9/8/2016

RahatThapar:GlaxoIndiaLtd.
0

More NextBlog

CreateBlog SignIn

RahatThapar
GlaxoIndiaLtd.
GlaxoIndiaLtd.Isalargepharmaceuticalcompanywith
largemanufacturingbaseandanallIndiamarketing
network.TheCompanyexperiencedtheproblems
becauseofgovernmentspolicytowardsmultinational,
inflationarypressures,andinternalorganizational
problems.Whenthenewmanagingdirectorwas
appointedin1973,adecisionwastakentoimplement
MBOandaseniormanagerwasappointedasMBO
director.MBOwasintroducedwiththeidentificationof
corporateobjectivesandKRAs.Thecompanyadopteda
groupapproachtoobjectivesettingatthecorporate,
divisional,anddepartmentallevels.Initiallytherewere48
workgroupswhichwerelaterreducedto37.The
objectivesettingprocessconsistedofthefollowingsteps:
(1).thecorporategroupissuesguidelinestothedivisions
forexpectedresults.(2).thedivisionsindicatetheir
capabilitiesasalsotherequirementforadditional
resources(3).Corporateobjectivesareestablished(4).
Divisionalobjectivesarefinalized(5).Companysbudget
iscompiled(6).Departmentalobjectivesareestablished
and(7).Resultguidesformanagersarerenewed.The
corporateanddivisionalobjectivesinGlaxoare
establishedforthreeyears.Renewaltakesplaceevery
year.TheemphasisinMBOatGlaxoisonstrengthening
theplanningandcontrolsystemsatdifferentlevelsandon
teambuildingandparticipateactionplanning.
Thecompanychangeditsstructurefromfunctionalto
divisionalbasis.Thiswasdonebeforetheimplementation
ofMBO.Itwasrecognizedthattheexistingstructureon
functionalbasishadproblemsofcoordination,conflict,
andaccountability.Therefore,witheffectfromJanuary
1974,Glaxowasreorganizedintothreeprofit
centers/operatingdivisionspharmaceutical,foods,and
chemicalsbesidesanumberofcorporatedepartments.
Thenewstructuremadeimpactonthemoraleand
performancebyprovidingclarityinroleandobjectives.
http://rahatthapar.blogspot.in/p/glaxoindialtd.html

AboutMe
Rahat
Ludhiana,
Punjab,India
Viewmy
complete
profile

Pages
Home
ManagementbyObjectives
NuclearDecommissioning
Authority
GlaxoIndiaLtd.

Followers
Followers(4)

Follow

1/3

9/8/2016

RahatThapar:GlaxoIndiaLtd.

ThisalsofacilitatedtheimplementationofMBO.Theinitial
processofMBOimplementationwasslowand
encounteredseveralproblems.Therewasresistance
amongseniormanagerstothechangeinmanagement
styles.However,themanagingdirectorspersonal
commitmentwasofaveryhighqualityand,ofthe
contributionswasmadewhichindicatedimprovementsin
thefollowingareas:
1. Thequalityofcontributionofthecorporateanddivisional
directorsandtheirseniormanagerstothebusiness
discussionfromwhichcorporateanddivisionalplansare
evolved
2. Thelogic,balance,andqualityofexpressioninthese
plansand
3. Theactualsettingofobjectiveswithattainablestretch.
Thebusinessresultsofthecompanyalsoimprovedafter
theimplementationofMBO.ThiswasattributedtoMBO
andreorganizationofstructure.This,inturn,also
reinforcedthepositiveattitudetowardsMBO.

SummaryoncasestudyofGlaxoIndia
Ltd.
GlaxoIndiaLtd.isalargepharmaceuticalcompanyin
India
Ithasalargemanufacturingaswellasmarketingnetwork
GlaxoIndiaLtd.startedfacingproblemsfromgovernment
policiesandinternalorganizationalhappenings.
ThecompanyappointedanewM.D.andasenior
managerin1973
ThenewManagingDirectorintroducedtheconceptof
MBO.
Thecompanyadoptedagroupapproachtoobjective
settingatthecorporate,divisional,anddepartmental
levels.
Thecompanyadoptedano.ofpoliciesforobjective
settingwhichincluded:
(1).thecorporategroupissuesguidelinestothedivisions
forexpectedresults.
(2).thedivisionsindicatetheircapabilitiesasalsothe
requirementforadditionalresources
(3).Corporateobjectivesareestablished

http://rahatthapar.blogspot.in/p/glaxoindialtd.html

2/3

9/8/2016

RahatThapar:GlaxoIndiaLtd.

(4).Divisionalobjectivesarefinalized
(5).Companysbudgetiscompiled
(6).Departmentalobjectivesareestablishedand(7).
Resultguidesformanagersarerenewed.
Theyalsosetapolicythatrenewalwilltakeplaceevery
year.
Theirmainemphasiswereonstrengtheningtheplanning
andcontrolsystematdifferentlevels
Thecompanychangeditsstructurefromfunctionalto
divisionalbasis.
Itwasnotedthatexistingstructureonfunctionalbasishad
problemsofcoordination,conflict,andaccountability.
Thereforethecompanydivideditselfintothreeprofit
centers.
ThishelpedintheimplementationofMBO
InitiallytheprocessofMBOwasslowandencountered
severalproblems.
ButManagingdirectorspersonalcommitmentwasofa
veryhighqualityandtherefore,theprocesssucceed.

Conclusions:
Theabovecasestudyshowstheimportanceofthe
MBOinrunningthebusinessorganizationsuccessfully
andsmoothly.Thecasestudyshowsthatthe
companysM.D.haddirectorspersonalcommitment
wasofaveryhighqualityandtherefore,theprocess
succeeds.
Recommend this on Google

Home
Subscribeto:Posts(Atom)

Searchit!!

BlogArchive
Search

2010(5)
October(1)
SWOTAnalysis
September(2)
August(2)

RahatThapar.Watermarktemplate.PoweredbyBlogger.

http://rahatthapar.blogspot.in/p/glaxoindialtd.html

3/3