Freight Corp

Contributed by: Arya Kumar, Chief - Entrepreneurship Development & IPR Unit, BITS, Pilani The case focuses on Leadership skills, conflict management the former being a key human resource aspect and later, a major HR issues. It also throws light on intricacies of professional approach in a family business. Freight corp is a freight handling and logistics firm. It begun its operations in the year 1966, the private company now operates a fleet of 10000 trucks and 2000 trailers that haul freight 5 lacks Kms per day. Revenues are approximately Rs 85 crores a year. The company has had only three leaders. The first was the founder; second was his own son, Krishna and in August 2002, the first non-family member took the helm when Chris was made CEO. But it wasnt as if the company wasnt making preparations for change over to executive leadership. Infact Krishna had told his board of directors in 1998 that their primary task was finding a successor. Chris joined the company in 1994 as a vice president and became chief operating officer in 2000. After being appointed COO, Chris began to develop a organizational framework for the five person executive group that today shares many of the companys strategic responsibilities. Everyone who knows Krishna closely agrees that hes a tough personality to follow. Krishna is an icon, says another top executive of the company. He probably has great say and commands more respect in transportation and logistics than anybody else in the industry. Says Chris, our approach has been to put together an executive team that has a set of skills, perspectives, clarity about goals, and commitment is broader and bigger than ever before. The idea, according to Chris is to have individuals with knowledge and expertise in product line or functional areas. while maintaining their oversight of those areas, develop a sense of responsibility, accountability and commitment for the financial performance of the whole company. If you have people who arent taking an enterprise solution, their only role is their function or their business, then ultimately it has to go to someone whos going to referee the points of tension. says Chris. And Chris has no intention of playing the role of a referee. To resolve the points of conflict, the executive group formed by Chris, after lot of spadework and analysis, has had to learn how to work together. The Company had even hired a renowned consultant to help them better listen and understand one another, and focus debate on critical issues. Conflict between people or between groups of people is not positive. Conflict around business issues is the most wonderful, healthy thing, says Chris. Any business without tension will fall to its lowest level of performance.

Answer the following questions using various concepts in context to above case. Q1. What view toward conflict does Chris support? Explain Q2. Explain why the transition in leadership from Krishna to Chris was relatively conflict free.

Created Feb 2009 NEN

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Q3. Define strategy of conflict management Chris uses? What are the attributes of people delivering results through such a strategy? What type of approach within the broad strategy would be more effective in the given situation and why? Q4. Building trust is the most crucial aspect of conflict management. How do you think one can ensure building trust amongst the top management executive team and different tiers in the organization?

Created Feb 2009 NEN

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