A Nave Sahab in India

It was an opportunity of a lifetime, or so Brian Moseley thought, as he accepted a Managing Director position for Aspen Automotives new acquisition in India. Aspen Automotive was a supplier to American automobile manufacturers. The company supplied various component parts to the American automakers, and the recent acquisition of an Indian brake-pad company was seen as a keen strategic move for the company. The Bindi Brake Company was an established manufacturer of automotive brake pads that supplied a few European car companies with high quality products. Competition in this market is fierce, and Bindi experienced difficulty in recent years competing with American and Japanese firms. Aspen thought it would capitalise on the experience and low cost of production found in the New Delhi operation, and it sent Brian Moseley, an experienced automotive engineer, to India in order to make the Indians efficient. Brian Moseley and his family quickly adapted to India. Although many expatriates from developed countries experience overwhelming culture shock, the Moseleys assimilated well into the expatriate community of New Delhi. With the help of personal assistants and children in private schools, the Moseleys could separate themselves from most of the challenges of everyday life in urban India. Although sometimes they missed some of the luxuries they had taken for granted in the United States, they enjoyed the standard of living they were experiencing as privileged expatriates in India. Brian Moseley knew that his job responsibilities were to turn around the newly acquired Indian Operation and that if he did this within two years, he would be promoted and moved back to the United States. He felt that this assignment could greatly advance his career. Managers at Aspens corporate headquarters felt that the introduction of certain western managerial practices would be beneficial to Bindi and improve overall efficiency and profitability. Brian was selected to direct the organisational change effort because of his past record of accomplishments in the United States and abroad. He had been successful in the turnaround of troubled parts- manufacturing plants in Louisville, Kentucky and Toledo, Ohio. Additionally, he had worked internationally in Canada, Mexico, and Brazil. Aspen felt that his M.B.A. in management from Michigan State, coupled with his previous domestic and international experience, made him a suitable person to direct Indian productivity improvement strategy. Although Bindi produced reasonably high- quality brake components, and labour costs were exceptionally low, the overall efficiency of the operation was considerably below that of other Aspen plants. Top management felt that if the Indian operation could match the level of efficiency of even the least efficient American plant, the acquisition would be a success. After the initial plant visit, top management concluded that the plant was crippled with bureaucracy and that there was no incentive for exceptional performance. Aspen managers observed what they felt were too many Bindi employees
Case prepared by Charles A. Rarick, Ph. D. of the Andreas School of Business, Barry University. Taken from Rarick, C.A. (2002). Cases and exercises in international business . Upper Saddle River, N.J.: Prentice Hall.

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drinking tea and socialising instead of working at a brisk pace. They were also shocked to find that no Bindi employee ever received a performance review and that pay for performance was never even considered by the past management. Bindi employees were seldom discharged, even when they were clearly not well suited to their jobs and performed poorly. Pay increases and other rewards were administered on the basis of seniority. Employees were often hired, not based on their abilities or potential, but because they were related to a current employee of Bindi. The number of sick days and personal days requested was well above average of the other Aspen plants. Brian was directed to make the Indian subsidiary more like the rest of the Aspen corporate family. For the first three months, Brian did little more than observe and learn about Bindis current managerial practices. He spoke with managers and employees alike, and made mental notes of the conversations. Brian identified employees whom he felt should be replaced and employees whom he felt had the greatest potential for advancement. After this initial three month investigation, Brian met with his senior managers at Bindi and proposed that they collectively formulate a turnaround strategy. All of Bindis managers were Indians and most had been educated in Indian universities. One manager, Rajan Patel, had studied in London and received a post graduate diploma from the University of London in economics. Brian felt that Rajan was one of the most promising candidates for advancement, and he hoped that Rajan would take the lead in structuring the change management program. Although Brian had hoped that the Indian managers would formulate a plan for change among themselves, he became increasingly frustrated after a month when no one came forth to recommend a plan. Brian suggested to the group that they consider changes such as pay-for-performance programs, annual performance reviews, management by objectives, and perhaps a 360 degree performance appraisal programs. In his view, if the group emphasized performance appraisal, many of Bindis efficiencies would disappear. Brian believed that most of the employees had the potential for great improvement, and that all they needed was a better system of management. A more scientific and objective approach to management, coupled with a more participative approach, would succeed in increasing the efficiencies and ultimate success of Bindi. Over the next several months, Brian became increasingly dissatisfied with the progress of the Indian managers in coming up with any constructive plan for changing Bindis managerial practises. Highly frustrated, he sometimes angrily criticised members of his managerial team in front of their subordinates. The relationship between Brian and the managers became increasingly strained; he was being referred to behind his back as sahib or big boss, a throwback to the British colonial days. This term was used in some instances to refer to a manager who had little understanding of Indian culture.

Case prepared by Charles A. Rarick, Ph. D. of the Andreas School of Business, Barry University. Taken from Rarick, C.A. (2002). Cases and exercises in international business . Upper Saddle River, N.J.: Prentice Hall.

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