Group 3 - New Holland India

New Holland
Tractors
(India)
NHI STRATEGY
Farmer’s education – training the farmer in

how best to use a tractor, what kind of Right product selection - meeting the
implements to use for different farm unique requirements of Indian farmers
operations in different soil conditions
To evolve a lean, flexible and agile

Differentiating its products in terms of new organization, a barrierless flexible
technology and new features, which were organization enhance greater
much more useful in farm mechanisation communication for speed of decision and
for Indian context action through effective team work based
on well set business processes
ORGANISATIONAL STRUCTURE
MD
Chief Manager
Senior Manager
Manager
Deputy Manager
Executives
Associates
Team based organization v/s
bureaucratic organization
In Bureaucratic Organization: In Team Based Organization:
 Decision making is mostly Centralized in Bureaucratic  All participate in teams no one feels superior or inferior to
organization. another, fast problem solving
 Hierarchy is followed and approvals are needed.  Less hierarchy and empowered to make decisions, cross
functional teams
 Focusses on standardization, administrative efficiency, control
and coordination, and a clear management structure.  Communication is clear and quick, job satisfaction and employee
morale is higher, and decision-making is easier.
 Weaknesses: slower decision-making, high levels of supervisor
and managerial overheads, lack of employee freedom and  Management structure is unclear in a flat structure, an
lower employee morale. employee may report to multiple supervisors, and the structure
is unfeasible for large organizations.
No, they are not mutually Exclusive
 Hierarchy is always there in an organization and strategic decisions is taken by the top management
 Not every time teamwork is appropriate
 Clarity in structure and scope is required always for efficient functioning
HUMAN RESOURCE INTERVENTIONS TO
FACILITATE TEAM WORKING
 Human Resource Department initiated a series of sensitization

exercises to sensitize employees to a process and team-based
working culture.
 New incumbents were made familiar with the need and
rationale for team-based working, what is expected out of team
working, key components of effective teams, when to team
 Made to spend one full day in different functions so that they
get a fair exposure to functions others than the one for which
they had been recruited
 There inductees were required to undergo training in handling a
real tractor on a real farm land using various farming equipment
 Initial 70 to 80 associates who were recruited for shop floor
activities along with engineers were also sent abroad to New
Holland plants at UK, Belgium, etc., which gave employees a first
hand taste of what world class manufacturing was all about
HUMAN RESOURCE INTERVENTIONS TO
FACILITATE TEAM WORKING (Cont.)
 Further, communication meetings were organized in which all

employees were updated about progress of the project apart from
getting a chance to express and clarify their ideas, doubts and
questions regarding team and process oriented operational style and
other common concerns.
 They conducted a series of seminars to spread the message of what,
after all, a team and process based organization was all about.
 Top Management Team conducted quarterly seminars on road maps
for NHI for all levels of employees.
 Successful team efforts were also highlighted in all communication
meetings to inspire other employees to emulate ways of those
teams.
 Performance appraisal was based on the evaluation of Key Result
Areas in both functional responsibilities as well as team
responsibilities in a 60:40 ratio
 The greatest benefit which teamworking has ensured for
NHI is that of speed of problem solving, do not have to
run around five different sections to solve a problem
 Since all participate in teams no one feels superior or
inferior to another, nor do we feel neglected or ignored
 NHI leveraged such team spirit to quickly develop an
effective partnership network with dealers and
suppliers
 Heterogeneity of team members has led to teams
WHAT NHI having visionaries, communicators, catalysts and doers
all together
ACHIEVED FROM  To make the teams truly effective NHI empowered them
EXPERIMENTING with ERP software, well laid out business processes and
the requisite authority to make decisions.
 The role of information technology as an enabler of
team and process working to leverage IT to build a
culture of sharing information
 Product development team successfully launched the
70-hp, the 50-hp and the 40-hp tractors, which were not
only technically much ahead of competition but also
ahead of scheduled launch dates.
CHALLENGES
 The stress level is high due to multiple accountability.

 A team member is accountable to his team, to the functional head, to numerous internal
customers, to process owners, etc.
 Though there was a need for high caliber manpower, flatness of the organization became a
bottleneck in recruitment
 Face the cultural rigidity of his people who came from different working cultures
 Growing size of the organization
 A general dissatisfaction prevailed among organizational members as regards the performance
appraisal system.
 Performance appraisal was an area where NHI had to do a lot

Group 3 - New Holland India

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Group 3 - New Holland India

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New Holland

Farmer’s education – training the farmer in

To evolve a lean, flexible and agile

 Human Resource Department initiated a series of sensitization

 Further, communication meetings were organized in which all

 The stress level is high due to multiple accountability.

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