Organizational Study

Dipin Mahajan (14) Nitin Iyer (37) Radhika Bhaskaran (39) Rahul Jain (40)

‡ Company Introduction ‡ India Operations ‡ Vision / Mission ‡ Core Competencies

Formed in by 1989 by the merger of Mettler Instruments and Toledo Scale, Mettler-Toledo is a manufacturer of scales and analytical instruments. ‡ Industry Leader - They are a global manufacturer and marketer of precision instruments for use in laboratory, industrial and food retailing applications. ‡ Theirs is the largest global sales and service organizations among precision instrument companies. ‡ Geographically diversified - with sales in 2008 derived 43% from Europe, 35% from the Americas and 22% from Asia and other countries.

with 121 employees in sales. ‡ In India MT has offices in Mumbai and Delhi. marketing and engineering and 100 employees in service. . sales and service functions.INDIA OPERATIONS ‡ Mettler-Toledo India is mostly limited to assembly.

Innovation and international flair are part of our everyday business. ‡ Our customers' success is also our success: It is only by providing long-term benefits to our customers that we can guarantee our own success in the long run. international and integrated. .VISION STATEMENT ³Quality above all else´ ³One Team ± Global Reach ± Amazing Solutions´ ‡ Products that are innovative.

such as NEC. For hazardous environments. This allows MT to produces scales that are cheaper and of higher quality than of its competitors ‡ Conformance to Global Standards: MT balances offer configurable printouts and password protection to ensure the traceability and reliability of weighing results. most other companies tend to import the lead or use cheap substitutes. CSA or ATEX. ‡ Net Content Control and Safety: MT solutions ensure process compliance to national and international legal requirements while controlling waste by minimizing overfilling. This is something that other local firms cannot compete with . they offer products which meet national and international regulatory requirements.COMPARITIVE ADVANTAGE/ CORE COMPETENCIES ‡ Backward Integration: MT is the only manufacturer of scales and analytical instruments in India that manufactures its own ³weighing leads´.

value and service.MISSION STATEMENT ³The Company is already the top in its range and type in the World and it maintains that its mission is to uphold this top position and always exceed customer expectations in quality.´ .

PRODUCT ANALYSIS ‡ Value Creation ‡ Product Range .

MT¶s product range allows our customers to meet all of these challenges. can both change and increase customer requirements.VALUE CREATION . ‡ Customers also often have to adhere to strict regulations. . customers have to handle vast amounts of data. ‡ Customers may need to increase their productivity and fullfill more stringent quality requirements.SOLUTIONS Mettler Toledo¶s day to day business is focused on their customers' needs and challenges: ‡ Dynamic market conditions for example. They have not achieved the leading position in their sector purely because of their offering of outstanding solutions. but because their customers value these solutions so highly. ‡ While systems are working efficiently.

productivity and compliance.Industrial instruments and software optimize operations for all aspects of line inspection and logistics.Laboratory instruments that improve processes in research and development. These solutions provide value to customers with improved product quality & automated processes. These solutions helps the customers with pricing. ‡ Retailing: Optimizing Fresh Foods Management ± Retail solutions allow retailers to effectively manage their fresh foods inventory and support merchandising to maximize efficiency and profitability. The benefits of this include enhanced accuracy. . The consultative service approach tailors a service strategy that best supports a customer¶s success. downtime or noncompliance with regulations.PRODUCT RANGE ‡ Laboratory Solutions: Advancing Research . ‡ Service: Supporting Business Goals ± Driven by the impact each instrument has on the customer¶s business goals. as measured by the consequences of inaccuracy. substandard quality. ‡ Industrial Solutions: Improving Productivity . supply chain management and more. drug discovery and quality control. inventory management.

VALUE CREATION MODEL .¶Open Systems Model· ‡ Customer req. Process Packaging ‡ IT linking Addln. ‡Raw materials Input ‡ Quality Control ‡ Production sys. ‡ C U S T O M E R S EXTERNAL MARKETS Feedback .

INSIDE METTLER TOLEDO ‡ Work Environment ‡ Work Culture .

‡ Non compromising nature as far as functional equipment is concerned ‡ ‡ ‡ ‡ ‡ Job specific and departmentalized Equality in Differentiation Functional rather than Tidy Convenient Location and Proximity of Related Work Forces Shared Amenities . equipment. Fixtures. ‡ The quality conscious nature of the company in its choice of state of the art equipment and stationery. This Reflects ‡ The cost-cutting approach of the company where comfort and not show is preferred. stationery and office machinery that are absolutely up to date. However.WORK ENVIRONMENT Sober furnishings and wall colours that are as standard as possible without being uncomfortable.

. This challenges us to stay flexible. Take the initiative to pursue opportunities and clear away obstacles. Quality is a state of mind. ‡ Be Aggressive: This means getting the order. which guide behaviour at MT: ‡ Deliver Quality: Quality for us is more than technical precision and premier products. and change is occurring at a faster clip. applying new technologies to our business processes. ‡ Pursue Innovation: Innovation is the art of finding answers before the question is asked. ‡ Be Cost-Conscious: Achieving a good cost-benefit ratio for our customers means one thing above all: Spend nothing that does not help the customer. ‡ Show initiative: We want you to feel empowered. Give your best. ‡ Be Agile: Business is becoming more global. React quickly. Put good ideas to work.WORK CULTURE There are six Values. being the first in new markets. Seize opportunities to help us grow.

. and use µji¶ for the much older employees. With a field job. There is a lot of interaction and communication on an informal level. We respect our seniors and with colleagues we spend quite a bit our free time together.EXCERPTS What is the culture like at your workplace? There is no defined µculture¶ as such. to get dinner or drinks on a few days. how do you keep in touch with colleagues? We all still meet after a day¶s work. There are no norms regarding how we need to address each other. There is also the company bulletin that is an informal publication* that allows us to know what the other person is up to. at least nothing that is stand put and notice-able. but we mostly call both colleagues and seniors by their surname. we are all each other¶s friends and guides. or what is happening in the office.

ORGANIZATIONAL STRUCTURE ‡ Structural Design ‡Structural Analysis .

R G.STRUCTURAL DESIGN Managing Director GM Marketing GM Accounts GM H.M. Sales Sales Manager Laboratory Sales Manager Retail Sales Manager Process Sales Manager Industry Business Leaders Light/ Heavy/Systems GM Services GM Sales GM Materials Regional Leaders (7) Area Sales Managers .

. Respondent Says (Area Sales Manager): There is a certain degree of freedom and decentralization in the sense that all decisions do not go to the MD. However most of the communication comes from the GMs. This has already been laid down as a procedure by the top management. DECENTRALIZED Company Says: Our Decentralized Organization Concept allows for a high degree of autonomy and enhances corporate responsibility within the scope of the Group's strategy. Our Analysis Says: ‡ There is a fixed way to approach each job. The individual is simply expected to perform as per these guidelines. be it accounts or a sales pitch. ‡ The degree of freedom in decision making is subjective as the frequent tasks require no decision making and the matters that are not frequently occurring are required to be reported to a superior who can take a decision/ continue the upward dissertation.STRUCTURAL ANALYSIS CENTRALIZED Vs. ‡ If we had to take a stand : At least on a day to day basis the company is decentralized.

such meetings happen at every level. this mostly happens through the submission. right from the ASL level upwards. .STRUCTURAL ANALYSIS INTEGRATING MECHANISMS Respondent Says (Regional Manager . ‡ Cross-functional teams: The Service branch and the materials branch have cross functional teams that have both area and product specific knowledge that allows them to deal with certain recurring problems. There is no contact however across levels or through all levels. but most of it involves either meeting with other Regional Managers to discuss common issues.´ Our Analysis Says: ‡ Direct contact: General Managers from different divisions meet frequently to solve mutual problems.North): ³We do communicate and work together quite often. or then reporting to our respective Sales managers. It is not like everyone knows everything about what is going on in the organization. ‡ Liaison Role: Managers at every level are responsible for communicating with their immediate superiors. compilation and forwarding of daily logs of the sales teams on the company¶s internal database software. except through intermediaries. but I think the people that need to be informed are informed.

but yes the day to day decisions where there are two or more approaches that are within the purview of the guidelines. . we can make our own choices.´ Our Analysis Says: At a crucial level. we are expected to defer them to a senior. this organization is more standardized. on a day to day basis is something that we were explained and given in writing in our handbook on day one of the job. There is however some scope for adjustment. but the company takes pride in the fact that such circumstances hardly arise due to the clarity of their guidelines and the skill of their workforce. but it may be considered necessary given its global presence (providing same quality of product and service across the globe).STRUCTURAL ANALYSIS INTEGRATING MECHANISMS Respondent Says (Area Sales Manager): ³most of what we do. Big decisions hardly come our way and when they do.

the procedures. make it highly mechanistic. wherein there is no room for modifications or errors and there is hardly any human involvement.STRUCTURAL ANALYSIS INTEGRATING MECHANISMS Our Analysis Says: ³Mechanistic´ ‡ At a production level. that it is quite unlike a regular sales organization (that may tend to be organic). the stringent reporting format and recurring nature of the job. There are also so many technical aspects to the sale. and while there is a certain degree of freedom as to how to achieve these goals. goals and rules are quite clearly defined. ‡ At the Administrative level. . It is precision production. the product is a highly technical one and each aspect of its manufacture is highly mechanized and controlled.

Pressure on sales force y Elongated procedure of decision making in case of extra-ordinary circumstances y Unity of command and no duality of communication or reporting y Dual reporting and dual control at Regional level. which allows freedom without causing decision errors. .PROS & CONS ADVANTAGES OF THE STRUCTURE y y DISADVANTAGES OF THE STRUCTURE y y Job clarity due to clearly defined roles Clear Communication channel. though there is role differentiation y Dedicated teams for separate functions (eg. with little or no room for miscommunication of facts Lack of freedom and monotony of job Stringent achievement targets could put addln. y Reasonable balance of centralization and decentralization. Accounts and marketing and sales) which leads to greater productivity y No scope for experimentation and limited growth for lower level executives due to mechanistic nature of work.

ORGANIZATIONAL DESIGN ‡ Star Model ‡ People ‡Rewards .

Strategy Vision | Mission Comparative Advantage People Training Recruitment Structure Hierarchy Control Rewards Bonus Compensation Processes Networks Procedures .

is considered to be a training or probation period. ‡ An employee who is recruited can also recommend more people into the company Training and Job Rotation: ‡ The initial one year on the job. ‡ The company mostly recruits through reference and various recruiting agencies. However. out of turn requests for transfer. ‡ During this period they are guided by a senior employee in their respective fields. one can expect their first promotion within 1.PEOPLE Recruitment: ‡ Company every year recruits 2-3 new engineers as trainees. due to family or other reasons are also given due consideration . Promotion: ‡ In this firm. given a consistent performance. ‡ The senior employees are all subject to an annual evaluation for prospective promotions and transfers. This senior later also plays a part in their recommendation to the company.5-2 years on the job. This is only six months in case of an administrative staff member.

an increment of about 15 ± 20% is generally given to the employees. ‡ Though there is no set rule for the annual increment in salary. .REWARDS The total package offered to any employee consists of the following components: Basic | LTA (leave travel allowance) | PF (provident fund) | Medical allowance | Conveyance | Special allowance Other benefits are: Petrol reimbursement | Internet charges | Telephone reimbursement | Boarding and lodging expenses for overnight trips | Entertainment expenses | etc. ‡ Trainees initially gets a stipend and after the completion of his training he gets all other benefits in the salary package. ‡ As per the position held by the employee an upper cap is fixed for the above expenses.

DESIGN CHALLENGES ‡ Major Problems ‡ Our Recommendations .

The work culture and recruitment are not on par with international standards. especially considering that the production and assembly aspects are soon to enter the Indian market ‡ The Sales process is analysed only through the daily logs that are submitted on the company network. ‡ Inter-departmental and Inter-functional co-ordination is absent ‡ Horizontal communication should be made possible. and there is almost no human involvement which allows evaluation of only the quantitative aspects of the sales approach and does not consider quality. who work at the same level and are subject to a great deal of data overlapping and confusion.MAJOR PROBLEMS ‡ There is an absence of the international culture of the company in its Indian offices. The cost cutting with the office spaces could be held back a little in favour of certain comforts. especially between regional managers and business leaders. .

OUR RECOMMENDATIONS CHANGES IN THE DESIGN People ± ‡ Recruitment process could be improved so as to bring the quality of employees on par with the international standards of the firm. ‡ This would have to be supported by a corresponding alteration in the rewards system Processes ± ‡ Sales process should be modified to provide for more face-to-face contact and more feedback and evaluation sessions .

OUR RECOMMENDATIONS CHANGES IN THE DESIGN Strategy ± ‡ The fact that MT is the only company of its kind in India should be leveraged through more aggressive corporate advertising ‡ The Mission and vision of the company should be expanded to include benefits to other partners such as the share-holders and employees ‡ The culture should be one that allows for more intellectual growth and exchange of knowledge. which will in turn increase the productivity and creativity within the organization. . this would allow more retention and more h=job-satisfaction at all levels of employment. Structure ± ‡ Liaison roles should be introduced at various levels where there are gaps in the horizontal communication ‡ The Rigidity and monotony of the job should be reduced by reducing the formality and mechanistic nature of the firm.

THE END Thank you!!! .

balances.References ‡ Company Website: ‡ Secondary Text Sources: ‡ Organizational Design and Development by Bhupen Srivastava ‡ Additional Readings provided by ‡ Spoken Interviews with Personnel at different levels of the organization ‡ Secondary web Sources: ‡ ‡ http://scales. Richa Awasthi as per course .

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