presentation group 9

7/30/2019 Presentation Group 9

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TORRINGTON WUXIBEARINGS

Barkha Jain

Sneha Sharma

Shravan Bolisetty

Brijesh Khatri


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Hard and Soft ProblemsHard Problems Soft Problems

1. Clear goals and objectives 1. Sees the organization as a social

entity

2. Creates an united view of the

organization

2. Consensus view/ conflict view of an

organization

3. The data provided is quantifiable 3. The data has different perspectives

4. Aims to solve problems 4. Aims to appreciate and improve the

problem

5. Analysis is derived from the presentsituation

5. Analysis derived from being a partof the situation

6. Controlling actions are clear and

unambiguous

6. Control Mechanisms are unclear

and the goals have to be negotiated


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Hard and Soft Problems

Interdependenc

ies

Lo

w

Medi

um

High

Low MediumHigh

Spectrum of Change Situations


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Hard Systems Model of

changeHSMC

Descriptionphase

1. Situation Summary

2. Identification of objectives andconstraints

3. Identification of performance measures

Options Phase

1. Generate Options

2. Edit options and detail selected options

3. . Evaluate options against measures

ImplementationPhase

1. Develop implementation strategies

2. Carry out the planned strategy

Characteristics

Gradual process approach toproblem solving

Easier to solve hardcomplexity problems in

comparison to complexproblems

Mostly applied to selfcontained situations

Believes in creating clear

objectives to obtain betterresults

Objectives should bequantifiable and clear in orderto know when they have to beachieved


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Soft Systems of Models of Change

OD Model for Change

ChangeAgent

1.Diagnosethe currentsituation

2. Create avision

Gaincommitmentto the vision

Make anaction plan

Implementthe action

plan

Evaluate thereinforced

change

Characteristics Planned approach to problem

solving

Achieves goals using behavioralscience knowledge

High involvement of employees

Optimum utilization of employeecapabilities

Focuses on solving intense andtwisted situations

Creates a radical and impactfulchange in the system

Changes the attitude and cultureto make a difference


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Torrington Wuxi BearingsTorrington Wuxi Bearings was a Chinese-American joint

venture, which is made of ball and roller bearings in China

Problems faced before Jesse Chen

1. Low sales

2. Lack of creativity

3. Poor Quality of products

4. Managerial control

5. Human resources and man power issues


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After Jesse Chen was appointed as the new General

Manager

Together with its new management team, Jesse had taken

a number of measures aimed at transforming the TWB

from public enterprises (PEs) to market the sales

organizations

1. Inviting bilingual managers

2. Bringing in Chinese experts

3. Creating cultural changes

4. Optimum utilization of the companys strength and

resources


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PROBLEM STRATEGY EMPLOYED MANIFESTATION WITHIN

TORRINGTONS WUXI BEARING

Inability to reach targeted sales Soft system model of change Changed the in the Organizational

Culture of the Company by making

TWBs employees understand that

the company no longer operated as

a state owned enterprise but rather

a profit based organization

Poor Product quality Hard system model of change Created a quality division that

focused on creating products of

similar quality as produced in the

US, this helped to maintain the

conformity of the product in

different product lines

Achieved this target by creating

cross functional teams to improve

production process and have

efficient quality control


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PROBLEM STRATEGY EMPLOYED MANIFESTATION WITHIN TORRINGTONS

WUXI BEARING

Low Productivity of Workers Hard system model of change Identification and replacement of

incompetent first line managers

Identification and transfer of

redundant workers within the

division to other divisions

Conducting monthly departmental

workshops for front line managers,

supervisors, group leaders and

workers

Lack of competent market expertise Hard system model of change Creation of a Sales and marketing

division which hired many young

college graduates and trained them

into competent salesmen

Implemented monthly sales

reporting system that tracked salestrend over time , etc with monthly

meetings to discuss important sales

matters

Classification of TWBs distributors

into A, B, C classes based on their

size and consistency in payments


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PROBLEM STRATEGY EMPLOYED MANIFESTATION WITHIN

TORRINGTONS WUXI BEARING

Human resource issues Soft system model of change After the events of the staff

canteen incident TWB was forced

to take immediate actions to tackle

the challenges that it faced butreducing the headcount to the

targeted level, overhauling the

compensation structure and

upgrading quality of workforce

TWB began to offer a series of

training courses to employees in

different functions and levels

Modernization Hard system model of change Creation of a Finance and IT division

to reach the Jesse chens western

style company standards

Creation of LAN or Local Area

Networks to connect different

divisions and maintain better

communication


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Feasibility of new strategy

within the OrganizationCurrent Strategy employed by Jesse Chen Problem

Introduction of cross functional ,

Merging of quality division with manufacturing

division

Unnecessary meetings swayed the focus away

from real production to un necessary discussions

the hierarchy created by pater was flawed

because extra burden was put upon managersand supervisors rather than production workers

who worked on ground level

Removal of incompetent workers and filling the

vacancies with skilled workforce, buying of new

machines for the growth of the business

Shortage of cash to making capital expenditure


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Strategy employed by Jesse Chen PROBLEM

Restricting of sales department by hiring young college

students ,setting up of challenging yet achievable sale

training session and measuring the performances target,

holding

Recruitment of young staff could lead to expertise and

knowledge concerns because their ability may dwindle

Challenging sales target could lead to work pressure

and create dissatisfaction amongst sales team

Reduction of number of employees, reducing the basic

pay of the workers, pressurising existing employees to

achieve the sales target

Wastage of time, loosing employees trust, overloading

of work on the existing employees

Imposing tight control and selling more to financially

stable customers

Shifting targeted customer segmentation means setting

up in the market again, fulfilment of cash requirement

at the cost of sales


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Conclusion The strategy employed by Jesse Chen was successful in

changing the mindset of Torrington Wuxi Bearings from thatof a state owned enterprise into a market drivenorganization. From march, 1999 he was able to curb thelosses of the organization and break even, from which point

onwards he focused on making TWB a successful profitmaking organization. Employment of tighter credit controland selling of products to more financially stable customerswere the key aspect involved in reducing the amount of baddebt they incurred. In conclusion, the amalgamation of both

Hard and Soft strategy by TWB helped them in prosperingas an enterprise.


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THANK YOU!

presentation group 9

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