What should he do?
Ans: He needs to stick to it, and instead of just passing along the statements of the two parties, he should be more proactive, and look for solutions that may benefit both parties. This lets him prove the value of his position and can lead to a win-win-win for all parties.
For example, the directors are worried about the financial situation, which is affected by slow downs and strikes. K. should ask the directors how much no slow downs and strikes will help the business - what will the financial benefit be? Then he should ask the directors to split that benefit with the workers. If this is like my MBA case studies, they may have included some data - see if you can figure out how much $ benefit the company would see from improved productivity.
There may be other compromise solutions K could find - check your textbook and any other background materials you have to see if you can find them. Education / training is another win-win for most companies, and maybe there are other benefits that could cost the company less than a straight wage increase.
Case -3 A Worried CEO
What should Sudarshan do?
Ans: Mr. Sudarshan has to forget the past and rebuild the company from the lessons learnt. He has to devise an IR/ER policy in consultation with the new Factory Manager and HRD Manager. The mistakes committed earlier should not be repeated; like the Factory Manager not being able to distinguish between a Cultural Association - whose activities should be outside the Works area;...