Small Industry Extension Training Institute
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Case Code: BSTR120 Case Length: 15 Pages Period: 1960-2003 Pub Date: 2004 Teaching Note: Not Available |
Price: Rs.300 Organization: Small Industry Extension Training Institute Industry: Education Countries: India Themes: Training |
Abstract Case Intro 1 Case Intro 2 Excerpts
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...
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)...
Future Outlook
SIETI revived due to the various initiatives taken by Prabhakaran and his team. But this came at a cost. According to Singh, one of the adverse affects of the VRS introduced by Prabhakaran was that many faculty members opted for it, and the result was a mismatch between faculty members and support staff. The employee strength was skewed towards supporting staff. This was not good for a training institute. With the flight of good faculty, SIETI had to depend on part-time consultants. But, the strength of an institute depends on the quality of full time faculty, and to build its brand SIETI has to do some serious rethinking in this regard. As Prabhakaran said, "Increasing competition demands that SIETI build its brand as quickly as possible." SIETI's principal clients were from the small scale sector, which could not afford to spend huge amounts on training their employees. SIETI had to create brand equity in order to attract people from small scale enterprises. SIETI also had to depend increasingly on revenues from self-financed candidates as the government had reduced the funds it made available for sponsoring candidates...
Venkatraman's Dilemma Deepens
By the time Venkatraman finished studying the evolution of SIETI, his dilemma had deepened further. What would be the appropriate course of action for SIETI to grow in the future? How could SIETI regain its lost glory? These were the questions on Venkatraman's mind and he hoped the meeting with the top management of the institute the next day would provide a clear direction to the institute for its future activities...
Exhibits
Exhibit I: Activities of SEDOC
Exhibit II: Objectives of SIETI
Exhibit III: Organization Structure
Exhibit IV: Centres of Excellence and Cells
Exhibit V: Academic Performance Indicators
Exhibit VI: Academic Performance (Training)
Exhibit VII: Consultancy Assignments Taken Up By SIETI During 2002-03
Exhibit VIII A: Academic Performance Indicators (Financial) Income Through Activities
Exhibit VIII B: Expenditure
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