Broad Band: L&T looks at delayering, cultural makeover

Tarun Narayan in Mumbai

As an initiative to institutionalise an organisational system that creates a highly responsive work culture, Larsen and Toubro (L&T) has embarked on flattening the structure by introducing a system titled “Broad Band”. Says Mr Yogi Sriram, vice-president, L&T (Corporate HRD and Personnel), “Recognising that the future lies in getting nimble footed, organisation structures conducive for a highly responsive work culture are being developed.”

“L&T is beginning a journey towards transforming itself and becoming an icon of change. Fuelling this change are its HR initiatives,” says Mr Sriram.

“A detailed job analysis has been done with the idea of reducing the chain of command in the organisation to a level where response time for the customer will be much faster and communication within the organisation will be much quicker. This initiative will transform the L&T image into becoming a “high response” organisation that has good communications flows within,” adds Mr Sriram.

To drive the company’s strategies towards a profit centric future, the company has also launched an initiative titled “Management Leadership Programme” (MLP).

“MLP represents the company’s intellectual capital. The initiative is for building a pool of leaders who have the potential to head businesses of the future. These high potentials have been identified from within the organisation based on Assessment Centres in which over 600 employees have participated,” explains Mr Sriram.

“Selective lateral recruitment of people from external sources has also been initiated to augment the MLP and strike a balance between home-grown and fresh ideas,” adds Mr Sriram.

This move, according to Mr Sriram, will lend a well spring of opportunities for fast paced growth within a defined time span. “Young engineering graduates with high potential are being inducted into the organisation for grooming on a fast track. They will occupy higher positions of responsibility much faster than has been the practice so far. These trainees have the opportunity to enter the Management Leadership cadre at the end of a one-year training period, if they prove their potential during the rigorous training,” elaborates Mr Sriram.

The Management Trainee recruitment effort emphasises the need for overall development of a candidate and not just remain latched on to uni purpose scholastic accomplishments.