Sumeru Software Solutions: Creating Culture of Serene Dynamism Case Analysis
What are the pertinent facts in the
case?
What is/are the primary problem
(s) and the cause (s)?
Fundamental Management Issue identified References from the case
in the case
1.  Sumeru started with very few no. of “The organization had previously been
members who were like-minded, but as the inward”, Page.10
company grew, more people started coming
into the organization, and diversification of
thought happened.
2. As the organization grew, the focus moved “Everyone has the freedom to sink in
towards aligning with its values, which was and absorb to the level that they wish
the founding factor of the organization, to” Page.07
rather than focusing on business growth or
employee performance
3. As the organization grew in operation “To add more structures, policies and
segments and no. of customers, it was protocols” Page.10
becoming difficult to manage and was
getting pressure from higher management
to add more policies and protocols
4. The organization did not believe in firing “There is a very clear non-performing
people despite their bad performance. The policy” Page.15
bad-performing employees were sent for
counseling or were transferred to another
division.
The major challenge faced by Sumeru was regarding their management structure; in the
beginning, it was all very smooth as the organization had less no. of members as well as less no.
of customers, but as the organization grew over the years, many members joined and were
outside the AOL community because the organization was facing problem in acquiring the
required talent within the AOL community. And as the diversification happened within the
organization, it got harder for the higher management to make the new recruits connect with
their core value which was associated with AOL's philosophy. Also, as the organization had a
very free culture and a no-firing policy, many new talents got on board to get exposure to the
learnings, hone their skills, and train themselves. Once they got the experience and became a
value-adding employee for Sumeru, they left the organization for a better opportunity. This was
a serious loss to Sumeru. The organizational culture was not at all formal, leading to the
decision-making only being practiced by the higher management and sometimes based on their
personal biases. Employees often felt left out regarding the changes and decisions. Also, the
conflict resolution was handled by Line managers rather than the HR professional, and the
organization usually encouraged the employees to solve the conflict by themselves.
What are the alternatives for
action?
To curb the problem of freshers quitting, the organization should add clauses in their
recruitment policy for a minimum no. of years they should serve. Also, they should adopt a
proper management structure, policy, and protocols for the organization's functioning more
efficiently and goal-oriented. The lower-level employees should also be involved in the goal-
setting process, as it will lead to a sense of responsibility to reach all the goals. The HR
department should realize its responsibility for conflict resolution and not leave it to the
individual or line managers.