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Parental Imposition

This case study examines an automotive ancillary company in Bangalore that was asked to change its production model from just-in-case to just-in-time by its parent company. The change was necessitated by increased competition from foreign automakers in India due to globalization policies. This implied a decrease in costs including workforce downsizing and lower wages. Similar domestic automakers had offered voluntary retirement packages to reduce excess manpower. The company's HR head circulated a memo informing workers of the changes and requesting their cooperation during the workforce reduction process.

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2K views4 pages

Parental Imposition

This case study examines an automotive ancillary company in Bangalore that was asked to change its production model from just-in-case to just-in-time by its parent company. The change was necessitated by increased competition from foreign automakers in India due to globalization policies. This implied a decrease in costs including workforce downsizing and lower wages. Similar domestic automakers had offered voluntary retirement packages to reduce excess manpower. The company's HR head circulated a memo informing workers of the changes and requesting their cooperation during the workforce reduction process.

Uploaded by

guru_v_s
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Introduction to case parental Imposition

This case study is of an automotive ancillary company located in Bangalore This ancillary company under reference was asked to change its production from just in case to just- in time basis because of significance change in production cycle by proposed parent company The proposed change in production basis was necessitude due to foreign automotive companies sharing the domestic automotive business along with ancillaries because of the globalization policy adopted by Gov. because of the proposed change in production implied proportionate decrease in expenditure including downsizing of workforce and wagebill (salary ) Some of the domestic automotive companies like M&M , Telco etcdesigned exit policies and offer VRS packages to their employees for getting rid of excessive manpower

continued
The head Hr of the Bangalore based automotive ancillary company circulated the above facts among its workers through a memo , for the purpose of their knowledge and cooperation ( for peaceful exit of the excess workforce )

Q4.
A4. For management the implications are : They have to realign the production with the reduced demand , reduce the expenditure and improve the quality of the product The implications for workers are : They have to upgrade their skills, work hard , and improve the quality of the product , they may have to work on lower wages if need be . The implication for union are : The workforce will be downsized resulting in reduced membership of the union , union activities will be reduce to bare minimum .

Q5.can the management or unions do anything to ensure that such system are not imposed on transnational companies No the management and union cant do anything in this case , only Gov. can impose on transnational companies If as management or unions if we have to do anything we can do the following We have to maintain the standards as compared to foreign companies Changes should be there in order to grow There should be competitive and healthy atmosphere for the work force Should be updated with technology

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