Karodimal and Sons, a family-operated Rajasthani Shoes manufacturer, was started 49 years ago just in the Jodhpur
Question:
Karodimal and Sons, a family-operated Rajasthani Shoes manufacturer, was started 49 years ago just in the Jodhpur
Today the company is the third largest producer of handmade shoes in India . With revenue of over rupees 100 Cr ,
Karodimal and Sons employs over 3000 workers at this now-massive facility.
Five years ago, Karodimal and Sons developed an ‘Employee initiative’ programme to instill commitment to customer
satisfaction throughout the company. The company’s employees play a vital role in this programme. A flat
organisational structure gives employees, working in a self-managed teams, significant authority and autonomy.
Production work teams can undertake training, schedule work, and determine individual performance objectives. Any
production process can be halted if an employee believes that quality is suffering or safety is jeopardised.
Teams form the core of Karodimal and Sons’s quality improvement effort. The company formed 24 ‘Proactive Teams’
to address specific manufacturing and production challenges. In addition, selected teams work on ways to enhance the
relationship between Karodimal and Sons and its suppliers. The teams, in general, respond to customers’ comments,
work on developing new products, and create activities that bring employees together in social situations (sporting
activities, picnics and fund-raising efforts for employee supported charities). With diverse opportunities to affect the
company, the teams demonstrate a fundamental commitment to customer satisfaction – even creating marketing
opportunities that generate additional revenue.
Management and motivating of workforce require special care on the part of Karodimal and Sons’s management.
Training and recognition is the key. In a single year, the company invests $ 1,600 per employee in training.
Recognition comes in the form of participation in teams, leadership opportunities and interaction with top
management.
Karodimal and Sons’s effort at improving its management and human resource practices have allowed it to reduce the
number of managers; lower its overall defection rate; and increase quality, efficiency, and customers satisfaction.
Revenues have increased significantly over the last four years. As a result of focus on employees’ needs, Karodimal
and Sons has won over 20 quality awards and was voted the outstanding employer in the South in a regional
competition. The company had been written about in the ‘Top 200 Employers’ in the US and its efforts to involve
employees in determining the firm’s direction have been very successful, enhancing customer satisfaction and
improving business performance.
Questions
1. As a human resource manager, what employee characteristics might be used in the selection of team
members? Also identify a suitable selection process.
2. How might performance appraisal be done? Can team members be involved in the review of other members?
Why or Why not?
3. Identify training needs at Karodimal and Sons. Do you believe a company can spend too much money training
employees? Why or why not?
Foundations of Financial Management
ISBN: 978-1259194078
15th edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen