b) What organizational design changes would he / she recommend for coping with
these environmental changes? 

About Organisation:
Gharda Chemicals Limited, established in 1967, is a research-based company with four
manufacturing units. The company has won several national awards for technical innovation
in the chemical industry and has many firsts in the field of dyestuffs, pesticides, veterinary
drugs and polymers. Innovation through a vibrant R&D has marked the rise of Gharda
Chemicals Limited (GCL) from a small unit in 1964 to one of the most successful and reputed
companies in the Agrochemical Industry. The company was started by Padma Shri Dr.Keki
Gharda in small shed in Mumbai. Today Gharda chemicals is one of the leading
agrochemical industry with turnover of round 3000 cr.
Key Challenges faced by Organization:
Currently organisation is undergoing transition from first generation to second generation.
As the Dr.Gharda don’t have any heir who can run the company after him , he has formed a
managing committee of 3 senior members.
The challenges faced by organisation at this point are:
1. Trust in leadership of new managing committee:

2. Culture Change:
Culture of organisation has always been determined by the founder’s values and
family culture. Now when there is a transition to professional culture. The set of
business assumptions carried over by the Professional managers are different from
the owner. The employees are assessed based on their ability to contribute to the
profits of the business. The professional managers are driving to bring new ideas and
management techniques that can move the firm in new direction. Competence and
performance are having precedence over loyalty and longer association. The HR has
the challenge of managing and handling the productive and loyal employees for the
interest of business.

3. Succession planning for leadership role:

a) Fewer available resources to devote to succession management;
b) Less in-house staff with the expertise to develop and manage an integrated
succession management initiative; and
c) resistance from old employee to open succession lines from outside
organisation.
 Currently there is a need for systematic and formal succession plan. HR need to be
more be more proactive in identifying and developing their leadership talent, be more
attuned to diversity issues; and have a more transparent succession planning process.

4. Standardization/Formalization:
Currently organisation has decentralized system. Each unit/ factory have their own
policies and practices. The practices are focused on unit level issues like staffing, co-
ordination, managing resources, performance management, developing skills and
compensation decision. But now as the organisation is ready to take a leap to next
level there is need for standardization of few process. As HR we need to define and
develop core competencies, work force competencies, centralized system for
performance management, leadership development, fair compensation practice etc.

Current Organisation Design and structure:

 Share Holders

Board of Salary
Directors Commitee

Managing
Committee

Functional
Site Head /Plant Subsidiary
Heads( Vice
Head company
Presidents)

General Functional Similar to that

Manager Manager of plants

Functional
Liner Manager 1 Line Manager 2 Line Manager 3
Manager

Line Managers-1 Liner Manager 2 Managerr 1 Manager 2 Manager 3

Corporate
Structure

Manager Manager Satff 1 Staff 1 Staff 1

Staff 1 Staff 1 Staff 2 Staff 2 Staff 2

Staff 2 Staff 2 Staff 3 Staff 3 Staff 3

Staff 3 Staff 3 Staff 4 Staff4 Staff 4

Currently organisation strategic style is of operational excellence as well as product

leadership.
Plant structure