Saturday 23 January 2021

XAVIERS INSTITUTE OF BUSINESS MANAGEMENT STUDIES - XIBMS EXAM ANSWER SHEETS PROVIDED WHATSAPP 91 9924764558

 XAVIERS INSTITUTE OF BUSINESS MANAGEMENT STUDIES - XIBMS EXAM ANSWER SHEETS PROVIDED WHATSAPP 91 9924764558

CONTACT

DR. PRASANTH BE MBA PH.D. MOBILE / WHATSAPP: +91 9924764558 OR +91 9447965521 EMAIL: prasanththampi1975@gmail.com WEBSITE: www.casestudyandprojectreports.com


Xaviers Institute of Business Management Studies

 

MARKS: 80

 

 

SUB:  Business Communication

 

                N. B. :      1)     Attempt any Four Case studies

                                2)     All case studies carry equal marks.

No: 1

A REPLY SENT TO AN ERRING CUSTOMER

Dear Sir,

Your letter of the 23rd, with a cheque for Rs. 25,000/- on account, is to hand.

We note what you say as to the difficulty you experience in collecting your outstanding accounts, but we are compelled to remark that we do not think you are treating us with the consideration we have a right to expect.

It is true that small remittances have been forwarded from time to time, but the debit balance against you has been steadily increasing during the past twelve months until it now stands at the considerable total of Rs. 85,000/-

Having regard to the many years during which you have been a customer of this house and the, generally speaking, satisfactory character of your account, we are reluctant to resort to harsh measures.

We must, however, insist that the existing balance should be cleared off by regular installments of say Rs. 10,000/- per month, the first installment to reach us by the 7th.  In the meantime you shall pay cash for all further goods; we are allowing you an extra 3% discount in lieu of credit.

We shall be glad to hear from you about this arrangement, as otherwise we shall have no alternative but definitely to close your account and place the matter in other hands.

Yours truly, 

Questions:

1.       Comment on the appropriateness of the sender’s tone to a customer.

2.       Point out the old – fashioned phrases and expressions.

3.       Rewrite the reply according to the principles of effective writing in business.

NO. 2

WAVE

(ATV : Advertising Radio FM Brand)

            A young, gorgeous woman is standing in front of her apartment window dancing to the 1970s tune, “All Right Now” by the one – hit band free.  Across the street a young man looks out of his apartment window and notices her.  He moves closer to the window, taking interest.  She cranks up the volume and continues dancing, looking out the window at the fellow, who smiles hopefully and waves meekly.  He holds up a bottle of wine and waves it, apparently inviting her over for a drink.  The lady waves back.  He kisses the bottle and excitedly says, “Yesss.”  Then, he gazes around his apartment and realizes that it is a mess. “No !” he exclaims in a worried tone of voice.  Frantically, he does his best to quickly clean up the place, stuffing papers under the sofa and putting old food back in the refrigerator, He slips on a black shirt, slicks  back his hair, sniffs his armpit, and lets out an excited , “Yeahhh!” in eager anticipation of entertaining the young lady.  He goes back to the window and sees the woman still dancing away.  He points to his watch, as if to say “ Come on.  It is getting late.”   As she just continues dancing, he looks confused.  Then a look of sudden insight appears on his face, “Five,” he says to himself.  He turns on his radio, and it too is playing “All Right Now.”  The man goes to his window and starts dancing as he watches his lady friend continue stepping.  “Five, yeah,” he says as he makes the “okay” sign with his thumb and forefinger.  He waves again.  Everyone in the apartment building is dancing by their window to “All Right Now.”  A super appears on the screen: “Are you on the right wavelength ?” 

Questions :

1.       What is non – verbal communication ?  Why do you suppose that        this           commercial relies primarily on non-verbal communication          between a   young man and a gorgeous woman ?  What types of    non – verbal communication are being used in this case ?

2.       Would any of the non-verbal communications in this spot (ad) not       work well in another culture ?

3.       What role does music play in this spot ? Who is the target market ?

4.       Is the music at all distracting from the message ?

5.       How else are radio stations advertised on TV ?

 

 

NO. 3

ARVIND PANDEY CAUGHT IN BUSINESS WEB

            Arvind Pandey is a project manager at Al Saba Construction Company in Muscat.   It s a flourishing company with several construction projects in Muscat and abroad.  It is known for completing projects on time and with high quantity construction.  The company’s Chairman is a rich and a highly educated Omani.  A German engineer is Arvind’s Vice – President for urban and foreign construction projects.

            Three months ago, Al Saba had submitted a tender for a major construction project in Kuwait.  Its quotation was for $ 25 million.  In Kuwait the project was sponsored and announced by a US – based construction company called Fuma.  According to Al Saba, their bid of $ 25 million was modest but had included a high margin of profit.

            On 25 April, Arvind was asked to go to Kuwait to find out from the Fuma project manager the status of their construction proposal.  Arvind was delighted to know that Fuma had decided to give his company.  (Al Saba) the construction project work.  The project meant a lot of effort and money in planning the proposed construction in Kuwait.

            But before Arvind could tank the Fuma project manager, he was told that their bird should be raised to $ 28 million.  Arvind was surprised. He tried to convince the Fuma project manager that his (Arvind company had the bast reputation for doing construction work in a cost effective way .  However, he could always raise the bid by $ 3 million. But he wanted to know why he was required to do so.

            The Fuma manager’s reply was, “That’s the way we do our business in this part of the world, $ 1 million will go to our Managing Director in the US, I shall get $ 1 million, you, Mr. Pandey, will get $ 1 million in a specified account in Swiss Bank.

            Arvind asked, “ But why me ?”

            “ So that you never talk about it to any one.”  The Fuma Project Manager said.

            Arvind promised never to  leak it out to any one else.  And he tried to bargain to raise the bid by $ 2 million.  For. Arvind was familiar with the practice of “ pay – offs” involved in any such thing.  He thought it was against his loyalty to his company and his personal ethics. 

            Arvind promised the Fuma project manager that the bid would be raised to $ 28 million and fresh papers would be put in. He did not want to lose the job.

            He came back to Muscat and kept trying to figure out how he should place the whole thing before his German Vice President.  He obviously was at a loss. 

Questions :

1.       Analyse the reasons for Arvind Pandey’s dilemma.

2.       Does Arvind Pandey really face a dilemma ?

3.       In your view what should Arvind Pandey do ?  Should he disclose       it to his German Vice President ? 

 

 

           

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NO. 4.

COMPANY ACCEPTING A CONTRACT

            A computer company was negotiating a very large order with a large size corporation.  They had a very good track record with this client.

            In this corporation, five different departments had pooled their requirements and budgets.  A committee was formed which had representation from all the departments.  The corporation wanted the equipment on a long lease and not outright purchase.  Further, they wanted all the hardware and software form one supplier.  This meant that there should be bought – out items from many suppliers since no one supplier could meet all the requirements of supply from its range of products.

            The corporation provided an exhaustive list of very difficult terms and conditions and pressurized the vendors to accept.  The computer company who was finally awarded the contract had agreed to overall terms that were fine as far as their own products were concerned but had also accepted the same terms for the brought – out items.  In this case, the bought – out items were to be imported through a letter of credit. The percentage of the bought – out items versus their own manufacture was also very high.  One of the terms accepted was that the “system” would be accepted over a period of 10 days after all the hardware had been linked up and software loaded.

            The computer company started facing trouble immediately on supply.  There were over 100 computers over a distance connected with one another with software on it.  For the acceptance tests, it had been agreed that the computer company would demonstrate as a pre-requisite the features they had claimed during technical discussions.

            Now, as you are aware, if a Hero Honda motorcycle claims 80 km to a litre of petrol, it is under ideal test conditions and if a motorcycle from the showroom were to be tried for this test before being accepted, it would never pass the test.  In corporation’s case, due to internal politics, the corporation persons from one department – who insisted on going exactly by the contract – did not sign acceptance since the “ system” could not meet the ideal test conditions.

            Further, in a classic case of, “ for want of a horse – shoe, payment for the horse was held up”, the computer company tried to get the system accepted and payment released.  The system was so large that at any point of time over a period of 10 days something small or the other always gave problems.  But the corporation took the stand that as far as they were concerned the contract clearly were concerned the contract clearly mentioned that the “system” had to be tested as a whole and not module by module.

Questions :

1.       Comment on the terms and conditions placed by the corporation.

2.       What factors influenced the computer company’s decision to       accept the contract ?

3.       Was it a win – win agreement ?  Discuss ?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NO. 5

EMPLOYMENT INTERVIEW OF R P SINHA

            Mr. R P Sinha is a MBA.  He is being interviewed for the position of Management Trainee at a reputed company.  The selection committee’s is chaired by a lady Vice – President.  Mr. Sinha’s interview was as follows :

Committee : Good morning !

Mr. Sinha : Good morning to Sirs and Madam ! 

Chairperson : Please, sit down.

Mr. Sinha : Thank you (sits down at the edge of the chair, keeps his portfolio on the table)    

Q. Chairperson : You are Mr. R. P. Sinha

A Sinha : Yes, Madam.  This is how I am called.

Q. Chairperson : You have passed MBA with 1st Division.

A. Sinha : Yes, Madam.

Q. Chairperson : Why do you want to work in our organization ?

A Sinha : It is just like that.  Also, because it has good reputation.

Q. Member A : This job is considered to be quite stressful.  Do you think you can manage the stress involved.

A. Sinha : I think there is too much talk about stress these days.  Sir, would you tell clearly what you mean by stress ? I am very strong for any stress.

Q. Member B : What are your strengths ?

A. Sinha : Sir, who am I talk boastfully about my strengths.  You should tell me my strengths.

Q. Member C : What are your weaknesses ?

A. Sinha : I become angry very fast.

Q. Member A : Do you want to ask us any questions ?

A Sinha : Yes Sir !  What are the future chances for one who starts as a management trainee ?

            The member tells M. Sinha the typical career path for those starting as Management Trainee.  The Chairperson thanks Mr. Sinha.  Mr. Sinha promptly says in reply, “you are welcome,” and comes out.

 

 

Questions :

1.       Do you find Mr. Sinha’s responses to various questions effective ?       Give reasons for your view on each answer given by Mr. Sinha.

2.       Rewrite the responses that you consider most effective to the     above questions in a job interview.

3.       Mr. Sinha has observed the norm of respectful behaviour and    polite conversation.  But, do you think there is something      gone wrong in his case ?  Account for your general       impression of       Mr. Sinha’s performance at the interview.

 

 

 

NO. 6

      Comment on the form and structure of the Report. 


 

 


Xaviers Institute of Business Management Studies

 

 

Effective HR Training and Development

 

 

Note: (i) There are three Sections A, B and C.
(ii) Attempt any three questions from Section A and B. All questions carry 8 marks each.
(v) Section C is compulsory for all, and carries equal marks for each case study.

SECTION A

1. 'The nature and objectives of the organization determine the role and type of HRD processes to be chosen for developmental intervention.' Comment on this statement and discuss underlying concepts with suitable examples.

2. What are the salient causes of dissatisfaction and frustration? How is frustration passed on to others? Explain with example, how a supervisor can cope with the frustration of the employee working with him.

3. Identify the major areas of integration between the development of HRD and IR in an organization. Describe various pre-requisites for successful HRD-OD approach to IR.

4. Define and describe HRD climate. How are HRD climate and organizational climate related to each other?

5. Write short notes on any three of the following:
(a) Task Analysis
(b) HRD Instruments
(c) Approach and Avoidance aspects of management
(d) HRD in voluntary organizations
(e) Developmental Supervision

SECTION B

1. Define and discuss the concept and objectives of coaching and mentoring. Briefly discuss their applications in the organizational context.

2. What is Action Research? How does it differ from OD? Discuss the important factors to be considered in the development of internal self renewal facilitators, with suitable examples.

3. Define and describe the objectives and advantages of Multisource Feedback and Assessment Feedback Systems (MAFS). Discuss what are the indicators of an organization’s readiness to participate in MAFS.

4. Discuss the means of managing technological changes in work organization. Briefly describe the factors which facilitate developing the change mind-set. Explain with suitable examples.

5. Write short notes on any three of the following :
(a) Designing Reward System
(b) Operationalising HRD for workers
(c) Career Transition and Choices
(d) Developing Business Ethics
(e) Horizontal Re-skilling

 

 

SECTION C

1. XYZ Limited

Read the following case carefully and answer the questions given at the end.

The eleven workers whose annual increments were stopped made a representation to the management of XYZ Limited that the action taken was not justified and that they wanted to know what their fault was. The management which acted upon the recommendation of the department head concerned, Mr. Rog, felt guilty because such an action was taken for the first time in the history of the company.

XYZ Limited was a large paper manufacturing company in South India. The major departments of the factory were:

1. Chemical processing: The raw material was mixed with certain chemicals for making pulp.

2. Pulp department: Pulp was mixed with other ingredients according to specifications for each order of paper.

3. Paper machine department: This was the heart of the factory where processed pulp was fed into the paper machines. At first, a wet weak paper was formed which was subsequently dried and rolled.

4. Finishing department: The paper rolls were then moved to the processing department where the required coating was given.

5. Grading, winding and packing departments.

6. Quality control department.

Twenty eight workers worked in the paper machine department in four groups - each group attending one machine. The nature of the work on each machine was such that all the seven workers had to work in cooperation. Because no individual tasks could be specified, the group was made responsible for the work turned out by them. All the workers working in the paper machine department had been with the company for over ten years.

The company did not have any incentive wage system for any class of its employees. They were all given straight salaries with normal annual increments. The annual increments were sanctioned each year in a routine way. It was the policy of the company that the increments should not be stopped unless the department head concerned recommended such an action.

Mr. Rog was placed in charge of the paper machine department a year ago. Though Mr. Rog was a newcomer in the organization, he proved himself to be a very competent man. The management noted that he was very aggressive and enthusiastic and that he knows his job well. At the end of the year when increments were due to be sanctioned, he recommended to the management that the increments due to eleven men in his department should be stopped, for, in his opinion they were lazy and inefficient. The eleven men concerned belonged to all the four groups operating in the department.

The management, though puzzled about the action recommended by Mr. Rog, acted upon it and stopped the increments due to the eleven men concerned. The management was aware that such an action was the first of its kind in the history of the company. Most of the employees were with the company for a fairly long period and there was never an instance of strained relations between the management and the employees.

Soon after the action was taken, the eleven employees concerned made a representation to the management requesting them to let them know what was wrong with their work as to warrant stopping of their increments. The management were in a fix because they did not have specific reasons to give except Mr. Rog's report in which he simply mentioned that the eleven men concerned were "lazy and inefficient".

The management were naturally concerned about the representation and therefore, they tried to ascertain from Mr. Rog the detailed circumstances under which he recommended the stoppage of increments. When Mr. Rog could not pin-point the reasons, the management suspected that Mr. Rog's recommendation was based on his "impressions" rather than on facts. They, therefore, advised Mr. Rog to maintain a register from then on noting the details of day to day incidents of "lazy and inefficient" workers and obtain the signatures of the workers concerned. Mr. Rog was to make the final appraisal of each worker in his department on the basis of this register and recommend each case giving specific reasons why increments should be stopped.

Mr. Rog started maintaining a register as suggested by the management; but he found it difficult to report satisfactorily any case of laziness or inefficiency for want of specific reasons.

The management were convinced that their action of stopping increments of eleven men on the strength of Mr. Rog's report was not a proper one. They realized that no similar action in future would be taken based on inadequate information. But, they were wondering whether the suggestion made to Mr. Rog was the proper course of action to prevent occurrence of similar situations.

Questions:

(a) Identify and discuss the core issue in the case.

(b) Was management of the company justified in implementing the recommendations of Mr. Rog, in the absence of proper report?

(c) How would you view the action of Mr. Rog, if you were the M.D. of the company?

(d) Do you think the reward system instituted by the company needs to be reviewed? Substantiate your answer with logic.

 

2. SEWA

Please read the case and answer the questions given at the end.

SEWA - The purposeful beginning

SEWA (Self Employed Women's Association) was started in 1972, by Ela Bhatt, in the form of a union of the unorganized sector, which was to be incorporated into the mainstream. It was observed that most of the production of goods and services in the country was, at that time, done through the informal sector, and hence the decision was taken to unionise this informal sector.

SEWA was not like a typical union i.e., unlike the usual union of workers, it (SEWA) spoke about the solidarity of the workers themselves. Its purpose was fight for the mega system which exploited the vast working force through its labour contract systems. The whole system typically involves the middlemen and money lenders and the mindsets of the urban middle class, the educated, the upper castes, their perceptions of development. Thus, through SEWA, efforts were made to question the whole system of policy making, the census (which had not recorded them as workers), the definition and purpose of a trade union and the definition of 'worker'.

After the registration of SEWA as a trade union, it was found that the union activity stopped at a certain level and the informal sector workers were hardly covered by any protective labour legislation. Added to this, profit making, handling of cash etc., even sometimes caused conflicts of interest in the union. Hence, over a period of time, a strategy of joint action by union and cooperative - a member based, democratic organization, beneficial to the unprivileged of society with networks at the state level, national level and international level was chosen.

It was felt that through a cooperative presence, SEWA would be able to obtain bargaining power for all those who are members as well as for those who were not a part of the co-operative. On the one hand, the producer's labour value goes up and she enjoys a better bargaining power. Alongside, the other workers in the villages also have wider choices in taking decisions related to who and how many have to go for work on the farms, whether the workers should migrate or concentrate on home-based crafts and so on. And, on the other hand, for all those who were not a part of SEWA, their wage structure (for both men and women) goes up. For instance, in case of the agricultural workers: the new jobs create a shortage of labour in the region, so they also get higher wages. Similarly, artisans also get higher wages. In this way SEWA is able to bring about economic changes in the villages through the joint action of the union and cooperative.

'SEWA Bank' - A subsidiary

Inspite of unionizing the self employed workers, it was found they faced two common problems:

Shortage of capital, forcing the workers to pay a heavy interest (often paying 10% interest per day).
Absence of owning their own means of productions (like handlooms, push carts etc.). They had to pay rent on these from their own meager income.

These two reasons prompted the decision at SEWA to have their own bank. In a period of six months, the necessary share capital was collected, and SEWA tried for registration. But many objections were raised - How can SEWA have cooperatives and a bank? How to form a bank for workers who were women, undependable, unreliable and who cannot even sign?

Inspite of these inhibitions, the strongest point in their favor was that the workers were all economically independent and generating cash every day. Thus, it was necessary for them to save money and also be able to avail of credit, whenever necessary, rather than depending upon private money lenders. This necessity finally led to the birth of the SEWA Bank.

The SEWA Bank is about one of the 10 co-operatives in SEWA with five kinds of primary co-operatives - dairy, artisans, traders, services and labour. The SEWA Bank has a working capital of about Rs. 26 crores; while, the other co-operatives registered under SEWA together have a working capital of Rs. 20 crores. When SEWA discovered that many of its workers were unable to absorb more loans because of the many risks and outside forces which did not allow them to expand their business, it decided to offer another form of financial services like insurance schemes - against maternity risk, group insurance scheme to link all member workers with their deposits and integrated social insurance bank service covering a wide range of services.

Other Activities and Vision for the Future

SEWA has attempted to create co-operatives of various services provided by the labour community especially in the areas of domestic labour, health care, child care and video production. So as to enable these persons' to market their services, efforts are being made to provide them training on a continuous basic.

Another effort on the part of SEWA is to build a management system which will help the labour force to stand firm in the market. Such a system should not only help these people to have access to credit but also help them to be literate enough to have a basic understanding of accounting, the interest rates and accessibility to market infrastructure.

Another attempt of SEWA has been at coming together of women on a common platform, on the basis of work in the form of co-operatives/union/federations or as workers or producers or economic agents, cutting across barriers of caste, region and language.

SEWA's Attempt at Empowering Employees

The vision of Ela Bhatt, who started SEWA, has always been to ensure that the informal sector is in the mainstream of labour movement with a leading role to be played by the rural women. SEWA'S aim has been to empower such women who are poor and illiterate to become economically active through the process of empowerment. This view is slowly becoming a reality, when, after joining SEWA and attending formal training programmes, such women have become bold, realized their sense of self through participating, facing, managing situations and other people and thus learning to become 'leaders' in the true sense. Thus process of empowerment has enabled them to develop an inbuilt strength to do liaison with the police, take up the causes of fellow workers, actively participate in the decision making process especially while sitting on committees, travelling and meeting people for the growth of the organization.

At SEWA, there is no formal organization structure as such. In the words of Ela Bhatt, "SEWA is like a banyan tree, it grows and takes root, then these roots grow and take root...." i.e.. SEWA's growth is totally dependent on its members who become owners, managers, beneficiaries and a truly empowered organization in the long run.

Questions:

(a) What are the unique features of SEWA?

(b) Discuss the worker oriented development approach of SEWA affecting the performance.

Can you suggest ways in which private corporate organizations can also be involved in developing management programmes along with SEWA for the upliftment of the rural people?

 

3. MICRO ELECTRONICS

Read the following case carefully and answer the questions given at the end.

Training for Whom?

Microelectronics, a California-based electronics defense contractor, has enjoyed a smooth growth curve over the past five years, primarily because of favorable defense funding during the Reagan administration's build-up of U.S. military defenses. Microelectronics has had numerous contacts to design and develop guidance and radar systems for military weaponry.

Although the favorable funding cycle has enabled. Microelectronics to grow at a steady rate, the company is finding it increasingly difficult to keep its really good engineers, based on extensive turnover analyses conducted by Ned Jackson, the human resources planning manager, Microelectronics problem seems to be its inability to keep engineers beyond the "critical" five year point. Apparently, the probability of turnover drops dramatically after five years of service. Ned's conclusion is that Microelectronics has been essentially serving as an industry college. Their staffing strategy has always been to hire the best and brightest engineers from the best engineering schools in the United States.

Ned believes that these engineers often get lost in the shuffle at the time they join the firm. For example, most (if not all) of the new hires must work on non-classified projects until cleared by security to join a designated major project. Security clearance usually takes anywhere from six to ten months. In the meantime the major project has started, and these young engineers frequently miss out on its design phase, considered the most creative and challenging segment of the program. Because of the nature of project work, new engineering often have difficulty learning the organizational culture - such as who to ask when you have a problem, what the general dos and don'ts are, and why the organization does things in a certain way.

After heading a task force of human resource professionals within Microelectronics, Ned has been designated to present to top management a proposal designed to reduce turnover among young engineering recruits. The essence of his plan is to create a mentor program, except that in this plan the mentors will not be the seasoned graybeards of Microelectronics, but rather those engineers in the critical three-to-five year service window, the period of highest turnover, these engineers will be paired with new engineering recruits before the recruits actually report to Microelectronics for work.

According to the task force, the programme is twofold: (1) it benefits the newcomer by easing the transition into the company, and (2) it helps the three-to-five-year service engineers by enabling them to serve an important role for the company. By performing the mentor role, these engineers will become more committed and hence less likely to leave. As Ned prepared his fifteen-minute presentation for top management, he wondered it he had adequately anticipated the possible objections to the program in order to make an intelligent defense of it. Only time would tell.

Questions:

(a) Identify the salient issues from HR point of view for this case.

(b) lf you were to study this turnover problem, how would you conduct a needs analysis or evolve a counseling programme ?

(c) What are the causes of dissatisfaction and turnover in Microelectronics?

(d) Do you find the mentoring programme suitable to reduce turnover? Justify your answer.

 

 

 

 

 


Xaviers Institute of Business Management Studies

 

 

Human Resource Management

 

 

(i) There are three Sections A and B and C.
(ii) Attempt any three questions each from Section A and B. All questions carry 10 marks each.
(iii) Section C is compulsory for all and carries 40 marks.

SECTION A

1. Define and differentiate between Job Analysis, Job Description and Job Evaluation. Select an appropriate job evaluation method and create a plan for evaluating jobs of scientists in different grades.

2. Discuss the role of indoctrination in organizations. How can Performance Appraisal, and Training and Development be made an integral part of Human Resource Planning? Discuss.

3. Discuss the scope of Human Resource Audit. While auditing Reward systems for employees in a manufacturing organization, which factors should be taken into account and why? Explain with suitable examples.

4. Define and discuss the need for Human Resource Planning in an organization. Briefly discuss various approaches to HRP

5. Write short notes on any three of the following:
(a) Training methods
(b) Value determinants of HRP
(c) Human Resource accounting
(d) Labour Market Behavior
(e) Promotion and Reward Policies

SECTION B

1. Define and discuss the objectives of Human Resource Planning at organizational level. How does it help in determining and evaluating future organizational capabilities, needs and anticipated problems? Explain with suitable examples.

2. Define and describe Job Analysis. Briefly discuss several methods in which information about a job is collected and evaluated.

3. What is the purpose and process of recruitment function? Discuss various methods of sourcing manpower.

4. How is monetary value assigned to different dimensions of Human Resources costs, investments, and worth of the employees? Briefly explain Cost and Economic value approaches of measurement.

5. Write short notes on any three of the following :
(a) MBO
(b) Succession Planning
(c) Competency Mapping
(d) Job Evaluation
(e) H.R. Inventory

 

SECTION C

1. Quality control Department

Read the case given below and answer the questions given at the end.

Mr. Kapil Kumar and Mr. Abbas Ali were working in a scooter manufacturing public sector industry as Senior Quality Control Engineers in 1988. One post of Deputy Chief Quality Controller has fallen vacant due to the retirement of the incumbent and the management decided to recruit a qualified, knowledgeable and experienced professional from outside so that the present quality standard may be improved thus ensuring better marketability of their scooters in the face of stiff competition. Mr. Kapil Kumar, who was a mechanical engineer with about 15 years experience in the Quality Control Department dealing with mopeds and scooters, could have been promoted to fill the post on the basis of seniority. However, the management was looking for a graduate in statistics with experience in latest Quality Control (QC) techniques like statistical quality control, quality assurance and other related areas rather than a mechanical or automobile engineer with the routine experience in quality control. As such instead of promoting Kapil Kumar, the management advertised for the post of Deputy Chief Quality Controller - since as per company rules it was DR (Direct Recruitment) vacancy also.

Selection of Outsider

Out of the applications received in response to the advertisement, six candidates were called for interview including the two internal candidates, Mr. Kapil Kumar and Mr. Abbas Ali. The person selected was an outsider, one Mr. Ratnam, who had over 12 years experience SQC, quality assurance etc., in the two-wheeler private manufacturing industry. Mr. Ratnam joined within 2 months time expecting that in his new position he would be the main controller for quality. However, after joining the organization he came to know that he would be the second senior most person in the hierarchy for controlling the quality and would be reporting to one, Kirpal Sing,. The Chief for Quality Controls. Mr. Kirpal Singh had come up to this post by seniority and was basically a diploma holder in automobile engineering. He had to his credit about 28 years of industrial experience, out of which 20 years were spent in Quality Control Department of two industries. He joined the present organization in its Quality Control Department and had 17 years experience in the organization and was due for retirement within the next 2 or 3 years. On learning about the retirement time of Mr. Kirpal Singh, Mt. Ratnam had the consolation that he would be able to take up the position of 'Chief Controller of Quality' very soon.

Interference from Top

Ratnam could not put forth many good suggestions (for quality control) because of the interference and direct supervision of Kirpal Singh. He, however, could pick up a good deal of knowledge about the working of the company, the nature-and tendency of different production department heads particularly with regard to care for quality, organization for 'QC' in the company, the various components required for assembly of the company's two-wheeler scooter and the expected quality standards, drawback in the present system of quality controls. etc.

Right from the time the advertisement for the selection of Deputy Chief Quality Controller appeared, the O.A. (Officers Association) of the organization had been pressing the management to consider the case of Kapil Kumar for promotion to the above post based on his seniority in the organization.

Meanwhile, the management obtained a license in 1989 for producing Three-Wheeler Autos. As a result of this and the pressure from O.A., Ratnam was transferred to look after the Quality Control Department at the company's new Three-Wheeler plant, whereas Kapil Kumar was promoted as Deputy Chief Quality Controller in the present two-wheeler scooter plant in 1990 (after creating one additional post of Deputy Chief Quality Controller for the new Project).

In 1991, the State Government, which controlled the company in question, changed the Managing Director. During the regime of this new Managing Director, Kapil Kumar was promoted as Chief (Quality Controls) next year, when Kirpal Singh retired. This decision was based on the recommendations of Kirpal Singh and partly attributed to pressure from O.A., for further promotion of Kapil Kumar based on his vast experience in the Quality Control function of this industry. Abbas Ali rose to the position held earlier by Kapil Kumar.

Allotment of Company Quarters

The Company had its own township near the factory. Its quarter allotment scheme was based on the length of service, i.e., date of joining. Ratnam had asked for a suitable quarter at the time of interview and was thus allotted a tile quarter meant for the Senior Engineer's cadre. He learnt about this, after occupying the quarter. Ratnam asked for a change of Quarter - preferably a RCC-roof quarter, - but his request was turned down, since he had put in only few months of service whereas many others senior to him, on the beds of their longer length of service in the Company (having over 10 years service), were staying in tiled-roof quarters and were awaiting a chance for a RCC-roof quarter. Kapil Kumar and Abbas Ali were residing in RCC-roof quarters. Soon after Kapil Kumar's promotion to the post of Chief (Quality Controls), he was allotted a bungalow.

The management's decision in this case must be viewed in the context of the downtrend in the demand for scooters and three-wheeler autos during 1993 following complaints from dealers about the deteriorating quality of components as also their short life. Notably the complaints had risen ten-fold in that year as compared to that in 1988.

Questions

(a) Was the management justified in taking a decision to recruit a qualified and experienced person from outside as Deputy Chief Quality Controller?

(b) Was it in the interest of the organization to transfer Ratnam to the new auto-wheeler plant and promote Kapil Kumar? What could have prompted the management to take this decision?

(c) How do you view the role of O.A.s in supporting only the local and internal candidates and overlooking the interests of direct recruits even when they were family members of the Association, particularly at a time, when the industry needed professionally qualified persons to fill key technical posts?

(d) How would you react to the management's scheme for quarter allotment and why?

 

 

 

 

2. Pearl Engineering

Pearl Engineering Company was a large heavy-engineering unit. It attached great importance to the recruitment and training of its senior supervisors. Apart from selecting them from within the organization, the company recruited, every. Alternate year, about ten young engineering graduates and offered them training for a period of two years, before they were appointed as senior supervisors. Such appointments were made to about 40 per cent of the vacancies of senior supervisors that occurred in the organization. This was considered necessary by management as a planned programme of imparting vitality to the organization. Besides, many of the old-timers, who had risen from the ranks, did not possess the necessary academic background with the result that they could not keep pace with the technological changes. Management also believed that in the rapidly changing conditions of industry, a bank of technically competent supervisors played a pivotal role, besides serving as a pool from which to select future departmental managers.

Engineering Graduates were selected from amongst those who applied in response to an all-India advertisement. For the selection of one engineer, on an average, eight applicants were called for interview. A selection committee consisting of the General Manager, the Production Manager, the Personnel Manager and the Training Officer interviewed and selected the candidates. The selection interview was preceded by a written test and only those who secured 40 per cent marks qualified for interview.

The engineers thus selected had to undergo a two year intensive theoretical and practical training. A well-staffed and equipped Training Institute was directly responsible for the training of the graduate engineers, besides training trade apprentices and operatives required by the company. Lectures on theoretical subjects were given at the Training Institute and practical training was imparted in all the works departments under the guidance of qualified and experienced instructors. A few lectures by senior officers of the company were also arranged to acquaint them with the company policies on different matters. During the last quarter of their two-year training programme they were deputed to work fulltime to familiarize themselves with the conditions in departments where they were to be absorbed eventually.

On successful completion of training, the graduate engineers were offered appointments, depending on their performance and aptitude as revealed during training. On placement in the work departments, however, most of them faced some difficulty or the other.

According to management, some of the heads of departments, who were themselves not qualified engineers, did not have sufficient confidence in these younger men. They preferred the subordinates who came up from the ranks to hold positions of responsibility. A few discredited them saying that it would take years before these youngsters could pick up the job. Besides, some of the employees, whose promotional opportunities were adversely affected by the placement of graduate engineers, tried their best to run down the latter as a class, sometimes working on the group feelings of the workers. Some of the supervisors who were not graduate engineers also spoke derisively of them as "the blue-eyed boys" of the organization. Management knew that many of the graduate engineers were not utilized according to their capacity or training, nor was any attempt made to test or develop their potentialities. They also knew that many of the graduate engineers were, therefore, dissatisfied with their work life. Some of them who did not get equal promotional opportunities as their colleagues placed in other departments, were looking for better jobs elsewhere.

On the other hand, according to management, the young graduate engineers were themselves partly responsible for the hostile attitude of others in the organization. Some of them failed to appreciate that a newcomer invited hostility in the beginning and it took time before he was accepted as a member of the work-group. They did not realize that they would be fully productive only after gaining about five to seven years experience in the organization. A few thought that they belonged to a superior cadre and threw their weight around. They did not bother to understand and appreciate the problems of the rank-and-file of employees who worked under them.

In spite of these drawback, the General Manager of the company felt that these men were a set of disciplined supervisors. They had a sense of pride in their profession, and with the extensive training they had received, they would be able to take up any responsible position in the organization in course of time.

The General Manager could not allow the situation to continue especially when it was a difficult and costly process to recruit and train young engineering graduates of the requisite type and caliber. He knew that the prosperity of the company, to a large extent, depended on these young men. In addition, a large number of lucrative employment opportunities were available to these young engineers elsewhere and there was a systematic raid on them, He, therefore, called a meeting of all heads of departments to review the situation.

Questions:

(i) Identify the issues related to manpower planning as evident in the case.

(ii) Discuss the strategies to tackle the percentage of internal promotion at the organizational level.

(iii)What type of additional training programmes should be imparted for direct entrants?

(iv) Suppose you are the head of the personnel division. What would be your suggestions in the meeting - Which has been called by the General Manager?

 

 

 

 

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Xaviers Institute of Business Management Studies

 

 

Industrial relations and Labour Law

 

 

Note: (i) There are two Sections A and B.
(ii) Attempt any five  questions from Section A. Each question carries 8 marks each
(iii) Section B is compulsory and carries 15 marks each case study.

SECTION A

1. What are the constitutional directives in the field of labour laws? The labour laws have reached new dimensions with the advent of the doctrine of welfare state. Discuss.

2. Attempt any two of the following:

(a) What are the safety measures under the Factories Act, 1948?

(b) What are the obligations of the principal employer and contractor under the Contract labour (Regulation and Abolition) Act, 1970?

(c) What are the occupations and processes where child labour is prohibited under Child Labour Act, 1986?

3. What is a "trade union" under the Trade Unions Act, 1926? What is the procedure for registration of a trade union under the Act?

4. Discuss the various provisions laid down under the Industrial Disputes Act, 1947 for settlement of Industrial disputes.

5. Examine the main features of the Payment of Wages Act, 1936. What are the provisions for deduction from wages? Are they sufficient?

6. (a) What are the benefits payable under the ESI Act, 1948? Give details.

(b) What are the provisions regarding payment of gratuity to employees under the Payment of Gratuity Act, 1972? Explain.

7. Write short notes on any three of the following:

(a) Main features of the Maternity Benefit Act, 1961
(b) Salient features of the Provident Fund Scheme, 1952
(c) Notice of change (Section 9-A)
(d) Special features of labour laws
(e) Principles of natural justice

8. Discuss the role of Indian Constitution in evolving labour policy. Identify the impact of ILO on industrial relations.

9. Briefly explain how internal affairs of the union are managed. Describe the new roles of trade unions.

10. Define collective bargaining. Describe the types of collective bargaining citing suitable organization examples.

 

 

SECTION B

1. Theft or Ignorance

 

Read the case given below and answer the questions given at the end.

CASE

On March 25, 1996 at about 6.45 PM, the Duty Officer (Security), Kumar, at the Work gate informed Rathod, Electrical Engineer on telephone that one Narayan, supervisor of his department has been caught red-handed at the Works gate while attempting to steal one small electric motor and certain other spare parts used in the Electrical Dept. Rathod was requested to come to the Security Control Room, where a preliminary enquiry was to be held.

During the preliminary enquiry, it came to light that Narayan, Personnel No. 5824, Foreman, came to the Works gate at 6.15 PM on his Suvega auto cycle bearing registration no. BRX 1421 (the number was not clearly visible). The works guard on duty, Krishna Bahadur asked Narayan to stop and open the tool-box that was hanging on the right side of the rear wheel. When it was opened, only one empty Tiffin-box was found. Since the driver's seat appeared to be thicker and of unusual size, the works guard enquired about the same from Narayan, and not being satisfied with the reply, gave it a jerk. It was found that Narayan had constructed one box under the seat where a 0.50 hp motor and eight 5 amps switches belonging to the company were concealed.

On being asked, Narayan replied that he had attended a break-down after 5 PM in the Mill and replaced one 0.50 hp motor. The motor that was recovered was the defective one but he could not return it as the store-issuer had already left for home after his duty which ended at 5 PM. He thought he would return the motor next day, as he had done many times in the past. He, however, could not explain why he was carrying the 5 amps switches. Nor did he give any satisfactory reason for not keeping the materials in the tool-box that was visible from outside, rather than where these were kept. On checking up at the Security Control Room, it was found in the presence of Narayan that the electric motor recovered was in working condition.

As per the Company's Certified Standing Order No. 23 (iii), 'theft, fraud, or dishonesty in connection with company's business or property' is misconduct.

Questions:

(a) Does this case deserve suspension, pending enquiry?

(b) Advise the Works Manager on the steps for handling the above case.

 

2. Norman (I) Limited

Read the case carefully and answer the questions given at the end:

Norman (I) Limited

THE COMPANY

The first wall tile manufacturing plant in India was established by Kay Pee in 1963 at Thane in Mumbai under the name Norman Tiles. The company was using the brand name 'Norman', a leading international tile manufacturer, Norman International Limited and was paying royalty for the same. The Norman International Limited owned 49% equity in this venture since its inception. With growth in sight the company set up another manufacturing unit at Rampur in the state of Uttar Pradesh with an investment of Rs. 85 million in the year 1981. Initially, at Rampur unit the company was carrying out only partial operations with semi-finished products being supplied by Thane unit. It was only in 1984, that the company started carrying out full operations at the Rampur unit. Since the market for ceramic tiles started expanding, the company expanded its operations accordingly. The process of manufacturing wall tiles was such that it needed unskilled manpower barring few fitters and electricians. Accordingly, the company hired 400 workers mostly uneducated and unskilled from nearby villages. Few of them were taken for the fitter and mechanic positions. Apart from these, there were sixty staff members looking after the other support functions. The workers were paid low wages and were employed on temporary basis at the beginning and till 1986 most of them were not made permanent. The human resource department was headed by R.C. Jain, who was an experienced professional and was with the firm since its inception.

THE GENESIS

In 1986 the company ventured into floor tile manufacturing and set up another facility at Rampur unit. This plant was semi-automatic as compared to the wall tile plant which needed manual operations. The machinery of floor tiles unit was bought from Italy and due to the nature of process some experienced workers were shifted from wall tile facility. Slowly, two distinct groups of workers emerged based on the nature of their job and subsequent skills required. First group was that of unskilled workers mostly associated with manual operations and the second group was that of skilled workers looking after technical operations. The second group was paid higher wages than the first group. This disparity led to discontentment among workers but in the absence of union, it never came out as an organized reaction. The first such organized attempt was made by workers in 1988, but a prompt and harsh action from management aborted the workers bid to form union. However, this event drew management's attention towards workers grievances and management helped workers to form a union in 1989. The union was named "Bhartiya Crystallization Mazdur Sangh". However, since most of the workers barring few technical ones were uneducated, they were unaware of roles and responsibilities of union

The management started negotiations with the newly formed union and the first wage settlement agreement was signed on January 19, 1990. In this agreement, though the management agreed to increase wages to the extent of Rs. 250 per month, it linked wages to production targets. After three months of this agreement, the union leader left the organization to join government service. The union was left leaderless. After some time the workers started voicing their concern about the target-linked wages, but in the absence of a leader their concerns could not get a voice. It was at this point that some external labour leaders started inciting the workers. A gate meeting was organized to exploit the situation on September 21, 1990. After this incident the industrial relations situation further worsened and led to a go-slow movement by workers in January 1991. This affected the productivity of the plant severely. Due to the absence of union leadership, management too found it difficult to control the situation, since external leaders influence was very much visible and company's HR manager R.C. Jain refused to talk to the outsiders. He remained adamant and left the job in March 1991 and the go-slow by the workers continued. In another development the incumbent HR manager Arun Joshi, who took over after Jain left converted variable DA to a fixed DA rate. Since, at that time inflation was spiraling and the rate of DA, elsewhere, was high, the workers refused to accept this provision. Ultimately, under pressure from external leaders as well as workers of the firm, Joshi withdrew the fixed DA and accepted the variable DA provision.

In the meantime, K.N. Trivedi took over as the unit head on May 5, 1991. Before joining this plant, he had served the Indian Air Force for seventeen years and was a strict disciplinarian. The organizational situation demanded quick action to stop go-slow because the company had market share of forty per cent in both the tile categories and the demand for tiles was still going up. The management did not want to lose a single day's production. In a calculated move the management suspended thirty five workers who were on a go-slow. This was for the first time that any worker was suspended from the plant which instilled a sense of fear in the minds of the workers. As a result of this, workers started working and the productivity of the plant started showing Meanwhile, the management had terminated some of the suspended employees who later on moved to the labour court against management's action on the presumption that labour courts are generally sympathetic to the workers. At the same time, Trivedi started dialogue with the external leaders to end the stalemate. The external leaders put pressure on the management to reinstate the suspended workers. Management agreed to make permanent those employees who were working with the company since its inception and did it with immediate effect. Suspension of some of the workers was also cancelled. Though these efforts helped management in streamlining the production, the attitude of the workers could not be changed totally. The ownership spirit amongst workers could not be developed.

The situation took another ugly turn in February, 1992 when the workers who were suspended earlier tried to create disturbances in the plant. The discontent was further fuelled by bad food provided to the workers in the unit’s canteen in March, 1992. Ultimately, this led to formation of a new union "Bhartiya Yuva Sanitary and Crystallization Mazdur Sangh". This union was not affiliated to any national labour union. However, the leaders were under the influence of Bhartiya Mazdur Sangh (BMS). This union submitted a charter of demands to the management. The demands included grain loan which was a contentious issue because the company had never given any grain loan to the workers. The demands were not accepted by the management. The workers gheraoed Trivedi but the management did not accede to the demands and called the police to intervene.

On March 17, 1992 the workers went on strike on the call of the union without giving any prior notice. The management terminated seventeen workers during the strike. The strike continued till May 5, 1992. The workers were not paid any wages during the strike period. Since the workers were low wage earners, they were unable to continue the strike for a longer period. The management used the situation to their advantage and accepted only minor demands of sanctioning an advance of Rs. 500 to the workers. The workers accepted the management decision and were willing to restart production. Management re-employed the suspended workforce gradually over a period of fifteen-twenty days. Since, the workers did not receive wage. For the strike period. they had realized the importance of their employment.

In October, 1993 the second agreement was signed between management and the union. Between October, 1993 and December, 1996 the productivity and industrial relations were improved. In 1996 the organization started receiving export orders for its products. The quality requirements for the export orders were stringent. Therefore, the organization decided to go in for ISO 9000 certification for their Rampur plant. The management realizing the importance of workers involvement in ISO 9000 certification process started training workers on a continuous basis in June, 1996. The in-house training emphasized on housekeeping, general hygiene of the workers, standard operation procedure and awareness about all kinds of losses. As a result of continued efforts, ISO 9002 certification was received by the plant in January, 1997. Meanwhile, the third wage agreement was signed between the management and the union for a period of three years in January, 1997. To reinforce the training process, HRD cell with well-equipped in-house training tools was developed in January, 1998. Training programmes focused on shop-floor excellence and total Productive maintenance (TPM). Quality manual for internal use was also developed. The goals for 2000-2001 for the plant were devised as under:

  • Laying of natural gas pipeline
  • ISO 14000 certification
  • Control of losses
  • Reduction in personnel expenditure
  • Team building training

The Rampur plant of Norman had come a long way since its inception. In the words of Trivedi "despite all the bottlenecks we have achieved a satisfactory level of productivity. We still intend to continue doing so by various means. However, I want to build this plant as a community where each member's commitment with the plant remains high. This can only be achieved by inculcating the ownership value. We sincerely believe that this can only be developed by creating a community of Norman in which every member is ensured of a minimum standard of living with all basic amenities and worry free life away from work. We intend to do so by providing medical, educational and vocational training facilities for their families, thereby developing trust between the management and the workers".

Questions:

(a) Does formation of trade unions help organizations improve industrial relations?

(b) Was it a right strategy to nurture pro-management union leaders?

(c) The strategy to instill fear in the minds of workers to improve their productivity was in the interest of the organization, Discuss.

(d) In your view, what action should have been taken by the management at various stages to improve labour-management relations?

 

3. Geetha Laboratories

 

Read the case carefully and answer the questions given at the end.

Geetha Laboratories Private Limited was established by Mohan Ramnath in 1988 at Chennai. He, a soft spoken gentleman, was Ph.D. in chemistry, who did not believe in working under pressure. The company was a small scale unit manufacturing non-patented antimalarial medicines. The company had 6 days per week working making 26 working days per month and was running smoothly. In 1978, CITU supported union came into existence. The industrial relations started deteriorating making it difficult for the company to survive. In 1988 Ramnath decided to enter into partnership with three other partners, Chandan Keshav, Bharat Pathak and Veenu Ramachandran to overcome the difficulties faced by him. The company came to be known as Geetha Laboratories Limited. Even after this the industrial relations did not improve till 1990 and it was during this period that 14 workers were sacked. In 1990 Ramnath decided to sell his shares to Emission Pharmaceuticals, a multinational, though other partners continued. Now, the company was called German Drug House (GDH). During this period CITU withdrew support to the union and Bhartiya Mazdoor Sangh (BMS) came into the picture. An average increment of Rs. 225 was given to all workers and industrial relations improved to some extent.

IMPLA Pharmaceuticals Limited was another non-patented antimalarial bulk drug manufacturing giant having units at Pune, Mysore, Hyderabad, Coimbatore and Corporate office at Baroda. It wanted to have monopoly in the ant malarial drug manufacturing by taking over GDH. But before taking such a step. They wanted to assess the internal condition of the company. Therefore, in January 1994 Vishal Shrivastava, qualified chartered accountant was inducted as Director by purchasing a requisite number of shares of the company. In September, 1994 after IMPLA was convinced about the favorable conditions of GDH it formally took over the company. At that time the manpower strength of the plant was 210 in which 130 were workers and 80 were executives and staff members. After taking over, IMPLA made many changes and the major ones were:

(i) They increased the salaries of executives and staff of the unit to reduce the gap in the pay structure of the executives and staff of this unit and their other units.

(ii) They invested Rs. 3-4 crores for up gradation of the plant.

(iii) They shifted from 6 days working per week to 7 days working per week to improve the productivity and enhance cost-effectiveness of the unit.

The shift from 6 days to 7 days working without any financial gains made workers resist the change. At this juncture, Sumeet Joshi, Corporate Manager (lR) intervened and promised the workers that they would be paid for 30 days instead of 26 days, but Ravi Shriman, Director (Personnel) and Vishal Shrivastav, CM (Operations) refused to agree to this since they were not involved when Sumeet Joshi made the commitment. The promise was not fulfilled which further complicated the problems. The issues kept on Lingering for 6 months. No decision could be taken because of the difference of opinion among senior executives. In June, 1995 the workers gheraoed Vishal Shrivastav to pressurize the management to take the decision. They were successful to some extent as it led to the agreement of management with workers that financial benefits would be given with retrospective effect of 4 years making it one additional year over and above 3 years of normal agreement. They were asked to give a notice of change which the workers could not give till December, 1995 because of disagreement among themselves It was felt at this point of time by Shrivastav that plant should have an Assistant Manager (personnel) instead of having Personnel Officer. Ajit Dubey, Assistant Manager (personnel) was appointed in October, 1995 but even this appointment took 3-4 months because of discord in opinions of Shrivastav and Shriman.

In December, 1995 the workers gave a notice of change demanding an increase of Rs. 2200 per month. In January, 1996 a notice of change was given by management. In February, 1996 the negotiations started and continued till July, 1996. Shrivastav, Rajkumar, the new Corporate Manager (IR), Ajit Dubey and Kishore were to represent the management side and nine members of the union were to represent the Workers, besides V.D. Agarwal the General Secretary of BMS.

The first two rounds of meeting did not lead to any outcome as none of the parties were ready to budge. This made V.D. Agarwal withdraw as he was fed up with the rigid stand of the union leaders.

The third meeting was held without Agarwal wherein the union leaders came down to Rs. 1, 200 from Rs. 2, 200 p.m. The minutes of the meeting were jotted down but the union leaders refused to sign. Taking advantage of the occasion, Dubey and Shrivastav had a secret meeting with Agarwal in a hotel. Agarwal advised the representatives of the management to maintain a low key for a few months to crack down the workers aspirations as they had very high expectations. It was observed by Dubey that there were perceptual differences between senior and junior union leaders. Taking cue from this, Dubey adopted a policy of divide and rule and took into confidence Devilal, the senior union leader and had a secret meeting with him to explore the last settlement amount and apprised him that the management could go only up to Rs.450. He also took Janak Singh, the junior union leader into confidence and convinced him that management was not going to bend before their demands and as such the workers were going to be the ultimate sufferers. Besides this, Dubey spread the message that no wages would be given retrospectively.

The next day meeting resumed in which union representatives came down to Rs. 750 (because of the pressure from the workers) beyond which they were not ready to come down. It was decided that instead of having meeting with all the members, only two members, one senior union leader, Devilal and one junior union leader, Janak Singh would sit in the negotiations. Immediately a meeting among Shrivastav, Rajkumar, Devilal and Janak Singh was held and it was resolved that Rs. 575 average per month would be given for 4 years retrospectively. An MOU was drafted by the legal consultant at the corporate office and was duly signed by Shrivastav, Rajkumar, Dubey and all the union representatives. In the evening a dinner was hosted in which all the negotiators were invited. When the papers were sent to R. Shriman, he objected to the MOU on two points.

First, the other plants were having 30 days pay system leading to less average pay per day and in Chennai plant it was to be given for 26 days leading to higher average per day. Second the milk allowance given for overtime at Chennai unit was higher than other units. It look Shrivastav and Rajkumar two months to convince Shriman about the agreement and thereafter, implementing the same. A total amount of Rs. 14 to 15 lakhs was given to all the 160 workers within a week as arrears and the issue was settled.

Questions:

(a) Was it right for V.D. Agarwal to withdraw half way during the negotiations?

(b) Identify the tactics used by management in the case. Are they justified?

(c) Should Director (Personnel) have raised objections after MOU (Memorandum of Understanding) was signed? Give reasons.

(d) In view of the information given in the case, suggest the strategies that could have made IMPLA Pharmaceuticals a more progressive organization.

 

 

4. V. J. Textiles

Read the case carefully and answer the questions given at the end.

V.J. Textiles is a leading industry having a workforce of more than 1200 employees, engaged in the manufacture of cotton yarn of different counts. The company has a well-established distribution network in different parts of the country. It has modernized all its plants, with a view to improve the productivity and maintain quality. To maintain good human relations in the plants and the organization as a whole, it has extended all possible facilities to the employees. Compared to other mills, the employees of V.J. Industries are enjoying higher wages and other benefits.

The company has a chief executive, followed by executives in-charge of different functional areas. The Industrial Relations Department is headed by the Industrial Relations Manager. The employees are represented by five trade unions - A, B, C, D and E (unions are alphabetically presented based on membership) - out of which the top three unions are recognized by the management for purposes of negotiations. All the unions have maintained good relations with the management individually and collectively.

For the past ten years, the company has been distributing bonus to the workers at rates more than the statutory minimum prescribed under the Bonus Act. Last year, for declaration of rate of bonus, the management had a series of discussions with all recognized unions and finally announced a bonus. This was in turn agreed upon by all the recognized unions. The very next day when the management prepared the settlement and presented it before the union representatives, while Unions A and C signed the same, the leader of Union B refused to do so and walked out, stating that the rate of bonus declared was not sufficient. The next day Union B issued a strike notice to the management asking for higher bonus. The management tried its level best to avoid the unpleasant situation, but in vain. As a result, the members of Union B went on strike. They were joined by the members of Union D.

During the strike, the management could probe the reason for the deviant behavior of Union B leader; it was found that leader of Union A, soon after the first meeting, had stated in the presence of a group of workers, "lt is because of me that the management has agreed to declare this much amount of bonus to the employees; Union B has miserably failed in its talks with the management for want of initiative and involvement". This observation somehow reached the leader of Union B as a result of which he felt insulted.

Soon after identifying the reason for Union B's strike call, the Industrial Relations Manager brought about a compromise between the leaders of Unions A and B. Immediately after this meeting the strikers (members of Unions B and D) resumed work and the settlement was signed for the same rate of bonus as was originally agreed upon.

Questions

(a) Was the leader of Union A justified in making remarks which made the leader of Union B feel offended?

(b) What should be management's long term strategy for avoiding recurrence of inter-union differences on such issues?

(c) If you were the Industrial Relations Manager what would you have done had the Union B resorted to strike for a reason other than that mentioned in the case

 

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