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You are the head of HR in a four-year-old company in the information technology (IT) business. Your company produces IT solutions for local and foreign companies. Most of its business is in the international marketplace, competing with giant multinational companies. However, your company has found a niche where its Board and Top Management believe it could thrive. Even so the competitive environment is fast-changing and unpredictable.
To thrive the company must produce high quality outputs that reflect creativity and responsiveness to customer needs. Seventy percent of the staff are IT professionals. The remaining thirty percent consist of staff belonging to finance and accounting, marketing, HR, and general administration. Over the four years of its existence, the company grew rapidly and now has a staff count of two hundred, including the CEO and the Directors of HR, Finance and Accounting, Marketing, and General Administration. The CEO and the Board are very concerned about the compensation system which grew haphazardly and may lead to discontent among staff. The have asked you to advise on the following:
1. What are the differences between egalitarian and hierarchical internal structures?
2. Which type of structure should the company adopt, hierarchical or egalitarian? Give reasons for your choice.
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This Case Study focuses on various issues related to Labour Unrest at Maruti Suzuki India Limited.
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