CASE ANALYSI S

Section 3 Group 15
Apurv Mittal FT153025
Survesh Chauhan FT153047
Naveen K. FT153066
Mukesh Shah FT153090
Sumit Arora FT153107
Gagandeep - FT153114


Situation Before Hiram
Ten years of continuous growth due to good
economic conditions
Company was Fat and Happy
Then came the economic slump and Rainbarrel
could not cope with it.
They were slow to react due to their indiscipline and
lax attitude.
Hirams Vision
Focus on cost reduction via Lean and Mean.
He reduced labor cost by forced layoffs - 10%
reduction in all units.
Improved call center metrics.
He brought in Wall Of Shame.
New metric of measuring customer service was
brought in.
Hirams Vision Contd..
Standardized the meaning of the term shipping
Consideration of selling price as a measure of
commission to sales people.
Removed the confusion in the minds of the sales
personnel.
Bottomline - Keep things simple.

Unexpected Backlash
Employee developed tendencies to find loopholes.
Employees started filing patents which were
commercially non-viable.
The current and retired employees were cold
shouldered by the sales people.
Layoffs were reducing happiness.

Unexpected Backlash Contd..
The headcount reduction was the target and not the
cost.
Firing of low performing employees was crippling
the company.
Even high performing department had to lay of high
performing individuals.
Long term customers were getting disgruntled.

Contd..
Stocks were not getting replenished.
Stuff was lying on the railroad siding outside the
warehouse.
Customer service personnel were in hurry to hang up
the phone calls from customers.
Hence multiple calls were required to resolve a single
issue.
In short, Hiram had lot of thinking to do.



Experts take on this case
Make shipping efficient rather than faster.
Layoff increases costs of hiring too.
It is very difficult to define a right metric.
Compromising long term businesses for
short term operating gains.
PMS should be launched as a pilot .




Contd..
The employees were humiliated due to
Wall Of Shame
Introduction of intangible reward system.
Top performer need to be nurtured as they
are 50% more productive than other.
The pay for performance was illogical
game.




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