Group 12B, JUSCO

C H H A V I B I N D A L B 1 0 0 7 6

M R I D U L S H A R M A B 1 0 0 8 9

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Jamshedpur Utilities & Services Co Ltd

PROJECT REPORT ON JUSCO

ORGANIZATIONAL STRUCTURE, DESIGN & CHANGE

Prof. RK PREMARAJAN

GROUP 12 B

Business Management, 2010 – 12

XLRI School of Business & Human Resources,

Jamshedpur.

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TABLE OF CONTENTS

INTRODUCTION 03

GENESIS 03

JUSCO TODAY 03

ORGANIZATIONAL PROFILE 04

PRODUCTS AND SERVICES 04

MISSION 04

STAKEHOLDERS 05

WORKPLACE PROFILE 06

ORGANIZATIONAL EFFECTIVENESS 06

ORGANIZATIONAL DESIGN 07

DIFFERENTIATION 07

INTEGRATION 09

ORGANIZATIONAL STRUCTURE 09

ENVIRONMENT ANALYSIS 11

COMPETITORS AND ENVIRONMENTAL UNCERTAINITY 11

INTER-ORGANIATIONAL LINKAGE MECHANISM 13

STRATEGIC PLANNING 14

ORGANIZATIONAL CULTURE 16

SOCIALIZATION 19

ORGANIZATIONAL CHANGE 21

REFERENCES 22

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INTRODUCTION

Jamshedpur Utilities & Services Company Limited is a utilities company based in Jamshedpur, Jharkhand. It

offers urban infrastructure services such as water, electricity, engineering & construction and municipal solid

waste & public health management. The company is a subsidiary of Tata Steel, a Fortune 500 organization with

more than 81,000 employees and over $2.5 billion revenues.

JUSCO was carved out of Tata Steel from its Town Services Division in 2004. In JUSCO, the steel major reposed

nine decades of experience and expertise. The mandate for JUSCO was to convert an obligatory service into a

customer focused sustainable corporate entity.

Jamshedpur Utilities & Services Company is today India’s only comprehensive urban infrastructure service

provider. A Tata Enterprise, its services focus on the Tata Group Purpose “to improve the quality of life of the

communities we serve”.

GENESIS

Genesis of JUSCO is at Jamshedpur, site of India’s first steel plant, envisioned by the founder to usher in

industrial revolution in the country. Realizing the competitive advantage world-class facilities could provide in

attracting best talent to sustainably run the steel plant, he planned a fully fledged township around the plant.

Jamshedpur was thus born as modern India’s first planned township, which has been carefully nurtured over the

years by all subsequent leaders of TSL with love and dedication. Town and Power Service divisions of TSL were

instrumental in creation, operation and maintenance of Jamshedpur for the better part of last century thereby

developing competencies in delivery of urban infrastructure services.

JUSCO TODAY

Urban infrastructure sector in India (managed by the ULBs) is mostly characterized by very low efficiencies and

poor service deliveries, which is estimated to have a 2-3% retarding impact on economic growth. This along with

clamour for better and professional service by urban Indians has forced the ULBs to focus on improvements,

which has lead to opportunities for private sector participation. Realizing this opportunity and the support it

could provide in accelerating country’s growth, TSL took the path breaking initiative in 2003 of creating a

separate corporate entity named Jamshedpur Utilities and Services Company Limited (JUSCO), India’s first and

so far only comprehensive urban infrastructure services provider in private sector, by hiving off its Town and

Power Service divisions (including 1373 employees).

The mandate of this entity was to grow its services

sustainably beyond boundaries of Jamshedpur and in

the process learn and implement world-class

practices at Jamshedpur thereby continuously

improving quality of life of citizens of Jamshedpur.

Since its creation, JUSCO has grown rapidly and is

currently having operations in eight states across the

country.

Fig 1

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ORGANIZATIONAL PROFILE

PRODUCTS AND SERVICES

After its formation, JUSCO’s senior leadership team evaluated its services in the context of market environment

and decided to grow in following services:

Water & Waste Water – EPC, O&M, BOT/BOOT, Concession, Lease and Management Contract

Power Distribution – Licensee, Franchisee and O&M

MSW Management – EPC, O&M and BOT/BOOT

Civil & Structural Construction – EPC, BOT/BOOT and Consultancy

JUSCO markets itself as the ‘Tata’ vehicle in urban infrastructure sector through the phrase ‘A Tata Enterprise’,

which it has earned the right to use by virtue of having signed the BEBP agreement with Tata Sons. JUSCO’s

operations at Jamshedpur have been conferred with Total Productive Maintenance (TPM) Award by Japan

Institute of Plant Maintenance (JIPM) at Kyoto, Japan, the only services company in the world to get this award.

In 2009, JUSCO was conferred with the National Urban Water Award by the President of India for ‘Citizen

Services and Governance’.

MISSION

The Group purpose is reflected in JUSCO’s Mission of providing “quality services for life”. Its services include

water, power, infrastructure, public health and horticulture services. JUSCO works alongside civic bodies, large

and small industries, local government bodies, communities and individuals to deliver value through sustainable

solutions.

The Company believes that a clear sense of the Tata Values and Mission allows it to achieve immense clarity on

its role for the future. JUSCO intends to rise to the challenge of meeting India's need for infrastructure

development in a sustainable manner by anticipating and addressing the country's growth needs such that the

ability of future generations to meet their own needs is not compromised.

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Vision Mission Value architecture (fig above) guide the organization in all its actions, conduct and behaviour.

Vision, Mission and Values were co-created by employees after the company became operational in Apr’04,

which has undergone change this year to reflect changed aspirations.

JUSCO’s core competency is “creation and subsequent operation and maintenance of urban infrastructure and

utilities having large consumer base”.

STAKEHOLDERS

The stakeholders involved in JUSCO can be grouped as follows:

Internal Stakeholders include Tata Steel (as Umbrella customer and promoter) forming the Board,

Employees including the Managers, Employees. Since the company is not listed there are no shareholders but

the board directors (which majorly include members of its parent company- Tata steel) are very prominent.

External Stakeholders includes its customers (end consumers), suppliers, Government & the society as a

whole. The customers’ goals get priority in the organization. But the most prominent stakeholder is Tata Steel.

Fig 4

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WORKFORCE PROFILE

Ability of JUSCO to take on the challenges arising from split from Tata Steel and venturing into emerging

business sectors in the country is due to its committed employees (1556 nos.) organized into officers,

supervisors and workers. MD and GMs/DGMs/Chiefs/Heads of various Businesses/Functions form senior

management of the Company (as shown in the organisation structure). Procurement, Accounts, Corporate

Communication, Legal, HRIR, IT, etc. provide support services.

JUSCO has a recognized Union as collective bargaining unit. Two JUCs, having representation from union and

management, help in communication and managing day-to-day affairs. Nature of JUSCO’s business requires

large scale deployment of personnel. In order to maintain a rational size of workforce, contractors are employed

for jobs of non-permanent nature. However, it is ensured that all regulatory, safety and health requirements are

complied by them.

ORGANISATIONAL EFFECTIVENESS

We measure effectiveness based on the three parameters of Control (having control over external environment

and having the ability to attract resources and customers), Innovation (developing skills and capabilities to

develop new products), and Efficiency (developing modern production technology using information systems).

JUSCO has a strong control on its environment composed of its suppliers and distributors. They form

collaborations, strategic alliances with their suppliers (discussed under Inter Organizational Linkages). It is

progressing fast to improve its Efficiency by acquiring technology (discussed under Organizational Change).

Innovation is one of the key focus and strengths of JUSCO. Some of the examples include:

Fig 5

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ORGANIZATIONAL DESIGN

DIFFERENTIATION

Differentiation is the process by which an organization allocates people and resources to organizational tasks

and establishes the task and authority relationships that allow the organization to achieve its goals. It is broadly

divided into Horizontal and Vertical differentiation.

Horizontal differentiation refers to the way an organization groups its tasks into roles and roles into subunits.

JUSCO has very high levels of horizontal differentiation. The company is divided into various verticals like HR/IR,

Finance, Legal, Procurement, Markets, and Billing and includes the following service functions:

1. Water & Waste Water Services

JUSCO supplies water to both industrial and domestic customers. The services cover operations & maintenance

of the entire water cycle from intake to treatment, conveyance and distribution. The Company has ventured

beyond Jamshedpur to create new water facilities across the country apart from modernizing and maintaining

existing ones.

2. Power Distribution

JUSCO provides electricity services in Jamshedpur & Seraikela Kharsawan minimizing the overall level of

transmission & distribution losses. The Power Services Division holds two licenses for the purchase, sale and

distribution of electricity:

Jamshedpur Operations - India's first Private Power Utilities Company to manage operation and

distribution for the entire city since 1923.

Seraikela Kharsawan Operations - First district in the country where two utilities have been allowed to

build parallel network for distribution of power.

3. Engineering & Construction

JUSCO offers design, construction and turnkey services according to individual needs. It undertakes end-to-end

projects or provides standalone solutions in the areas of Building & Industrial Construction, Road Construction &

Maintenance, Design & Planning Consultancy, and Township Management.

4. Municipal Solid Waste & Public Health

JUSCO offers integrated solutions to Municipal Waste Management. The services in Municipal waste comprise of

Waste Transfer, Secondary collection and Transportation, Transfer Station Management, Composting, Recycling

of Municipal and specialized wastes.

JUSCO's Public Health & Horticulture Services integrate environment sanitation, disease prevention and

control and horticulture. The services in Public health comprise of Environment Sanitation, Disease

Prevention and Control, Horticulture Services, Veterinary Service.

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Vertical Differentiation - Organization Hierarchy

It refers to the way an organization designs its hierarchy of authority and creates reporting relationships to link

organizational roles and subunits. JUSCO has a very high degree of vertical differentiation with its hierarchal

levels being around 10. JUSCO follows a hierarchical structure divided into officers & non-officers. The non-

officers primarily include workers & supervisors. The officers are given ratings from 1-5 in a yearly appraisal on

the basis of which bonus is decided. However, for non-officers the bonus is predefined.

For band E4, campus recruitment is done from engineering colleges such as BIT Sindri, BIT Mesra, NIT

Jamshedpur, Jadavpur University & NIT Surathkal. Campus recruits in job band E4 are considered as future

leaders and they think of promotion after 3 years of service. JUSCO is thinking of introducing new job levels to

satisfy these recruits as they can only be promoted to E3/E2 after which there is very little growth. Job bands

O1, O2 & O3 have been newly introduced for non-officers as JUSCO wanted to shift away from unionized

environments especially in high growth projects like Haldia (where the non-officers are unionized). These job

bands are referred to as Officers but they are actually supervisory positions.

Exhibit 1: JUSCO Organization Hierarchy for Officers

Owing to such tall hierarchy it faces major constraint of time delay, wastage and inefficient operation. For e.g.

for any customer located in any of its numerous geographic market they have a central procurement division (at

Jamshedpur headquarters) which obtains the raw materials, a central HR/IR , Finance & Accounts department

etc which process and operate in serial order causing substantial and irrelevant delay. For any contingencies

decisions are taken by the higher executives and only then can some action be taken.

E6 (ASSISTANT MANAGER)

E5 (DEPUTY MANAGER)

E4 (MANAGER)

E3 (SENIOR MANAGER)

E2 (DIVISION HEAD)

E1B (DEPUTY GENERAL MANAGER)

E1 (GENERAL MANAGER)

MANAGING DIRECTOR

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INTEGRATION

Integration is the process of coordinating various tasks, functions and divisions so that they work together and

not at cross purposes. JUSCO with its tall hierarchies and various departments to coordinate its tasks employs

the simplest of various integrating mechanisms. It uses the simplest integration technique of organizational

Hierarchy of Authority. The who reports to whom nature coordinates various organizational roles. They also

follow the techniques of direct contact for purpose of Integration i.e. Managers of different verticals meet

usually under the command of higher executive board to coordinate various activities and take major decisions.

We clearly observe a mismatch between the levels of differentiation and integration. While they have very high

levels of differentiation with very minimal interactions, they have very low levels of integration. Managers of

one department have no control on those of another; they get regulated by the MD and Board of Directors.

ORGANISATIONAL STRUCTURE

JUSCO has organized itself in a Functional Structure orientation where people are grouped on basis of their

common expertise, experience as they use same resources. It has its HR/IR, Finance & Accounting, Markets,

Services Department (which includes Power division, Water Management Division etc) as the various functions.

We don’t classify this as a product structure because the various services department do not have an

independent HR or finance division; these are all centrally located. The rationale behind using this structure

other than promoting specialization and division of labor is higher control. The organization believes that it is in

nascent stage currently so needs to ensure avoidance of numerous possible wrong incidents while dealing with

projects of such high magnitude and thus it is essential to have direct supervision and more control. For this they

advocate tall hierarchies and functional structure. However, owing to problems faced due to tall hierarchies they

are open to adopting a new feasible and better structure.

JUSCO’s Board has put in place a transparent, ethical and responsible Corporate Governance framework, which

emanates from intrinsic, will and passion for good governance ingrained in the business entity and group values.

Although JUSCO is not a listed company, it has adopted most of the corporate governance best practices from its

parent organization. JUSCO has seven directors on its Board, four of whom are nominees of Tata Steel and two

are independent directors. Mr. B L Raina, ex-MD, TCIL is the nonexecutive Chairman. TSL, the parent

organization, has representation on the Board through five directors including MD. Board of Directors has

vested its powers in MD through a duly executed Power of Attorney for day-to-day management of Company.

There are three sub-committees of the Board as listed below:

Audit Committee – Reviews internal control systems and related risks and MBE issues

Committee of Board – Reviews new projects’ financials, capital expenditure and risks

Remuneration Committee

Representation on the Board and Management of JV companies is governed by AoA which emanates from the

shareholders’ agreement with the partner. JUSCO’s Board nominates representatives of JUSCO on the JV

companies’ Board. Financials along with status of SPVs are reported to Audit Committee and the Board.

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As is distinctly visible the organization has a very centralized manner of decision making (i.e. authority to

make decisions is retained by the managers at top of the hierarchy) and policy implementation. The higher tier

of Executive Board and department heads take all major decisions which are then passed along the hierarchy.

Span of Control is the number of subordinated directly under the control of the manager. CEO i.e. MD OD JUSCO

has a span of control of 140 people.

Fig 6

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The organization lays emphasis on principles of Standardization i.e. conforming to specific models or

examples defined by set of rules and norms considered proper for a situation. It follows use of formalized

written and well documented strict rules, methodologies, and procedures to standardize operations. Being a

subsidiary there is more influence of the parent body and rules are more popular than informal norms in terms

of influence on employee behavior

.

ENVIRONMENT ANALYSIS

COMPETITORS AND ENVIRONMENTAL UNCERTAINTY

In Jamshedpur, by virtue of its association with TSL and quality of services provided over nine decades, JUSCO is

the preferred supplier of services. Vested interest in the state government of Jharkhand has been trying to

create a municipality in Jamshedpur. However, this has been opposed by citizens vehemently who are extremely

satisfied with service provided by JUSCO. However, it does not provide a major threat to JUSCO as its Power

Distribution, Civil & Structural Construction and all businesses beyond Jamshedpur are beyond the jurisdiction of

The source of uncertainty in the environment is measured

by Environmental Complexity (the strength, number, and

interconnectedness of the specific and general forces that

an organization has to manage) , Environmental Dynamism

(the degree to which forces in the specific and general

environments change over time) , Environmental Richness

(the amount of resources available to support an

organization’s domain).

INDIVIDUAL SPECIALIZATION: As indicated employees are

trained and acquire skills specific to their department.

INTEGRATING MECHANISHMS: Hierarchy of Authority and

Direct contact

CENTRALIZATION: The Board of Directors and Managing

Director along with General Managers make the top

management and control the entire decision making

power.

STANDARDISATION: Formalized Standard Operating

Procedures are used

FEATURES OF JUSCO

Fig 7

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municipality. Also for Municipal Services, like W&WW and MSW, entry barriers for any competitor eyeing

the Jamshedpur market would be prohibitively high as related assets like WTPs, STPs, Distribution networks,

landfill sites, etc belong to TSL and replicating these would be uneconomical.

Beyond Jamshedpur majority of potential clientele of JUSCO are various government bodies, as key services that

the company provides e.g. Water and Wastewater, MSW management and Power Distribution lie in their

domain. JUSCO currently is the only private sector player in India engaged in providing comprehensive Municipal

and Civic services, resulting in absence of like-to-like competitive comparison.

The major challenge faced by JUSCO is in terms of its dynamic nature of tasks involved. The various geographies

and markets of its customer segments are:

Water - Reach of water business has increased continuously every year based on attractiveness of geography

and JUSCO’s competitiveness as per strategy decided each year. While Bihar, Jharkhand, Orissa, Karnataka,

Madhya Pradesh and West Bengal are the states being focused currently, some specific cities in other states are

also being targeted e.g. Chennai, Jaipur, Nagpur, Hyderabad and Pune.

MSW – MSW management business started its growth journey beyond Jamshedpur in FY09 through an analysis

of attractiveness of various states. It has planned to leverage presence of Water service in eastern and southern

states. Accordingly, it is selectively focusing on projects in states of West Bengal, Madhya Pradesh, Tamil Nadu,

Andhra Pradesh, Karnataka and Kerala.

Power - Power Distribution business had been focusing on Jamshedpur as a managing agency of the Licensee

(TSL) and adjoining Saraikela-Kharsawan district as a parallel Licensee to state utility (JSEB) till FY09. From FY10,

it has identified Input-Based Franchisee (model adopted by state utilities for inviting private sector participation

through tender route) as the target segment for growth. It is selectively focusing on projects in the states of

Bihar, Jharkhand, Madhya Pradesh and Uttar Pradesh.

Civil & Structural Construction – Civil and structural construction business is targeting business opportunities in

road and industrial civil and structural construction sectors in eastern states of Jharkhand, Bihar, West Bengal

and Orissa and within Tata group of companies.

By virtue of its lease agreement with the Government of Jharkhand, TSL is obliged to provide civic and municipal

services in Jamshedpur. This responsibility has been entrusted by TSL to JUSCO. Therefore, in Jamshedpur the

primary customer of JUSCO is TSL. However, by virtue of the nature of its services which serves citizens, JUSCO

treats end consumers (segmented into industrial, commercial and domestic) as its customers. Within domestic

segment, Tata Steel employees constitute a very important segment. In areas beyond lease of TSL, JUSCO

interfaces with BAVS to extend its services to those who do not reside in lease area.

Owing to operations in such diverse geographies JUSCO faces challenge of different constraints and restrictions

for every new project. For e.g. variations in labour laws, other government regulatory practises, situations like

strikes, environmental limitations etc in different states constrain operations. The organisation addresses these

challenges through its mechanism of standardisation. There is a coordination meeting conducted every two

weeks chaired by MD and attended only by all the General Managers of various divisions through video

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conferencing. Here all such constraining issues are discussed and brainstormed by the top management and

solutions are carved for them. There is time and efficiency lag due to this procedure and remedial solutions are

sometimes not provided at the required hour but organisation strictly follows this to ensure control over all

matters.

INTER ORGANISATIONAL LINKAGE MECHANISMS

The major linkages exist with suppliers, service providers and technology partners as they are crucial for success

of JUSCO’s business. Role played by suppliers, collaborators and partners in value creation process of JUSCO

varies. They have well organized linkages formal and informal to suit the requirements.

JUSCO’s W&WW and MSW businesses are dependent on pre-qualification requirements set by clients for key

projects. These requirements are met through long-term tie-ups (partnerships) or project-to-project tie-ups

(collaborations) with other companies having requisite expertise in case JUSCO does not meet them on its own.

Partnership with suppliers of bulk construction materials ensures steady supplies at volume prices, reduces

inventory and risk of project delays. In several cases pre-bid tie-ups are done for major supplies for cost

competitiveness and hedging against cost escalation risk. JUSCO’s businesses being geographically widely spread

involvement of local suppliers and service providers help in enhancing competitiveness. JUSCO’s business

portfolio is a mix of short, medium and long term projects. As such service providers and contractors play a very

important role in keeping costs variable. Engagement of contractors for low-end jobs helps in being cost

competitive. Specialized jobs are outsourced to service providers having expertise in that field. Technology

related risks are transferred to technology suppliers through contracts. Nature of relationship with them is

described as:

As per the Lawrence and Lorsch study

JUSCO’s organisational structure is

consistent with respect to uncertainty faced

by it. It has a mechanistic structure

dominated by standardisation consequent to

the low levels of uncertainty faced by it.

It faces low level of uncertainty, exceptions

occur occasionally though there are no

efficient exception handling mechanisms

followed.

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Strategic Partnership and Collaboration: This type of partnership is developed with Technology and PQ

providers (e.g. Ranhill, Hyflux, Thermax & Voltas). This helps in development of JUSCO’s capabilities through

technology and innovation exchange and benchmarking.

Preferred Suppliers and Service Providers: This type of relationship is nurtured with reputed suppliers of all

important and large value materials and equipments. These suppliers and service providers through regular

interaction provide opportunities for improvements and innovation

Critical partners: Such partnership exists only in utilities for supply of bulk Water and Power.

Need-based: For MRO items and services, suppliers and service providers are selected through competitive

bidding process.

JUSCO’s most important customer relationship is with TSL, which is mutually beneficial. It provides business

opportunities for JUSCO in TSL’s growth. At the same time, JUSCO’s learning’s from growth elsewhere brings

best practices to Jamshedpur.

STRATEGIC PLANNING

Strategic Planning Process (SPP), led by MD along with SLT, collectively establishes direction for future success

through:

Evolving analysis-based LT/ST plans

Setting measurable goals

Setting review mechanism to monitor progress and take corrective action

SPP has a flow which is aimed at ensuring focus and action ability of strategy. SPP is an enterprise level process

comprising of four basic steps: Plan-Develop-Deploy-Review.

Strategic Objectives are cascaded into LT/ST action plans having specific strategic measures. These are then

cascaded through the organization down to individual KRA of officers and non-officers (through the bonus

agreement).

Fig 8

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Business-level strategy is a plan to combine functional core competences in order to position the organization

so that it has a competitive advantage in its domain. Core Competences are the skills and abilities in value

creation activities that allow a company to achieve superior efficiency, quality, innovation, or customer

responsiveness. The following model is used to obtain a core competency.

JUSCO’s core competences as identified in the handbook given to each employee are as given.

Group Competencies Key Attributes

Organizational Values

Organizational Values Safety, Ethics, Integrity

Leadership of People

Interpersonal Effectiveness Team Work, Conflict Management, Withstanding Pressure

Coaching & Mentoring People Development, Empathy

Change Orientation Change Orientation, Cross Cultural Management

Leadership of Business

Decision Making Decision Making, Problem Solving, Dealing with ambiguity

Business Acumen Business Acumen, Strategic thinking

Leadership of Result Drive for Results Achievement Orientation, Planning & Organizing Skills

Customer Orientation Customer Focus

Functional Excellence Learning, Innovation, Technology Focus

Influencing & Networking Influencing Sills, Networking Skills, Communication Skills

Fig 9

Fig 10

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JUSCO follows Differentiation business-level strategy where it makes use of skills to differentiate products

for customer groups that want and can afford differentiated products that command a high or premium price. It

lays strong emphasis on Innovation and building new products to suit the requirements of customers focusing

less on cost. JUSCO has been successful in emerging as a leader in its sector by innovating business models and

winning several “first-of-its-kind” projects like Public Private Partnership projects (BOT/BOOT, O&M etc).

However their structure is contrary to this kind of strategy as Differentiation requires more of an organic

structure than Mechanistic structure it follows.

The strategy is especially expected to face various issues once the organisation expands along its strategic path.

Currently JUSCO enjoys dominance in its operation but as more players come in this sector the issue will become

graver. The strong control and restriction of decision making at the top hinders development of new solutions

for a large firm. Hence structural change would be required to continue growth on this strategy.

ORGANISATIONAL CULTURE

Organizational Culture is the set of shared values and norms that controls organizational members’ interactions

with each other and with people outside the organization. JUSCO’s culture is primarily dominated by its

structure and organizational ethics.

JUSCO’s senior leadership team comprising of MD, GMs, DGMs and all Business / Function Chiefs provides vision

and direction for performance excellence through the TBEM framework. Along with other officers, senior

leaders continually focus on guiding the organization towards improving operational efficiencies and service

levels in quest of the Vision.

Mission, Vision and Values of JUSCO were originally co-created by employees at the time of its formation

through vision workshops. These are revisited annually. V-M-V has been changed in 2009 through a series of V-

M-V workshop to capture the growth aspiration of the organization. Behaviours demonstrating the values in

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day-to-day working are also defined. V-M-V and behaviours are deployed across the organization through

the leadership system shown in the figure below.

Leaders at all levels live JUSCO values through their behaviour. V-M-V act as the integrating bonds which ensure

commonality of message throughout the organisation. Senior Leadership Team actively communicates and

reinforces understanding of Values at every level through displays, AQUIP, formal and informal meetings,

dialogues, reviews, in-house publications etc., to translate Values into day-to-day behaviour of employees. V-M-

V is also communicated to key suppliers and partners, customers and other stakeholders through various

communication forums. Effectiveness in communication is improved through feed back from Employee

engagement surveys and communication effectiveness surveys. Action plan arising out of survey findings are

deployed and implementation is reviewed regularly.

Fig 11

Fig 12

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Fig 13

Vision is deployed across the organization through strategy cascade, which results in actionable and

measurable LT / ST plans. Values are embedded in Company’s ethos and are visible in defined behaviour across

the organisation. Some of these values are:

SLT believes that consistent deployment of values through

demonstrated behaviours is key to creating a sustainable

organization. Therefore, it focuses on deployment by

setting personal examples at all times. Sustainability

factors like organizational capabilities and competencies,

climate change, social consciousness, etc are key inputs to

Strategic Planning Process thereby identifying strategic

objectives which address sustainability issues.

SLT strongly promotes culture of teamwork, performance

orientation, customer focus, continuous improvement

and innovation, which it believes are essential for

sustainability. As a key enabler for creating a sustainable

organization, SLT focuses on development of a process-

driven organization through benchmarking of processes

and driving implementation of initiatives like TBEM, TPM,

QMS, EMS and OHSAS.

The Tata Code of Conduct framework guides ethical behaviour

throughout the organization, which has two main pillars; 1)

Proactive and 2) Responsive. All employees and suppliers have

to sign TCoC as a symbol of commitment. This is in every

leader’s goals; every senior leader’s 360 degree feedback,

personal goals, employee survey reflects the same.

Compliance of these requirements is reviewed by MD every

quarter and reported to the Board. SLT ensures that all

resources are provided to ensure that these compliances are

fulfilled. For reinforcement of TCoC, July is observed as ‘Ethics

Month’. During this month, various activities are conducted to

reiterate the importance of TCoC

All stakeholders are encouraged to report instances of

unethical behaviour. Whistleblower Policy has been adopted

for creating an atmosphere which encourages exposure of

unethical practices. Issues related to ethics are discussed

during departmental meetings and officers’ dialogues.

Fig 14

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Hence the organization’s Terminal values (desired end states or outcomes) of high quality and commitment

are well reflected by its instrumental value (desired mode of behavior) of placing high regard to ethical and

disciplinary conduct. Other than these SLT drives organizational consciousness to Safety, Climate Change and

Quality issues by ensuring that these are part of Strategic Objectives which get cascaded into Key Result Area of

officers through the Balanced Score Card (Copy attached in the Appendix). Every meeting starts with ‘Safety

Pause’, thereby communicating the importance of safety. Priority is provided to initiatives related to safety,

climate change and quality and special recognition is provided to employees excelling in these areas.

JUSCO has maintained a strong

organizational culture formed by its

disciplined hierarchal structure, strong

organizational ethics, and emphasis on

recruiting people who fit with the culture

and then giving sufficient access and rights

to use organizational resources.

As per standards of centralized organization

people have little say in the matters of daily

operation and decisions are enforced by

top management. However, lately it has introduced various policies to ensure efficient communication of

employees with top management. The idea is to extract and use ideas of employees for company’s benefit.

Weekly meetings are conducted by general managers of departments with their employees to seek input for

such initiatives; cross functional departments meetings are also conducted. Some of the steps taken include:

“Open door Policy”, where the employees have free access to raise any concerns directly to the General

Manager or even Managing Director. Through its Seedhi Baat initiative, JUSCO has enabled its officers at any

level to talk directly to the MD once a month along with the GM – HR/IR regarding issues such as promotion,

housing or other personal problems. The aim is to improve communication with the top management but the

employees still are not given latitude to take decisions.

SOCIALIZATION

Socialization is the process by which members learn and internalise the values and norms of organizational

culture. Organizational culture fabric encourages diverse ideas and thinking of workforce through participative

management, innovative problem solving mechanisms and recruitment approaches. Recruitment of a mix of

people from different regions, culture, background, etc. brings diversity in workforce. Lateral recruits bring in

different culture and knowledge of systems and processes from other organizations and spur innovation.

Through initiatives like CFTs, Task Forces, Coordination meeting, ASPIRE projects, QCs, SGA teams, JUC meeting

etc. benefit of diverse ideas and culture is realized. Skill sharing platforms like TPM, Kaizen, OPL, In-house talk,

positional training, Gyanmanch, KM, presentation and discussions, SGA presentation, structured capturing of

knowledge from parting employees, job rotation, etc help to build a culture of continuous learning and

improvement.

Fig 15

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The various socialization tactics used by the organisation are implemented to develop an institutionalised

role orientation amongst employees i.e. when individuals are taught to respond to a new context in the same

way that existing organizational members respond to it. It encourages obedience and conformity to rules and

norms. Analyzing the various features rendering JUSCO this orientation:

JUSCO uses several types of ceremonial rites to communicate culture value and norms.

Rites of Passage which mark an individual’s entry to, promotion in and departure from the organization.

This includes the extensive training and induction program undertaken for new recruits and lateral

recruits.

Rites of Integration to build common norms and values. It has annual functions which includes

members of all departments called officers get together. Also events like city founder’s day, cultural

festivals are celebrated across the organization.

Rites of Enhancement which motivate commitment to norms and values. JUSCO follows practices like

employee of the month and other awards or rewards for taking initiatives.

Organizational stories and language are an important media for communicating culture. However, JUSCO does

not have this as a very prominent feature. Stories usually include policy related information or some legendary

incidents but they share no informal or colloquial language per se. Stories are used effectively as a socialization

tactic. There are initiatives like JUSCO samachar which is primarily a mean to create a discussion platform

sharing ideas on general trends and happenings around in the environment. It includes various articles related to

industry and special pages for achievements made in particular departments on pan India level and other

recognitions and awards rewarded. There is also a Hindi circulation that is made periodically. Other than these

they effectively use department notice boards to highlight the norms of the organization with special emphasis

COLLECTIVE

•Newcomers are provided with common learning experiences designed to produce standardised responses.

FORMAL

•Newcomers are segregated from existing members during the learning process ( very low involvement)

SEQUENTIAL

•Newcomers are provided with explicit information about the sequence in which they perform new activities and advance in the organisation

FIXED

•Timetables exist for completing each stage of the learning process

SERIAL

•Existing members function as mentors for the fresh talent. In case of lateral recruits buddies are formed.

DIVESTITURE

•This is not practised much. New recruits receive support from members but are not very easy to gel in.

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on “Ethics Month”, “Whistle blower Policy”, “Annual Business Plan”, “Gift Policy – where the motto of

saying no to bribery is promoted”.

ORGANIZATIONAL CHANGE

Since its inception JUSCO has come a long way and has had some major exploratory changes during this period

of growth. Since its formation, JUSCO has been consistently acquiring technologies, equipment and facilities.

These (like Dual Media Filtration, SAP IS Utilities, ERP – SAP R/3, Customised software for complaint

management, Compost Plant, 3D Animation etc) are being acquired based on need and/or their strategic

importance in providing JUSCO competitive advantage and/or meeting pre-qualification requirements. The

change is evolutionary in character owing to its strategic timing and introduction.

It has developed extensive performance management and improvement system (as indicated above).

Fundamental approach to continuous improvement used is the “P-D-C-A cycle”. Employee appraisal is

conducted annually. The top management – MD and GM’s of different departments prepare an Annual Business

Plan (ABP). Also Balanced Score Card (BSC) for different departments is made. Key Result Areas (KRA’s) for

individual employees are identified. Each officer has KRA divided into customer & financial targets. KRA’s are

changed for all officers after mid-year review if they are under/over loaded.

JUSCO has taken two important improvement initiatives – KM & ASPIRE. All officers have to put 8-12 KM’s

(knowledge management pieces) every year that are graded by their superiors. ASPIRE involves self-

improvement plans for projects that do not perform well in terms of cost/quality. They are submitted to

improvement portal.

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Fig 17

Fig 18

Employees at each level are trained in appropriate improvement tools and techniques. Learning/ improvements

are documented/standardized through KM/ISO framework. Through recognition functions, e.g. ASPIRE and SGA

Nite, employees are suitably recognized for their efforts. Improvements for ‘Running’ the business is affected

through Small Group Activities, Self Initiated Projects and Six Sigma / DMAIC Story Kaizen methodologies.

REFERENCES

[Online] http://www.juscoltd.com/

[Company Archives] Business Excellence Report 2010

[Company Archives] Code of Competence Report

[Company Archives] Personnel Development Plan

[Company Archives] Self-Appraisal Form

[Company Archives] Balanced Scorecard Form

Group 12B, JUSCO

Documents

Transcript of Group 12B, JUSCO