92. Read the following case and answer the questions given at the end. Importance of Understanding of Human Behavior In mid-1985 Krishnamurthy was appointed as CEO of Steel Authority of India Ltd. (SAIL). He did not bring in any outsiders at the top or at senior manager levels in any significant numbers and worked with the pre-existing management team. The CEO spent initial months meeting various stakeholders. He met an estimated 25,000 persons individually or in groups and briefed them on the SAIL situation and asked, in turn, their views in what the problems were and what could be done. Based on these dialogues, a turnaround strategy emerged that was written up as Priorities for Action. These priorities were improvement of work culture, optimal use of I installed facilities, increased productivity, profits through better cost control and customer satisfaction Maps Are News & Toto Start AS... Estern Reitme Console Other bookmarks Reading installed facilities, increased productivity, profits through better cost control and customer satisfaction He met the unions to co-opt them into the turnaround. His aim was to get them to agree to stop labour Indiscipline. He also met Sall's customers to understand their problems and get their suggestions. He also mounted vigorous and innovative campaigns to co-opt the staff into the turnaround. Further, he conducted two-day workshops for senior managers of SAIL on Priorities for Action Fighty managers participated in batches of five. These managers conducted similar workshops in their plants and offices. The Priorities for Action were mailed to around 250,000 employees of SAIL for discussion and local action. Shift meetings were encouraged to discuss policies and priorities and to brainstorm on what could be done focally. Incentive schemes were also made more effective. Besides multi-skilled training for workers, excesive training was provided to officers also. A perspective plan was prepared for HRD's role in bringing about attitudinal change in the staff and better tillation of manpower All these efforts led to a dramatic turnaround in SAIL's performance. A company that lost Rs.2 billion on revenues of Rs 32 billion in 1983-84. posted a profit of Rs. 16 billion on revenues of Rs. 44 bilion in 1985-86 and 3 billion on revenues of Rs. 65 billion in 1988-89. This is an example of a significant attempt to turn around poorly performing organization to High productivity and profits. What is useful to see here is the fact that people who were not able to perform well in the past had been motivated to do well and change a losing organization into a profit making on How has this come about? Me shumurthy has been able to use is understanding of human behavior to get the desired results Q. What problems did Kiislamurthy diagnose in Steel Authority of India Ltd (SAIL) which caused losses for the company Bos Malou macromen. Torstanding of human Dever to get the red results Q What problems od Krishnamurthy diaprese in Steel Authority of India L. (AL) which cused losses for the company 0.3. What did hamurthy de differently compare to his predecessors to the pearly performing company SARL 10 CM. Quc. As a business student, what lesson do you learn from this case study? Page 67 a + On dontiter level of an individual muntinlinnan M