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Self-Managed Teams: Transforming Commitment to Growth and Empowerment*

CASE STUDY, HUMAN RESOURCE MANAGEMENT
ET Cases - GSMC, 9 pages
AUTHOR(S) : Dr. Agna Fernandez, Associate Professor, Siva Sivani Institute of Management, Hyderabad

Case Preview

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.................

...............................

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

Teaching Note Preview

Self-Managed Teams: Transforming Commitment to Growth and Empowerment

 

Synopsis

The case study draws light on the manner in which Self-Managed Teams had promoted empowerment at the workplace. SMT way of working involves empower team members with skills, resources, authority, opportunity and motivation, as well as holding them responsible and accountable for outcomes of their actions. This requires a whole new approach towards people. Right from selection of the trainees, the scientific selection process involved and the manner in which self-managed teams operate are highlighted in the case study. SMTs are empowered, multi-skilled team with operational decision-making authority. The idea was to increase efficiency in manufacturing by reducing hierarchy in the organization; build an organization without the pitfalls of conventional structure; and serve as a benchmark in terms of speed, response to customer needs, and overall efficiency. The benefits to employees, the organization and the manner in which the structure of the team operates are  portrayed vividly in the case study.

Expected Learning Outcomes

• Identify and understand the process of planned change and elements necessary for successful implementation
• Understand the nature of emergent change
• Analyze the conditions of successful organizational change

Assignment Questions

I. Identify and explain the process and characteristics of planned change as portrayed in this case.
II. What should be the approach to help trainees cope with their fears better?
III. ....................

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Abstract


The case study draws light on the manner in which Self-Managed Teams have promoted empowerment at the workplace. Presented through the study of its  implementation at a pharmaceutical company in India, the case study highlights the SMT way of working which involve giving team members skills, resources, authority, opportunity and motivation, as well as a definite pattern of hierarchical responsibility and accountability. This requires a whole new approach towards people beginning with the selection of the trainees and their recruitment, the scientific selection process involved and the manner in which self-managed teams operate are highlighted in the case study. SMT are an empowered, multi-skilled team with operational decision-making authority. The idea was to increase efficiency in manufacturing by reducing hierarchy in the organization; build an organization without the pitfalls of conventional structure; and serve as a benchmark in terms of speed, response to customer needs and overall efficiency. The benefits to employees and the organization and the manner in which the structure of the team operates are portrayed vividly in the case.



Pedagogical Objectives

  • To identify and understand the process of planned change and elements necessary for successful implementation
  • To understand the nature of emergent change
  • To analyze the conditions of successful organizational change

Case Positioning and Setting
The case can be used in the core HR course for MBA/PGDM programme - To understand the need to align organizational vision, policies and intent with the change management process - Individual needs, group needs and organizational needs once aligned will accelerate the change process and bring out the desired results.



* GSMC 2014, IIM Raipur


This Case Pack Includes:
- Abstract
- Case Study
- Teaching Note (**ONLY for Academicians)


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