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Turbulence and Organizational

Change

Group 11 TKM Institute of

Management

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Case Summary

Protagonist : Praful Rastogi (An Engineer with MBA ) 4 years experience in a Chemical Process Plant and a Consultancy

Company Name : TCCL (Textile and Chemical Company Limited)

This case deals with an old, diversified

organization that tries to cope with the dynamicsof ageing, and also changes in the external

environment.

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Theoretical Framework

The case revolves around OrganizationalBehavior.

Theoretical aspects of the case :

Change agent

Workers participation in managementOrganizational change

Organizational restructuring

Organizational culture

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Role of Praful Rastogi

He took up the role of Change Agent in TCCL

Brought two main changes related to

Technology

Organizational Structure

He worked with two divisions caustic soda division

marketing division

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Factors influencing the case

Change in Management

Political Influence

Competitors

Low Morale of Employees

Low utilization of Production Capacity (60 %) Cost of Production was high

Militant Union Leadership

Cash Flow problems

Lack of Marketing Skills Decentralized Decision Making

Resistance to change

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Reasons for Technological change

Outdated Technology

Deteriorated Equipments

Poor Maintenance

Lack of controls on raw material

consumption Stiff competition

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Induction of Technological change

Praful worked with General Manager (Technical)

Praful familiarized himself with operations of the

factory

He shared information before reporting to the

Managing Director

Long term plans were put into motion

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Reasons of Organizational Restructuring

Sales Department Bottle Neck

TCCL was operating in complex and

competitive markets

Lack of Management Expertise

Reporting pattern was in disarray

Document flow was not correct Budgetary systems were not efficient

Reporting Relationships were not organized

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Organizational Structural Change made by Praful Rastogi

Executive Vice

Chairman

Corporate

Personnel

Executive

Assistant Chief Executive

Deputy General

Manager (Marketing)

Manager (TechServices)

Sales Manager

Branch

Manager 1

SalesExecutives

Branch

Manager 2

SalesExecutives

Branch

Manager 3

SalesExecutives

Manager(Products)

Product

Executives

Manager

(Marketing

Services)

Marketing

Executives

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Management Outlook of TCCL

Old Management

Centralized

Bottom line Oriented

Freedom to fire and hireemployees

Focused on short term goals

Managing Director was afamily member

Not aware of itsenvironment andcommunity

New Management

Decentralized

Corporate Planning &

Corporate personnelactivities were implemented

Managing Director was a

family member

Focus shifted to long termgoals

Streamlined approach

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Present Situation

Top Management changed again (OldManagement is back in power)

Technological changes made by new

management still continue in the company Organization structure was slightly modified

The chief executives now reports to the

Executive Chairman All the department heads report to the Chief

executives

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