Written Analysis and Communication

Individual Submission
Submitted To: Prof. Rihana Shaik
Submitted By: Siddharth Gautam
Roll no: PGP10233

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 Letter of Transmittal

August 16,2019

Prof. Rihana Shaik

Written Analysis and Communication

Indian Institute of Management, Rohtak

Subject: Submission of Case Analysis Report

Respected Ma’am

As per the guidelines provided by you during the classroom discussion, I hereby submit a report
on the case titled ​Can a Strong Culture be Too Strong​. This report has been prepared after
going through the entire case and carefully scrutinizing the facts and assumptions. The report
contains the relevant fact in the introduction, problem statement and list of possible alternatives
and best actin plan to be implemented.

I request to kindly evaluate the same and provide your valuable inputs.

Regards,

Siddharth Gautam

(PGP10233)

Indian Institute of Management, Rohtak.

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 Executive Summary

A Chennai based, medium size IT Service Company Parivar is growing in all

aspects including revenue, profitability and reputation but still has a long way to go
to compete with the top most Indian IT companies. The company has survived a
near bankruptcy situation and now growing at a fast pace and aspires to be in the
top tier. The company is facing the problem of high attrition rate of 35% as most of
the workforce is leaving the organization for better opportunities outside. This is in
spite of the fact that Parivar’s culture is that of a homely environment and is
supportive to its employees in any personal or professional problem. The head of
recruitment Mr. Vikram Srinivasan blames the Indian labor market for this
situation while the Vice – President of HR Ms. Indira Pandit does not feel the
same. Nisha a young employee has come up with the “People Support” philosophy
to tackle the present problem and increase involvement of the employees with the
organization. While Vikram is concerned with its implementation cost Indira is
skeptical about its success. Now Indira has to decide whether to endorse this idea
or to come up with something else before meeting Sudhir.

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Table of Contents

● About The Company----------------5

● Problem Statement-------------------6
● Alternative Options-------------------6
● Evaluation Criteria--------------------7
● Recommendation-----------------------7
● Implementation-------------------------8

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About the Company:

Parivar is a Chennai based IT Company which is mid size. the company is growing in revenue,
profitability and reputation but it was still much smaller than companies like Infosys, HCL and
other leading global providers of business process outsourcing services. The CEO of the
company has a charismatic personality and he has recently saved the company from bankruptcy.
The company hosts the annual innovation event in which the employees from all over the
company- particularly new and young ones were encouraged to join senior leaders in
brainstorming and design sessions focused to reach its yearly goals.The company is giving the
employees a healthy environment but still the turnover rate of the company is 35% which is way
more than any other IT company.

CEO Sudhir Gupta-

1) Charismatic in his approach towards the business

2) Believes in solving the problem rather than the problem
3) Encourages new talent in the company
4) Cares for the people working under him in the company
5) Believes in the big brotherly love culture

Indira Pandit-

1) She is the Vice-President of HR in Parivar

2) Takes employees suggestion seriously so as to reduce the attrition rate in the company
3) The CEO believes in her and takes her suggestions seriously

Nisha-

1) She is a young enthusiast and passed out from business school recently
2) Introduced the “People Support Plan” to reduce the attrition rate

Vikram Srinivavsan-

1) He is the head of recruiting team of Parivar

2) Blames indian labor market for the high attrition rate of the company
3) He believes in the fact that a company in which the employees keep on leaving the
company has high chances of being innovative
4) He like the idea proposed by Nisha

Kumar Chandra-

1) He is the head of Operations in Parivar

2) Feels that the People Support Idea is expensive
3) Kumar in particular was not satisfied with the idea proposed by Nisha.

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Problem Statement:
The company is doing well in all departments but still nearly 100 employees has given notice in
recent weeks. the attrition rate of company is 35% which is way more than the IT industry. the
biggest problem for the company is how they will retain its employees.

Reasons-

the main reasons behind the high attrition rate is as following-

1) The companies like HCL, Infosys and Wipro are offering 30% more than Parivar
2) Some Employees like Amal, want freedom while working and they don’t believe in the
big brotherly culture
3) Some employees believes that only Sudhir’s favourites gets family like treatment
4) The overinvolved culture in Parivar is not much appreciated by young employees

Alternative and Evaluation:

1. Accepting Nisha’s proposal.
Nisha proposed the People Support idea to retain the employees. The plan will include one
designated “listener” assigned to the employee and employees can contact the listeners in case
of any problem or dilemma.​The listener would act as an intermediate communicator of
problems between the employee and employer. The CEO and Vikram Srinivasan liked
the idea as it is genuinely focusing on the happiness and wants of the companies
employees.

2. Salary Increment
In the exit interviews employees mentioned that other companies are offering 30% more than
what parivar is offering at present.The combination of family culture and high payment will help
in retaining employees and can also increase the job satisfaction level. Since, Parivar is a 2nd tier
company it will not easy for them to increase the salary of all the employees so they can rather
introduced a better plan through which the performances can be monitored and pay will be raised

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accordingly. increase payments will give motivation to the employees to put strenuous efforts in
their work. it may also enhance the efficiency of the employees as well. this will also increase
the loyalty of the employees towards the company.

3. Cultural change
The youngsters like Amal, don’t like the overinvolved culture of Parivar and as a result they are
leaving the company. the company is in demand for opting a more professional culture which
will also eliminate the favouritism factor and biases factor which were happening as per the exit
interviews of the employees. The company is also looking to expand in the UK and US where
the more professional culture is required so the change in culture will help them to facilitate
the western culture environment.

Evaluation Criteria-
Since the company is performing well and the only issue the company is facing the high attrition
rate and want to reduce the attrition rate so they can evaluate the above alternatives on the
basis of that. They can compare the attrition rate before and after the implementation of the
plans to see the success or failure of the alternatives.

Recommendations-
The company needs to find a proper alternative and needs to implement the plan as quickly as
possible to reduce the existing turnover rate. The company should increase the pay level to
decrease the attrition rate. since the employees are not liking the existing work culture and
need some space so it can be assumed that they will not like the People Support idea proposed
by Nisha. Also, in the exit interviews employees mention that other companies are not only
paying them better but also giving them space by not overlooking in their personal life. so the
company should increase the pay and can also offer some other benefits like holiday trips or
bonus to the employees, who performs better than the rest in the given period. this will
increase the competition amongst the employees and will increase the job involvement. Hence
it is proposed that the increment in pay is the right way forward to decrease the attrition rate.

Implementation-
While implementing any HR policies especially if the policies are changing special care must be
taken since resistance is bound to happen. Since the company needs to increase the salary of
the employees and company is still growing therefore it will be challenging for the company so
they should check this with the accounts office. and, to give special bonus or other benefits

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company needs to make the rules very clear about the same so that no one can blame the
organization if he/she won’t get it. The pay increment to the particular employee should be
done without biasing, it should be done on their performances. Indira, the Vice-President of HR
and Sudhir, the CEO of the company should look into these matter personally to smoothen the
functioning.

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