Module I - OB in Emerging Market Reality (Compatibility Mode)

Module I: OB in
Emerging Market
Reality
Atri Sengupta
IIM Raipur
Crucial Capabilities to Win in Emerging
Market
A radical change in mind-set, capabilities, and allocation
of resources
Throwing accurately Strategically targeting urban/rural
growth clusters, anticipating moments of explosive
growth, and carefully balancing local relevance and
global scale. Increasingly rich data sources may guide
such efforts.
Jumping in Aggressively redeploying resources to
seize nascent opportunities, creating product portfolios,
crafting brands, effective delivery, using cutting-edge
technology
Crucial Capabilities to Win in Emerging
Market
Global organizations must rethink structures and
management processes to move nimbly in unfamiliar
environments while retaining scale advantages.
They must focus on new models to attract, retain, and
develop scarce emerging market talent and forge new
relationships with stakeholders to build sustainable
businesses.
Stories of Successful Companies:
Apple Inc.
Incredibly collaborative company
Highly organised
Teamwork in whole of the company
Talk about business every week
Trust
Work with ideas
Problem solving
Logical arguments and group
decision making
Stories of Successful Companies: St. Lukes
Rule-breaker
Pre-tax profit growth increases eight-fold in 3
years of their inception
Won 25% more new business than any other
UK agency
Some of their clients British Telecom, Sky
Television, the Body Shop, several projects
under British Govt.
Its goal is to reinvent itself regularly and
revolutionize the way business is done --
Emphasis on alternative way of doing
business
It pushes its people to take enormous risk,
but make the work environment safest for
them
Stories of Successful Companies: St. Lukes
Firm requires employees to evaluate their
performances publicly once in a month
The company rarely fire anybody
Constant new work to be done
counselor to help with the emotional
fallout
Unique organisational structure no
bosses and entirely owned by the
employees
Attrition is very low
Connection between co-ownership,
creativity, collaboration, competitive
advantage (4Cs)
Stories of Success and Failure
Labour Dispute at Dr. Reddys Lab
Maruti Suzuki India Limited (MSIL) Labour Unrest
Emerging Market Reality
Trend: The global financial crisis leading to growth

projections down
Challenges: Stop erosion of net growth; ensure survival;
avoid talent retrenchment
Trend: Emerging pockets of world-class organisations
among developing countries
Challenges: Shortage of requisite skills; Less inclusive
development
Trend: Clash or confusion between Western and
indigenous practices
Challenges: Balancing work values required to create &
maintain work culture that supports effort towards
meeting emerging challenges
Trend: Shifting share of family oriented big business

houses & public sector units; Emergence of new
economy players, while large size of SME & informal
sector remain
Challenges: Lack of Indian management style; multiple
manager mindsets; traditional organisational characters
hierarchy & dependency, tight community boundaries,
stability in norms & practices
Trend: Globalised market; intensifying competition;
rapidly evolving technology
Challenges: More responsive organisaitons; integrating
HR & technology; sustainable business & industry
Trend: Liberalised & privatised economy in global

arena
Challenges: Increasing volatility & uncertainty of
the business environment; vanishing protection,
relative stability, predictability
Trend: The economic drivers changing the
underlying socio-cultural frameworks
Challenges: Place of woman & minorities in
management; ethics at work & personal levels:
managers undergoing ethical dilemmas
Trend: Change in life-styles of the employees

Challenges: Investments in modern amenities;
ensuring right talent flow
Business World and OB
Business Transformation of Viom Networks
Business Expansion through Acquisition ATC and
Viom
Loss-making PSEs may be merged with profitable
peers for investment funds (financial restructuring) -
- ET Bureau: 30 May, 2016
Amazon India roped in Manish Tiwari, the MD of
Unilever Gulf, to replace Samir Kumar
Volatile environment, huge pressure to perform
drive Start-up employees into depression -- ET
Bureau: 31 May, 2016
Organisational Life Cycle
Large Teamwork
Next Orbit?
Direction
Crisis:
Rigidity
Stagnate
Internal
Crisis: Systems
Leadership Decline
Size
Crisis:
Renewal
Crisis:
Delegation
& Control
Creativity
Launch Growth Maturity Pause ?????
Time
Small
13
Performance Excellence: Four Dimensions
1. Organisation Context (key factor)
Who are we?
1. Organisational Description
Organisational Environment
Organisational Relationships
2. Organisational Challenges
Competitive Environment
Strategic Challenges
4. Maturity Models (path to Performance Improvement System 2. Design Principles (core values &
performance excellence: scoring) concepts) What do we believe?
How good are we?
Visionary Leadership
Systems Perspectives
No Systematic Approach Focus on the Future
Performance
Reacting to Problems Social Responsibility
Excellence
Early Systematic Approach Customer-driven-Excellence
Aligned & Improved Approach Agility
Integrated Approach Focus on Results & Creating Value
Refined Benchmark Approach Valuing Employees & Partners
Organisational & Personal Learning
3. Organisation System (criteria
Management by Fact
question) What we do and how we
Managing for Innovation
do it?
Leadership
Strategic Planning
Customer & Market Focus
Measurement, Analysis, &
Knowledge Management
Human Resource Focus
Process Management
Business Result
Organisational Behaviour: Basic Concepts
Behaviour is any observable action or
reaction of a living organism that are
governed by few factors cognitive, emotive,
biological, social, cultural, etc.
Organisation Behaviour is an interdisciplinary
behavioural science studying phenomena
and dynamics (processes) of organizations
and their effects on human behaviour.
Organisational Behaviour: Status
Workplace experiences different shades of

behaviour which leads to behavioural
complexities
Two approaches to deal with the complexities
encouraging positive behaviour and
alleviating negative behaviour patterns.
Negative / Dysfunctional / Counter-
Productive Behaviour in Organisations
Any behaviour that is disrespectful and
undermines/violates the value/dignity of an
individual or organisation.
Examples, absenteeism, withdrawal,
withholding effort, incivility, aggression,
bullying, harassment or abuse.
Antecedents -- Selective Moral
Disengagement (Bandura, 2002)
Positive Organisational Behaviour
The study and application of positively

oriented human resource strengths and
psychological capacities that can be
measured, developed, and effectively
managed for performance improvement in
todays workplace (Luthans, 2002).
It must include the pursuit of employee
happiness and health.
Examples self-efficacy, optimism, hope,
resilience, etc. which lead to high
performance in the organisation.
Positive Organisational Behaviour
Extended positive behaviour:
Organisational Citizenship Behaviour
Whistle-blowing
Corporate Social Responsibility
Creativity / Innovation
Employee Engagement & Its Approaches
A set of motivating resources such as support
& recognition
Commitment & extra-role behaviour
Independent from job resources & positive
organisational outcomes
Ranbaxy Crisis
Background:
An Indian multinational pharmaceutical company
incorporated in 1937 by Ranbir Singh and Gurbox
Singh sold to Mohan Singh in 1952 -- went public
in 1973
Entered in US market in 1998 the biggest market
for Ranbaxy accounted for 28% of Ranbaxys
sales in 2005
For the twelve months ending on 31 December
2005, the company's global sales were at US$1,178
million with overseas markets accounting for 75% of
global sales (USA: 28%, Europe: 17%, Brazil,
Russia, and China: 29%). For the twelve months
ending on 31 December 2006, the company's global
sales were at US$1,300 million.
Ranbaxy Crisis
Background:
Majority products are manufactured under
licence from foreign pharmaceutical
developers
In December 2005, Ranbaxy's shares were
hit hard by a patent ruling disallowing
production of its own version
of Pfizer's cholesterol-cutting drug Lipitor,
which has annual sales of more than $10
billion. This has been settled down with Pfizer
in 2008.
Ranbaxy Crisis
Background:
On 1 December 2011, Ranbaxy got the
much-awaited approval from the US Food
and Drug Administration to launch the
generic version of drug lipitor in the United
States of America after its patent expired
Ranbaxy Crisis
Issues:
During 20042005, Dinesh Thakur and
Rajinder Kumar, two Indian employees of
Ranbaxy, blew the whistle on Ranbaxy's
fabrication of drug test reports.
As a result, on 16 September 2008, the Food
and Drug Administration issued two warning
letters to Ranbaxy Laboratories Ltd. and an
Import Alert for generic drugs produced by
two manufacturing plants in India
Ranbaxy Crisis
Issues:
On 8 February 2012, three batches of the proton-
pump inhibitor Pantoprazole were recalled in
the Netherlands due to the presence of impurities
On 9 November 2012, Ranbaxy halted production
and recalled forty-one lots of atorvastatin due to
glass particles being found in some bottles. Also in
2012, an apparent dosage mistake was reported in
which 20 mg tablets were found in a bottle of
atorvastin labeled as containing 10 mg tablets; this
led in 2014 to the voluntary recall in the United
States of some 64,000 bottles
Ranbaxy Crisis
Issues:
In May 2013 the US fined the company US$500
million after it was found guilty of misrepresenting
clinical generic drug data and selling adulterated
drugs to the United States
In September 2013, further problems were reported,
including apparent human hair in a tablet, oil spots
on other tablets, toilet facilities without running
water, and a failure to instruct employees to wash
their hands after using the toilet. Ranbaxy is
prohibited from manufacturing FDA-regulated drugs
at the Mohali facility until the company complies with
U.S. drug manufacturing requirements
Ranbaxy Crisis
Issues:
There is some sigh of relief for Ranbaxy. As
its Gurgaon based plant & Romania R&D
centres are got FDA approval. Also in March,
Ranbaxy's Paonta Sahib plant in Himachal
Pradesh, which has faced a US regulatory
ban since 2008, was also cleared in a joint
inspection by five global drug regulatory
agencies of the UK, Canada, the WHO and
Singapore
Ranbaxy Crisis
Acquisitions:
In June 2008, Daiichi-Sankyo acquired a
34.8% stake in Ranbaxy, for a value $2.4
billion. In November 2008, Daiichi-
Sankyo completed the takeover of the
company from the founding Singh family in a
deal worth $4.6 billion by acquiring a 63.92%
stake in Ranbaxy. Ranbaxy's Malvinder
Singh remained as CEO after the transaction
Ranbaxy Crisis
Acquisitions:
On April 7, 2014 India based Sun
Pharmaceutical and Japan based Daiichi
Sankyo jointly announced the sale of entire
63.4% share from Daiichi Sankyo to Sun
Pharma in a $4 billion all share deal
The combination of Sun Pharma and
Ranbaxy creates the fifth-largest specialty
generics company in the world and the
largest pharmaceutical company in India
Topics of OB
Individual Group Organisation
Behaviour Behaviour Structure
Perception Group Communication
Learning Dynamics Organisation
Workplace Conflict & Theory & Design
Emotions Negotiation Organisational
Attitude Power and Culture
Motivation Politics Organisational
Personality Change &
Development
Stress
Management
30

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Module I: OB in

Trend: The global financial crisis leading to growth

Trend: Shifting share of family oriented big business

Trend: Liberalised & privatised economy in global

Trend: Change in life-styles of the employees

Launch Growth Maturity Pause ?????

Workplace experiences different shades of

The study and application of positively

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