The cultural dilemma Tuna Oil

Experience, and the ability to apply so many diverse experiences, enabled Sunil Kumar to become one of the richest man in the world. Emerging from a small lower middle class family ,Sunil has proven that taking calculated risks is fun and profitable. Three years in the army was another kind of experience that led him to think about his first entrepreneurial opportunity. His first "risky venture" resulted from reading in a classified ad in the newspaper while he was traveling in Europe. Sunil is guided by the philosophy that Capital is not so important, experience is not so importantwe can get both of these. But what is important is IDEAS. That is the main asset. Sunil along with his three friends started TunaCorporation. The growth in businesses of the company has been steady and they have strong pockets worldwide.The product portfolio of the company has been steadily expanded and new lines have been introduced .Tuna Corporation is one of the three largest integrated energy companies in the world. The main global activities are exploration and production of Crude oil and natural gas; refining marketing, supply and transportation, manufacturing and marketing of petrochemicals, and growing activity in solar power generation. Following a series of mergers and acquisitions, the Tuna brand now brings together-Vicco Corporation from Great Britain, Kelly Oilfield from Kazakhstan and the most recently Juran Oilfields from Dubai a vertical merger ,headquartered at Britain . The combined group has a market value of of $5 billion.

Prof.Pabitra Ranjan Chakravorty

The core business of Tuna is the supply, distribution and marketing of fuels and lubricants as well as convenience retailing. It employs 800 employees. This merger created new synergies, lead to innovation by combining talents of different firms, and provide additional resources to develop new products and services. Efficiencies were realized. Market share went up. These three corporations shares the maximum of the worlds oil production. Sales were doubled Tuna Oil made effective reach to its customers. The three companies with integrated market power enjoyed significantly higher profits in both upstream (exploration and production) and downstream (refining and marketing) domestic operations. Sunil Kumar Market the CEO of Tuna Corporation is a worried man. of the company have not been growing

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significantly. Slippage in deliveries has resulted in some key dealers threatening to resign their agencies. Despatch and Sales keep blaming each other for the delays. Despatch complains that sales do not provide complete information and there are frequent changes in shipment orders, which is the cause for delays. Everything was moving in a systematic and planned manner. But with time a significant development took place and the organization climate changed. Organizational conflicts started creeping on. And with time it reached to blaze stage. Employees were unhappy with confrontation politics The employees (previously of Juran Oil Fields) put up many issues - Limited resources, difference in opinion and perspective, poor compensation and also question over the reward system. They believed that their problems are not being heard. They are not included in decision making process. Organization seemed to be more vibrant and responsive than older ones, and appeared to be more conservative and bureaucratic.

Prof.Pabitra Ranjan Chakravorty

Relationships seemed to be fragile.Sales has been complaining about the slow response to competition Groups were developed and over time all have different goals, neither group listen to the other group because they don't trust that the other group has the organizations or constituencys goals at heart. They have different approach to solving issues before them. In the process of solving their own problems, they may create problems for the other group. Each blame the other side or group for the conflict. They see their own behavior or idea as right and there is a problem with the other party. They dont have faith on their supervisors as supervisors show bias over others. But the strategic apex who make the key policy decisions believes that they have attitude problems. That needed to be rectified. Morale to be plummeted among the employees. Top management knows that the key part of the structure here is the middle line. Middle line manager John More perceived the situation to be unmanageable and it created a negative impact, productivity and increased absenteeism as well as employee turnover.

During the Annual General Meeting, VP HR Christopher Lorenz said that conflicts between the executives, Industrial staffs and the board are extremely delicate. The quality of an organization's culture is the key to high performance. An organization with a blaming culture can't perform at a high level, because its people can't take reasonable risks. According to Lorenz executives can be the bridge between the board and the employees. These divisional managers who can act

Prof.Pabitra Ranjan Chakravorty

as local chief executive officers, reporting to the strategic apex who are the directors at the Headquarters. They have to facilitate emergence of new mindsets and that could resemble new identity for the organization. Christopher Lorenz says: the teams have a great deal of autonomy, and the authority to make key decisions pertaining to their functional area. Although the dominant culture can be rather subtle and abstract, it is very much determinating for the activities within the organization and the people's attitude.Manager Human Resource conflicts to be created. An organizational Culture to be enhanced so that bias among the employees can be uprooted. Roger Fredrick said a detailed structured approach to identify and resolve workplace

Prof.Pabitra Ranjan Chakravorty