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CASE STUDY

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EMBA -II

Case Study Analysis Presented By:

Adeel Musaddiq

Muhammad Bilal

Usman Hamid

Qasim Shafiq

GROUP MEMBERS

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Increased Production Cost

1

Informal Policy Practices

2

Management Style

3

Non-Availability of TrainedManpower

4

Problems / Issues

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Market Share

5

Employee Retention

6

No Formal AppraisalProcedure

7

Discriminatory Practices

8

Continued..

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Retention ofTrainedEmployees

InformalPolicyPractices

IncreasedProductionCost

IMPORTANT PROBLEM / ISSUES

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STATISTICS / FACTS / DATA

Kansai has captured 75% of the Market Share in Automotive Sector

Kansai has 20% share in Decorative Sector

Company had just 90,000 Employees at the End of Fiscal Year 2007

Year 2011 saw a high attrition rate, due to poaching by competitive firms

Energy Tariffs has risen by 13% over the past year.

The fuel prices has risen by 12%

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QUALITATIVE STATEMENTS

1. Automotive division is the strongest division of kansai paints Pakistan.

2. Joint venture of two companies.

3. Increase of costs due to energy crisis.

4. Non-existence of formal process and procedures.

5. Non-existence of trained and competent technical manpower.

6. Automotive paints are the cash cow for the company.

7. No proper employee retention.

8. No structured performance appraisal policy.

9. Kansai was a men's organization.

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IMPORTANT QUALITATIVE STATEMENTS

Automotive division is the strongest division ofkansai paints Pakistan.

Non-existence of formal process andprocedures.

Non-existence of trained and competent

technical manpower

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The Core Problem

Retention of Trained Employees

P3

P2P1

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Why the Core Problem?

1. With anticipated future growth the presence of trained employees was necessary.

2. Training took time and company resources.

3. Skilled workers were hard to find.

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Solutions

1. Training should be coupled with an increase in the incentives because we findthat employees were leaving for slightly better salaries from the competitors.

2. Incorporation of an effective and uniform appraisal process so that noemployee may be appraised unjustly primarily at the discretion of the

management style of the respective manager.

3. Development of an appraisal system based upon competencies and skilldevelopment so that each employee may be motivated to be trained and getthe resulting benefits in doing so.

4. Independent appraisal department to eliminate the element of bias.

5. Market intelligence to know what the competitors are offering to theiremployees and thus plan proactively.

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Conclusion & Recommendation

1. Growth is not possible without trained employees and training comes at a cost.Employee retention is the only answer in such a scenario. If better package issomething that causes the employee to leave then a better package is the onlyway to retain him.