University of Chicago
Type of paper: Thesis/Dissertation Chapter
New Holland Tractors
The New Holland Tractor was present in India in the form of JV with Escorts Ltd, since 1969. However NHI was tempted to play a greater role, while Escorts ltd. was interested in consolidating its business. Hence in 1995 NHI started its liaison office. The company took pride in itself for always being ahead of the curve by continuously working with farmers in educating them and learning from them about their requirements. NHI had a flat structure and it gave all its employees and workers a great deal of autonomy.
As a result in 2000 associates recorded a highest production of 35 tractors/ day. But because of this flat structure, there aren’t any fancy designations in the hierarchy and hence employees resent bearing the same designation for years on end. Also, NHI is a matrix organization; this essentially means that employees performing a certain function will also be responsible for the same function in a different team. As a result of this, employees, though highly specialized in their fields, are put under undue pressure.
Employees had started showing dissatisfaction regarding performance appraisal system, because there used constant conflict in prioritizing functional KRAs and team KRAs. NHI had tried to empower employees, with ERP software and laying out business processes. However this led to increase in pressure, because then each process had to be defined and aligned with software. These growing concerns made management to intervene to improve team efficiency and process effectiveness. Situation Analysis New Holland Tractors (India) (NHI) officially entered into the Indian market in 1998.
They set up a modern tractor plant in Noida in 1999. The philosophy of NHT was to improve and modernize Indian Cultivation techniques and achieving industry leadership and world class standard in both product and processes. Hence NHI differentiated its products in terms of new technology and new features. Process and team orientation The process de-emphasized individual expertise. Emphasis was on putting right process in place, which would be handled by team work and lean structure of the organization. Standards set, were very high in respect of business and team work.
Structure of an organization NHI had only five designations to accommodate all his employees. To keep the structure lean, all the heads had to work cross-functionally and hence had to take on higher responsibilities. Though there were some advantages there were also some obvious disadvantages such as very high stress level due to multiple responsibility. Expectations from employees For almost all the projects, employees had to work cross functionally. Formalization of team building process had become a need of an hour.
However team process simply like a team meeting was proving to be uneconomical as far as wastage of time is concerned. Hence, policies regarding team work were formulated. Team work though emphasized a lot by the management and it was one of the critical success factor, KRAs regarding team responsibilities were given less weightage as compared to functional responsibilities Six key processes of NHI were broken into sub-processes and then translated into activities. However most of the employees were facing a role conflict between functional KRAs and team KRAs since functional goal orientation still has to be focused.