) experimentation 200

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29 Analysis for Table 12 The Learning Organization (R &D) 1. Essar Gujarat scores higher in first and the third components of learning organization but has equal score in second component of learning organization with Welspun Gujarat. 2. Essar Gujarat has much higher scores in openness to new ideas of employees than Welspun Gujarat. 3. Essar Gujarat has better information collection system than Welspun Gujarat. 4. Welspun Gujarat has a higher score in (d) experimentation (e) analysis and (h) information transfer than Essar Gujarat. 202

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31 Analysis for Table 13 Index of Learning Organization (R &D departments) 1. GHCL is highest in all components of learning organization followed by GACL which is followed by IPCL in all the components of a learning organization. 2. GHCL has highest scores in openness to new ideas from it s employees than GHCL and IPCL. 3. GHCL has highest scores in leadership that reinforces learning than GACL and IPCL. 4. IPCL has lowest scores on all the three components of learning organization. 204

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33 Analysis for Table 14 Ranking of the Marketing departments of the companies as learning organizations 1. Arvind Mills and Torrent Pharma are at the top and bottom respectively as learning organizations in their marketing departments. 2. Essar Gujarat and Zydus Cadila indicate best supporting learning environments in their marketing departments while Reliance Textile is at bottom in this respect. 3. Welspun Gujarat indicates the best concrete learning process and practices followed by Zydus Cadila. 4. Arvind Mills indicates the best leadership that reinforces learning than others. 5. Zydus Cadila and Torrent pharma even though they have rank 4 and rank 9 respectively in Marketing departments, they provide highest (a) psychological safety to their employees. 6. Welspun Gujarat is next to Arvind Mills in providing leadership that reinforces learning. 206

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35 Analysis for Table 15 Ranking of the Finance Departments of the Companies as learning organization 1. Torrent Pharma and IPCL are at the top and bottom respectively as learning organization in their finance departments. 2. Torrent Pharma indicates best supporting learning environments in their finance departments while Reliance Textile and GHCL are at bottom in this respect. 3. Welspun Gujarat and Torrent Pharma indicates the best concrete learning process and practices followed by Zydus Cadila and GACL. 4. Arvind Mills indicates the best leadership that reinforces learning than other companies. 5. Essar Gujarat has the higher scores on (a) psychological safety to its employees followed by Torrent Pharma. 6. Zydus Cadila has highest scores on (h) information transfer followed by Torrent Pharma and Welspun Gujarat. 208

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37 Analysis for Table 16 Ranking of the companies and their departments under each indicator of the learning organizations 1. There is also a wide variation between he scores of marketing departments and Finance departments within the same companies which shows that high score in marketing is not necessarily associated with a high score in Finance department. 2. This implies that learning companies culture is not evenly spread among the different departments in the companies. Thus differences are seen within the departments of the companies and across the companies. 3. Arvind Mills (marketing department) is ranked no.1 but its finance department has rank no Essar Gujarat has rank no.2 for its marketing department but rank no.7 for its finance department. 5. Torrent Pharma has rank no.1 in its finance department but rank no.9 in its marketing department. 6. The above table indicates that companies with high overall rank do not necessarily have high ranks in other departments. 210

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39 Analysis for Table 17 Spearman rank correlation among the companies and their departments as learning organization. 1. There is no statistically significant correlation among overall companies rankings and their departments. 2. The high overall rankings of the companies do not imply high rankings of their marketing and finance departments. 3. Companies overall ranking and their marketing departments with correlation of P 12 =.58 is not statistically significant. 4. Companies overall ranking with their ranking of fiannce departments with P 13 =.40 do not correlate significantly. 5. Marketing & Finance departments ranking (P 23 =.16) have no significant correlation. 212

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41 Analysis for Table 18 A comparison between the Marketing Departments of two Pharma companies The following observations refer to Marketing departments of two companies: 1. Zydus Cadila has higher scores in all three components of learning organization than Torrent Pharma. 2. Zydus Cadila provides much higher experimentation than Torrent pharma. 3. Zydus Cadila provides better leadership that reinforces learning. 4. Zydus Cadila also higher scores (e) analysis (f) information collection (g) education and training and (h) information transfer. 5. However, both have equal score in (a) providing psychological safety to their employees. 214

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43 Analysis for Table 19 A comparison between the Marketing Departments of two textiles companies The following observations refer to Marketing departments of two companies: 1. Arvind Mills has higher scores in all the three components of learning organization than Reliance Textiles. 2. Arvind Mills provides better psychological safety than Reliance Textiles. 3. Arvind Mills provides better leadership that reinforces learning. 4. Reliance Textiles however has higher scores on (d) experimentation and (e) Analyses than Arvind Mills. 5. The difference between the two companies on leadership that reinforces learning is large; Arvind Mills is quite ahead in this component of a learning organization. 216

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45 Analysis for Table 20 A comparison between the Marketing Departments of two engineering companies The following observations refer to Marketing departments of two companies: 1. Essar Gujarat has higher scores in the first and the last components of the learning organization but has less score in the second component i.e. concrete learning process and practices. 2. Essar Gujarat provides better room for openness to new ideas than Welspun Gujarat. 3. Welspun Gujarat has better leadership that enforces learning than Essar Gujarat. 4. Both companies have equal score in (a) psychological safety for employees (b) appreciation of differences and (d) experimentation. 5. The difference in the overall (total) scores between the two companies is marginal. 218

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47 Analysis for Table 21 A comparison between the Marketing Departments of three chemical companies The following observations refer to the Marketing departments of three companies: 1. GHCL has higher scores in all the three components of learning organization compared to GACL and IPCL. 2. GHCL, GACL and IPCL has equal scores in the component i.e. leadership that reinforces learning. 3. GACL has better information transfer than GHCL and IPCL. 4. GHCL and GACL provide better (a) psychological safety to their employees than IPCL. 5. All three companies have equal scores (f) information collection. 220

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49 Analysis for Table 22 A comparison between the Finance Departments of two pharma companies Following observations refer to the Finance departments of two companies: 1. Torrent Pharma has higher scores in all the three components of the learning organization than Zydus Cadila. 2. Torrent Pharma provides better psychological safety than Zydus Cadila. 3. Zydus Cadila has better leadership than reinforces learning than Torrent Pharma. 4. Both the companies have equal scores in (b) appreciation of differences. 5. Zydus Cadila has higher score in experimentation than Torrent Pharma. 222

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51 Analysis for Table 23 A comparison between the Finance Departments of two textiles companies The following observations refer to Finance departments of two companies: 1. Arvind Mills has higher scores in first and the third component of the learning organization. 2. Arvind Mills provides higher psychological safety than Reliance Textiles. 3. Arvind Mills provides better leadership that reinforces learning than Reliance Textiles. 4. Arvind Mills and Reliance Textiles have equal scores on (c) openness to new ideas. 5. Reliance Textiles Ltd has higher scores than Arvind Mills in (d) education & training (e) Analyses and (f) information collection. 224

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53 Analysis for Table 24 A comparison between the Finance Departments of two engineering companies Following observations refer to the Finance departments of two companies: 1. Welspun Gujarat has higher scores in the second and the third components of the learning organization. 2. Essar Gujarat provides higher psychological safety than Welspun Gujarat. 3. Welspun Gujarat is more open to new ideas than Essar Gujarat. 4. Both companies have equal score on (f) information collection and (g) education & training. 5. However the difference in the scores between the two companies in information transfer is quite high; Welspun Gujarat has much higher score than Essar Gujarat in this sub component of a learning organization. 226

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55 Analysis for Table 25 A comparison between the Finance Departments of three chemical companies Following observations refer to the Finance departments of three companies: 1. GACL has higher scores in all the three components of the learning organizations than GHCL and IPCL. 2. IPCL provides more room for openness to new ideas than GACL and GHCL. 3. GACL has better information transfer process than GHCL and IPCL. 4. IPCL has lowest score among the three in providing (a) psychological safety to its employees. 5. All the three companies have equal score in (g) education and training for its employees. 6. IPCL has lowest score on leadership that reinforces learning. 228

56 II. OVERALL EVALUATION OF EACH COMPANY BY ITS SUBCOMPONENTS OF LEARNING The open ended questionnaire contained questions on several variables as part of identifying the learning organizations. There were 14 variables which were considered relevant for learning organizations. The responses to the questions were content analyzed in the following tables. These tables cover 14 variables as mentioned and numbered below: Table 26 Table 27 Table 28 Table 29 Table 30 Table 31 (1) Vision and spreading of vision of companies under study. (2) Core competence of companies and (3) ways adopted by them to make their employees more innovative. (4) Training programmes, (5) Manpower Management and (6) ways adopted by companies under study to make their employees autonomous. (7) Rewarding outstanding performance, (8) spreading knowledge within organization and (9) learning from external environment by companies under study. (10) Team building methods, (11) changes made with in organizations and (12) learning from external environment by companies under study. (13) Efforts made by companies to make them as learning organizations and (14) changes envisaged in companies in the next ten years. 229

57 Table 26 Vision and spreading of vision by companies under study Company Vision Spreading of Vision Cadila Pharmaceuticals Company We want to be a research driven Annual reports and Bulletin (Zydus Cadila) global company. boards. Torrent Pharmaceuticals Ltd. We commit ourselves to total customer care by delivering world class products and services. House Journal, new `Torrentian', Supervisors in the company. Arvind Mills Ltd. Welspun Gujarat (WGL) Reliance Textiles Ltd. Growth is a way of life. To achieve global dominance in selected business built around our core competencies. We aim to emerge as a global leader preferred by every home. We serve with ethics and delighting our customers. Growth is a way of life. Through managers and supervisors and their behavior at work. The traditional mechanisms of meetings, bulletin boards and training programmes. Training programmes, the role model of its managers and supervisors. IPCL Growth is beyond business. Training programmes, training through actual conduct of business. Gujarat Heavy Chemicals Ltd. Gujarat Alkalies and Chemicals Ltd. To be a multiproduct company manufacturing chemicals, industrial raw materials and other products using modern technology and services. To manage our business responsibility and sensitivity to address the needs of our customers and stakeholders. Essar Gujarat (Essar Steel) At Essar, we envision to constantly innovate in order to have superior execution for our clients, thereby creating wealth for all our stakeholders. Through supervisors and through various company publications including annual reports. Meetings with employees and training programmes Training programmes for employees, employee meetings and house journals. Analysis : All nine companies have formulated a vision but some visions are clear while some are not clear or are ambiguous. Reliance Textiles Ltd's vision of `growth is life' and IPCL's vision of `Growth is beyond business' are too broad and are ambiguous in terms of formulating practical polices. Many companies want to be a global company or want to dominate a global market. Essar steel has emphasized constant innovation, while GHCL wants merely to be a multiproduct company. Companies have relied upon Annual reports, bulletin boards, staff meetings or training programmes for spreading vision. No company has a special committee to spread company vision down below and no single person or department has been identified as being responsible for spreading vision at the bottom level of organization. Torrent Pharmaceuticals Ltd. spreads its vision through its house 230

58 journal Torrentian and also through its supervisors in the company. GACL spreads its vision through meeting with employees and through company publications. Essar Gujarat (Essar Steel) also has some house journals for the same. Arvind Mills Ltd. spreads vision through behavior at work and IPCL through actual conduct of its business. Table 27 Core Competences and ways adopted for making employees innovative in companies Company Core Competence Ways adopted for making employees innovative Cadila Pharmaceuticals Innovation in Products. Kaizen System. Company (Zydus Cadila) Torrent Pharmaceuticals Ltd. Best Technocrats & Best Systems. Suggestion scheme & evaluation of suggestions. Arvind Mills Ltd. Quality of Products & services. Knowledge sharing and assigning the developmental work. Welspun Gujarat (WGL) Largest saw pipe manufacturing. E-Pathashalas. Internal branching. Positive working environment. Brain Storming techniques. Rewards for innovative suggestions. Reliance Textiles Ltd. Excellent financial management. Award for innovative suggestions. IPCL Executing Projects. Cannot expect much more then regular promotion. Gujarat Heavy Chemicals Ltd. Product quality and Employee Through Kaizen system. satisfaction. Gujarat Alkalies and Eco-friendly Technology. Through suggestions scheme. Chemicals Ltd. By organizing various competitions. Essar Gujarat (Essar Steel) People with core competence and Reward and recognition to positive attitude and positive action. employees, encourage participation. Analysis: Different companies have indicated different core competences. Some have defined core competence in terms of product quality or in terms of manufacturing or financial management. IPCL has a core competence in project management and GACL s core competence is in creating eco-friendly environment. This is more of a social responsibility competence as it seeks to create econ-friendly environment within and outside the company grounds. Also there are differences in how to make employees innovative Zydus Cadila follows Kaizen system while Arvind Mills focuses on knowledge sharing. GHCL also follows Kaizen system while Essar Steel seeks to make its employees innovative through employee participation. Reliance Textiles Ltd. gives awards for innovative suggestions while IPCL gives only routine increments for making employees innovative. Torrent Pharma has clearly defined its core competence as having best technocrats and best 231

59 systems and it seeks to make its employees innovative through suggestions scheme and evaluating suggestions on the basis of originality and usefulness of suggestions from employees. Welspun Gujarat has come out with a novel way for making its employees innovative and that is the concept of E-Pathashalas in which employees learn new things and at the same time make useful suggestions. IPCL states that a regular promotion is enough and even an innovative employee cannot expect much more than a regular promotion for his innovation. 232

60 Table 28 Training programmes, Manpower Management and making managers autonomous in companies Company Training Programmes Manpower Management Cadila Pharmaceuticals Company (Zydus Cadila) Torrent Pharmaceuticals Ltd. Arvind Mills Ltd. Welspun Gujarat (WGL) Reliance Textiles Ltd. IPCL Gujarat Chemicals Ltd. Heavy Gujarat Alkalies and Chemicals Ltd. Essar Gujarat (Essar Steel) Communication, SWOT Analysis, Computer Skills, Leadership Training Technical Training, Behavioural Training, Indoor and Outdoor Training, Creativity Training Functional Training Programmes, Behavioural Management & Staff Training Programmes Mind Power Workshops, Problem Solving Skills, Management Training Programmes for middle managers. Apprentice training, training in company procedures. Development of supervision skills, Effective Time Management Largely in-house training to meet internal requirement, Maximum exposure of employees to jobs. Different Training programmes for juniors, senior & technical personnel, Team Building training and Leadership training Need based training programmes, Technical Functional Training Programmes, Attitude Change Training. Orientation Programmes, In-house instructions simulation training, EDP workshop, Brainstorming. 233 Trust building creating, proper working conditions, Top to bottom manpower planning. Torrent Awards at the end of year, Manpower planning exercises. Modern HR practices and policies, Succession planning, Talent management. Socialization across functions, Talent recruitment programme, key talent identification. Dronacharya scheme where a senior employee acts as a coach. Varies from location and person to person HR practices of sound recruitment. Manpower management through high salaries, better work environment and promotion plans Long service award, various loans to employees, 100% medical bill payment, suggestion schemes. Succession planning, grooming people, hiring best people for the job, focuses on developing people. Making employees Autonomous R & D given full autonomy, Other departments given partial autonomy 80% autonomous. 20% directions from above. Partial autonomy in decision making. Decision making empowerment, Management forums, Job enrichment, Increasing area of authority. Decentralization and delegation of authority and responsibility, More authority given after scrutinizing past success and failure. General empowerment, Only successful manages are given power and authority. Top down organization, It is not democratic freedom for R&D personnel. High degree of freedom and responsibility given, Budget flexibility for managers. Through employee empowerment, Through forming various committees and giving powers to committees for decision making. Giving incentives for being autonomous, Encouraging independent decision making, Transparency in dealing with personnel sharing information.

61 Analysis: Most of the companies have technical, financial and computer skills training programmes while some have management development programmes. IPCL believes in on the job training. Only Essar Gujarat has mentioned Brainstorming sessions as one of the training tools for its employees only. Cadila has SWOT training programme for its managers. All companies undertake manpower management. Zydus Cadila does top to bottom manpower planning while Arvind Mills follows modern HR practices and policies for manpower planning. Essar Gujarat (Essar Steel) has undertaken succession planning, and GHCL has well planned promotion system. All companies under study believe in making employees autonomous. R&D managers enjoy more autonomy than other departments. Welspun Gujarat is committed to delegation and decentralization while Torrent gives 80 percent autonomy to its managers. Reliance Textiles Ltd. believes in general empowerment while IPCL has top-down organization. Cadila Pharma states that it has excellent programmes in leadership training and communication skills while Torrent Pharma gives indoor and outdoor training especially behavioural training for its employees. Arvind Mills also has Behavioural Management training programmes and Reliance Textiles has good training programmes in Time Management. GHCL emphasizes, besides other training programmes, Team Building Programme while the unique feature of GACL is altitude change training. In the area of Manpower Management, Cadila follows top to bottom manpower planning and Torrent undertakes intensive manpower planning exercises. Welspun Gujarat has talent recruitment programme and it identifies company s key talents for future development. IPCL has the practice of sound HR recruitment and GACL has long service awards. Essar has clearly laid out succession planning process. In the area of making employees autonomous, Cadila Pharma gives full autonomy to its R&D staff while Torrent Phama only partial autonomy. Arvind Mills, Reliance Textiles and Welspun Gujarat empower their employees through delegation and decentralization. 234

62 Table 29 Rewarding Outstanding Performance, Spreading Knowledge within organization and learning from external environment by companies under study Company Cadila Pharmaceuticals Company (Zydus Cadila) Torrent Pharmaceuticals Ltd Arvind Mills Ltd. Welspun Gujarat (WGL). Reliance Textiles Ltd. IPCL Gujarat Chemicals Ltd. Heavy Gujarat Alkalies and Chemicals Ltd. Essar Gujarat (Essar Steel) Rewarding Outstanding Performance Nothing special except giving compliments One time reward, varies from department to department Organizing various competition & rewarding the bets performer Some incentives (unspecified) There is a system of performance linked incentives. High incentives for outstanding work. On 15 th August & 26 th January, the concerned employees are given awards in a public ceremony. Nothing more than routine incentives. Fast Track Promotion for outstanding achievement Special awards, Special recognition letters and letter of appreciation, extra increments. Spreading Knowledge within organization Specific training programmes. Through seminars Multi-skilling, and 6 months induction programme on rotation Monthly review meetings Communication forums posters and bulletin boards Intranet Flash Seminar & Workshops, Role playing exercises, lectures from experts. House journals, Bulletin boards, Normal channels of communication. Frequent conferencing, Interaction among departments, video conferencing and Newsletters. Communicating through frequent seminars, house journals and newsletters, job rotation Through intranet, Through in-house magazines through newsletters. Group mailings, Video Conferencing and using other modern communication technology online blogs effective MIS. Mechanisms for learning from external environment Market Research Reports, Every department responsible for getting relevant information, Attending seminars outside the organization. Market research reports, Monitoring by departmental heads Benchmarking, update knowledge about markets through published sources and trade journals, exercises for future frame identification. Market Research reports Infound talks with managers from other organization, trade journals. Monitoring extreme environment through our own executives, preparing special reports. Gathering information through trade journals, preparing special reports, each executive responsible for monitoring. Each departmental head is responsible External information is gathered department. Through special reports and normal channels of intradepartmental exchange of information. We do special research to gather information on external environment. We gather information from published sources. 235

63 Analysis : Companies under study have adopted some form of rewarding outstanding performance. Zydus Cadila only gives verbal compliment and GHCL also does not give anything more than routine incentive. GACL puts outstanding contributors on a fast track while IPCL gives them a public recognition on 15 th August and 26 th January. Welspun Gujarat has no specific scheme for the same while Essar Steel gives them letters of appreciation and extra incentives. Seminars, Workshops, Job rotation and house journals are usually accepted methods of spreading knowledge within organization. Only Essar Steel uses online blogs for the same. Only Torrent uses job rotation and only GACL uses intranet for this purpose. IPCL uses frequent conferencing for this purpose. All companies under study indicate some form of gathering information through monitoring mechanisms for environmental scanning. Some companies prepare special reports for the same. Only Arvind Mills uses benchmarking and undertakes exercises for future trend identification. Zydus Cadila, Torrent Pharmaceuticals and Reliance Textiles Ltd. expect their own departmental heads to gather external information relevant to the company and their departments. In the area of rewarding outstanding performances, Cadila Pharma gives nothing special while Torrent Pharma gives only one time reward. Arvind Mills gives rewards to the best performer and Welspun Guajrat gives some unspecified incentives. Reliance Textiles gives high incentives for outstanding work while IPCL gives awards in public ceremony. GHCL gives nothing more that routine incentives. Only GACL gives fast track promotion as a reward for outstanding performance and Essar Guajrat (Essar Steel) gives special awards and letters of appreciations. All companies under study are weak in this area. For spreading of knowledge within organization, Cadila Pharma arranges seminars and Torrent Pharmaceuticals has multi-skilling and well designed job rotation programme. Welspun Gujarat organizes seminars and workshops and is unique because it alone has role playing exercises for its employees. IPCL, GHCL and GACL, Essar Gujarat have frequent seminars and conferences for their employees for knowledge sharing while GACL does it through house magazines and newsletters. 236

64 All companies undertake market research for learning from external environment. Arvind Mills is unique in benchmarking and IPCL relies on Trade Journals and at GHCL, each departmental head is responsible for monitoring external environment. GACL and Essar Gujarat rely on special reports for the same. 237

65 Table 30 Team Building methods, changes made in organization and efforts made to make company more effective Company Cadila Pharmaceuticals Company (Zydus Cadila) Torrent Pharmaceuticals Ltd Arvind Mills Ltd. Welspun Gujarat (WGL). Reliance Textiles Ltd. IPCL Gujarat Chemicals Ltd. Heavy Gujarat Alkalies and Chemicals Ltd. Essar Gujarat (Essar Steel) Team Building Methods Picnics and games related to team building, Former training programmes in team building. Have build different types of teams of technicians, mistries, laborers etc. Nature of work is such that team work is needed. Forming teams and the teams learn through experiences in the team. Interactive exercises, Team assessment group discussions, Different types of teams in all functional areas. Company has recently introduced the concept of team building and created cross functional teams. Have number of teams working in organization. Putting teams in a pool, several functional teams. Team building as a part of routine training, developing subordinates in team work. Special training in team building. Area-wise teams and committees such as Business teams, executive extended teams, industrial relations teams, etc. Different teams and committees, different team leaders and core teams at different levels operation & policy making teams. Changes made in organization Adoption of computerized information system, Documentation of charges made in organization Multi-skilling training Introduced Bench marking Introducing workshops on attitude change of employees, performance based payments Introduced six sigma training, positive working environment. Introduced continuous evaluation method. Making and taking suggestions. Implementing new procedures and practices in several departments More intensive product and process development, Ecofriendly technology. Open house sessions and Mentoring programmes Efforts to make company more effective More open knowledge sharing needed, wider adoption of Kaizen system. Leadership programmes, supervisory development, More effective communication methods. Employee development from bottom to top level for career growth and future development Interactions from top to bottom level. Improved customer services, Effective branding of our products, improving engineering. Company to be made more employee friendly and cost effective. To reduce top-down approach continuous cost reduction Using modern tools and techniques as followed by the competitions, talent management. Retention of potential employees Learning from others, anybody can approach CEO. 238

66 Analysis : No company has differentiated systematically between groups and teams. Some have made special efforts to build teams while Reliance Textiles has recently introduced a concept of team building. GHCL builds teams as a part of its routine administration. Essar Gujarat has teams at different levels but no company has mentioned any cross-functional teams. Only Welspun Gujarat makes team assessment from time to time. All companies have made changes in their organizations but only Zydus Chemical systematically documents changes. Reliance Textiles Ltd has adopted six sigma quality control system while IPCL has introduced continuous evaluation system. Essar Steel has introduced open house system while GHCL has introduced making and taking suggestion system. All companies have made efforts to make their organization effective through different mechanisms. Cadila has adopted more open knowledge sharing and Torrent has adopted leadership training programme. Reliance Textiles has now become cost effective through cost-cutting methods while Essar Steel has created an atmosphere where employees learn from others. Its CEO has introduced an open door policy. Cadila Pharma relies on picnics and games for building work teams and Welspun relies on interactive exercises. Reliance Textiles has recently introduced the concept of team building and has created cross-functional teams while at GHCL, team building is a part of routine training. GACL has area-wise teams and Essar Gujarat has core teams at different levels. Torrent Pharma is unique in the sense that it has built teams even of Mistries and Labourers. All companies have made changes in their organizations Cadila Pharma has adopted computerization and the concept of Information system while Torrent Pharma has introduced the concept multi-skilling training and Arvind Mills Ltd. has introduced the practice of benchmarking. Welspun has started altitude change training and Reliance Textiles has introduced six sigma training. IPCL has introduced continuous evaluation method and GHCL has designed a suggestion scheme. GACL has more intensive product and processes development and Essar Gujarat has introduced the concept of open session. 239

67 All companies under study have made efforts to make themselves more effective. Cadila Pharma has more open sharing of knowledge, Torrent Pharma has more leadership training programmes, Arvind Mills has career growth programmes for its employees. IPCL has reduced its top down approach. GACL & GHCL have adopted modern tools and techniques of management and at Essar anybody can see CEO. Table 31 Efforts made to make company a learning organization and changes envisaged in the company in the next ten years Company Efforts made to make a learning organization Cadila Pharmaceuticals Training programmes in learning, no Company (Zydus Cadila) punishment for innovation, offer help to build teams, training, paperless office, basic computer skills, giving 16 hours of training to every employee. Torrent Pharmaceuticals Direct approach to communication, Middle Ltd management layer to be reduced. Arvind Mills Ltd. Have created knowledge sharing forms, training programmes for technical, behavioural & functional areas, knowledge house. Welspun Gujarat (WGL). Full freedom given for knowledge sharing employee training programmes, various ways to carry out new strategies of learning. Reliance Textiles Ltd. Promotion on merit basis, no special efforts made so far, allowing employees to attend seminars within and outside organizations. IPCL Constructive approaches to education, paperless office and peon less office. Gujarat Heavy Chemicals Ltd. Gujarat Alkalies and Chemicals Ltd. Essar Gujarat (Essar Steel) No specific steps planned, quicker spread of knowledge among employees. Conducted need based training programmes and evaluation, introduced E-learning, ERP system. Introduced open-house system, Respect for people s idea, knowledge circles, use of MIS as a networking system, mentoring body system inductions. Changes envisaged in company in the next ten years The company hopes to make itself a learning organization, company with best employee satisfaction, to be more knowledge oriented and growth focused. Innovating more molecules and pharmaceutical formulations. To be true multinational through innovation, quality and development, to be a world class company. More product innovation with latest technology. The company will become number one in its industry through integration. To win best employee satisfaction company award. To split the existing company into several small companies. To be best company in terms of employee satisfaction. To be a socially responsible corporate giant. More advanced HR Policy. A larger variety of Alkalibased products with best quality and optimum customer satisfaction. To be a global leader in our sector. 240