Skip to main content

Restructuring galore

Mint today talks about major restructuring at the senior management level at Tata Motors. MD and CEO Karl Slym has hired his men from GM India to Tata Motors to revive the fortune for Tata Motors in passenger car segment. 5 new faces at the levels of VP into core strategy, marketing, purchase, commercials, quality etc.

Slym who joined Tata Motors India last year has identified 3 problem areas at Tata Motors passenger car segment to improve upon, which are; poor quality, lack of model upgrades and perception that Tata cars are better for only taxis.

BCG recommended Polaris to have a set of 5 CEOs instead of 1. Share prices have fallen 45%. Last 9 months have been flat for them in terms of revenue growth. Attempts to enter and work in African and Brazilian market has not paid off as the Big 4 also have not been able to get any leads in those markets.

Though founder Mr.Arun Jain says revenue has doubled from 2008 till 2012, it appears, the profit margins have seriously dipped as reflected in the share prices getting ~50% dip. Important is the fact to look at companies like MindTree who have around same top-line of $450 mn, have been able to get business and do slightly better than Polaris. In banking and Finance sector, where Polaris plays, scale may be a big factor hitting them  against TCS, CTS and Infosys.

Seems like time of anxiety has prompted thoughts to push for serious change in the way the business was done. All these seem to be positive and radical steps, though analysts may have differing views.

Bharti Airtel has been facing serious operational and employee cost jumps. Employee cost has gone up by 24%. Reliance Telecom's deep pocket is a worry for Bharti Airtel. Bharti Airtel has made some great progress in last 6 months in terms of higher usage by users and given a jump of 5% in revenue due to customer usage. After Sanjay Kapoor got replaced by Gopal Vittal as CEO in March 2013, a leadership change that may serve the purpose and change fate of Bharti Airtel.

Comments

Popular posts from this blog

What is The Hay Group Total Reward Framework

The Hay Group Total Reward Framework
A new way of understanding reward
Reward strategies must be anchored in business reality to be effective. Which means linking it to your business strategy – and the needs of your employees as well as your organisation. Our Total Reward Framework helps you optimise reward, no matter how challenging the conditions.



The issue
Remuneration tends to be one of the worst-managed parts of an organisation’s cost structure. But with 10-70 per cent of total costs wrapped up in it, reward cannot be ignored, particularly in a downturn. To be effective, reward programmes must reflect the needs of the business, now and in the future. Only if they are tied closely to company strategy, business performance and the needs of employees can reward programmes deliver the ROI that is needed in tough times[MK1] .
The Hay Group Total Reward Framework takes strategy as a starting point – and it focuses on total reward: every financial measure together with non-financial rewards …

Aon Hewitt Total Rewards Framework

Aon Hewitt Total Rewards Framework The Aon Hewitt model and approach believes in considering Total Rewards as a business tool and very much linked to overall business objectives!
Reward as understood is a very complex mechanism and some efforts of correcting the base pay and titling in a hurry by many MNCs in India have done a bigger crime by trying to correct it by market adjustments without looking at the talent map, complexity and expectations out of role and mapping it against the benchmark. Titles in India are a big misnomer and hardly any survey on compensation ever probes and captures and calibrates the tangible outcome based bench marking!

If we dive deep, we will find that the key factors of Education, Experience and Quality of Education, Quality and relevance of experience and education are not calculated granular!
A diploma holder technical manager gets the salary benchmarked for the top T-school manager with top quality experience in a challenging and break-through innovat…