Strategy For Overall Overhaul At Mahindra & Mahindra

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: In all businesses today, aligning human resource management with business strategy has become an important element to succeed. And Mahindra & Mahindra group is no different. Organisational restructuring, managing key resource requirements, performance management systems, career and succession planning have all been re-aligned to form synergy with the company’s overall business strategy.

A Choudhari, executive vice president, human resources & corporate services, Mahindra & Mahindra group told FE that the re-alignment was necessitated by changing dynamics in the business environment. He said that the objective was to grow leadership positions in the UV and tractor market and developing successful businesses in relatively new business areas like IT, financial services, realty and infrastructure development and also service industries like Time share (Club Mahindra). “Keeping in mind the new business objectives the challenge was to re-orient the human resource management towards these objectives,” said Mr Choudhari.

Organisational Restructuring
For the group, organisational restructuring posed the greatest challenge keeping in mind the changing dynamics in the business especially the tractor and automotive division. In the last three years, the emphasis was development of the long term strategy and fixing clear business goals. Taking the example of tractors, the long term goal was to be the largest manufacturer in the world. Thus the process began by changing internal benchmarks of excellence to global standards. Benchmarking all business processes from product development to customer care and commercial controls to JUSA (Japanese Union of Scientists and Engineers) was implemented.

“We are targeting the Deming award through these initiatives, which encompass the entire gamut of function of the company including the HR function and similarly the automobiles business is targeting the TPM award from the Japanese Institute of Plant Management,” said Mr Choudhari.

To achieve these objectives the company began a full reassessment of organisation and management structure with the help of consultants like Mckinsey’s, Arthur Anderson and Korn Ferry. The outcome was, clear roles and responsibilities were identified and the competency required for each role was mapped. The officers went through individual assessments of competencies against the requirement of each role. External consultants as well as internal assessors ran assessment centres and each individual was then placed based on competency and role fitment.