Work Culture (Larsen & Toubro)

Presentation highlighting the work culture at L&T

1. Prachi (20DM153) Prerna (20DM159) Raghav (20DM165) Rishab (20DM172) Rohan (20DM179) Sangeet (20DM186)

2. a brief 2 Larsen & Toubro was founded in 1938 in Mumbai by two Danish engineers,  Henning Holck-Larsen  and  Søren Kristian Toubro .  In December 1950, L&T became a Public Ltd company. Larsen & Toubro is a major technology, engineering, construction, manufacturing and financial services conglomerate, with global operations. L&T addresses critical needs in key sectors - Hydrocarbon, Infrastructure, Power, Process Industries and Defence - for customers in over 30 countries around the world. Total Employee Strength of around 3.5 Lakhs. Chairman : Anil Manibhai Naik

3. vision 3

4. values 4 L&T has a strong heritage of professionalism and places the highest value on merit and integrity. Every aspect of L&T's businesses is characterized by professionalism and high standards of corporate governance. Sustainability is embedded into their long-term strategy for growth. Important for the Organization : “ Continuous quest for world-class quality ” ; Consumer focused approach. “ Continuous learning while meeting expectations of employees, stakeholders and society ” ; Focused on Employee Alignment and welfare of society.

5. Organizational Structure 5 Bureaucratic model which involves long chain of command with routine tasks achieved through specialisation and formal rules and regulations. F urther grouped into various functional and divisional departments where the decision making power is centralised. L&T's technology strength constitutes a strategic mix of in-house Research & Development and the expertise of its joint venture partners. With a continuous focus on innovation, design and development, the future is taking shape in L&T's Technology and Innovation centres around the world.

6. Customers & Employees 6 Customers think that L&T is a high tech company with footprints in various sectors from construction to defence to finance. L&T is known for its customer orientated activities and has a good reputation. L&T highly value their employees. Apart from conventional methods, it has a mobile app (WISA) where the employees can get connected with superiors and be updated with latest news and happenings.

7. Competitors 7 Larsen & Toubro is a 14 billion USD company. Also, it is India's largest construction company. The biggest competitor of L&T currently is Shapoorji Pallonji & Co. Pvt Ltd . for buildings sector. However due to market slow down other competitors like Simplex, GDC not doing well. Due to market slowdown no. of competitors like HCC, Afcons, Simplex Infra, GDC, Gammon etc. are not doing well. Acquisition by SIEPL of L&T’s electrical and automation business (E&A Business) (excluding certain assets) by way of a slump sale on a going concern basis pursuant to a business transfer agreement; and acquisition of 35% shareholding in SIEPL by MacRitchie by way of a share subscription agreement after the business transfer. The transaction forms part of the global agreement entered between L&T and Schneider Electric Industries SAS (Schneider) whereby Schneider will acquire the international E&A Business of L&T.

8. Operational Region 8 The company is headquartered in Mumbai, Maharashtra, India. The company has business interests in basic and heavy engineering, construction, realty, manufacturing of capital goods, information technology, and financial services. As of 31 March 2019, L&T Group comprises 118 subsidiaries, 6 associates, 25 joint-venture and 35 joint operations companies. The company is spread all over the world in almost all countries.

9. Decision Making 9 Decision Making process is Hierarchical or Consensual varies from decision to decision. If some decision has to be taken, as a hierarchical process, then that will be considered otherwise we will go with consensual one. L&T has that flexibility. Already, powers have been decentralized also up to the lower most position. Daily Engagement with Employees L&T is known for its staff welfare. Each and every facility is provided by L&T. From fully furnished house to handwash, everything will be provided by the company. All cooks, helpers, maids etc. are arranged by the company. Working environment is also very good. All seniors are very helpful. Only thing which you will find is 12 hours of daily working from Monday to Saturday. But 12 hours working is very common in construction industry, so its not a big deal .

10. Approach to work - Group Collaboration or Individual achievement ? 10 Since, it’s a construction industry, so obviously conventional approach only will be followed. Its not that, if you can build a building in 100 days by mobilizing proper resources and keeping project margin, you will build in 30 days by extra resource mobilization and ruining project savings. Obviously, team effort matters. Group collaboration is necessary for getting a project or work completed. Even if some construction activity is going, obviously there will be IR/Admin person there for resolving local conflicts. For providing facilities to workmen, there will be IR person. But achievement will be recognized separately. Each and every person will have their credentials and achievements to show. Good practices or initiative are always welcome. But ultimately, result will matter. If you are doing something, and getting nothing from it, then what’s the use of doing it. More attention to methods or results?

11. Risk Tolerance – Daring or Conservative 11 The tolerance for risk is low to medium . Since it’s a construction industry, so a conservative approach is followed. The company bids for several projects and there is a neck to neck competition with other companies bidding as well. There is always a risk of not completing the project within a specified budget but L&T is always ahead. It tries to map out the expected increase in budget and hardly fails in completing the project on time with specified budget.

12. 12 Customer Service & Customer Relationship For customer service, they have various channels to support like email and call and for large corporations they have project team to regularly coordinate. L&T Equip-Care , is the new toll-free number that will be the nodal point for all customer-driven communication and engagement for the after-sales support. The process involves customers dialling the toll-free number to record their service requests. The requests are instantly routed to the respective dealer, depending on the geography, who shall then independently collect complaint data and suitably address the customer service request. L&T’s customer relationship is primarily of a personal assistance nature . The company provides comprehensive training to its employees for extensive phone and e-mail support to build strong customer relation.

13. S # Strong brand name # Strong distribution network W STRENGTHS WEAKNESSES # Dependence on Indian Market # Increasing debt impacting financial flexibility OPPORTUNITIES O # Strategic joint ventures # Growth in Indian construction & engineering industry T THREATS # Rise in cost of construction # Extensive environmental regulations SWOT

14. Less Entertained ; work flow designed by top management Communication pattern needs to be more effective Career growth. Eg : Chairman himself. Rigorous selection process; strong skillset reqd. Incentives, bonus, other perks. Fair Appraisals, Effective Career Growth Regular Training & Development programs Friendly and Cooperative atmosphere. Annual corporate conferences, awards, site celebrations etc

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