Mumbai, Aug 24: The Rs 6,000-crore Aditya Birla group has begun a delayeringprocess with a sharp focus on new projects to cut down on delays indecision-making.The idea is simple: the buck stops with fewer people. The process, whichstems from a recent directive to speed up projects, involves cutting down onwhat have now become unnecessary layers in management structures of groupcompanies.
Till the machete was used on them, the layers numbered between 10 and 13.The group aims to cut down these layers to as few as five, and to furtherstretch it to four layers in a particular group firm, sources said. Ofcourse, the whole effect is achieved without a single job loss, in aremarkable wave of the human resource management wand.
The five layers which the group aims to set up include: the top managementlayer (executive presidents/ joint executive presidents), the seniormanagement layer (vice-presidents/senior vice-presidents), the uppermanagement layer (general managers/deputy general managers), the juniormiddle management layer (engineering assistants) and the job managementlevel.
The thrust is on increasing the velocity of decision-making and avoiddelays, sources said. Earlier, the decision-making process involved a longertime frame to get implemented after having gone through the multiple layers(at times even all the 10-13 layers in a single organisation). "The ultimateaim is to achieve a four-layered structure wherever possible," sourcesadded. Historically, the group has been designed to a high note of amultiple-layered structure. The new system will cut down on the number ofdesignations to bring about a new and more modern approach.
The idea, which was internally seeded in the group a year ago, has gainedmomentum only in the last eight weeks. Companies which have been quick toabsorb this conception and bring about the necessary changes include the newbusiness Birla Copper as well as the relatively older cement, carbon blackand textile businesses. Companies which have been slightly delayed in theprocess of change include firms like Hindalco and the fibre division, saidsources.The delayering exercise has been quickly triggered by new projectslike Birla Copper, which had fewer hassles to solve compared to the oldergroup mates.The thrust is more on making new projects, like the Rs1,850-crore copper smelter project of Birla Copper, more tuned with globalnorms in manufacturing parameters.
Birla Copper, the copper division of Indo Gulf Corporation Ltd, hasdelayered its management structure to as low as five layers from 13 tostreamline the system. The division, which is setting up a mega Rs1,850-crore copper smelter project for the group at Dahej in Gujarat, hasreduced the number of layers as part of the larger game plan in the group.
The company plans to further cut down on its layers to as low as fourshortly. The total strength of Birla Copper is 800-odd employees. BirlaCopper's expenditure on employees, compared to industry norms, is wellmanaged at about Rs 15 crore per annum, company sources said.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.