TAILIEUCHUNG - Transformative Organizations Response Books_6

Tham khảo tài liệu 'transformative organizations response books_6', kinh doanh - tiếp thị, quản trị kinh doanh phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | TRANSFORMATIVE BRAND AND ORGANIZATIONAL COMMUNICATION 173 price whatever marketing people are selling it for that is the price that the market is willing to pay. So either you have to make changes and improve the product or reduce the cost or you can get lost. And there was always reluctance on the part of R D or design engineering here to say that this is not possible that is not possible. So I told them this is possible. You only have to start thinking then it becomes possible. So if necessary I will get some outside consultants to help you. Then finally they thought that they could do it so whatever changes marketing demanded in the product were all made simultaneously our people were ready to look into what cost they could produce. And they were able to reduce cost. Each vibrator compactor s cost was reduced by 20 25 per cent. That is how this unit has become profitable. And we have also arrested the increasing cost on the backloader. Selling prices have not been increased by a single paisa cent in the last three years. So in real terms there has been a decrease in selling price but still we have become an organization which is making profits. As another element of grassroots entrepreneurial leadership Raghavan emphasized the innovative role of workforce managing the top management. Specifically the compensation package at the Pithampur-based joint venture was lower than the all-India L T levels because Pithampur was a backward area where the plant had been set up with the help of government incentives. Raghavan observed the following regarding the challenges involved in bringing the compensation at par with the mainstream national levels of the company There was a thinking that since we are going to backward areas so we should be able to pay less to people. Again it was a paradigm which had to be converted into an upper echelons of L T management so that had to be done. It was a signal to people if you perform well you will get as much as people elsewhere in L

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