Diagnoses

Abstract

In large and complex organizations such as Hindustan Chemicals Ltd., improving the effectiveness of functioning of one department requires paying equal attention to other interdependent departments.

Rao points out that though an agency relationship exists between the materials department and the user departments, the requisites for such a relationship do not exist in the organization. He suggests several measures which will lead to improved working of the materials department. The Management Education Programme Executive Team recommends forming a taskforce which should evolve strategies for reducing the long lead time. The team also suggests systematic training of employees to bring about attitudinal changes.

Singh recommends a restructuring of the materials department with three decision making levels to improve the. functioning of the department. In addition, he suggests changes in the purchasing strategy, systematic training of the staff, and systemic improvements (including computerization). Lalbhai and Sharma point out that new vendors need to be developed to cut down stockout situations. Effective communication and healthy dialogue between the materials department and user departments, they stress, will ensure smooth working of the materials department and the organization.