ORGANISATIONAL BEHAVIOR

CASE STUDY ON ORGANISATIONAL CONFLICTS

Mahindra Satyam is a Brand identity of Satyam Computer Services Limited. Founded in 1987 by B Ramalinga Raju. Mahindra Satyam is a part of the Mahindra Group which is one of the top 10 industrial firms based in India. The company offers consulting and IT services spanning various sectors. It is listed on the New York Stock Exchange, the National Stock Exchange (India) and Bombay Stock Exchange (India). In June 2009, the company unveiled its new brand identity Mahindra Satyam subsequent to its takeover by the Mahindra Groups IT arm, Tech Mahindra. Mahindra Satyam has offices in 5 countries.

Mahindra Satyam provides services in the following areas: Aerospace and Defence Banking, Financial Services & Insurance Energy and Utilities Life Sciences & Healthcare Manufacturing, Chemicals & Automotive Public Services & Education Retail Consumer Packaged Goods

Satyam faced is the biggest fraud in India's corporate history. The company management, mainly disgraced chairman B Ramalinga Raju, kept everyone in the dark for a decade

On 7 January 2009, companys previous Chairman Ramalinga Raju resigned after notifying board members and the Securities and Exchange Board of India (SEBI) that Satyam's accounts hadbeen falsified. Raju confessed that Satyam's balance sheet of 30 September 2008 contained: 1.Inflated figures for cash and bank balances of Rs 5,040 crores as against Rs 5,361 crore reflected in the books. 2.An accrued interest of Rs. 376 crore which was non-existent. 3.An understated liability of Rs. 1,230 croreon account of funds was arranged by himself. 4.An overstated debtors' position of Rs. 490 crore (as against Rs. 2,651 crore in the books

It is nights and heartburns for the over 53,000 employees of Satyam Computers as they conjure up worst case scenarios like non-payment of salaries, project cancellations , layoffs and equally bleak prospects outside. As the company's management tries to reassure shocked employees, jobs sites have got flooded from resumes of hundreds of Satyam employees. Job consultants believe that in the current economic climate , Satyam employees might have to settle for lower salaries outside. It is an employers' market

An accounting fraud was the last thing investors in India would have imagined as a trigger for a reversal in investor sentiment. This scam is likely to affect the image of Indian companies among foreign portfolio investors.

The share prices of Satyam saw a sharp fall after Rajus confession.
The share prices fell down from 190 to 30 (approximately) in a matter of a day.

Satyam Computers clients include General Electric, Nissan Motors and General Motors.
The debacle may force the clients to review their contracts and look at other offshore suppliers. Australian telecom company Telstra, had already decided to split a new contract worth $200 million among three Indian vendors. Another partner and customer of the company, Cisco Systems said that a proposed investment in Satyam Global Lifenet could be in jeopardy.

The incident has hurt public perception of Corporate India and is likely to hurt shareholders confidence in India Inc.
It resulted in incalculable and unjustifiable damage to Brand India and Brand IT in particular. It is likely to dent the public credibility about the concepts of corporate governance in India

Satyam's CFO SrinivasVadlamani already arrested. Many others after this scam, mainly due to their own mistakes of not actively participating in the management of the organisation.

The competitors were mainly benefited positively from this scam. The Satyam Scam was also lesson to learn for the other organisations in the IT sector

On 11 January 2009, the government nominated noted banker Deepak Parekh, former NASSCOM chief Kiran Karnik and former SEBI member C Achuthan to Satyam's board.

Tech Mahindra paid Rs1757 Crore for a 31% stake in the company, at Rs 58 per share. Satyam Computer Services zoomed 15% to Rs 54.20 ahead of the announcement of the highest bidder for the company on April 13,2009. In India this moment was full of praise for the manner and speed with which the reconstituted board of Satyam Computer Services

Involving People: Volunteers, Community, Civilians, NGOs and Government

Applying Knowledge: Leveraging the core competencies of Satyam -Technology, Process and Managerial competency Making Things Happen: All initiatives are outcomeoriented, scalability driven and capable of execution. They have five chapters in India located at Hyderabad, Pune, Bengaluru, Bhubaneshwar and Chennai. The Foundation focuses its activities in the core areas of Education, Livelihoods, Health, Environment and Empowerment for Persons with Disability

Satyam was a wakeup call for India to clean up its act. Experts and industry watchers remain divided in the aftermath. While there is a set of people who believe that Satyam definitely made promoters sit up and make alterations, there is an equally strong lobby that says nothing has changed in the real sense of the term. Audit committees are being more careful to ensure that the external auditors perform their role more diligently. Chairman of the board and members of the audit committee are being more careful and thorough in their questioning. Boards, too, are taking care to ensure that there are no slipups at their end.

Mahindra Satyam has tried immensely hard not to go down the same road that Satyam went. The company does not have a fixed vision and mission statement, but they do have a set of well formulated rules and regulations covering almost every aspect including fraud. We see that Mahindra Satyam is definitely one company which has learnt from the Satyam Scandal.

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