International Human Resource Management

02 Jul

CASE STUDY -1                                                                             

Kaniksha Ispat is an established medium size company manufacturing steel strips. The company has employed over 800 workers. The products of the company have established a good reputation and company was doing very well for last 15 years.

The market is slowly changing its nature. The competition is growing and the recessionary trends are now clearly visible. The company is not visualizing a bright, growing market and most of the products, as per present marketing conditions are overpriced.

In an effort to save the organization, the company president Mr. Vasant invited all the employees for a joint meeting. At the meeting he tried to explain what problems company is presently facing and what the means to save the company are.

The employees after understanding the graveness of the situation, agreed to have a10% cut, effective from the next month in their salaries immediate increase in salary is not possible. Mr. Vasant was highly impressed at the cooperative and positive approach of the employees. The company also tried to maintain a strict austerity measures in order to cut costs. Three months later, the company installed many new devices to improve quality and cut costs.

Anagram Finance and Leasing came forward to offer a hand of help to improve its financial position. The loan agreement amounted to Rs. 1 crore. First installment was received by the company Rs. 30 lacs and reconstructive work started at a rapid speed.

The techno-economic survey was made by the expert of Anagram Finance and they submitted a report that, future cut in administrative cost by reducing 200 employees is the essential step that Kaniksha should take immediately. If this is not acceptable to the company then the next installment should not be released. Since the fixed assets of the company had been used by the company to support the loan agreement, it had a little scope for denial.

Mr. Vasant decided to invite union leader and discuss the issue

1. What is the fundamental management problem?

2. List out alternative courses of action.

3. Identify the position of both Mr. Vasant and Union Leader.


CASE STUDY -2                                                                             

A Food specialty is presently headed by Nandan Vinayak. The company is doing business very well and its profits are on continuous rise. The company has maintained a steady profitability, sales and performance track record. The employees are mostly less paid and less educated. Most of them are semiskilled and coming from nearby rural areas.

Mr. Nandan is quite happy with the existing situation. He has recently launched an expansion program has fetched him grand success. The new products of the company are highly appreciated. In discussion with his closest colleagues he decided to institute a program of employees rewarding employees with silver potteries. The types of silver wears were to vary from employees to employees depending on his tenure of service and cadre in which he has served. Mr. Nandan felt that he would receive a grand reception on this announcement.

The announcement was made on 12th October in order to offer Diwali Gifts to the employees. Instead, after he cheerfully presented his plan, he faced a silent group of weary workers staring back at him in near disbelief. Most of them were nervous and unhappy. They thought that this is not what they expected for the tremendous labour put in as a reward.

Mr. Nandan was puzzled at the pathetic response of the workers.

1. Analyze the case

2. Was the incentive scheme wrong in any way?


CASE STUDY -3                                                                                         

Amit, a Chief Manager of Spark- leading departmental stores at Nagpur, has attended a seminar on Japanese Management System. He was highly impressed by the innovative and democratic approach of the system. He decided to go for Japanese System by introducing initially a few measures in the stores.

Mr. Rajesh is his close rival, who feels that he has the right to be the chief of these stores, for his qualities and understanding of the departmental stores. Mr. Rajesh often puts spokes in the wheel in order to bring Mr. Amit in troubles. He has won confidence of a small section of sales representative, who at his insistence often play games to trouble Mr. Amit and malign his image or foil his plans.

Mr. Amit decided to introduce a suggestion box scheme. He thought that the suggestion so received will be helpful to improvise the functioning of the department. As well as to involve the workers in decision- making process.

A meeting of all sales personnel and assistant managers was called on for this purpose. Mr. Rajesh along with others also attended the meeting. He listened to the idea of Mr. Amit properly and decided to foil it. Mr. Amit explained the concept of suggestion box, and said that anyone can put the suggestion, he need not mention his name, if he mentions his name and offers a useful suggestion, a reward of Rs. 50 will be given.

Mr. Amit felt that the scheme will work and he will fetch a goodwill as well as good participation. A week after launching of the scheme, the box was opened. It was having nearly 70 suggestions. A scrutiny was made by Mr. Amit and to his surprise; he received a bolt from the blue. 36 suggestions were to scrap the scheme and in 22 cases very naughty ideas were offered. This frustrated Mr. Amit and he decided to abandon the suggestion box scheme. A feedback from the workers was taken.

He found that no worker was much impressed with the idea. The scheme was scrapped and Mr. Amit continued with existing ideas….

1. Analyze the incidence.

2. Identify the issues, problems involved in this scheme.

3. List out the facts

4. List the critical problems demanding immediate attention.

5. Was Mr. Amit right in scrapping the scheme?