1.

Discuss the failures on the part of the Japanese and Indian managers that
contributed to the present situation.
2. What are the cross-cultural issues involved that are critical to the functioning of
a company like HMSI
3. How should HMSI deal with the issues at hand so as to implement its growth
agenda?
Please write your name and student ID on the top of the assignment (1-2 pages in
length).

Hmsi Case Study Which Focuses On Hr Problems

The case study focuses on the HR problems faced by Honda Motor Cycle & Scooters India (HMSI). The
case discusses the various reasons which led to the dispute between the management and employees of
HMSI. It elaborates the incidents, which led to the strike at the company that resulted in HMSI workers
being severely beaten up by the police. Labor strife and the management's inability to deal with it
effectively had resulted in huge losses for the company due to the fall in the production level at the plant.
In addition to this, the company also received a lot of negative publicity as newspapers and TV channels
gave wide coverage to the violence of the action.
The case highlights the growing number of instances of clashes between the employees and the
management of companies in India, which is often guided by external parties such as trade unions and
political parties.
------------------------------------------------Issues:
Understand the factors that lead to labor unrest at a factory and the impact of such incidents on the
employees and the company.

Study HR policies adopted by organizations to prevent labor unrest at the workplace.

Examine top management's role in maintaining a peaceful working environment.

Analyze the role of external parties such as trade unions; political parties etc., in disturbing the
working environment in a company
------------------------------------------------Introduction
On July 25, 2005, the management of the Honda Motorcycle & Scooter India (Private) Limited, (HMSI),
a wholly-owned subsidiary of Honda Motor Company Limited6 (HMCL), encountered violent protests
from workers that disrupted production at their plant in Gurgaon7.

HMSI workers were severely beaten up by the police, and newspapers and TV channels gave wide
coverage to the violence of the action. The protest followed six months of simmering labor unrest at the
HMSI factory in which the workers also resorted to job slowdown8 (since...

People Management Fiasco in Honda Motorcycles and Scooters India Ltd.

by Debi S. Saini
17 pages. Publication date: Dec 04, 2006. Prod. #: HKU624-PDF-ENG
Multinationals often make judgmental errors regarding cross-cultural issues
and the business environments prevailing in foreign countries. Honda
Motorcycles and Scooters India Ltd. (HMSI), a wholly owned subsidiary of
Honda Motor Company Limited, Japan, established its plant in India in 1999
and made mistakes in handling people-management issues. It wanted to
pursue a non-union model but failed to devise and implement an appropriate
human resource management (HRM) strategy. Management was caught
unaware when accumulated grievances led workers to turn hostile and form a
union with the help of the trade union wing of a political party that was a
partner in the ruling coalition at the federal level. The management failed to
break workers' unity either by soliciting help from the state agencies or by
using the legal system to their advantage. The subsequent power struggle led
to violent clashes between the workers and the police, who had been called in
for protection by HMSI management. The extensive media coverage not only
tarnished the company's image, but also pressured the federal government to
come to the rescue of the workers. This incompetent handling of HR issues by
the company led to a long strike by the workers. The strike, besides causing
substantial financial losses, also led to the emergence of a very strong union.
In addition, production targets that were achieved on a daily basis before the
union came into existence were seldom achieved after the conciliation came
into effect. Provides insights into building and implementing a commitment
model of HRM strategy, shows how employers should safeguard their interest
by managing the countervailing power of workers in the Indian context, and
discusses the dynamics of state power in Indian industrial relations and who
can benefit from it in different contexts.
Usfull links
http://www.scribd.com/doc/38777443/fINAL-Honda-Motorcycles-andScooters-India-Ltd-HMSI