ITC- A CASE STUDY
By: MIT SHAH, MBA.Tech EXTC, II Year, M624
ITC Limited or ITC is an Indian conglomerate headquartered in Kolkata, West Bengal. Its diversified business includes five segments: Fast Moving Consumer Goods (FMCG), Hotels, Paperboards & Packaging, and Agri Business & Information Technology. The following is the case study which studies the type of management, organizational culture, PEST analysis and CSR policies incorporated by ITC Limited. The key features of the strategies and policies implemented by ITC Limited are explained thoroughly in this paper.
I. MANAGEMENT THEORY (SCIENTIFIC MANAGEMENT)
Frederick Winslow Taylor investigated the effective use of human resources in the industrial organization, particularly at the shop level. He put the problem of managing in a scientific way. His objective was to provide a scientific basis for designing and performing various jobs. He was of the view that there is a science for doing each job. In Taylors view, if a work is analyzed scientifically it will be possible to find one best way to do it. “
PRINCIPLES OF SCIENTFIC MANAGEMENT
1. Development of Science for each element of work. (Replacement of rule of thumb) 2. Scientific Selection, Training & Development of Workers
3. Co-operation between Management & workers or Harmony not discord 4. Division of Responsibility
5. Mental Revolution
6. Maximum Prosperity for Employer & Employees
7. Differential Wage System & Management by exception
8. Standardization of methods, procedures, tools and equipment 9. Use of Time and Motion study
It is accepted that scientific management enables the management to put resources to its best possible use and manner.
APPLICATION OF SCIENTIFIC MANAGEMENT BY ITC LIMITED
1. Dealing with People in the Organisation
In dealing with each other, directors, senior management and employees shall uphold the values which are at the core of our HR Philosophy - trust, teamwork, mutuality and collaboration, meritocracy, objectivity, self-respect and human dignity. ITC will focus on meritocracy, equity and upholding of Company values in all people processes including performance management systems, appraisals, remuneration and rewards.
2. A gender friendly workplace as a good corporate citizen
ITC is committed to a gender friendly workplace. It seeks to enhance equal opportunities for men and women, prevent/stop/redress sexual harassment at the workplace and institute good employment practices. ITC demands, demonstrates and promotes professional behaviour and respectful treatment of all employees.
3. Health and Safety
The Company attaches great importance to a healthy and safe work environment. ITC is committed to provide good physical working conditions and encourages high standards of hygiene and housekeeping. Particular attention should be paid to training of employees to increase safety awareness and adoption of safe working methods, particularly designed to prevent serious or fatal accidents.
II. IMPORTANCE OF ORGANIZATIONAL CULTURE.
Organization Culture has been described as the shared values, principles, traditions and ways of doing things that influences the way organizational members think and act. In most organizations these shared values and practices have evolved over time, and determine to a large extent, how the things are done in the organization. In many organizations, one cultural dimension is emphasized more than others and essentially shapes the organization’s personality and the way organizational members work. The following are the importance of an organisational culture in an organization1. Creating an innovative Culture 2. Challenge and involvement
4. Trust and Openness
5. Conflict resolution
9. Role Clarity
10. Consistent desire to satisfy and delight customers
11. Creating a culture that supports diversity
12. Managers should look for ways to reinforce employee behaviors that...
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