Managing a Turnaround in a Malaysian Carpet Factory, Managerial Dilemmas
By Ramnarayan S
Case in Organisational Behaviour | 1996
Citation
S, Ramnarayan. Managing a Turnaround in a Malaysian Carpet Factory, Managerial Dilemmas Case in Organisational Behaviour .
Copyright
Case in Organisational Behaviour, 1996
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Abstract
The case illuminates how the induction of a new chief executive triggers off a dramatic transformation in the fortunes of a sick and moribund manufacturing organization which was almost on the verge of closure. Mr. Zainal Wahid takes over as chief executive of one of Selangor State Enterprises, Carpets International Malaysia Berhard (CIMB) with the full knowledge that the corporation had been going through a bad patch - the collapse of its markets, cash curnch, low morale among manaers and workers and the prevalence of an atmosphere of fatalism, resignation and failure. The new chief executive painstakingly builds up the morale of employees, negotiates with the bankers for new credit facility, spruces up the supplier system, and revamps the marketing network. He also initiates measures to pull the organization on the trajectory of long-term health through human resource development, strategic planning and an effective communication network. The grievance monitoring and settlement procedures get streamlined. An year of painstaking, patient work initiated by the chief executive begins to pay impressive dividends: the CIMB reports profits, redefines its markets, strengthens its linkages with various stakeholders and, in the process, transforms itself into a new organization - with clear strategies and specific action plans to translate them into results.