Organisational Behaviour Kanchan and Company

Kanchan and company limited was one of the leading manufacturers of pumps for the domestic,

agriculture, and industrial use. It had its corporate office at Delhi. One of its plants was located at Faridabad, the industrial town of Haryana which is only 30 km away from Delhi. The plant at

Faridabad manufactured nearly 200 different types of pumps categories as, the mini domestic pump, jet pump, four inch submersible pump, single phase monoblock pump, three phase monoblock pump, end suction pump and pumps for special use. Target customers for these products were household units, farmers, urbans (municipal corporation, civil contractors etc.), industrial houses etc.Unit 1995, the company was one of the major players in all the market segments without having any threat from its counterpart competitors. With the process of liberalization and globalization, a number of competing companies entered in the business of manufacturing pumps. Some of the major competitors were Taximo in the agricultural segment, KSB and Kalama in the submersible segment, Sharp in the domestic segment and Crompton in almost all the segments. Because of the stiff competition, the company had lost its market share in al the market segments. Also the financial performance of the company had deteriorated as indicated by EBIT and PBT as shown in Annxure-I. To counter the competition and to get international acceptance for its products, the company pursued to get ISO 9000 and obtained the ISO 9001 certification in the year 1994. For its social acceptability, the company obtained ISO 14001 in the year 1997, and to retain this certification, the company started incorporating continuous improvements in all the areas of its operations.

Until 1995-96, the focus was on maximum capacity utilisation of man and machine and the

bargain parts were manufactured continuously without analyzing their actual requirements resulting in the high inventory level of some parts and stock out in others. This resulted in...