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The case discusses issues in the process of professionalising a family-owned manufacturing firm in the steel tubes and pipes industry. Set during 2008-2012, the case highlights the increased competition and the consequent growth in the sector that drives the need for professionalisation. In order to remain competitively relevant, the owners, who were followers of Jainism, had realised that in their business, all other things being equal, a company with trained and engaged manpower had an advantage in the market and over competition. With this thought, the firm initiated a blended training program. While mapping the activities related to employee training with outcomes at different levels, it found that though the reported Return on Training Investment (ROTI) was good, the company was losing out on intangible factors such as employee engagement and the belief system that had traditionally held employees together. Current practices had to change, thereby leading existing members to lose the belief they held in the company. The turn of events put both the owners and the HR department in a dilemma over the entire transformation initiative.

The first company under the Amara Raja Group was established in 1984, i.e. Amara Raja Electronics Limited (AREL) followed by Amara Raja Batteries Limited (ARBL). Its founder leveraged the presence of his family in Renigunta, a rural village in South India, and chose to start the industry there to create employment opportunities. Preference is given to local population in all ARG enterprises. Despite its strong people orientation, the HR department/function at ARG got strengthened only after Jaikrishna strived to make it central to business. The department's evolution has been demarcated in three phases. The first and second phase saw few initiatives, and during the third phase the HR department was structured according to the Dave Ulrich Strategic HR Model. While this structure had been successful until now, certain sections in ARG still doubted its sustainability.

Leadership, human resource management, crisis management, change management and communication.

Executive education; postgraduate; undergraduate.

This case study describes the collapse of Satyam, a leading IT industry service provider from India. Satyam went into a crisis mode after revelation of financial fraud by its Chairman. This resulted in a crisis not just for the company, its clients and employees – but it also had the potential to shake up the entire Indian IT industry the world over, by shattering investor and client confidence in the Indian IT sector. The case provides the students with an inside view of the unfolding of events at Satyam and the people challenges that emerge in a crisis scenario. The case outlines reactions from the industry, government, clients and employees as they tried to make sense of a very chaotic situation, and its multi-level ramifications both within India and outside. The case ends with Thallapalli Hari, the Global Head of Marketing and Communication and ex-head of HR, trying to visualise and prioritise a course of action to propose to other members of the leadership team.

The key aim of this case is to provide a backdrop to the crisis, and also help students put themselves in the role of an HR crisis manager as well as portray the decision making and communication challenges that emerge in chaotic situations. The importance of an immediate and yet strategic response is emphasised and the case is a great starting point to have a discussion on the competencies and skills required in HR to lead under unusual circumstances. This case allows participants to get an in-depth understanding of the collapse of Satyam. The case also illustrates principles of leadership, change management and communication, in particular:

• Leadership: The Satyam story is an HR and leadership crisis nightmare come true. What should an HR leader do when you wake up to find your company with a ruined reputation, minimal financial capital, 53,000 employees on the payroll and more than 500 clients with pending deliverables worldwide. Where do you begin? The case illustrates a situation where immediate action is required to stop the tailspin into which the company was heading.

• Change management: The situation demanded that change be managed from a chaotic system to a stable system. The big issue though remains as to how one can get a system into a state of stability when everything is changing at the same time. Most change management plans have some stable variables, however in the case of Satyam there were multiple changes taking place simultaneously. A combination of change in leadership, client relationships, employee trust and confidence, market reactions together make for a perfect storm. Dealing with even one of these changes is a challenge for a company. In the case of Satyam, its entire existence was at stake.

• Communication: The demands for communicating effectively in a crisis situation are different than communicating under stable systems. The choice of medium, the speed of response, the content all need careful monitoring. Whereas most companies have teams that separately deal with internal and external communication, Satyam provides a unique situation where managing both effectively at the same time was critical to the future of the firm. The stakes for effective communication are much higher under the circumstances. This case can be used in organizational behaviour, human resources and corporate communications modules being taught to under-graduates, post-graduates and for executive education.

Leadership: The Satyam story is an HR and leadership crisis nightmare come true. What should an HR leader do when you wake up to find your company with a ruined reputation, minimal financial capital, 53,000 employees on the payroll and more than 500 clients with pending deliverables worldwide. Where do you begin? The case illustrates a situation where immediate action is required to stop the tailspin into which the company was heading.

Change management: The situation demanded that change be managed from a chaotic system to a stable system. The big issue though remains as to how one can get a system into a state of stability when everything is changing at the same time. Most change management plans have some stable variables, however in the case of Satyam there were multiple changes taking place simultaneously. A combination of change in leadership, client relationships, employee trust and confidence, market reactions together make for a perfect storm. Dealing with even one of these changes is a challenge for a company. In the case of Satyam, its entire existence was at stake.

Communication: The demands for communicating effectively in a crisis situation are different than communicating under stable systems. The choice of medium, the speed of response, the content all need careful monitoring. Whereas most companies have teams that separately deal with internal and external communication, Satyam provides a unique situation where managing both effectively at the same time was critical to the future of the firm. The stakes for effective communication are much higher under the circumstances. This case can be used in organizational behaviour, human resources and corporate communications modules being taught to under-graduates, post-graduates and for executive education.

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PT. Bank Central Asia, Tbk. (BCA), the largest national private bank in Indonesia, won an award for the Best Bank at the Euromoney Awards for Excellence (Asia) 2014. During the same event, in several categories, haloBCA^TM and BCA employees also won several awards. Previously, a number of awards were received by BCA such as: Best Indonesia Local Private Bank in 2010, Contact Center World Champion in 2012 and 2013, and Best Mega Contact Center in Asia Pacific Region in 2014. BCA is currently facing a problem of an aging population. Since the economy crisis facing the country in 1998, BCA has recruited fewer employees. The company resumed recruiting in 2010. BCA’s human resource (HR) profile in 2013 showed that nearly half of BCA’s permanent employees were aged 45 years or older, 40 per cent of whom have been working for more than 20 years. At the time of their retirement, the Bank faces the potential of losing a significant number of employees from three different generations. BCA has raised its efforts to recruit new talent. However, recruitment is not easy, as BCA wants its new employees to continue maintaining BCA’s heritage, building the Bank to become an Indonesian company that they can be proud of. How have these values, which have been a common belief, a foundation to work passionately and the glue that bonds the Bank’s employees, executives and owners, been communicated outside of the BCA and have been used to attract the future successors of BCA in Indonesia?

Master Degree in Human Resources Management or MBA Program.

PT Bank Central Asia Tbk (BCA), which was established on February 1957, is Indonesia’s largest lender by market value and the second largest bank by assets. The bank has experienced a remarkable recovery from the Asian Financial Crisis in the late 1990s when the Indonesian banking system became almost bankrupt. It provides both commercial and personal banking services through its 1,000-plus branches across the country. As the largest national private bank, BCA is a well-known bank in Indonesia. BCA is managing more than 12 million customer accounts, processing hundreds of millions of financial transactions and fulfilling the needs of individual and corporate customers through various products and services. BCA Automatic Teller Machines (ATMs) are located virtually and BCA’s Electronic Data Capture (EDC) machines are available at many merchants both in big cities or small towns across Indonesia’s archipelago. However, for a nation with a population of more than 240 million spread out over 34 provinces, the presence of BCA is still deemed unevenly distributed. In the next 10 years, BCA has no plan yet of expanding outside of Indonesia. BCA put its attention on developing its market in Eastern Indonesia. Funding sources, which usually becomes an issue for expanding companies, are not a source of concern for BCA. BCA is currently facing a problem of an aging population. Since the economy crisis facing the country in 1998, BCA has recruited fewer new employees. The company had recently resumed recruiting in 2010. BCA’s HR profile in 2013 showed that nearly half of BCA’s permanent employees were 45 years of age or older, 40 percent of whom have been working for more than 20 years. At the time of their retirement, the Bank faces the potential of losing a significant number of employees from three different generations. Currently, BCA has raised its efforts to recruit new talent and its future leaders through various programs, such as: BCA Development Program (BDP), one of the most acknowledged management trainee programs in the Indonesian banking industry, provides intensive and rigorous training to selected new recruits to ensure development of BCA key talents and future leaders. HR business partners that actively visit campuses in the eastern region of Indonesia. Socialization programs in state and private universities. Job fairs, Web recruitment, internships and employee referrals, job opportunity advertisements posted at BCA branch offices located near universities and in the leading mass media. Utilization of recruitment consultant services, especially to find candidates with specific qualifications. Utilization of communication media printed (poster, flyer, booklet, banners) and electronically. Provision of scholarships to high school graduates with excellent academic records but facing financial difficulties. However, recruitment is not easy for BCA because – like other well-known companies in Indonesia – the Bank only recruits the best people based on the prospective employees’ hard and soft competencies. BCA’s aim to project a positive perception toward its employees as “a fun workplace with family-oriented atmosphere, and commitment about employees’ development” has yet to strongly resonate in Indonesia’s labor market. BCA wants its new employees to continue maintaining BCA’s heritage, building the Bank to become an Indonesian company that they can be proud of. How have these values, which have been a common belief, a foundation to work passionately and the glue that bonds the Bank’s employees, executives and owners, been communicated outside of BCA and have been used to attract the future successors of BCA in Indonesia? How should BCA obtain a large number of qualified talent pools through an effective Employer Branding strategy?

By the end of discussing the case, the learner will be: conceptually: able to explain what is meant by employer branding, internal and external approach and able to explain the relationship of employer branding with business strategy, talent management strategies and HR management functions as a whole; practically: able to identify and analyze BCA Recent Condition – able to explain the BCA brand image in the eyes of public/external/job seekers in Indonesia and internal/current employees of BCA – able to identify strategies that BCA does to recruit potential job seekers – and able to explain the influence of innovative products and services that BCA has currently on BCA employer branding; able to identify BCA goals/needs; able to identify the characteristics, needs and preferences of BCA target group of workers, concerning to the latest issues arise such as: Gen Y and AEC (ASEAN Economic Community); able to evaluate the effectiveness of BCA employer branding strategy and communications and to identify the problems faced by BCA related to employer branding; able to generate ideas related to the improvement of BCA employer branding strategy and programs – what message to be branded (company unique employee value propositions – tangibles and intangibles) – what program to be implemented (internal and external) – and how is the integrated marketing communication strategy (segmenting-targeting-positioning, channels).

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CSS:6: Human Resource Management.

After studying the case, the students will be able to: 1. understand the business and existing HR practices at Precision Engineering; 2. evaluate the factors affecting business that may require the company to formalise its HR practices; 3. create recruitment and selection-related solutions for HR 2.0 using appropriate models and theory to aid the company meet its business goals; 4. create training needs identification and evaluation practices for HR 2.0 using appropriate models and theory to aid the company meet its business goals; and 5. create performance planning and review-related solutions for HR 2.0 using appropriate models and theory to aid the company meet its business goals. The case helps students objectively assess HR practices related to three core verticals – recruitment and selection; training; and performance management systems. It also enables them to reassess these practices with the help of specific metrics and models.

Precision Engineering was a manufacturer of machined metal components in the Indian automotive components industry. It had been a family-run business since its inception in 1995. Precision was awarded the prestigious Automotive Component Manufacturers of India award in 2020 for excellence in HR. Ms Sakshi Kapoor, General Manager of Innovation, was ecstatic at the receipt of this award. She, however, was thoughtful about the informal human resource (HR) practices at the company. The top management had announced an aggressive growth plan and advised Ms Kapoor to leverage HR practices to facilitate these plans. Recruitment and selection, employee training and performance management systems needed to be formalised on a priority basis to strategically aid the future business agenda at Precision. Ms Kapoor faced the challenge of preparing the roadmap of HR 2.0 while preserving the employee-centric beliefs at Precision. The case initiates a discussion to achieve this goal by adopting suitable HR metrics and models.

It should be taught in the core course on Human Resource Management for first-year Masters in Business Administration (MBA) students. Alternatively, it could be used in elective courses such as Strategic Human Resource Management, Training and Development and Performance Management Systems for second-year MBA students.

Teaching notes are available for educators only.

CSS 6: Human Resource Management.

Aster Retail (AR) is the retail pharmacy division of the Aster Dr Moopen's Healthcare (ADMH) Group. The group delivers healthcare services across the Middle East, India and the Far East, with a portfolio of hospitals, clinics, diagnostic centres and retail pharmacies. AR, under the leadership of Chief Executive Officer (CEO) Jobilal Vavachan, is well known for its people-centric approach, unique culture and innovative human resource (HR) practices. AR has won multiple awards for HR practices, service quality and business performance. In a recent corporate restructuring (2018), “Aster Primary Care” was carved out by combining the group's Clinics and Retail businesses. This case discusses the evolution of AR's HR journey and the challenges associated with integrating culturally diverse businesses without compromising the values of ADMH and its promise, “We'll Treat You Well.”

Leadership development for strategic impact in high growth export driven organization.

The case is suitable for second and final year students of a two year post graduate management programme (Master's level) on the following courses: leadership – on development of organization wide leadership processes; talent management – for identifying, nurturing and retaining talent in an organization and for developing leadership capabilities in managers; and strategic human resources (HR) – regarding building leadership development and talent management initiatives for creating a strategic level impact in the organization and its joint ventures.

In about 45 years since its inception Anand Automotive Limited (AAL) has established itself as one of the premium firms in auto ancillary manufacturing and export. This case demonstrates how AAL built its leadership development programme. Further, the case elaborates on the coach/coachee mentorship programme at AAL. The case further explores the various initiatives under the broad umbrella of the Anand Leadership Development Programme (ALDP). The ALDP process has been woven into the fabric of HR practices of the organization. AAL sales turnover was USD1.2 billion in 2012 and it has a goal to achieve a turnover of USD2 billion by 2015. Mr K.C. Bhullar, the group head HR, had to plan an HR system which will embed leadership in the tapestry of AAL as an organization. The amalgamation of ALDP in AAL has to be disseminated across all levels at the 19 plants spread across different locations in India. The ALDP is expected to sprout a large number of leaders in AAL who can usher in an extremely quality focused and conscious organization. Such leaders would in their day-to-day demonstration of leadership at AAL help AAL to become an excellent manufacturing organization. This would help AAL to have a leadership position in the global automobile market. ALDP is also expected to create a band of leaders who would help the organization from very senior level strategic management positions and play leadership roles in its joint ventures.

This case can help students to understand how HR practices integrate leadership development programme for the strategic gains of an organization. Students would also understand the role of mentorship in coach/coachee processes.

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Organizational innovation, leading change, customer service management in professional service firms.

Advanced undergraduate, MBA/executive education.

This case describes the human resource (HR) dilemma faced by BDO Hungary in 2010, an international audit and tax consulting partnership, operating in the country since 1989. In order to continue its past growth story and to reach closer to “Big Four” BDO has to enter new business segments, offer more services to its existing customers and seize higher value-added business potentials. The new strategy, however, is challenged by its incumbent, traditional core business: auditing, which is highly regulated by ethical, legal, and professional standards including non-advertisement regulations to which the resulting organizational culture and HR routines are congruent. The case is described from the perspective of the Equity Partner, HR Director and Executive MBA student, who is tasked with a new HR plan for training and development and is charged with implementing it successfully. How best to adjust current training and development policies to the best meet new strategic growth goals? How to develop existing human capital? How to make employees more commercially oriented in such a conservative, risk averse, and highly regulated environment? How to improve their customer service and the sales skill?

Exploring the importance of training and development in improving customer service levels in professional service firms operating in emerging markets. Understanding the limitations and the possibilities of transferring international HR policies and standards across borders and cultural differences.

Teaching notes.

The learning outcomes of this study include: recognizing the strategic inflexion points and related business and strategic perspectives in the life of an organization; understanding sources of sustained competitive advantage and connect it with resource-based view for internal analysis; applying dynamic capability theory to identify capabilities that help an IT company stay relevant in an IT sector characterized by VUCA (an acronym for volatility, uncertainty, complexity and ambiguity) environment; analyzing the multi-dimensional and multi-contextual challenge an organization faces, or is likely to face, in the foreseeable future and the possible ways it addresses or should address them; evaluating strategies adopted at various points of an organization’s journey for their effectiveness; and helping a company co-create value for its customers.

This case of Nitor Infotech Private Limited (Nitor), a mid-sized software product outsourcing company, outlines its decade-long journey, highlighting its achievements. While the company has consistently grown by leveraging its expertise in software product engineering and its domain knowledge in the healthcare segment, it entered into a stage of its life cycle where it had to develop a long-term strategy to effectively compete in the product engineering market. Nitor’s strategy was built around product engineering and outsourced product development. The two major choices for a software company were either to develop its own product and thereby own the intellectual property (IP) or to develop modules which would be part of a product that would be owned by a client. In the latter case, the IP would be held by the client. So far Nitor chose to follow the second option by developing components for its client’s products. Although this strategy allowed it to develop expertise in a particular domain, and serve different customers in a particular market, the chances of a competitor attacking its position was high. On the other hand, if it developed its own product, it can create its own brand name and can sell packaged software to several different customers. However, the challenge with the latter is that the cost of marketing could be very high. The choice for the company in the future is to decide on selecting a specific strategy to expand its international business.

This case is appropriate for an undergraduate and postgraduate management course in the area of strategic management. The level of difficulty can be from medium to high depending on the learning level. Knowledge of management fundamentals is not a prerequisite but is desirable for case analysis.

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CSS 11: Strategy

The learning outcomes of this paper is as follows: to explain the importance of rationalizing business operations to achieve efficiencies. To explain the importance of constantly re-inventing the product portfolio and the business for the survival and growth of the business. To discuss the use of product-market expansion strategies as used by businesses for growth and sustainability. To evaluate the internal challenges faced by a company as they adopt business strategies for business growth. To discuss a firm’s strategy to exploit significant opportunities in an evolving business environment.

Panasonic Life Solutions India Limited (PLSIND) an electrical products company with operations in India – an emerging market has set a Vision 2022 to achieve INR 69.21bn revenue target by the year 2022. PLSIND is marketed through the distributor business to consumer sales channel. To achieve the new growth targets, it was imperative for them to expand the product portfolio and explore marketing through the new business to business (B2B) and business to government (B2G) sales channels. Dinesh Aggarwal the Joint Managing Director of PLSIND was tasked with this responsibility. Both propositions depicted attractive business potential but at the same time came with additional risks of a longer sales/revenue cycle. PLSIND to a certain extent had ventured into new business projects with the launch of home automation, solar solutions for industries and smart street lighting business projects. In 2019, they also made a modest beginning by achieving revenues of INR 3.4bnn (constituting 10% of their aggregate revenues of INR 34bn) from B2B/B2G sales channels. Aggarwal believed that this was a good beginning. However, to achieve 2022 growth targets, they had to aggressively move forward with the new business strategy. Aggarwal had to work with the management team to gain acceptance and then to manage these additional risks for growth that came with this new business strategy. How could he win the confidence of the management team? How could he best reorganize the business teams and processes internally to enhance the required operational efficiencies for business growth?

This case is designed for business students at the MBA or executive MBA level courses.

Teaching notes are available for educators only.

CSS 11: Strategy.