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Full Version: Transformation of family owned tea company business to third largest tea company
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Transformation of family owned tea company business to third largest tea company in the country
1. Overview
The case offers fresh insight into how a simple philosophy of harmony b/w two diff sets of values can be a driving force for the growth and success of a family business. The case explores how changing times called for better measures of management, and proper organisational diversification to survive the market. The HR initiatives of the company are seen with great success as they reflect the strong vision of the founders of the business. The constant endeavour to transform tea drinking into an extraordinary experience has formed the guiding light for generations to come.
2. Issues raised in the case

There a number of issues coming from the perspective of HR practices namely:
• Have the HR initiatives taken by the company helped in achieving organizational goals?
The H.R. initiative “Management by Participation” has been able to uphold the philosophy of employee involvement in the decision making process of the organization. Also the company focuses on integrating the values that have been passed down through generations with H.R. initiatives to improve employee satisfaction, thereby leading to the overall growth of the business.
• Is the management approach in line with the company’s philosophy of co-existence between traditional values and the modern organizational culture?
They recognise the need to decentralise the power to professionals to attract and retain the best possible talent to ensure good quality products and services to the customers. It also believes in close-tie values as it treats the employees as extended family members
3. Case Summary
Wagh Bakri Tea Group is the third largest privately held packet tea company in India. It was established by Shree Narandas Desai in 1892 as a family business. At present it provides wide variety of packaged teas to large international and domestic market base. The case reflects the approach of the company in keeping up with the changing times without compromising on its values. It throws light on the H.R. initiatives taken by the company to develop a sense of harmony between the employees and the members of the family business. The company has been able to achieve a sustainable growth through its endeavor for quality, innovation and successful managerial practices.
4. Teaching Themes / Teaching Objectives
• The Challenge of Human Resource Management
• HR practices versus Traditional Personal Management
• The organization culture and values

5. Assignment Questions (Answers are given below)
1) Did the employee engagement initiative taken by the company help increase workforce satisfaction?
Employee satisfaction is a direct consequence of decentralization of authority and involving the employees in decision making. The company has been able to achieve this through initiatives taken for
• Career development
• Delegation of authority
• Sound performance appraisal process
• Training and development
• Reward and recognition

2) Will the company be able to sustain its value and ethics, keeping up with the changing times?
The tea industry is a growing market and with the increasing competition shift from traditional management systems to modern management systems is imperative. Since wagh bakri group has been able to uphold the values of the founder and achieve the required growth by appropriate employee engagement, over the past hundred years it will be successful in its pursuit in the future as well.
3) Which HR factors would leverage sustainable competitive growth:
An effective and fast moving culture enables an organization to be competitive and helps in the development orientation. The long term success is achieved from an ability to build, at lower costs and more quickly that other competitors. The 10Ps model of corporate excellence seems to meet with some success. It is based on:
• Performing Culture: Performing employee build performing organization and the hence the reward system should foster performance orientation in the organization to motivate people continually.
• Excellent Performing Organization: This is a peak level that the organization must sustain to fight a competitive environment.
• Re-understanding Market Sensitivity: Moving away from complacency is best possible with the dynamics and sensitivity of the market and thereby reaching its expectation.