r s gurubhakti - group 2

8/3/2019 R S Gurubhakti - Group 2

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R S Gurubhakti

Group 2


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Case Facts

RSG has turned around PILCA in three

years

RSG and SR started the company GPL in1985

Company had a rapid growth and in 1995,

it was in top 40 in revenue and top 10 inprofits


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Case Facts

GPL went public in 1994 and was treated

in same breath as infosys

IDMA Excellence award in 1995 One of the first pharmaceutical to get

certified in ISO 9002

Taken over in 1997 by second largest

Indian pharmaceutical company


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1. Functional Competence and passion for quality

of top management are the necessary and

sufficient condition for market success. Comment

Not a necessary & sufficient condition Building an ethical organization is also important.

Satyam an example of unethical conduct by top

management.

TATA beacon of ethical behavior with competence.

Pitfall of not focusing on ethical behavior of organization. Ignored unethical behavior of employees can bring problems to

corporation as it was in the case of GPL.

Customers do not view organization with respect.


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2. Reality matters not perception, in the context of

leadership style. Comment

Yes, reality matters

Perception is short term, but reality prevails in

long term You may lose short term by perceptual error,

but character building happens in long term

Example is given of RSG


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3. Strong personal ethics of company promoters

automatically gets translated into strong

organisational ethics. Comment

Yes, ethics flow from top to bottom

Leader set examples of ethical behavior andbuild organization culture of ethics

Ethics compliance by senior management is

noticed by employees and followed

Example of Infosys (N R Narayanan Murthy)


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4. Companies with homogeneous ethnic

representations are better and faster in ethical

decision making

Dont agree

Ethical decision making is independent ofethnic orientation and diversity

Defined business code of conduct and

organizational values

Group think might lead to biased and unethicaldecisions


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5. Contrasting personal styles of company

founders provide the perfect complement in

running the business. Comment

Yes, contrasting style complements in running

business

Provides different perspective in complex

situations

RSG was good in marketing and people

management. SR was good in functional skills However, MIS system was not developed in

GPL as both were not operationally efficient


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6. Ego is the helper, ego is the bar. Comment

Ego serves only itself and that makes us self

absorbed and self-centered

The ego is dependent of exterior matters: other

people, objects, situations. And that results

almost always in bad feelings at one point or

another.

Ego makes people more & moreunmanageable

Ego is bad, because when not fulfilled it makes

people counterproductive


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7. Strong company growth buoyed by strong

managerial compensation together ensure the

sustenance of a companys competitive strength.

Comment

In Short term may be Aids in retaining talent

Motivation to perform in short termIn long term You are caught in perennial compensation game.

Sustaining competitive advantage requires: Human development Robust systems Intrinsic rewards


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8. Forgiveness is a great virtue and speaks of shrewd business

sense. Comment

Yes, Forgiveness is a virtue of strong Mahatama Gandhi

The weak can never forgive. Forgiveness is the attribute of the strong Ramdhari Singh Dinkar

Kshama shobhti us bhujang ko Jiske paas garal hai, Uska kya jo dantheen

Vishrahit vineet saral hai Translation (Forgiveness is becoming of The serpent that's got venom, None

cares for the toothless, Poisonless, kind, gentle one)

Business Sense, Yes Taking on the rumour mongers would have fuelled more rumours of something

fishy.

Punishing corporate espionage would have been a scandal hurting both thecompanies and industry.

Sends a signal that business is not perturbed by these events. Also sends asignal of strength.


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9. To maintain speedy growth, one needs to be flexible in

values and ethics. - Comment

Ethical benchmarks for the company has to be non negotiable Short term

Rapid growth

Immediate Employee and shareholder benefits Long term

Once wrong practices are ingrained in culture then it is difficultto change

Ex: Current financial crisis, Satyam

For company growth RSG could have opted for slow and steady growth Could have adopted better capital management Should have had a ethics policy in company


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10. The demise of GPL was primarily because of

the mind- boggling rate of growth and the

quantum of investments needed. Comment

High growth rates set higher expectations of

pay increments among managers difficult to

manage The processes and systems at GPL couldnt

scale up in line with the companys growth

The promoters were not enthusiastic aboutrunning GPL anymore own pursuits

Further investments needed to compete in a

liberalized economy seemed daunting for the

promoters


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11. How do you see the strengths and weaknesses

of RSG and SR in perspective.

RSG

Good in dealing with people and marketing

skills

Extremely hard working

Diplomatic in times (compromises in ethics)

SR

Quick decision maker Strong functional skills

Not collaborative; Doesnt keep senior

management in loop

r s gurubhakti - group 2

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