7.16 CASE STUDY
Sagar Private Limited is a small company, which manufactures plastic products such as mugs, buckets, and other household utility products. This company which is situated in an industrial belt in New Mumbai has typical labor needs. Since quite a few operations including packing of products are done manually, the company employs 80 workers on the shop floor. The company supplies its products to retailers in and around Mumbai. It has a long production run and longer product life-cycles and therefore the management believes that the company is making fewer profits because of this. As a result, the top-management, which comprises of the members of Maheshwari family, since this is a family managed business, decided to invest resources on automation to have shorter production runs & shorter product life-cycles. It has decided to introduce packaging machines to reduce semi-skilled and unskilled labour.
The company has a bad record in industrial relations since workers in the past have had several problems pertaining to wages and working conditions. Rajnath Dube, a worker who is often pampered by management to get their way, dominates the company union. Rajnath is a man who ranks very low in personal & professional ethics but has a way with people and is good at politics. He has a substantial clout with the workers who trust him and would act on his advice. But the management is fully aware that Rajnath may not be able to help much if the company thinks of retrenching workers. However the management decided to speak to Rajnath regarding their decision to introduce automatic machines and subsequent lay off of workers. Rajnath immediately sensed a good opportunity to make a big sum so he pretended that convincing the workers was a Herculean task and he would need at least 6 months time to do this. The management was however impatient to introduce automation and told Rajnath to convince workers within 3 months to help them implement the decision. Of course Rajnath played his game and asked for a huge sum in reciprocation of his effort. The Maheshwari brothers were shocked at the price that Rajnath wanted. They however knew that things would only get worse if they refused Rajnath’s proposal.
CASE QUESTIONS
1. Was the Maheshwari family’s method of introducing change in Sagar Private Limited appropriate? Please substantiate your response giving suitable reasons.
2. What was the tactic used by top management to overcome resistance to change? What tactic would you have used to overcome workers’ resistance to change if you were in the top management’s position?
3. How would you handle Rajnath if you were in place of the Maheshwaris?
From India, Bangalore
Sagar Private Limited is a small company, which manufactures plastic products such as mugs, buckets, and other household utility products. This company which is situated in an industrial belt in New Mumbai has typical labor needs. Since quite a few operations including packing of products are done manually, the company employs 80 workers on the shop floor. The company supplies its products to retailers in and around Mumbai. It has a long production run and longer product life-cycles and therefore the management believes that the company is making fewer profits because of this. As a result, the top-management, which comprises of the members of Maheshwari family, since this is a family managed business, decided to invest resources on automation to have shorter production runs & shorter product life-cycles. It has decided to introduce packaging machines to reduce semi-skilled and unskilled labour.
The company has a bad record in industrial relations since workers in the past have had several problems pertaining to wages and working conditions. Rajnath Dube, a worker who is often pampered by management to get their way, dominates the company union. Rajnath is a man who ranks very low in personal & professional ethics but has a way with people and is good at politics. He has a substantial clout with the workers who trust him and would act on his advice. But the management is fully aware that Rajnath may not be able to help much if the company thinks of retrenching workers. However the management decided to speak to Rajnath regarding their decision to introduce automatic machines and subsequent lay off of workers. Rajnath immediately sensed a good opportunity to make a big sum so he pretended that convincing the workers was a Herculean task and he would need at least 6 months time to do this. The management was however impatient to introduce automation and told Rajnath to convince workers within 3 months to help them implement the decision. Of course Rajnath played his game and asked for a huge sum in reciprocation of his effort. The Maheshwari brothers were shocked at the price that Rajnath wanted. They however knew that things would only get worse if they refused Rajnath’s proposal.
CASE QUESTIONS
1. Was the Maheshwari family’s method of introducing change in Sagar Private Limited appropriate? Please substantiate your response giving suitable reasons.
2. What was the tactic used by top management to overcome resistance to change? What tactic would you have used to overcome workers’ resistance to change if you were in the top management’s position?
3. How would you handle Rajnath if you were in place of the Maheshwaris?
From India, Bangalore
32
Dear Ram,
I m pointing out some words that used in ur case study which conveys special attention:
1) Typical labour needs==> means chances of engaging contractor. If company engaging contrcator, 50% problem solved.
2) Packing of products==> This is not core business. Company can engage contractor such activities.
3) Bad records in industrial relations==> very less chance of any assiatance by local authority.
4) Rajnath good at politics==> Rajnath must be associated wth any political party. MD of company must have political relation so he should take advantage of it.
6) at least 6 months time==> Rajnath Dubay has no knowlege of Industrial Law or making fool to company. As per ID Act, 1947, If workers strength is 100 or more, retrenchment notice will be served before 3 months from retrenchment date otherwise 01 month notice is enough. at the same time notice of intension to do such to be given govt (RLC, ALC, EE etc) before 60days. COMAPANY SHOULD GO THROUGH LEGAL WAY TO SAVE THE IMAGE AND LOSS.
7) Huge Sum==> means Rajnath Dubey is in need of money. Company should adopt DIVIDE AND RULE policy and find out who is second line command among workers. Company should deal with substitue of Rajnath Dubey at the same time. It is workable and every where it is prevail.
Now ur case:
Ans (1): Method of introducing change is requirement of company. Company is free to adopt such change keeping in mind business profit, product quality etc..... Company will go through ID Act, 1947. Pls see the clause.
Ans (2): See, its not tactics of management. Its company needs. when we spk about resist to change, its human tendency to resist.
I will use following technique to convince Rajnath Dubey and workers
a) If there is any other units other than Mumbai where there is no plan to implement such automation, I will tranfer those workers who are strong enough in resistance. management can do such thing without depriving their wages. One thing we should keep in mind that settled worker will not go any where other than mumbai. Result: they will resign and my problem will be sorted little bit.
b) Bze we are introducing automation in packing area only. Rest are on manual. I will find out the lazy workers who is not hard workers. i will put such workers in hardship job. Ultimately they will be compelled to leave.
c) I will make the list of workers those who r under Probationary Period. i will terminate them without assigning any reason.
d) If workers service tenure is 01 yr or more, i will compensate them as per ID Act and will give assurance to rehire if we need in future.
e) If there is chance to adjust anywhere in the company, we will give chance to work in other area in place of packing area.
f) If there is threat of illegal strike, i will be in contact with such contrcators who can provide such type of services in short period notice.
g) If there is threat of locking of gate, i will take necessary help of local police or authority
h) We will conduct meeting with all management personnel for solution. we will tell all managerial staff to be ready to work day and night basis for few days (till amicable solutions)
but all this practice should be well in advance
Ans (3): Rajnath Dubey will be handled only applying Divide and Rule Policy. Personaly, my nature is to build good relation with local authiry as well as politician . With the help of external jack, i will sort out Rajnath Dubey which is cancer for organisation. Second Rajnath will be produced (by hooks and crooks) to sort out the problem of company
Note: i m not expert but i handled strike.
Regards
Sidheshwar
From India, Bangalore
I m pointing out some words that used in ur case study which conveys special attention:
1) Typical labour needs==> means chances of engaging contractor. If company engaging contrcator, 50% problem solved.
2) Packing of products==> This is not core business. Company can engage contractor such activities.
3) Bad records in industrial relations==> very less chance of any assiatance by local authority.
4) Rajnath good at politics==> Rajnath must be associated wth any political party. MD of company must have political relation so he should take advantage of it.
6) at least 6 months time==> Rajnath Dubay has no knowlege of Industrial Law or making fool to company. As per ID Act, 1947, If workers strength is 100 or more, retrenchment notice will be served before 3 months from retrenchment date otherwise 01 month notice is enough. at the same time notice of intension to do such to be given govt (RLC, ALC, EE etc) before 60days. COMAPANY SHOULD GO THROUGH LEGAL WAY TO SAVE THE IMAGE AND LOSS.
7) Huge Sum==> means Rajnath Dubey is in need of money. Company should adopt DIVIDE AND RULE policy and find out who is second line command among workers. Company should deal with substitue of Rajnath Dubey at the same time. It is workable and every where it is prevail.
Now ur case:
Ans (1): Method of introducing change is requirement of company. Company is free to adopt such change keeping in mind business profit, product quality etc..... Company will go through ID Act, 1947. Pls see the clause.
Ans (2): See, its not tactics of management. Its company needs. when we spk about resist to change, its human tendency to resist.
I will use following technique to convince Rajnath Dubey and workers
a) If there is any other units other than Mumbai where there is no plan to implement such automation, I will tranfer those workers who are strong enough in resistance. management can do such thing without depriving their wages. One thing we should keep in mind that settled worker will not go any where other than mumbai. Result: they will resign and my problem will be sorted little bit.
b) Bze we are introducing automation in packing area only. Rest are on manual. I will find out the lazy workers who is not hard workers. i will put such workers in hardship job. Ultimately they will be compelled to leave.
c) I will make the list of workers those who r under Probationary Period. i will terminate them without assigning any reason.
d) If workers service tenure is 01 yr or more, i will compensate them as per ID Act and will give assurance to rehire if we need in future.
e) If there is chance to adjust anywhere in the company, we will give chance to work in other area in place of packing area.
f) If there is threat of illegal strike, i will be in contact with such contrcators who can provide such type of services in short period notice.
g) If there is threat of locking of gate, i will take necessary help of local police or authority
h) We will conduct meeting with all management personnel for solution. we will tell all managerial staff to be ready to work day and night basis for few days (till amicable solutions)
but all this practice should be well in advance
Ans (3): Rajnath Dubey will be handled only applying Divide and Rule Policy. Personaly, my nature is to build good relation with local authiry as well as politician . With the help of external jack, i will sort out Rajnath Dubey which is cancer for organisation. Second Rajnath will be produced (by hooks and crooks) to sort out the problem of company
Note: i m not expert but i handled strike.
Regards
Sidheshwar
From India, Bangalore
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