BY-Rituraj kumar

About k.M.Birla (June 14, 1967)
 Kumar Mangalam Birla is a chaiman

of aditya birla who is son of A.V.Birla.  K.M.Birla done C.A and MBA from london business school, at the age of 28 taken responsibility towards business having total revenue of INR 15,000 crores with assets of INR 16,000 crores.It had a strength of
75,000employees and 6,00,000 shareholders.

M.  Many critics were opinion that “K.Birla decided to consolidate entire entire group’s companies under one umbrella of the “Adithya’s birla group”.Birla.M.Birla(the reason for change in management style)  After taking up the change.his critics dismissed him as a soft and shy person.Birla handovered business from his father in 1995.K.Birla would unable to manage the group successfully”  When k.indian rayon .hindalco & indo gulf fertilizer suddenly decreased by $1billion or 37%.M.In 1996 the market value of group’s four largest companies grasim . .M. who lacked the business expertise and assertiveness of his father A.  An unapproachable management style and misplaced priorities the result was the investors started selling off their shares .V.K.

.Changes taken by K.Birla to prove that the critics are wrong….M. .

"people in the group about twice my age when I took over as chairman.Retirement policy  He introduced a retirement policy in 1995. but I also feel the need for change”. .  Meanwhile .subsequently about 400 young employees replaced them. I had great respect for them personally.1.had quit the organization in the next five years .on the basis of which around 325 senior employees.who were there early 60s.answering the critics he said.

2.he launched for the first time a corporate identity that would serve a corporate logo. This helped the organization to reenergize and get started to the path of change”.M. . “The new corporate logo helped in bringing various companies of the group together.Corporate logo  In 1996. which signified optimism and served as a unification symbol for the group.Birla said. The group selected the rising sun as the logo.  K.

Birla also changed the group’s policy in house recruitment.3. In 1996.Recruitment process  K.he also made changes in group’s HR system. He hired professionals from other companies into his management team .M.

the strategic decision making for ensuring the best practices across the group companies.Birla also established aditya birla management corporation limited.M.4.Change in decision making  The partha system of daily financial reporting which focused mainly on production was replaced with an “Economic value added model”.  K.  K.M. asset productivity and growth.Birla decided to reduce the group’s dependence on fiber based business where its market share was low. Instead he decided to concentrate on non-ferrous metals as there was less competition and hindalco already had a big presence in the aluminum sector . This model focuses on the aspects of profitability.

Birla introduced a 360 degree feedback program in 1999 that permitted managers to raise questions over his leadership style.360 degree appraisal  K. .M.5. he issued each senior manager a six page letter mentioning the areas of improvement and his expectations. managerial ability and also personal traits but he could not define what he expected from his employees.  After the feedback.

people centered.  He also launched Aditya Birla awards in 1999 where team achievements recognized every year .Birla launched the aditya birla scholarship to promote excellence among students community to cultivate the leaders of tomorrow.6.Scholarships to students and Awards to employees  In 1999 K. .M. "cultivating a new generation of managers and cultivating a participative culture are keys to the increasingly energetic. and performance focused culture we aspire for”.  He said.

which measured the “Happiness at work” index.7. .Happiness at work  Birla had also implemented the organizational health survey by the late 1990s. This was carried out to track the employees satisfaction.

reviwed compensations and accentuated on training to bring meritocracy. the hierarchy in the group was determined by seniority instead of merit.M.Birla took the chairmanship.M.  He personally led the recruitment program from business schools. He decided to implement performance management systems.Birla also brought in some managerial changes in the group. Before K.Hierarchy based on performance of employees  K. He instituted a performance appraisal system. .8.

. The top 20 executives of the group. could report directly to K.Birla.Changes in reporting  He also brought about changes in reporting system being followed at the group. thereby giving them complete freedom to run their businesses and same holding the more accountable for their performance.M.9. who had greater responsibilities in the group.

Cement .

Metals .

Fibres/Textiles .

Garments .

Financial Services .



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