ORGATIONAL STUDY AT ASHOKE LEYLAND

History of ashoke leyland

Ashok Leyland has been a major presence in India’s commercial vehicle industry since 1948, the year it was born. The origin of Ashok Leyland can be traced to the urge for self-reliance, felt by independent India. Pandit Jawaharlal Nehru, India's first Prime Minister persuaded Mr. Raghunandan Saran, an industrialist, to enter automotive manufacturing.

VISION

Achieving leadership in the medium/heavy duty segments of the domestic commercial vehicle market and a significant presence in the world market through transport solutions that best anticipate customer needs, with the highest value -to-cost ratio.

MISSION-Identifying with the customer.-Being the lowest cost manufacturer.-Global benchmarking our products,

processes and people, against the best in the industry.

QUALITY POLICY STATEMENT

Ashok Leyland is committed to achieve customer satisfaction by anticipating and delivering superior value to the customer in relation to their own business, through the products and services offered by the company and comply with statutory requirements.

ORGANISATIONAL STRUCTURE

AUTHORITY FLOW

MAJOUR DEPARTMENTS The major functional areas of the unit and the major departments which oversee those areas are catalogued as follows: HR DepartmentFinance DepartmentMarketing DepartmentProduction Department.

HUMAN RESORCE DEPARTMENT HUMAN RESOURCE MANAGEMENTHuman resource management is defined as the managing function of employees, developing and compensating HR resulting in creation and development of human relations with the view to contribute proportionately to the organizational, individual and social goal. VALUE STATEMENT“We consider our employees as our most valuable asset and are committed to provide full encouragement and support to them, to enhance their potential and contribution to the company’s business”.

FUNCTIONS OF HR DEPARTMENTHR ACQUISITONHR DEVELOPMENTPERFORMANCE AND COMPENSATIONMOTIVATION

FINANCE DEPARTMENTThe pricing department is responsible for the fixing of

prices for sales of the vehicles and for buying of raw materials and semi finished goods.

Treasury section is responsible for all kinds of funding managements such as investments.

Taxation section is responsible for remittance of tax, filing of returns, handling of litigations etc..,

Costing and Budgeting department is responsible for the unit costing of each product in particular, such as spare parts and a vehicle as whole.

The FSG (Finance account Service Group) deals with the payables and recievables at regional offices.

The Explore finance department deals with the FSG exporting of items

ROLE OF FINANCE DEPARTMENTRecorder (accounting) of all Financial

TransactionsReporting of Financial PerformanceArranging long and short term funds – Capital and

DebtWorking Capital ManagementCompliance of tax and other corporate lawsRisk Management Controllership functionAudit coordinationInvestor Relations

MARKETINGThe need for advertising was felt by Ashok Leyland in 2006-07 when they had to project the transformation that has occurred within Ashok Leyland, but as yet not communicated to the public

MARKETING STRATEGIESNEW PRODUCT LAUNCHES INCREASING GLOBAL FOOTPRINTPLANS TO MEET THE GROWING NEEDS

OF THE MARKET

MARKETING NETWORKRegional offices- 10Areas offices- 18Regional sales offices-19Parts warehouse-7Main dealers- 43Dealer outlets- 177Authorized service centres- 145Service bays- 2352

PREDUCTION DEPARTMENTLong range strategiesEffective management of technology.Innovation in product management and

process technology.Globalization in industry.Goodwill inside and outside the organization.An aggressive marketing strategy and risk

taking ability.

Short range strategiesLocation and layout.Product selection and technology.Capital selection and investment.Flexible strategy of production.Standardization of design.Economy of size and variety

CORPORATE SOCIAL RESPONSIBILITY

Ashok Leyland defines CSR as: "Our commitment to improving the quality of life of our employees, their families, the driver and the local communities around our units, and the society."

GREEN MISSIONIn 2002, all the vehicle manufacturing units

of Ashok Leyland were ISO 14001 certified with Environmental Management System

The Ennore unit was recently identified as one of the model energy- efficient units by a CII-TNEB organized Energy Conservation (ENCON) mission

SWOT ANALYSIS STRENGTHSGood Training System.Good Organizational Climate.High Market ShareSkilled EmployeesStandard Quality Product

WEAKNESSES High priceSales representatives are less

OPPORTUNITIES Demand for heavy vehicle have steeped up all over

the globe.Company provides better credit facility to dealers.

THREATS High competitionPromotional programmes of other brandsComplicated national marketNew players entering the market

COMMUNICATIONINTERNAL COMMUNICATIONCirculars.E-mailTelephone.Ashley NewsAL PORTAL INTRANET-MD’s PortalSoap box

EXTERNAL COMMUNICATIONWebsiteAnnual ReportCustomer Journal-Moving ForceOperator’s MeetVendors & Suppliers MeetDealer’s MeetExhibitionsMedia RelationsShareholder RelationsThe Annual General Body Meeting

CHIEF COMPETATORS

MahindraVolvoTata Motors

CLIENTSCLIENTS (Not exhaustive):Indian Army.US Army.Honduras Armed Forces (HAF). Tamilnadu State Transport Corporation (TNSTC).Metropolitan Transport Corporation (MTC), Chennai.State Express Transport Corporation (SETC), Tamilnadu.Kerala State Road Transport Corporation.Maharashtra State Road Transport Corporation (MSRTC).Andhra Pradesh State Road Transport Corporation

(APSRTC).Parveen Travels.Sharma Transport

MILESTONES ACHEIVED1966 – Full air brakes introduced1967 – Double Decker buses introduced.1968 – Power steering offered.1979 – Multi-axle trucks introduced.1980 – Integral bus with air suspension.1992 – Self-certification status for defence

supplies.1994 – ISO 9001 Certification1997 – India’s first CNG powered bus.1998 – QS 9000 Certification

1999 – CNG (Compressed Natural Gas) introduced.

2000 – Euro-I, Engines/vehicles introduced.2002 – ISO 14000 Environment Management

System Certification.2002 – Exclusive Machine line – 2 for Hino

cylinder.2003 – E-Comet launched.2004 – 50,000 mark vehicle produced.2006- ISO/TS 16949 Corporate Certification.