Human Resource Management

27 Jun


A well-known financial house started an Industrial unit using new technology under the name Royal Electronics Company. Their system of Management in general was of the old type where everything was centralized on a personal level. However, in case of new company, due to various factors like distance, time etc., the industry was allowed to develop on autonomous lines and was put in charge of U.K. trained Engineer. Considering the various aspects, the industry was developing well. But due to the lack of adequate attention to labor and industrial relations, a strike developed. It generated tensions and fears among the executives left jobs including Labor officer who felt insecure due to vacillation and interference from top management. Finally the strike was resolved. But some workers were still under charge sheets. Their cases had been conducted by the new Labor Officer who had joined at the height of strike one day the factory manager received a call from the managing Director to dismiss the Labor Officer immediately. He solicited reasons at least to justify his action, but of no avail. In fact the Managing Director came personally, went to the Labor Officer directly and gave him the dismissal letter. The Labor officer was appointed by the Factory Manager and so went to him but the Manager could do nothing now.

Answer the following question.

Q1. Analyze the factors that led to a breakdown of industrial relations in the Royal Electronics Company

Q2. How should the cases of charge sheeted employees be dealt with?

Q3. What course of action will you suggest for the factory manager?

Q4. As a Labor Officer what would be your steps after receiving the letter of dismissal from the Managing Director.



It was just three days after New Year, the employees after an extended week end were returning to their work stations with a well-earned break. It was about 11 am when some of the employees had taken a break and were in the cafeteria where a prominent business channel was playing, when suddenly the news reader announced a ‘breaking news’, that the Chairman and Managing Director (CMD) of ME Switchgears (MES) was announcing live on National television an accounting fraud that was perpetrated on the company by the promoters, of which the CMD was an important player. Those in the cafeteria were awestruck and some began speaking to their colleagues across India, some were texting, some went to the cabins and cubicles to inform others. Believe it or not, a cafeteria that could house about 50 employees at any given point in time had around 300 employees watching the business channel; amongst them was an employee who had joined MES, his first job through a campus placement from a leading Engineering College; and it was his first day at the work place. He was in tears, and the HR executive who was taking care of the joining was making all efforts to console the employee. MES had employee strength of 3875 across three plants in India. The company had many a loyal employees who wanted to retire in the organization. The news came as a shock to all. It appeared that operations came to a standstill at least for a while, the seniors and all other employees were making to ensure continuity at least for the moment. By 1 pm one could see three OB vans belonging to local television channels outside the building that housed MES. The operations team along with the HR team was already in conference calls with each of the group heads. They were also planning an address with the Head of Delivery in the chair. Considering that the information they were receiving was only from television sources, there was an element of confusion; and hence decision making was difficult. The Head of Delivery, who enjoyed a number three position in the company, and was a person who did not belong to the promoter team, sat with the operations and HR teams and decided upon a few decisions for the short term and few for the long term. In the meanwhile the Company Law Board (CLB) of the Government of India had also made a statement based on an interview provided by an important functionary, that if required, CLB would intervene and ensure continuity of the well-established firm. Harsh decisions would also have to be taken such that similar situations do not occur.

Answer the following question.

Q1. What should be the plan of action (short term and long term) for the HR team to be? What are the points of reference that the HR team should provide to the Head of Delivery and the Operations team?

Q2. What efforts should be made by the HR team to ensure quality in internal and external communication to the employees? Create a communication plan to ensure information flow.



Leonard Corporation is a well-established name in the Electronics Industry. With an annual turnover of Rs. 300 Crores with a strength of 1200 people. It was established in 1990 by two partners namely Mr. Le Oswald ,an Electronics Engineer and Mr. Maynard an HRM person.. The organization had many unwritten systems. One of which was Annual Performance Report .There was good demand of products when something unplanned started happening. Promotion to Works manager was announced and Mr. Bhat was given promotion superseding 3 others. Production started declining and two of the three dissatisfied officers left the organization resulting into further problems. These people were seniors and well qualified-foreign trained. Mr. Gopal was assigned the job of finding out the cause of low production and dissatisfaction. Please help Mr. Gopal in this case.

Answer the following question.

Q1. Illustrate the cause of low production.

Q2. What is the system of Performance Appraisal in the organization?

Q3. What precautions were needed before announcing promotions?

Q4. Please suggest a better Performance Appraisal system for the organization.



The case is about the retrenchment drama that unfolded in one of India’s leading aviation companies, Jet Airways (India) Limited (Jet), in late 2008. After showing the door to more than 1000 employees in a bid to streamline its operations, Jet was faced with immense criticism and opposition by various organizations and political parties. Jet’s chairman Naresh Goyal (Goyal) reinstated the employees a day later saying that he was not aware of these sackings. The Indian aviation industry was going through a tough phase and experts felt that it was in the interest of the company to retrench employees to remain competitive. Experts largely felt that Goyal had capitulated under pressure from external parties while others felt that all may not be well with the organizational communication mechanisms at Jet.

Answer the following question.

Q1. Analyze the HR problems faced by Jet Airways in 2008.

Q2. Discuss various concepts related to hiring, firing, and compensation management.

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