HUMAN RESOURCE MANAGEMENT

ASSIGNMENT-2

Submitted by Ashish Kumar Annepu Roll no-7 DFT-7

CASE STUDY 1: POOR SANJAY!

CASE-NOTES

Sanjay Nagpal is a new recruit from a reputed management institute, recruited as a sales trainee in a sales office of a large computer hardware firm located in Chennai.

Raghvan is the zone sales manager responsible for overseeing the work of sales officer, field executives and trainee salesmen numbering over 50 of three areas namely Chennai, Bangalore, and Trivandrum.

The sales growth of the products in his area was highly satisfactory owing to the developmental initiatives taken by respective State Governments in spreading computer education.

Raghvan had collected several sales reports, catalogues and pamphlets detailing the types of office equipment sold by the company for Sanjay’s reference.

After short chat with Sanjay, Raghvan assisted him to his assigned desk and provided him with the material collected.

• •

Thereafter Raghvan excused himself and did not return. Meanwhile, Sanjay scanned through the material given to him till 5:00pm before leaving office.

Human Resource Management

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What do you think about Raghavan’s training programme? Q2.QUESTIONS: Q1. What method of training would have been best under the circumstances? Would you consider OJT. simulation or experiential methods? Human Resource Management Page 3 . What type of sale training programme would you suggest? Q3.

Sanjay’s skill and knowledge are limited to his learning in the institute. • The material collected in relation to the products of the company only provides an insight as to what the company sells and not what Sanjay is desired to perform as a part of his job. • This thus justifies that the training programme followed by Raghvan doesn’t suffice for imbibing the required job instructions required for performing the job. What do you think about Raghavan’s training programme? Answer: • The training method adopted by Raghvan is not apt for a new trainee employee like Sanjay. Human Resource Management Page 4 . • This type of training may in general be of no benefit to both Sanjay’s performance and Company’s productivity and also waste of precious resource and time.Q1. • Even though from a reputed management institute.

the-job techniques. • Level of learning: . he must be given an entry-level training.Q2.Training may be imparted by means of on –the job methods as Sanjay is from a management college of good repute where he has already learnt a lot via off. Human Resource Management Page 5 . concepts and relationships involved in the job.In this case Sanjay being a new recruit. What type of sale training programme would you suggest? Answer: • The factors that need to be kept in mind while suggesting an apt sales training programme would be: • • • • • Sanjay being a newly recruited trainee. Identifying the Trainee: . • Method and Technique of Training: . Awareness about how to do the job.It would be essentially suitable that training must be imparted by immediate experienced supervisor of the trainee.As it is an entry level training more emphasis must be given to development of basic understanding of the field. • Conduct of training: . • Identifying the Trainers: . becoming acquainted with the language. The level of performance desired. The nature of the job (sales).Suitably the training programme should be on the job itself so as to provide sufficient exposure and real time supervision to the trainee.

• This way the trainee will build up his experiences and learn the decision making process and strategies. • Since the nature of the job is of sales. What method of training would have been best under the circumstances? Would you consider OJT. • The trainee learns on the actual equipment in use and in the true environment of his job. regulation and procedures. • The training must be done in stages in situations varying from easy to the toughest conditions. • • This method is economical since no additional personnel or facilities are required. In this method the trainee would receive firsthand experience of the job conditions. • The trainee also learns by day-day observation the applications of the rules. hence hands on experience is a must for gaining experience of the job. Human Resource Management Page 6 .Q3. simulation or experiential methods? Answer: • The method suitable for training would be On-the-Job Training (OJT). • It is also appropriate for teaching the skills and knowledge which can be acquired in short term.

Human Resource Management Page 7 . • A formal investigation to monitor and determine the contributions of each employee in the accounts section and check whether they meet standards.CASE STUDY 2: IS RAJAT IN NEEDS OF REMEDIAL TRAINING? CASE NOTES: • Rajat Sharma has been employed for six months in the accounts section of a large manufacturing company in Faridabad. • Rajat. • Along with numerous errors. often he does 20 percent less than the other clerks in the department. an employee in the account section was an exception to the performance displayed by his colleagues. • After the investigation it was found that all employees in the accounts section were meeting the targets that were set. Rajat’s work is characterized by low performance.

If you find do Rajat you has go been inadequately introducing a trained. Should you supervise him more closely? Can you do this without making it obvious to him and his co-workers? Q5. Should you discuss the situation with Rajat? Human Resource Management Page 8 . If he has been with the company six months. how about remedial training programme? Q3. As Rajat’s supervisor can you find out whether the poor performance is due to poor training or to some other cause? Q2.Questions: Q1. what kind of remedial programme would be best? Q4.

• Mistakes encountered must be closely examined and brought to his notice along with the corrections that are required. the reports of his performance/learning during the training must be checked. • Parallel investigations must also be done to check factors other than training affecting /demotivating him. it is because of poor training or other causes such as uncongenial work place. the cause of the poor performance can be well determined as to whether. • To check whether the poor performance is attributed to poor training. • It is to be inspected and identify the areas where he had not performed well or did not show good progress in learning. • He must also be humbly prompted to review his own work to find out the mistakes in order to make him realise his mistakes and provide an opportunity for self–correction.Q1. • He must be properly supervised for 2-3 months so to bring about a change in performance. • Then these identified areas must be closely supervised when the job is performed by Rajat. low wages or low motivation. Human Resource Management Page 9 . • Incentives for improvements in performance can also be introduced to induce genuine interest in the work. As Rajat’s supervisor can you find out whether the poor performance is due to poor training or to some other cause? Answer: • Yes.

• Then the records of the performance/learning in the training are to be investigated in order to find the “weak” areas. how do you go about introducing a remedial training programme? Answer: • Firstly. • Investigation into the training records can also help in determining the gap’s in the training that may have lead to the present problems • An appropriate plan of action or training has to be in place in order to fill the gaps identified. an analysis is also to be done on his colleagues who had received same training as him and determine as to how they are coping and performing with the training provided. Human Resource Management Page 10 . • The required training must not be long and should be precisely cut to needs . • Remedial training should be oriented in a manner such that Rajat would receive Incentives /awards for his improvement in his work. • Secondly. If you find Rajat has been inadequately trained.Q2. it is to be checked as to what type of training Rajat had been through in the organisation. thus acting as a motivating factor for active participation. • The remedial training should basically focus on the gaps observed in his earlier training and also keeping the focus on the skills and abilities that hold prime-importance in meeting the set-standards.

• He must have been provided with a initial training during the period of his induction into the company.Q3. The training programme should be designed in a manner such that it serves the purpose of covering the gaps. • The training would have helped him understand and better comprehend his job and make him understand as to be expected of him. • If in case due to some reason or the other if the training wasn’t successful or any gaps in learning may have been left in his training. • The training necessarily may not be of long period and can also be of on-site in nature i. • • An assessment of his training report can well highlight the gaps. Human Resource Management Page 11 . • A close supervision even after the training is recommended so as to check whether the performance is sustained and continuous. it must be concentrated upon to fill those required gaps by a remedial training. what kind of remedial programme would be best? Answer: • As Rajat has been working in the company for the last six months he must have gained some necessary experience and skills to perform his job. • This shall help him gain practical experience as he goes through the training process which shall help him retain and learn faster. If he has been with the company six months.e. on the job.

• The supervision can be done by providing personal attention and interaction such as. • Supervision is strictly necessary to check the numerous mistakes and lessened productivity portrayed by Rajat. Should you supervise him more closely? Can you do this without making it obvious to him and his co-workers? Answer • Rajat must be closely supervised as it is necessary from his as well as the organisation’s point of view to achieve appropriate standards of performance. • To some extent supervision is good as it is a matter of improving the person. holding back from doing so would only harm him.Q4. • The supervision must be done on the lowest possible tone/intensity by indirectly reviewing the daily work with least interventions possible and provide feedbacks or recommend corrections by communicating informally/ personally rather than formal communication. Human Resource Management Page 12 . a one to one discussion of the problems faced and suggesting appropriate solutions for them.

• The above pre-requisites can only be stimulated by having a detailed discussion on the concerning issue rather than keeping him unaware of the situation and create a discomforting work environment.Q5. such that he doesn’t perceive close supervision of his work as criticism or reprisal. • Rajat’s interest and willingness are prerequisites for active participation in any remedial measures and also to the success or positive outcome of the steps taken. Should you discuss the situation with Rajat? Answer • The magnitude of the problem is compelling and demands Rajat’s immediate attention. what’s wrong with it and what remedial action is planned. Human Resource Management Page 13 . • Rajat needs to be aware of the situation and the harm being caused. • Discussing the situation will make him aware of his current position.

Continual losses over the years. The Government took various steps to turn around IA and initiated talks for its disinvestment. Recurring human resource problems were attributed to its lack of proper manpower planning and underutilization of existing manpower. especially in the human resources area. This shows how poor management.CASE STUDY 3: INDIAN AIRLINES HR PROBLEMS CASE NOTES FLYING LOW • • Indian Airlines (IA) India’s national carrier is a perfect example of a monopoly gone berserk with the absolute power it had over the market. the disinvestment plans dragged on endlessly well into mid 2001. Amidst strong opposition by the employees. The recruitment and creation of posts in IA was done without proper scientific analysis of the manpower requirements of the organization. Human Resource Management Page 14 . Employee unions were rather infamous for resorting to industrial action on the slightest pretext. • • • • • • • Frequent strikes by IA pilots reflected the adamant attitude of the pilots resulting in increased public resentment towards the airline. could spell doom even for a Rs 40 billion monopoly. frequent human resource problems and gross mismanagement were just some of the few problems plagued the company.

BACKGROUND NOTE • • • IA was formed in May 1953 with the nationalization of the airlines industry through the Air Corporations Act. the Air Corporation Act was repealed and air transport was thrown open to private players. and more dynamic in flight crew. younger. Corporate houses entered the fray and IA saw a mass exodus of its pilots to private airlines. In 1994. the company In 1999. IA and its subsidiary. 30 Airbus A320s. 11 Boeing B737s and 3 Dornier’s D0228. These initiatives were soon rewarded in form of 17% increase in passenger revenues during the year 1994. IA’s network ranged from Kuwait in the west to Singapore in the east. Alliance Air. • • • • • • • • • • • • Human Resource Management Page 15 . provided domestic air services. 16 abroad). Unable to match the performance of these airlines IA faced severe criticism for its inefficiency and excessive expenditure human resources. Launched several other new aircraft. In 1999. Improved its services by strictly adhering to flight schedules and providing better in-flight and ground services. Competitors like Sahara and Jet Airways (Jet) provided better services and network. with a new. it had a fleet strength of 55 aircraft .11 Airbus A300s. These costs were responsible to a great extent for the company’s frequent losses. covering 75 destinations (59 within India. Staff cost increased alarmingly during 1994-98. To counter increasing competition IA launched a new image building advertisement campaign.

however continued to drop. In 1999. Interference ranged from deciding on the crew’s quality to major technical decisions in which the ministry did not even have the necessary expertise. • IA was found grossly deficient in realistic assessment of the manpower needs. Strikes. IA had to operate flights in the North-East at highly subsidized fares to fulfil its social objectives of connecting these regions with the rest of the country. made efforts to appease the unions by proposing to bring their salaries on par with those of Air India employees. Human Resource Management Page 16 . In the next few years. who joined IA as chairman in November 1994.5 bn. Analysts noted that the people heading the airline were more interested in making peace with the unions than looking at the company’s long-term benefits. but every strike was about pressurizing IA for more money. These flights contributed to the IA’s losses over the years. while IA’s market share was 47%. the share of private airlines reached 53%. heavy interest outflows of Rs 1. The strategies adopted by IA to overcome these problems were severely criticized by analysts over the years.• • • • • • By 1999 the losses touched Rs 7. • Russy Mody (Mody).99 bn further increased the losses. go-slow agitations and wage negotiations were common.05 bn in 1999 as against long term loans of Rs 28 bn. IA’s market share. optimum personnel utilization and abolition of surplus and redundant posts. ‘FIGHTER’ PILOTS? • • • • • • IA’s eight unions were notorious for their defiant attitude and their use of unscrupulous methods to force the management to agree to all their demands. Unnecessary interference by the Ministry of Civil Aviation was a major cause of concern for IA. • The carrier’s balance sheet heavily skewed towards debt with an equity base of Rs 1. From November 1989 to June 1992. Each had a different reason. need-based recruitment. there were 13 agitations by different unions.

• • This was strongly opposed by the board of directors. thereby successfully controlling the exodus. Mody also proposed to increase the age of retirement from 58 to 60 to control the exodus of pilots.8 bn for IA. Sen.’s efforts seemed to have positive effects with an improvement in aircraft utilization figures. in view of the mounting losses. He was also instrumental in effecting substantial wage hikes for the employees. • • • • • • • • • • • Sen created Alliance Air. a subsidiary airline company where the re-employed people were utilized. When Probir Sen (Sen) took over as chairman and managing director. the PLI schemes raised an additional annual wage bill of Rs 1. IA also managed to cut losses and reported a Rs 140 million profit in 1997-98. Government however rejected his plans. IA introduced the productivity-linked scheme. he bought the pilot emoluments on par with emoluments other airlines . Eventually. Sen and the entire board of directors were sacked by the government. Human Resource Management Page 17 . The extra financial burden on the airline caused by these measures was met by resorting to a 10% annual hike in fares. But recessionary trends in the economy and its mounting wage bill pushed IA back into losses by 1999. In 1990s. in yet another effort to appease its employees.

Thus. in place of 6 directors in departments’ prior April 1998. Analysts pointed that in the case of cabin crew. pending the assessment of their requirement by the Staff Assessment Committee. Six new posts of directors were created of which three were created by dividing functions of existing directors. • • • • Another problem was that no basic educational qualifications prescribed for senior executive posts. the number of employees at IA increased steadily. Though experts agreed that IA had to cut its operation costs. Human Resource Management Page 18 .• • It was alleged that IA employees did not work during normal office hours. 40 posts were introduced in the Southern Region on an ad-hoc basis. however efforts failed. To survive the airline continued to add to its costs. In 1999. by acquiring the necessary jobrelated qualifications & experience. IA had the maximum number of employees per aircraft. by paying more money to its employees. Illiterate IA employees drew salaries that were on par with senior civil servants. this way they could not work overtime and earn more money. there were 9 directors by 1999 overseeing the same functions. Even a matriculate could become a manager. which doubled in the next three years The Brar committee attributed this abnormal increase in staff costs to inefficient manpower planning. After retirement. It was reported that the airline’s monthly wage bill was as high as of Rs 680 million. several employees were re-employed by the airline in an advisory capacity. • • • • • • • • Analysts criticized the way posts were created in IA. IA tried to persuade employees to cut down on PLI and overtime to help the airline weather a difficult period. Over the years. unproductive deployment of manpower and unwarranted increase in salaries and wages of the employees. • In 1998.

simulator allowances etc. There were issues that had been either neglected or mismanaged. All these problems had a negative impact on divestment procedure. TROUBLED SKIES • • • • Frequent agitations were not the only problem that IA faced in the area of human resources. by and large. Human Resource Management Page 19 . the carrier was expected to be in a much better position to handle its labour problems. experience allowance. Various allowances such as out-of-pocket expenses. Excessive expenditure was incurred on benefits given to senior executives such as retention of company car. who would get better services from the airline. • • • Privatization was expected to give the IA management an opportunity to make the venture a commercially viable one. it always acceded to the demands for wage hikes and other perquisites. Freed from its political and social obligations. IA’s financial woes kept increasing. were paid to those who were not strictly eligible. and room air-conditioners even after retirement. The biggest beneficiaries would be perhaps the passengers.• • With each strike/go-slow and subsequent wage negotiations. Though at times the airline did put its foot down.

Evaluate IA’s performance. reasons to support your stand? Human Resource Management Page 20 .QUESTIONS Q1. IA’s human resource problems can largely be attributed to its poor human Do you resource agree? Give management policies. Analyze the developments in the Indian civil aviation industry after the sector was opened up for the private players. Why do you think IA failed to retain its market share against competitors like Jet Airways? Q2.

Analyze the developments in the Indian civil aviation industry after the sector was opened up for the private players. As a result. To gain competitive edge Indian Airlines launched a new image building advertisement campaign. Why do you think IA failed to retain its market share against competitors like Jet Airways? Answer • The Air Corporation Act was repealed in the year 1994. Emphasis was put upon the improvement in services both in-flight and onground and flights strictly adhering to schedules. Evaluate IA’s performance. Indian Airlines witnessed mass exodus of its pilots to private airlines.Q1. Meanwhile the other competitive player provided better services and networks on offer for consumers. thus throwing the aviation market open to private players. As a result of the above effort Indian Airlines could garner 17% increase in passenger revenues during the same year. Corporate houses entered the fray to milk the large opportunity available. Indian Airlines had to face the heat of the open market competitors and consumer expectations. • • • • • • • • Human Resource Management Page 21 . New flights with younger and dynamic crew were also launched to attract consumers.

These failures could also be attributed to the unnecessary interference by the civil aviation ministry which neither had the necessary competence or expertise to take intricate decisions. • The airlines response to the emerging competitiveness in the open market in 1999 was eminent with the decision to undertake various initiatives to rebuild its image. More than required beaurcratic involvement in the organisational affairs was responsible for the failures. Failures in Competition • • • The airline failed in its image rebuilding initiatives where in the contributing cost of the human resource spiralled out of tolerance levels. • The organisation started to face frequent losses which amounted to Rs 7. The inefficiencies and expenditures were attributed to the organisations growing losses. • This however couldn’t be sustained by the airline and its revenues started sliding downwards. This was evident by the fact that in 1999 IA’s share was 47% where as that of private airlines was of 53 %. Human Resource Management Page 22 .5 billion in 1999. those which went on to eat up IA’s market share. Although many private companies were vanquished. • Unable to match the services and sustain improvements the airline was criticised for its inefficiencies and excessive expenditure on human resource.Indian Airlines Performance. • • • • • The decision making interference ranged from deciding on the crew’s quality to major technical decisions.9 bn during 1994-98 period. • It was successful in its initiative and was even rewarded with increase in revenues. Staff cost increased alarmingly to Rs 5.

• • • • • Heavy interest outflows and large debts can be attributed as a major contributor to the huge losses. Unorganised and unplanned human resource were also responsible for the ever increasing costs and inefficiencies. Inefficient Manpower planning can mainly be attributed as the prime reason for the presence of surplus and redundant posts. social obligations.• The fulfilment of social objective by the organisation of connecting the northeastern regions with the rest of the country also contributed to the already heaping losses. Basic human resource management concepts were not followed that led to unplanned manpower. too much beaurocrat and political interference. Inefficient in manpower planning. rocketing cost of human resource. huge interest flows and incapability of maintaining the improvements in combination fuelled the failure of the airline in the open competitive market. Human Resource Management Page 23 .

These were superfluous staff that just added to the organisation’s bill. Employee unions were infamous for resorting to unscrupulous methods on the slightest pretext and arm-twisting tactics to get their demands accepted. Mounting wage bills as a result of the many employee wage friendly schemes depicted the simplistic approach of the management. Improper monitoring by management and abuse by employees of the Productivity linked incentive scheme reflects the inefficient functioning. Recurring human resource problems were attributed to its lack of proper manpower planning and underutilization of existing manpower. • • • The recruitment and creation of posts were done without proper scientific analysis of the manpower requirements of the organization. Uncontrolled increase in the number of employees and the number of surplus and redundant posts with maximum number of employees per aircraft. the management of the airline was more interested in making peace with the unions rather than looking at the company’s long-term benefits. Human Resource Management Page 24 . In turn. drivers and orderlies. This abnormal increase in staff was attributed to inefficient manpower planning. IA’s human resource problems can largely be attributed to its poor human resource management policies. unproductive deployment of manpower and unwarranted increase in salaries and wages of the employees.Q2. Do you agree? Give reasons to support your stand? Answer • • • • • • • • It is true that IA’s human resources problems were due to its poor human resource management policy. • There were no basic educational qualifications or job specification prescribed for senior executive posts. In place of 6 directors in departments there were 9 directors. In total there were 30 full time directors. who in turn had their retinue of private secretaries.

Retired employees were re-employed by the airline in an advisory capacity. were paid to those who were ineligible. experience allowance. by and large. simulator allowances etc. Illiterate employees drew salaries that were on par with senior civil servants. it acceded to the demands for wage hikes and other perquisites. • • • • • • Human Resource Management Page 25 . the airline at times held its ground. Various allowances such as out-of-pocket expenses. and room air-conditioners even after retirement. by acquiring necessary job-related qualifications & experience. Frequent Dissonance between the union and the management made a hostile environment in the organisation.• A matriculate also could be a manager. Though. Excessive expenditure was incurred on benefits given to senior executives such as retention of company car.

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