CASE STUDY 1:
Vipul Chemicals limited is a small proprietary concern which started production and marketing in 1995. There was a rapid growth in the activities and in March, 2002, it was converted into a public limited company with a turnover of Rs. 175 crore. Initially, the workers employed were 125 but the number reached to 1800 in March 2002. These workers worked in 25 different departments under the control of 25 supervisors and 10 managers.
This rapidly growing company is facing labor problems. Workers are not happy as regards to holidays, hours of work, overtime allowance, leave, promotions, transfers and other personnel matters. The decisions given by supervisors and managers are not uniform, fair and impartial. Some decisions are changed when concerned workers became aggressive. Quarrels are quite common in the departments. Workers have many grievances but are pending since long. Industrial relations are not at all cordial. Strike or stoppage of work is possible at any time. Even the supervisors may be beaten by workers for their wrong, inconsistent and partial decisions.
The situation is alarming. The top level management has noted the seriousness of the situation. It decided to prepare a personnel policy manual providing clear cut guidelines to handle employee complaints. The top level management feels that its decision will avoid grievances of workers, will offer justice and fair treatment to employees and will lead to cordial industrial relations within a short period.
Examine the above noted case and answer the following:
• What is the basic cause behind the labor trouble?
• Are supervisors and managers responsible for the present situation?
• Do you feel that management’s decision will create cordial industrial relations in the company?
Case Study : 2
Purity instruments Ltd. Is a large company manufacturing and marketing pollution control instruments at the national level. The annual turnover of the company is nearly Rs. 40 crore and is getting good profit margin. The company has ample opportunities to grow, expand activities and earn huge profits. However, the management is not keen to take the benefit of market opportunities mainly due to the problems relating to employees who are 475 strong including managers, supervisors, skilled workers, service engineers and unskilled workers. Important personnel/ manpower problems faced by the company are:
• The compensation payment system is not satisfactory leading to quarrels, disputes and work stoppages.
• Employees, in general, are not satisfied as monetary incentives, welfare activities, safety measures and working conditions are not efficient.
• Training and management development facilities are not provided to workers.
• Absence of career planning and development facilities to employees
• Absence of uniform decision on personnel problems and employee grievances leading to quarrels and misunderstanding among employees.
The company management is willing to expand its business activities and also wanted to give fair treatment and liberal facilities to employees. However, it failed to get proper guidance for moving ahead. The top management appointed a reputed management consultant MR. PV Dalal and requested him to give solution to the manpower problems faced by the company. Mr. Dalal studied the problems in-depth and also discussed the issues with the concerned parties. Finally, he gave a common solution to all problems. The solution was to create HR department and to appoint a properly qualified, matured and trained HR manager as the head of the HR department. He should be asked to set right matters within six months. The consultant Mr. Dalal also expressed willingness to guide new HR manager if required.
1. State the personnel problems faced at Purity Instrument Ltd.
2. Do you feel that creating HR department is a...