Action research has been extensively used world-wide for decision making related to policy due to its nature of involving the researcher and decision maker in the process. Following independence in India, one of the major revolutions was brought about in the dairy sector with regard to complete management systems. Most innovations and changes occurred in the line function while the staff function was more often neglected in the overall change. The authors undertook an action research study focusing on staff function and relayed improvements that can influence policy related to decision making. The authors have also developed the MPS model for staff function which can help a company or industry in appraising their own staff and functions which can thereby aid in utilising their potential.