The Study On Management Reformation In HCL Company

The auto market recovered from the downturn for about one year by the end of 2005, and showed stronger demand. The production number reached to 72.8 million in China in 2006, is more than Germany. It is the third one in the world, and only less than American and Japanese.HCL shows a serious shortcoming in production capacity, because it has tried for more projects to deal with the weak demand. Because the technology of HCL is almost the number one in the field, more auto factories choose it the supplier when they take the quality and technology measure to deal with the weak demand. So many projects will be put into developing when they faced with the same market.But the character of new projects is unfit with the production form in HCL, some product capacity will come into being after SOP. More projects have little demand, and deal with the market, but the amount production form has been used in HCL. So the layouts of product lines, the diathesis of employees, product plan, purchase character and so on can't meet the demand, some conflicts come into being between produce and sale.HCL tried their best to deal with the downturn, on the contrary it turned into the limited. All the subsidiary companies was impacted in 2004, for example: the subsidiary in Shanghai(HSL) was bankruptcy for more storage and cash stop, the Beijing company(HBL) is also faced the same destiny because they have only one kind of product, and the development company in Changchun (HCDL) had to be disbanded for the less business. Thinking about the global stratagem, HCL went on producing the production of HSL, transfer some benefit projects to HBL, absorbed some employee of HCDL.But the production is sent near Shanghai from HSL, the logistic cost is very expensive, the number of kind is big, and the time to ready is little, it is difficult to production. HCL subtracted the resource of benefit for the translation of projects to HBL. At the same time, the IE got no improvement in salary so the production condition turned more serious.The staff were effected by that the stockholder dismiss the GM and vice GM to deal with the difficulty. Because they aren't aware of the question that the stockholder had bring out, so they had to leave company, and signed one contact that they won't cooperate in future. The middle-level employee felt the career crisis so that they devote more energy into the struggle for benefit, and the low-level employee glared at the nearest benefit.To get the final succeed in HCL, something must be noticed. For example: The feasibility concept must be designed before operation, more support must be gained during the operation, the project manner management should be put into use. It sounds very easy, but it is very difficult to do. But some results beat all can be get if it is insisted.It will take place during the management reformation: irregularity, conflicts and feeling and so on. They can't be avoided, and they will lead the failure at last. So the three rules must be held to make sure they won't affect the reformation.Some suggestion have been given based on the situation: push it step by step, notice human resource and reformation stabilization. The difficulty will be reduced according to the step by step measure, the fact of human is the key for the succeed because it is always the most active and the most difficult to control, and it is one way to improve the ability to adapt and viability to reformation stabilization.