<div>This case in question exhibits how personal whims dominate important decision making in organisation overlooking the process and system. </div><div> </div><div>The CEO, Harish, hired Atul himself to handle Supply Chain Management (SCM) at Artemis Retail Holdings.</div><div> </div><div>SCM is a crucial function in an organisation where efficiencies have to be built in to save huge inventory costs. It requires specialisation in warehousing and logistics. Atul was unproven for SCM function but Harish still brought him as he had known him well before. The action reflects that Harish’s decision making was dominated by his personal likes and dislikes. </div><div> </div><div>Atul was strong in execution and did a great job in the new role at Artemis. Harish, without discussing with anyone, announced change in Atul’s reporting relationship, whereas his actual intention was to sack Atul. On being questioned by Rassal and Madhur, Harish kept on changing the rationale for such a decision. The reasons which he gave in writing could not hold any water, as Atul could defend himself with proofs. </div><div> </div><div>It is possible that Atul’s rejecting the quality of Elfa’s packaging might have upset Harish. Though Atul did justify his decisions with proofs. </div><div> </div><div>Finally, Harish gave the rationale of Atul appointing vendors with suspicious background and known to him personally and got the support of President Madhur for sacking Atul.</div><div> </div><div>Organisation structure is like the backbone of a company; it has to be thoughtfully developed in sync with business strategy to achieve business results. Hence, organisation structure should not be changed on the basis of the incumbent’s strengths and weaknesses or their performance or their relationship with their bosses and subordinates, as was done at Artemis. </div><div> </div><div>Within a month of Ashwin’s joining, Harish was so pleased with him that he wanted him elevated as Director, Operations and head the JV with Gevore, where Ashwin worked earlier. One month is too short a period to assess a person who is new to the job and the organisation. This too portrays Harish’s impulsiveness. </div><div> </div><div>Rassal’s approach of handling the issue post facto was also found to be wanting. His attempt at analysing his CEO was quite aggressive. For HR to be involved in such resolutions, the HR manager should actively seek alternate professional perspectives to manage sudden structural changes. The role of HR is largely advisory. The final decision has to and will be taken by line functions only. Though Harish apparently had prejudices, Rassal’s line of questioning could have been milder instead of probing the CEO’s position itself. </div><div> </div><div>Rassal appears to be using the benefit of having known Madhur prior to joining Artemis. This is reflected in his overpowering rather than empowering demeanour and it’s rather Madhur who counsels him to adopt a professional tone and gesture. </div><div> </div><div>Even though Madhur must be recognising that with vendor handling, vulnerabilities do arise, posing serious doubts about the incumbent himself, but had to hastily agree to Harish’s decision without getting an enquiry conducted. He could not afford his CEO’s chagrin or loss of face. </div><div> </div><div>We see a chaotic ride of whims and emotions driving people’s choices here. To avoid such repetition, the President should get a detailed process drawn out for 1) Organisational restructuring and 2) Setting up an enquiry system for handling such sensitive matters before passing a verdict, in future. </div><div> </div><div>Restructuring in an organisation should be done in consultation with the HR team. Job overlaps and gaps have to be carefully examined and removed. Each position created should always have a well-defined job description and key result areas. The recommendations of appointments and of creating a new job layer should also have a clearance from Board or the lead of the organisation. An organisation structure is successful when it builds seamless and effective functioning between positions at all levels. </div><div> </div><div>This case is atypical where at one end seniority and at the other end, integrity of an employee is questioned. A meticulous investigation helps balance relationships and can bring some insightful findings, resulting in fair decisions. </div><div> </div><div>The writer is a management philosopher mentoring both start ups and established enterprises. He was associated with LG India as its COO for over 15 years.</div><div> </div><div>(This story was published in BW | Businessworld Issue Dated 20-10-2014)</div><div> </div><div>tags: magazine, magazine 20 october 2014, case study, y v verma, finance, corporate</div><div><div>The Whimsical Stakes</div><div> </div><div>Build seamless and effective functioning between positions at all levels</div><div> </div><div>This case in question exhibits how personal whims dominate important decision making in organisation overlooking the process and system. </div><div> </div><div>The CEO, Harish, hired Atul himself to handle Supply Chain Management (SCM) at Artemis Retail Holdings.</div><div> </div><div>SCM is a crucial function in an organisation where efficiencies have to be built in to save huge inventory costs. It requires specialisation in warehousing and logistics. Atul was unproven for SCM function but Harish still brought him as he had known him well before. The action reflects that Harish’s decision making was dominated by his personal likes and dislikes. </div><div> </div><div>Atul was strong in execution and did a great job in the new role at Artemis. Harish, without discussing with anyone, announced change in Atul’s reporting relationship, whereas his actual intention was to sack Atul. On being questioned by Rassal and Madhur, Harish kept on changing the rationale for such a decision. The reasons which he gave in writing could not hold any water, as Atul could defend himself with proofs. </div><div> </div><div>It is possible that Atul’s rejecting the quality of Elfa’s packaging might have upset Harish. Though Atul did justify his decisions with proofs. </div><div> </div><div>Finally, Harish gave the rationale of Atul appointing vendors with suspicious background and known to him personally and got the support of President Madhur for sacking Atul.</div><div> </div><div>Organisation structure is like the backbone of a company; it has to be thoughtfully developed in sync with business strategy to achieve business results. Hence, organisation structure should not be changed on the basis of the incumbent’s strengths and weaknesses or their performance or their relationship with their bosses and subordinates, as was done at Artemis. </div><div> </div><div>Within a month of Ashwin’s joining, Harish was so pleased with him that he wanted him elevated as Director, Operations and head the JV with Gevore, where Ashwin worked earlier. One month is too short a period to assess a person who is new to the job and the organisation. This too portrays Harish’s impulsiveness. </div><div> </div><div>Rassal’s approach of handling the issue post facto was also found to be wanting. His attempt at analysing his CEO was quite aggressive. For HR to be involved in such resolutions, the HR manager should actively seek alternate professional perspectives to manage sudden structural changes. The role of HR is largely advisory. The final decision has to and will be taken by line functions only. Though Harish apparently had prejudices, Rassal’s line of questioning could have been milder instead of probing the CEO’s position itself. </div><div> </div><div>Rassal appears to be using the benefit of having known Madhur prior to joining Artemis. This is reflected in his overpowering rather than empowering demeanour and it’s rather Madhur who counsels him to adopt a professional tone and gesture. </div><div> </div><div>Even though Madhur must be recognising that with vendor handling, vulnerabilities do arise, posing serious doubts about the incumbent himself, but had to hastily agree to Harish’s decision without getting an enquiry conducted. He could not afford his CEO’s chagrin or loss of face. </div><div> </div><div>We see a chaotic ride of whims and emotions driving people’s choices here. To avoid such repetition, the President should get a detailed process drawn out for 1) Organisational restructuring and 2) Setting up an enquiry system for handling such sensitive matters before passing a verdict, in future. </div><div> </div><div>Restructuring in an organisation should be done in consultation with the HR team. Job overlaps and gaps have to be carefully examined and removed. Each position created should always have a well-defined job description and key result areas. The recommendations of appointments and of creating a new job layer should also have a clearance from Board or the lead of the organisation. An organisation structure is successful when it builds seamless and effective functioning between positions at all levels. </div><div> </div><div>This case is atypical where at one end seniority and at the other end, integrity of an employee is questioned. A meticulous investigation helps balance relationships and can bring some insightful findings, resulting in fair decisions. </div><div> </div><div><em>The writer is a management philosopher mentoring both start ups and established enterprises. He was associated with LG India as its COO for over 15 years</em></div><div> </div><div>(This story was published in BW | Businessworld Issue Dated 20-10-2014)</div></div>
