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April 12, 2001
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Money > Business Headlines > Report April 12, 2001 |
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Mahindras to kick off tractor business recastV Phani Kumar Mahindra & Mahindra is implementing a major restructuring programme for its Rs 20 billion tractors division under the code name, Project Vishwajeet. The project, whose blueprint was drawn up by McKinsey, is aimed at turning the company into a leading tractor producer in the global arena by 2005. Under the programme, the farm equipment division has been divided into 38 different business units, which have been classified under five divisions. The divisions -- marketing and customer relations, manufacturing and supply chain, product development and R&D services, performance management, and international operations -- will operate under the supervision of K J Davasia, executive director and president of M&M's farm equipment business. The hierarchy structure in each of these divisions has been trimmed to just five layers "to provide more autonomy, clear accountability, and support high levels of teamwork at all levels". About 1,800 officers from the farm equipment division are covered under Project Vishwajeet. Gautam Chakravarti, executive vice-president of the company said: "We created a flat organisation by reducing the number of layers under the president to just five. We have also implemented a performance management system, where each person has clearly defined measures of performance and targets, with quarterly achievement levels, and performance ratings. A significant part of the compensation package (up to 30-35 per cent) has been linked to performance. Now, nobody gets paid just for coming to the office." The company has, over the past two years, infused a lot of "new blood" by recruiting executives at various levels. Also, a number of people have been axed, based on performance. Most of the vacancies in the company are now being filled through internal advertisements, Chakravarti said. The farm equipment division of the company has, during the previous fiscal, increased its sales by almost 25 per cent, against an industry decline. Powered by ALSO READ:
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