Vizag steel a case

study
THE ORGANISATION

VIZAG STEEL IS A HUGE

ORGANISATION EMPLOYING ABOUT
1% OF THE POPULATION OF THE
ENTIRE CITY
IT HAS A STRENGTH OF 2,500
EXECUTIVES
AVERAGING 6 EMPLOYEES PER
EXECUTIVE
IT HAS A STRONG FINANCIAL
BACKUP
THE PROBLEMS

REHABILITATION OF DISPLACED
EMPLOYEES
MULTIPLE LABOUR UNIONS
LACK OF MANAGERIAL TURNOVER
AND COMPETITION
THE SOLUTION

THE SOLUTION FOR THE PROBLEMS

CAN BE ARRIVD AT BY WAY OF THE
FOLLOWING STEPS
1.)IDENTIFICATION OF THE PROBLEM
2.)CLASSIFICATION OF THE PROBLEM
3.)DERIVING THE SOLUTION
4.)EXECUTING THE PROBLEM IN THE
BEST POSSIBLE WAY WITHIN A
REASONABLE TIME FRAME
CLASSIFICATION OF THE
PROBLEM(S)
LABOUR UNION
LACK OF THE RIGHT PEOPLE FOR
THE RIGHT JOB
MOTIVATION
LACK OF COMPETENCE AT THE
EXECUTIVE LEVEL
LACK OF PROPER WASTE
MANAGEMENT
LACK OF TECHNICAL EXPERTISE
LABOUR UNIONS
THE LABOUR UNIONS IS USUALLY HEADED BY
ONE SUCH CHARISMATIC(MORE OFTEN THAN
NOT)PERSON WHO JUST WINS THE
ADMIRATION OF THE LABOURERS BY SAYING
WHAT THEY WANT TO HEAR
AND THE BEST PART IS HE LIKE THE OTHER
EMPLOYEES HAS HIS INDIVIDUAL NEED
WHICH EVENTUALLY OVERSHADOW THE
NEEDS OF THE UNION
THE LABOURERS BEING THE LOWER CADRE
OF THE SOCIETY GENERALLY DEMAND ONLY
 THE ENHANCEMENT OF THEIR BASIC NEEDS
THE BEST WAY TO UPEASE THEM IS TO
PROVIDE A PART OR PERCENTAGE OF WHAT
THEY NEED AND TH PROMISE THAT THE
REST WILL BE PROVIDED BASED ON THE
PERFORMANCE OF THE COMPANY
THE COMPANY MUST RECRUITE A LOBBIEST
WHO WILL USE HIS TALENT TO SPEAK , TO
COVER THE ATTENTION OF THE LABORERS
 THE DISPLACEMENT OF WORKFORCE CAN BE
REMOVED BY USING VARIOUS PERSONALITY AND
SKILL ASSESMENT TESTS WHICH CAN BE
CONDUCTED BY WAY OF SOME NEW
RECREATIONAL PROJECTS OR BY STRICTLY
ADMINISTERING THEM IN A FORMAL WAY
THE RESULTS OF THESE TESTS HAVE TO BE USED
TO ALLOCATE THE RIGHT JOB FOR THE RIGHT
PERSON
HAVING DONE THE ABOVE FUNCTION WE CAN
SOLVE THE PROBLEM OF MOTIVATION BY GIVING
THE WORKFORCE THE WORK THEY ARE GOOD AT
IT IS A PITY THAT THE EXECUTIVES WHO ARE ALMOST
60%OF THE WORKFORCE ARE NOT ABLE TO SHOW
EFFECIENCY DESPITE THE HUGE ADVANTAGE IN
NUMBERS

THEIR PERFORMANCE HAS TO BE MONITERED AND

NEW RECRUITS ARE TO BE EMPLOYED BASED ON A
PROPER ANALYSIS OF THEIR SKILLS AND
WEAKNESSES
THE CONCEPT OFA GOOD INCENTIVESYSTEM IS MORE
OFTEN THAN NOT REFERED TO AS REGARDS THE
LABOURERS BUT NOT MUCH IS MENTIONED AS
REGARDS THE EXECUTIVES
THE EXECUTIVES HAVE TO BE GIVEN
PROPER INCENTIVES BASED ON
THEIR PERFORMANCE
ONE HAS TO KEEP IN MIND THAT IT IS
THE JOB OF THE EXECUTIVES TO
ENSURE OR TO MINITOR THE PLAN
AT PENULTIMATE STAGE OF
IMPLEMENTATION
LACK OF EFFECIENCY
STATISTICS AHOW THAT THE RUSSIAN COMPANIES USING
THE SAME MACHINERY PRODUCE 8000 TONS OF STEEL
PER DAY AS AGAINST 6000 TONS PRODUCED BY VIZAG
STEEL
THE GOAL OF 30,00,000 TONS PER YEAR CAN BE
ACHIEVED ONLY BY PRODUCING ABOUT 8500 TONS OF
STEEL A DAY
THEREFORE THE PRODUCTION HAS TO BE MONITERED
FROM THE RAW MATERIAL STAGE TO THE FINISHED
PRODUCT STAGE
WAGTAGE HAS TO BE PROPERLY ACCOUNTED FOR
AND THE BY PRODUCTS HAVE TO BE UTILISED AND SOLD
WITH THE SAME CARE AND IMPORTANCE AD THE MAIN
STEEL ITSELF
 THEREHAS TO BE A PROPER
COLLABORATION WITH THE
RESEARCH INSTITUTIONS , AND THE
NEW ADVANCEMENTS IN THE
TECHNIQUES AND TECHNOLOGIES
HAS TO BE IMPLEMENTED PROPERLY
THE MAN(AGER)
CHIEF MANAGING DIRECTOR
THE CMD HAS TO BE A PERSON WHO IS A REAL LEADER
BY VIRTUE OF HIS QUALITIES HE HAS TO LEAD THE
CHANGE FORM THE FOREFRONT IN ORDER FOR THE
CHANGES TO HAVE EFFECT
THE WORKERS HAVE TO KNOW WHO THEY ARE WORKING
FOR
HE HAS TO MOTIVATE THE EXECUTIVES ENOUGH,SO THAT
THE SAME VIBES CAN BE CARRIED OVER BY THEM TO THE
LABORERS
HE HAS TO UNDERSTAND THE PEOPLE , AS THERE IS
ALWAYS A CHANGE OF CHARACTER OR TRAITS FORM ONE
PERSON TO ANOTHER
THE STRATEFY MUST BE TO IDENTIFY THE WEAK LINKS
AND STRENGTHEN OR RECTIFY THEM
 BYRECTIFYING THE PROBLEMS OF
THE WORKFORCE AN GREAT DEAL
OF EFFECIENCY AND EFFECTIVENESS
CAN BE ACHIEVED THEREFORE
INCREASING THE PROFITS BY
REDUCING THE PRICE
 THE WAYS TO ACHIEVE
CORPORATE EXCELLENCE

A bias for action:

A preference for doing something ---anything
rather than sending a question through cycles
and cycles of analysis and committee reports.

Staying close to the customer:

Hearing his or her preferences and catering to
them
Autonomy and entrepreneurship:
Breaking the corporation into small
companies and encouraging them to think
independently and competitively.

Production through people:

Creating awareness in all employees that
their best efforts are essential and that
they will share in the rewards of the
company's success.
Hands on value driven policies:
Insisting that executives keep in touch with the
firms essential business

Stick to knitting:
Remaining with the business the company know
best.

Simple form lean staff:

Few administrative layers, few people at the upper
level.
Simultaneous loose tight properties:
Fostering a climate in which there is
dedication to the central values of the
company combined with tolerance for all
employees who accept those value.