New Horizon needs New vista… can you help?

New Horizon Limited is a public limited company which was set up in the
year 1980. The company at one point of time was a market leader in proving
end to end business solutions. While most of the corporates took the
advantage of Liberalization and Globalization opportunities, New Horizon just
could not catch up with the changing times and themes. One of the ills of
this company is the highly demotivated employees. During 1980s trade
union activities were at the peak. Most of the workers are the members of
one or the other trade union. Their commitment to work is sadly missing.

No doubt the Company had an early entry into the technological services.
Even now it boasts of highly trained engineers and process consultants. Even
these highly paid engineers are left to fend for themselves. Top
management does not seem to show direction to these talented engineers.
Employees’ morale is generally low. Although trade union activities in the
organisation is on the decline, there is no perceptible signs of improvement.

Two of the directors of the company had to resign their positions as they
were charged with insider trading. In the last 6 months, the New Horizon’s
scrip has come down by about 40%.

The company has a plan to down size its manpower by 20%. Employees
have gone on strike for two days now protesting the move. It is estimated
that the employee productivity is one of lowest in the industry. Government
of India has recently appointed a committee to look into the affairs and
suggest a revival package. Government has agreed in principle to extent
financial impetus to save it from further sliding.

One of the vociferous demands of the Government is that the HRM of this
company should be thoroughly revamped. Government has also suggested
for putting in place a strong Corporate Governance machinery.

Consider that you are a consultant for revisiting the HR policies and
revitalizing the HRD of New Horizon. How would you go about toning up the
HRM systems and practices. List the actions you would initiate to lift the
company from the present state of apathy and inertia to a level which can
help the company a turnaround in major areas of operations. Management
proposes to give you a free hand in working your way up towards the
objectives.