Page 186 - DCOM102_DMGT101_PRINCIPLES_AND_PRACTICES_OF_MANAGEMENT

Principles and Practices of Management

Notes
The territorial heads are the vanguard of the organization and are the representatives of
the firm to potential customers. Their main responsibility is to maintain extremely good
relationships with their clients so that the customer base is maintained. They also assess
the demand for the various products in the market.
The Product Managers are the rearguard of the organisation. They look for new product
opportunities and obtain information on product variations expected by customers. They
hold regular meetings with existing customers to discuss how better processes can be
implemented. They organize seminars to apprise clients on the latest technology that is
available. They also perform the role of a liaison officer by ensuring coordination between
the marketing and manufacturing department. This helps the company ensure that the
requirements of the customer are accurately communicated to the production manager.
Organizational Culture
Wendt has a very unique culture. Wendt recognized early on that success in business
depended not only on their world class technology, and their leadership position in
different products, but also on their employee performance. Thus, they implemented the
5S Japanese management technique. They also have a very unique concept of Total
Employee Involvement (TEI). Employees are combined into small groups who coordinate
amongst themselves. There is a Good Morning Meeting everyday when these groups
meet, share thoughts and plan the day's schedule. This makes overtime mostly irrelevant.
Very often the CEO also addresses the gathering. Regular awards are presented for good
work performances. There is a great sense of camaraderie and joie de vivre among the
employees.
TEI also removes the problem of communication by ensuring that the entire workforce
can interact without the hierarchical limits usually associated with a typical Indian
manufacturing company. This is also evident from the fact that the dress code is common
across the organization, the use of common canteens and the minimal use of personal
secretaries.
Regular training programmes are held in Wendt's own training centre. Here the employees
share their experiences, frustrations and knowledge with both colleagues and superiors.
There are several events like family days, which help integrate the personal lives of the
employees with their work life. This family culture has also rubbed off on the environment
with the company having an exemplary environmental policy.

Control Systems
A unique example of the systems in place is the whistle blowing policy. Few companies
have such policies in India. At Wendt, any employee can register a complaint. It will be
looked into within an hour and action taken immediately on proof of misconduct. For
example, a production manager was sacked within half an hour of a complaint being
proved. The level of trust is so large that its employees are not frisked even though small
diamond cutting tools are in use. Also, union action which is a bane in many a
manufacturing company, is virtually redundant. Although a formal union is required as
per the law, all wage and other issues are dealt with well in advance. The rewards system
implemented in the organisation enhances self esteem. There are also strong belief systems
in place - with an emphasis on both the mission and vision of the company.

The indicator which seems to confirm that these systems are working well is the attrition
rate which is around 2-3% on an average. This is also because career progression for
employees becomes clearer.
Contd...

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