Aditya Vikram Birla Group

Topics: Birla family, Kumar Mangalam Birla, Aditya Vikram Birla Pages: 2 (511 words) Published: August 9, 2010
Aditya Vikram Birla Group, or A V Birla group presently known as is sphere headed by Mr.Kumarmangalam Birla who is credited by corporate knowledgeable for transforming isolated multiple business house of $3.0 bn into countries third - largest conglomerate, with approx $25.0 bn in less than a decade. The quantum leap was brought about by not only some great business acumen by the London educated CA & MBA K.M.Birla, but also by bringing a sea of change in the organizational culture of a 150 year old business house. In 1995, sudden death of group head Mr. Aditya V. Birla, required Mr. K M Birla to take over, at a young inexperienced age of 28 yrs,critics dismissed him as a soft and shy person, who lacked the business expertise and assertiveness of his father A.V.Birla. Kumarmangalam slowly but steadily started bring in cultural change by means of below policies. 1.Retirement Policy:

He introduced a retirement policy in 1995, on the basis of which around 325 senior emplayees, who were there early 60s, had to quit the organization in the next five years. Subsequently about 400 young employees replaced them. 2. Corporate logo:

In 1996, he launched for the first time a corporate identity that would serve a corporate logo. The group selected the rising sun as the logo, which signified optimism and served as a unification symbol for the group. K.M.Birla said, “The new corporate logo helped in bringing various companies of the group together. This helped the organization to reenergize and get started to the path of change”. 3.Recruitment process:

K.M.Birla also changed the group’s policy in house recruitment. In 1996, he also made changes in group’s HR system. He hired professionals from other companies into his management team. 4. Change in decision making:

The partha system of daily financial reporting which focused mainly on production was replaced with an “Economic value added model”. This model focuses on the aspects of profitability, asset productivity and...
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