New Holland Tractors(India)

Situation
Analysis

Problem
Identification

Possible
Solutions

Decision Criteria

Recommendatio
n and Action
plan

Additional Issues

Structure
Three point agenda
Farmers Education
Strateg Right Product Selection
Nimble, flexible and agile organization
y

Structu
re

Matrix based structure

Functional and team based reporting
Team and process based organizational
Skills
structure
Cross-functional teams

Extensive recruitment process

Consists of 3 stages
System ERP system in place BaaN
PMS 60:40 functional:team based KRAs
s

Critica
l
Succe
ss
Factor
s

Technolo
gy &
Innovatio
n

EmployeeOrganizatio
n Fit

Superior
Customer
Support

High work pressure

Attrition
Difficulty in attracting experienced
personnel
Individuals needing to come on weekends to
complete work.
Poor time management by the employees
Excessive time spent in meetings
Crossing over of multiple teams on same
jobs
Time wasting
Cross-functional teams sometimes leading to
delays
Organization being moulded according to
ERP system
Dichotomy between employees about
independence in decision making
PMA | GROUP
2

Situation Analysis

Problem Identification

Evaluation of options

Recommendation and
Action plan

Additional Issues

Difficulty in striking a balance between team and functional KRAs

Critical
Poor attendance
in team meetings and failing to attain functional KRAs

Success
Due to team Factors
responsibilities, functional priorities taking a hit. Too much work

pressure due to membership in multiple teams

Lack of formal team KRAs

Each team has its own set of KRAs/objectives.
Separate performance measures for each group

Since most of the teams have stretch goals, difficulty in calculating rewards and
KRAs
Personal calls taken on prioritizing team attendance. Lack of alignment with
organizational goals.
Difficulty in explaining lack of designation process to external agents like families
Additional pressure building up in trying to fit organizational processes to ERP
system (BaaN)
PMA | GROUP 2

Situation Analysis

Problem Identification

Evaluation of options

Options

Employee
Satisfacti
on

Recommendation and
Action plan

Organizatio
nal
Effectivenes
s

Cost

Limit the number of teams an employee

can be a part of

SLN_04
SLN_05

SLN_06

Time taken

Low

Customize ERP such that it aligns with

organisational processes
SLN_03

Additional Issues

Medium

Yes

Low

Low

Yes

High

High

Yes

Yes

Low

Low

Yes

PMA | GROUP 2

Situation Analysis

Problem Identification

Evaluation of options

Recommendation and
Action plan

Additional Issues

1. Let Chinese management

style be implemented in short
run, to ensure JV starts
production (Top Down)
2. Set up PMA & PRS in line
with required KSAs

1. Communicate expectations,
Set goals for the JV.
2. Provide JDs for all roles
3. Organize workshops for
language and cross cultural
trainings for the JV managers
PMA | GROUP 2

1. Gradually phase out

Hierarchical management and
introduce more Result
oriented management, via
Role and Responsibility
mapping
2. Allow for higher ratio of GM
managers to aid cultural
integration

Situation Analysis

Problem Identification

Evaluation of options

Recommendation and
Action plan

Improving living conditions of Hangzhou managers by

allowing then to bring their families, introducing
socialization processes
Wang Peng & Jim Olenuk reporting relationship is
strained and is without trust. Change Jims reporting
relationship or ensure highly objective goals, till
organization is culturally integrated
Ensure Deng Li and Liu Hong (Marketing & Sales) are
given mutually inclusive and pooled rewards Will
Ensure Cooperation

PMA | GROUP 2

Additional Issues