HRM Case Study 2

Watson Public Ltd Company is well known for its welfare activities and employee
oriented schemes in manufacturing industry from more than ten decade. The company
employs more than 800 workers and 150 administrative staff and 80 management level
employees. The Top level management views all the employees at same level. This can
be clearly understood by seeing the uniform of the company which is Same for all
starting from MD to floor level workers. The company have 2 different cafeterias at
different places one near the plant for workers and other near the Administration
building. Though the place is different the amenities, infrastructure and the food

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provided are of same quality. In short the company stands by the rule

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Employee Equality.

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The company has one registered trade union and the relationship between the union

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and the management is very cordial. The company has not lost a single man day due to
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strike. The company is not a pay master in that industry. The compensation policy of
that company, when compared to other similar companies, is very less still the
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employees don’t have many grievances due to the other benefits provided by the
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company. But the company is facing countable number of problems in supplying the
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materials in recent past days. Problems like quality issues, mismatch in packing
materials (placing material A in box of material B) incorrect labeling of material, not
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dispatching the material on time etc…

The management views the case as there are loop holes in the system of various
departments and hand over the responsibility to HR department to solve the issue.
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When the HR manager goes through the issues he realized that the issues are not
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relating to system but it relates to the employees. When investigated he come to know
that the reason behind the casual approach by employees in work is

> The company hired new employees for higher level post without considering the
potential internal candidates.

> The newly hired employees are placed with higher packages than that of
existing employees in the same cadre.

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 Questions with solutions:-

1. Narrate the case with suitable Title for the case. Justify your title.

Solution:

Employee Equality is not the need for every hour. In the above said case Watson Ltd
had provided all facilities to employees at each grade in equal manner. But still the
employees started creating certain issues like materials are meeting the quality supply
schedule is not met etc.. and the HR manager said that the policy of hiring new

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employees for higher post without considering old potential employees is the major

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problem.

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“Employee recognition VS Employee equality”. As the HR manager states that

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employees are not been recognized for the potential rather company has gone for new
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recruitment. Because of which the company faces problems.
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2. The points rose by the HR manger as reason for the latest issues in the organization
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is justifiable or not. Support your answer with Human resource related concepts.
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Solution:
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Yes the points raised by HR manager is justifiable because “Human beings are social
Animals as popularly” said by many Human resources Scholars. So human minds
demands for social recognition, self respect, consideration etc for their work and
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performance.
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In the above said case even the company provides and stands by the concept
employee equality when it fails to recognize the potential talents of existing employee
they felt dissatisfaction towards the organization and they showed in the way of quality
issues and slow down production.

Related HR concept.

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 Slow down Production:

The concept of slow down production is a type of strike done by employee. The
Industrial Relations sates that when the employee wants to show their dissatisfaction to
the management but don’t want to go for strike they follow slow down strike. The impact
of which will be understood after a particular time period

Employee Recognition:

Human beings can be easily motivated by Rewards and recognition than that of money.

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In this case also the employee are not satisfied even after all facilities just because of

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the reason that they are not recognized.

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Hawthrone Experiment:

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In the four type of test conducted by Elton mayo the remarkable hike in production is
recognized in the stage when they consulted the employees for the management
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decisions regarding them. The same thing was missing in Watson Ltd. Before the new
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hires if the management consulted the employees both management and employees
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would have avoided this issue

Hygiene Factor:
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Theory of hygiene factor states that there are certain factors related to employees the
presence of which will not create major impact but the absence of such things will lead
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to a de motivation to the employees. Employee Recognition is one such factor when the
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management fails to do so it will Detroit the employees to a great extent.

3. Help the organization to come out from this critical issue. If you are in the role of
HR manager what will be your immediate step to solve this case.

Solution:

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 If I was in the post of the HR manager I will try to discuss the issue and ask for the
reason from the management for new recruiting rather than considering available
potential talents. I will personally analyses the reasons provided by management and if
acceptable i will discuss the same with the employees. Everything is possible when
discussion is done. So I will discuss and convince the employee that this wont happen
again in the organization. I will also initiate the collective bargaining process for
reasonable salary hike for the existing employees.

HRM CASE STUDY 3:

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You Mr. A of Alfa community, are a newly appointed manager of a workshop, which

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has been categorized as an essential service. This means that the workshop must

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function on all the days. Rules lay down that, at least, two individuals must be on duty
irrespective of their seniority or specialization. The workshop is manned by an equal

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number of individuals of the two communities, Alfa and Beta. A good tradition has been
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built, i.e. when one community has a festival, the workers from the other community
man the workshop and vice versa.
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Recently, there were labour union election and Mr. Beta community has been elected
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as the leader. The new leader is reported to be very Whimsical (unusual), though very
good at heart. Your day of trial dawned when it came to light that on Friday next, both
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the communities claim to be their religious day. Both the communities want the other
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community to perform the duty on that day. While Alfa community is banking on you; the
others are equally sure of their union leader from beta community winning the day for
them. You realise that there have been a lot of discussions and more negotiations and
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discussions are making the situation worse. The attitudes of both the parties are
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hardening and the last discussions had ended as a war of words. You do not want to
damage the good relations between the two communities built over the years but still
have to solve the problem. What will you do?

Solve this case using following method:

Give all the possible solutions available for the case along with advantage and
disadvantage for each solution.

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 Compare the solutions and justify the best solution.

Give suitable Title for this case.

Solutions for Case Study 3

Updating….

HRM CASE STUDY 4:

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Mr. Bhat, Human Resource Manager of IVS Group of companies approached the CEO

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on 30th march, 2007 and apprised him of the absence of Mr.Ajay Vaidhya, Assistant

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Accountant in the Corporate Finance Department, for the past one month and
requested him to approve the show-cause notice to be saved to Mr.Ajay as per the

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Labour Laws in force. rs e
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The CEO told Mr.Bhat: “When Mr.Ajay has been absent for the last one month , your
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duty is to go to Mr.Ajay,s house, find out the reason and solve the problem of Mr.Ajay,
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and not just to report the absence to me. Go immediately to Mr.Ajay,s house find the
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reason and report it to me before 5.oo P.M. today.”

Mr. Bhat immediately left for Mr.Ajay’s house and learnt from Mr.Ajay ‘s Wife that
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Mr.Ajay has been in distress as he has been trying to mobilise Rs.1,00,000 for the
surgery of his sick wife in a reputed hospital in Chennai. Mr.Bhat could meet Mr.Ajay
around 3.PM and both of them then met the CEO. Both of them apprised the CEO the
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reason for the absence and distress of Mr.Ajay.

The CEO immediately contacted the hospital and informed them that the company will
pay Rs.1,00,000 tomorrow i.e., 31st March 2007 and requested the doctor to conduct
the surgery for Ajay’s wife tomorrow itself.

The CEO ordered Mr.Bhat to arrange to issue a cheque for Rs.1,00,000 in favour of the
hospital and also pay Rs.10,000 in cash to Mr.Ajay to meet incidental expenses as a

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 grant. Mr.Ajay as well as Mr.Bhat were surprised at the decision of the CEO Mr.Ajay
became emotional and touched the feet of the CEO.

The CEO told Mr.Bhat:”Problems of our employees are the company’s problems. We
treat the employees as human being and members of the company’s family.”

This piece of news spread in the entire company within no time and the employees felt
highly secured. The productivity level increased by 100% in the next quarter itself and
sustained over the years to come.

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Questions:-

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1. Why did Mr.Bhat prefer to follow a legal approach to the problem?

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2. Why did the CEO provide Rs.1,10,000 as just a grant to Mr.Ajay ?
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3. What would be the morale of employee’s family members after this incident?
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4. Suggest a suitable title for the above said case and justify that title.
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