Posted: February 17th, 2022
For Sharyo to recover from the financial crisis and losses and debts it had suffered from the last six years, there was a need for a significant turnaround which was to be led by Jose Edde. Edde devised a comprehensive set of strategies to ensure that these new changes were easily reconciled without disrupting the identity and culture of the company. These changes include the introduction of an inclusive and collective decision-making approach, integrating a transformational leadership approach, and the downsizing of employees and some of the company’s operations.
Regarding the inclusive and collective decision-making process, Edde stated that no external consultancy will be needed and that all the views and feedback of the employees will be considered and integrated into the decision-making process. The HR department would be responsible for the hiring of new employees.
Edde introduced a CFT formation process regarding the transformational leadership approach that included middle and upper-middle managers who would be chosen and selected on a talent basis. They would then be trained and developed to become the next generation of leaders for the company.
They included incorporating transformational leadership, which would ensure that the views and opinions of the different workers were integrated into the decision-making process.
Regarding downsizing, Sharyo would lay off 21,000 employees out of the 148,000, revamp 22 product models, and shut down some of its non-profitable models.
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