May 15, 2001 09:34 AM
14015 Views
M & M has been a company which has always had tremendous potential. It is symbolic of the country, ''ever pregnant and never delivered''. Going back to history, the company was the importer and reseller of the famous Willy Jeep. Then the group started off International Tractors. Ultimately, it got merged and became the tractor division of M&M. Along the way, it accumulated a whole host of small and sundry businesses.
Amongst family run companies, it is perhaps the most professionally run.
THe company has everything going for it. Its joint venture with BT is a star contributor.
But.. what ails the company?
Firstly, there has been no passion at the top, to make the company excel at anything. Secondly, it has been a safe haven for employees, with longevity being synonymous with loyalty and promotions.
Thirdly and most importantly, the management has always taken a very very soft approach to employees, especially the unionised types. Their employees have been amongst the highest paid in the blue collar segment. ALso, the company has perhaps enjoyed the highest level of overstaffing. Cronyism and giving in to the union leaders have had a major negative impact to this. Even during the holiday season, if you care to visit the plant at Kandivili, even with 40% absenteeism, the shop floor looks overmanned. for every small function, there is a back stop employee. All of this has led to an overfed and bloated workforce.
The management is represented by professionals, who have a very tolerant attitude to workers. THe workers know this and at each occasion, they use this soft underbelly of hte company,to go on strike and seek an increase. THe management, traditionally gives in. Hence this strike syndrome.
Is there a solution? Perhaps you need a guy with iron balls at the top, who can take on labour by thier short hairs. Secondly, they have multiplicity of unions, which makes it easy for each unit to go independently on strike. The solution will not be simple. It would been a battle of attrition and one is not sure that the present management has the courage and strength to go on with it.
There has to be a tough talk, followed by tough action. At worst, the company will bleed big for a year or so, but will stop its gradual and continuous bleeding.
