People Management Fiasco in Honda Motors
People Management Fiasco in Honda Motorcycles and Scooters India Ltd
1. There were a few different key factors that led to the breakdown of industrial relations at HMSI. Although it seemed that HMSI was very concerned and aware of the needs of its employees, things still went downhill. The first issue arose in November of 2004. Union leaders were not impressed with the amount each worker received in their annual Diwali gift. They felt “belittled” that they received such a small gift when comparing it to the stature of the company in the global market. Workers were also upset they had to sign a “movement sheet” when bathroom or water breaks were needed. The company hardly ever granted shift changes between workers and would constantly threaten the workers with termination. The workers also complained of favoritism by managers, and were not permitted to share their grievances with top management.
Workers were also unhappy with the attitude of the vice-president of manufacturing, who was a disciplinarian. This guy kicked an employee, which led to unrest within the company. The workers were not happy with the light punishment the VP received. In March 2005 the workers presented a list of 50 demands, which prompted management to create a compensation package for them, which they ultimately declined. The workers looked towards joining the union. The HMSI tried to stop the formation and delay it as much as possible, but on May 20, 2005, the union was formed. Key issues were debated and argued between management and union officials. Negotiations were held, but the conciliation ultimately failed. Soon after workers were fired and temporary workers hired to help the slowdown of production. HMSI looked to the police for protection against angry union workers, which led to the violence on July 25, 2005. The failure of the Union and HMSI to work together and make a better working environment led to the breakdown.
2. There were many different mistakes the Japanese and Indian
1. There were a few different key factors that led to the breakdown of industrial relations at HMSI. Although it seemed that HMSI was very concerned and aware of the needs of its employees, things still went downhill. The first issue arose in November of 2004. Union leaders were not impressed with the amount each worker received in their annual Diwali gift. They felt “belittled” that they received such a small gift when comparing it to the stature of the company in the global market. Workers were also upset they had to sign a “movement sheet” when bathroom or water breaks were needed. The company hardly ever granted shift changes between workers and would constantly threaten the workers with termination. The workers also complained of favoritism by managers, and were not permitted to share their grievances with top management.
Workers were also unhappy with the attitude of the vice-president of manufacturing, who was a disciplinarian. This guy kicked an employee, which led to unrest within the company. The workers were not happy with the light punishment the VP received. In March 2005 the workers presented a list of 50 demands, which prompted management to create a compensation package for them, which they ultimately declined. The workers looked towards joining the union. The HMSI tried to stop the formation and delay it as much as possible, but on May 20, 2005, the union was formed. Key issues were debated and argued between management and union officials. Negotiations were held, but the conciliation ultimately failed. Soon after workers were fired and temporary workers hired to help the slowdown of production. HMSI looked to the police for protection against angry union workers, which led to the violence on July 25, 2005. The failure of the Union and HMSI to work together and make a better working environment led to the breakdown.
2. There were many different mistakes the Japanese and Indian