Small Industry Extension Training Institute|Business Strategy|Case Study|Case Studies

Small Industry Extension Training Institute

            
 
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Case Details:

Case Code : BSTR120
Case Length : 15 Pages
Period : 1960-2003
Organization : Small Industry Extension Training Institute
Pub Date : 2004
Teaching Note :Not Available
Countries : India
Industry : Training

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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EXCERPTS

Organization Structure

SIETI was managed by the institute's Society and its Governing Council was appointed by the GoI. The Union Minister of Industry was the President of the Society and he was also the Chairman of the Governing Council.

The Principal Director was the academic and executive head of the institute, who worked under the guidance of the Executive Committee/Governing Council/Society (Refer Exhibit III for the organizational structure of SIETI). The academic activities were managed by the Academic Council, the Registrar and the Centers of excellence which focused on specific aspects of SMEs. There were smaller units attached to centers known as cells (Refer Exhibit IV for Centers of Excellence and Cells). The Academic Council was a coordinating body and its primary responsibility was to be an informed assessor and provide professional expertise for academic activities and programs...

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The Decline

In the late 1960s and early 1970s, SITI used to be a "think tank of the GoI." Its faculty members were highly competent with expert knowledge in their fields. Since SITI was the only institute of its kind, it received recognition in the field of training.

However, SITI failed to sustain its leadership position for long. Being inducted into SITI as a faculty was considered prestigious in the 1960s and 1970s; but, in the 1980s, SIETI was no longer considered a preferred destination. While the University Grants Commission (UGC) had revised the scales of faculty members of universities and affiliated colleges, SIETI continued with its old pay scales. The low salaries made many good faculty members leave the organization. During the 1980s, SIETI also began to face competition from the Indian Institutes of Management (IIMs) and other State agencies which had started offering training programs for SMEs...

Turning Around SIETI

The most pressing problem before Prabhakaran was to meet/curtail the overheads such as salaries. The other problems included the low morale of employees, and chaos in the organization as it did not have a proper administrative structure. After taking over as the Principal Director, Prabhakaran took some crucial and decisive measures. He met faculty members and had brainstorming sessions with them to understand the crisis in SIETI. He realized that SIETI lacked leaders at different levels of the organization. To address this issue he created centers within SIETI. (Refer Exhibit IV)...

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