presentation group 9
TRANSCRIPT
-
7/30/2019 Presentation Group 9
1/14
TORRINGTON WUXIBEARINGS
Barkha Jain
Sneha Sharma
Shravan Bolisetty
Brijesh Khatri
-
7/30/2019 Presentation Group 9
2/14
Hard and Soft ProblemsHard Problems Soft Problems
1. Clear goals and objectives 1. Sees the organization as a social
entity
2. Creates an united view of the
organization
2. Consensus view/ conflict view of an
organization
3. The data provided is quantifiable 3. The data has different perspectives
4. Aims to solve problems 4. Aims to appreciate and improve the
problem
5. Analysis is derived from the presentsituation
5. Analysis derived from being a partof the situation
6. Controlling actions are clear and
unambiguous
6. Control Mechanisms are unclear
and the goals have to be negotiated
-
7/30/2019 Presentation Group 9
3/14
Hard and Soft Problems
Interdependenc
ies
Lo
w
Medi
um
High
Low MediumHigh
Spectrum of Change Situations
-
7/30/2019 Presentation Group 9
4/14
Hard Systems Model of
changeHSMC
Descriptionphase
1. Situation Summary
2. Identification of objectives andconstraints
3. Identification of performance measures
Options Phase
1. Generate Options
2. Edit options and detail selected options
3. . Evaluate options against measures
ImplementationPhase
1. Develop implementation strategies
2. Carry out the planned strategy
Characteristics
Gradual process approach toproblem solving
Easier to solve hardcomplexity problems in
comparison to complexproblems
Mostly applied to selfcontained situations
Believes in creating clear
objectives to obtain betterresults
Objectives should bequantifiable and clear in orderto know when they have to beachieved
-
7/30/2019 Presentation Group 9
5/14
Soft Systems of Models of Change
OD Model for Change
ChangeAgent
1.Diagnosethe currentsituation
2. Create avision
Gaincommitmentto the vision
Make anaction plan
Implementthe action
plan
Evaluate thereinforced
change
Characteristics Planned approach to problem
solving
Achieves goals using behavioralscience knowledge
High involvement of employees
Optimum utilization of employeecapabilities
Focuses on solving intense andtwisted situations
Creates a radical and impactfulchange in the system
Changes the attitude and cultureto make a difference
-
7/30/2019 Presentation Group 9
6/14
Torrington Wuxi BearingsTorrington Wuxi Bearings was a Chinese-American joint
venture, which is made of ball and roller bearings in China
Problems faced before Jesse Chen
1. Low sales
2. Lack of creativity
3. Poor Quality of products
4. Managerial control
5. Human resources and man power issues
-
7/30/2019 Presentation Group 9
7/14
After Jesse Chen was appointed as the new General
Manager
Together with its new management team, Jesse had taken
a number of measures aimed at transforming the TWB
from public enterprises (PEs) to market the sales
organizations
1. Inviting bilingual managers
2. Bringing in Chinese experts
3. Creating cultural changes
4. Optimum utilization of the companys strength and
resources
-
7/30/2019 Presentation Group 9
8/14
PROBLEM STRATEGY EMPLOYED MANIFESTATION WITHIN
TORRINGTONS WUXI BEARING
Inability to reach targeted sales Soft system model of change Changed the in the Organizational
Culture of the Company by making
TWBs employees understand that
the company no longer operated as
a state owned enterprise but rather
a profit based organization
Poor Product quality Hard system model of change Created a quality division that
focused on creating products of
similar quality as produced in the
US, this helped to maintain the
conformity of the product in
different product lines
Achieved this target by creating
cross functional teams to improve
production process and have
efficient quality control
-
7/30/2019 Presentation Group 9
9/14
PROBLEM STRATEGY EMPLOYED MANIFESTATION WITHIN TORRINGTONS
WUXI BEARING
Low Productivity of Workers Hard system model of change Identification and replacement of
incompetent first line managers
Identification and transfer of
redundant workers within the
division to other divisions
Conducting monthly departmental
workshops for front line managers,
supervisors, group leaders and
workers
Lack of competent market expertise Hard system model of change Creation of a Sales and marketing
division which hired many young
college graduates and trained them
into competent salesmen
Implemented monthly sales
reporting system that tracked salestrend over time , etc with monthly
meetings to discuss important sales
matters
Classification of TWBs distributors
into A, B, C classes based on their
size and consistency in payments
-
7/30/2019 Presentation Group 9
10/14
PROBLEM STRATEGY EMPLOYED MANIFESTATION WITHIN
TORRINGTONS WUXI BEARING
Human resource issues Soft system model of change After the events of the staff
canteen incident TWB was forced
to take immediate actions to tackle
the challenges that it faced butreducing the headcount to the
targeted level, overhauling the
compensation structure and
upgrading quality of workforce
TWB began to offer a series of
training courses to employees in
different functions and levels
Modernization Hard system model of change Creation of a Finance and IT division
to reach the Jesse chens western
style company standards
Creation of LAN or Local Area
Networks to connect different
divisions and maintain better
communication
-
7/30/2019 Presentation Group 9
11/14
Feasibility of new strategy
within the OrganizationCurrent Strategy employed by Jesse Chen Problem
Introduction of cross functional ,
Merging of quality division with manufacturing
division
Unnecessary meetings swayed the focus away
from real production to un necessary discussions
the hierarchy created by pater was flawed
because extra burden was put upon managersand supervisors rather than production workers
who worked on ground level
Removal of incompetent workers and filling the
vacancies with skilled workforce, buying of new
machines for the growth of the business
Shortage of cash to making capital expenditure
-
7/30/2019 Presentation Group 9
12/14
Strategy employed by Jesse Chen PROBLEM
Restricting of sales department by hiring young college
students ,setting up of challenging yet achievable sale
training session and measuring the performances target,
holding
Recruitment of young staff could lead to expertise and
knowledge concerns because their ability may dwindle
Challenging sales target could lead to work pressure
and create dissatisfaction amongst sales team
Reduction of number of employees, reducing the basic
pay of the workers, pressurising existing employees to
achieve the sales target
Wastage of time, loosing employees trust, overloading
of work on the existing employees
Imposing tight control and selling more to financially
stable customers
Shifting targeted customer segmentation means setting
up in the market again, fulfilment of cash requirement
at the cost of sales
-
7/30/2019 Presentation Group 9
13/14
Conclusion The strategy employed by Jesse Chen was successful in
changing the mindset of Torrington Wuxi Bearings from thatof a state owned enterprise into a market drivenorganization. From march, 1999 he was able to curb thelosses of the organization and break even, from which point
onwards he focused on making TWB a successful profitmaking organization. Employment of tighter credit controland selling of products to more financially stable customerswere the key aspect involved in reducing the amount of baddebt they incurred. In conclusion, the amalgamation of both
Hard and Soft strategy by TWB helped them in prosperingas an enterprise.
-
7/30/2019 Presentation Group 9
14/14
THANK YOU!