Self-Managed Teams: Transforming Commitment to Growth and Empowerment
“Are we taking the right decision”, ruminated the new recruits to themselves. Many of them had had just completed their Intermediate, in Math, Physics and Chemistry and like many their age they wanted to pursue higher studies. But now placed before them was the lure of a job, learning opportunities and a chance to work for one of the big names in the pharma industry. They had only a day left to communicate their intention to join the organization or not. A number of thoughts raced across their mind, that of their family, friends, dreams and future.
Although they had expressed their mind to their mentors and well-wishers, a decision as this so early in his life was indeed a great gamble of sorts. The most difficult decision was just to trust the organization, to shape their destiny and uncertainty looming large over them. They vaguely remembered someone mention to them during the recruitment process that they would form part of a self-managed team. What was a selfmanaged team? How would it help him realize his dream?
Need for a New Structure: Self-Managed Teams – A Shared Vision
Dr.Reddy’s Laboratories is well-known in the Pharmaceutical Industry worldwide. The company’s vision and mission is to make lives healthier and better through accessible healthcare, Dr. Reddy’s began as an API (Active Pharmaceutical Ingredient) manufacturer in 1984, producing high-quality APIs first to the Indian and later to the international markets. When the company went international in 1991 in 2013, it had more than a 200 million dollar venture with presence in almost all major therapeutic areas.............
Core beliefs of Dr. Reddy’s in building SMTs
• People are good and capable: Process from good to great
• People have the need to learn: Continuous learning results in personal effectiveness
People are good and capable: Process from good to great - The concept of empowerment was deeply entrenched in the values of SMT. The pioneers of this concept in Dr.Reddy’s believed that with the right kind of training , tools and clear expectations, a reasonable competent person can learn to do any kind of work..............
List of Activities for SMT Induction Programs
Continuous learning and Personal effectiveness: For SMTs, personal and professional growth occurred simultaneously and rapidly. The Yanam plant had 37 people, which included SMT members, 4 HHT members and new apprentices. The plant actually had less manpower than when it started out but production units had always been on target.................
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The self -managed teams operationally revolved around the concept of High Performance Work Systems. High Performance Work Teams: Philosophy which builds HPWT
• Financial success was correlated with employee motivation: Performance scorecards that translated into competition among teams who reached targets adhered to quality parameters and reduced incidents in the work place.
• Personal transformation was the cornerstone of organizational transformation:
Tangibles & Intangibles of the SMT
The greatest advantage was that SMT instilled a sense of ownership among its members. HPTs consist of members from varied functions and capitalizes on the cross functional expertise of individuals synchronizing the efforts of all members for better productivity. This enhances the overall capability of the team by providing an opportunity for cross-skilling. A factory scorecard derived from the organizational scorecard which focused on key metrics like Safety, Quality, Cost, Delivery, and Morale (SQCDM) was developed............
Success of SMT’s Through the Lens of Employees
Ashutosh, a 21-year-old on the Baddi team: “We are really proud of the work we are doing. We have been given an opportunity to become independent. And when we compare ourselves with our friends from our home towns, it’s clear that they are not anywhere near where we are.”............
Assignment Questions
I. Identify and explain the process and characteristics of planned change as portrayed in this case.
II. .............................
Exhibits
Exhibit I: Scientific Selection Process
Exhibit II: Instrument to Assess Need for the Job
Exhibit III: Scientific Selection Tool: Advertisement for Recruitment
Exhibit IV: Induction plan for SMTs
Exhibit V: 10 Pillars of SMT
Exhibit VI: Instructional Design for Community Living
