SUBJECT: Human Resource Management

The Indian Institute of Business Management & Studies

Marks:100

Note: Solve any 4 Cases Study’s CASE: I Conceptualise and Get Sacked

HSS Ltd. is a leader in high-end textiles having headquarters in Bangalore. The company records a turnover of Rs 1,000 cr. Plus a year. A year back, HSS set up a unit at Hassan (250 km away from Bangalore) to spin home textiles. The firm hired Maniyam as GM-HR and asked him to operationalise the Hassan unit. Maniyam has a vision. Being a firm believer in affirmative actions, he plans to reach out to the rural areas and tap the potentials of teenaged girls with plus two educational background. Having completed their 12th standard, these girls are sitting at homes, idling their time, watching TV serials endlessly and probably dreaming about their marriages. Junior colleges are located in their respective villages and it is easy for these girls to get enrolled in them. But degree colleges are not nearby. The nearest degree college is minimum 10 km and no parents dare send their daughters on such long distances and that too for obtaining degrees, which would not guarantee them jobs but could make searching for suitable boys highly difficult. These are the girls to whom Maniyam wants to reach out. How to go about hiring 1500 people from a large number who can be hired? And Karnataka is a big state with 27 districts. The GM-HR studies the geography of all the 27 districts and zeroes in on nine of them known for backwardness and industriousness. Maniyam then thinks of the principals of Junior Colleges in all the nine districts as contact persons to identify potential candidates. This route is sure to ensure desirability and authenticity of the candidates. The girls are raw hands. Except the little educational background, they know nothing else. They need to be trained. Maniyam plans to set up a training centre at Hassan with hostel facilities for new hires. He even hires Anil, an MBA from UK, to head the training centre. All is set. It is bright day in October 2006. MD and the newly hired VP-HR came to Hassan from Bangalore. 50 principals from different parts of the nine districts also came on invitation from Maniyam and Anil. Discussions, involving all, go on upto 2 PM. At that time, MD and VP-HR ask Maniyam to meet them at the guest house to discuss some confidential matter. In this meeting, Maniyam is told that his style of functioning does not jell with the culture of HSS. He gets the shock of life. He responds on expected by submitting his papers. Back in his room, Maniyam wonders what has gone wrong. Probably, the VP-HR being the same age as he is, is feeling jealous and insecure since the MD has all appreciation for the concept and the way things are happening. Maniyam does not have regrets. On the contrary he is happy that his concept is being followed though he has been sacked. After all, HSS has already hired 500 girls. With Rs 3,000 plus a month each, these girls and their parents now find it easy to find suitable boys. Question: 1. 2. What mad the MD change his mind and go against Maniyam? What role might the VP-HR have played in the episode? If you were Maniyam, what would you do?

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Question: 1. He was not in a mood to talk to his wife. which boasts of an annual turnover of Rs. From finance to purchasing to stores was too much for Vijay to swallow. intelligent. Six months passed by. It was great betrayal for Vijay. and unable to control his anger. he sat in his room. Vijay. He forwarded the papers to the V. Finance. He is smart. advised him not to lose heart.P. streamlined the purchasing function. lit a cigarette. Vijay was shifted to stores. The unit head was aghast at this development but did nothing to console Vijay.M. He introduced several new systems in record-keeping and was responsible for cost reduction in several areas. particularly in vendor development. G. Unit 1.P. Vijay was also assured that no action would be taken on the papers he had put in. assured him that his interests would be taken care of and requested him to resume duties in purchasing Unit 2. and brooded over his experience with a company he loved most. Bolted inside. 400 crores. What should Vijay do? 2 . Vijay found that his name was missing. Though purchasing was not his cup of tea. After two years in purchasing. joined the finance department of a Bangalore-based electric company (Unit 1). Vijay went into it whole hog. and introduced new systems.SUBJECT: Human Resource Management The Indian Institute of Business Management & Studies Marks:100 Rudely shaken. Finance saw to it that Vijay was shifted to Unit 2 where he was posted in purchasing. Angered. Vijay met the unit head who coolly told Vijay that he could collect his dues and pack off to his house for good. The list of promotees was announced and to his dismay. Vijay ensured that nobody else made money through questionable means. but conscientious. He burst out before the unit head. heard him for a couple of hours. an M. Finance called in Vijay. Vijay developed few friends in and outside the organization. Then came the time to effect promotions. Being a loner.Com and an ICWA. Being honest himself. Vijay put in his papers too. The V. He also missed promotions four times though he richly deserved them. Vijay came home in the evening.

a machine operator. He talked to all employees in a weekly departmental meeting and to each employee individually at least once. How would you rate Dinesh’s behaviour? What method of appraisal would you use? Why? Do you assess any training needs of employees? If yes. He stated that he was following the instructions of the general manager.” Ganesh replied. The only objection came from Dinesh. Question: 1. Dinesh became angry and abusive. The decision was within company policy.SUBJECT: Human Resource Management The Indian Institute of Business Management & Studies Marks:100 Dinesh. Ganesh phoned the HR manager. worked as a mechanist for Ganesh. reported what he had done. you pick it up”. He was known to have quick temper. Ganesh told Dinesh to come to the office and suspended him for one day for insubordination and abusive language to a supervisor. Ganesh had spoken to him twice about excessive alcoholism. and Dinesh replied. what inputs should be embodied in the training programme? 3 . All employees in the department heard Dinesh’s comments. “I won’t do the janitor’s work. After Dinesh left Ganesh’s office. and in this department for six months. “when you drop it. 2. and said that he was sending a copy of the suspension order for Dinesh’s file. Ganesh had been trying for two weeks to get his employees to pick up trash in order to have cleaner workplace and prevent accidents. Dinesh has been with the company for five years. the supervisor. and similar behaviours had been punished in other departments. but otherwise his record was good. calling Ganesh a number of names in a loud voice and refusing to pick up the trash. Ganesh told Dinesh to pick up some trash that had fallen from Dinesh’s work area. This outburst by Dinesh hurt Ganesh badly.

SUBJECT: Human Resource Management The Indian Institute of Business Management & Studies Marks:100 CASE: IV A Case of Misunderstood Message Indane Biscuits is located in an industrial area. 2. In the case of the Indane Biscuits. they all got panicky thinking that now it was their turn to get fired. the personnel manager was unaware of the developments and when he came to know of it he went immediately and tried to convince the supervisors about the purpose of inviting them and the reason why that particular room was chosen. everybody struck work and the factory came to a grinding halt. 3. he selected the room because no other room was available. decided to celebrate collectively at a central place. As a consequence. and are able to get away with violations by keeping the concerned inspectors in good books. The factory opened after prolonged negotiations and settlements. and since they had a lot of scores to settle with the management they extended their sympathy and support to the supervisors. In the meantime. The biscuit factory employs labour on a daily basis. If you were the Personnel Manager what would you do? 4 . The Personnel Manager. The matter was referred to the labour department. The factory has a designated room to which employees are periodically called either to hire or to fire. To be fair to the Personnel Manager. desired to consult his supervisors and to inform everybody through them about the safety day celebrations. He sent a memo requesting them to be present in the room meant for hiring and firing. The enquiry that followed resulted in all irregularities of the factory getting exposed and imposition of heavy penalties. Indane Biscuits. who rushed to the factory on hearing about the strike. bring out the importance of ‘context’ and ‘credibility’ in communication. But the supervisors and the workers were in no mood to listen. of which Indane Biscuits is a member. As soon as the supervisors read the memo. They started having ‘hush-hush’ consultations. List the direct and indirect causes for the escalation of tension at Indane Biscuits. The Personnel Manager was sacked. the Industries Association. The workers also learnt about it. On the National Safety Day. The management does not follow statutory regulations. Each of the member was given a specific task. The Managing Director. Question: 1. also couldn’t convince the workers.

Things had to end at some point. Jaggu started spreading wings. he joined an MBA (part-time) programme. poor quality and customer rejections. Jaggu tried to defend Ganesh but failed in his effort. (ii) Prahalad or (iii) Ravi? Bring out the ethical issues involved in Jaggu’s behaviour. Roles got reversed. Whether there would be another hump in the curve is a big question. 5 . Ganesh. Jaggu’s career graph has a steep rise and sudden fall. After completing MBA. He got himself enrolled as a student in a evening college and obtained his degree in engineering in 1982. Functioning as Senior Manager-Marketing. There were complaints against him. the EVP (Executive-Vice President). was now subordinated to Jaggu. Jaggu did not forget his academic pursuits. power. Unable to bear the humiliation. Recognising his improved qualification. What would you do if you were (i) Suresh. Success had gone to Jaggu’s head. After being promoted as Engineer-Sales. He stole copper worth Rs. Jaggu was promoted as Engineer-Sales in 1984. He became a megalomaniac. Question: 1. For him ends justify means. It happened in Jaggu’s life too. Jaggu eyed on things beyond his jurisdiction. He started complaining Suresh—the Section Head and Phahalad the Unit Chief (both production) with Ravi. Most of the complaints were concocted. Bring out the principles of promotion that were employed in promoting Jaggu. Jaggu became the Section head and Suresh was shifted to sales.20 lakh himself.D. 3. He ignored Prahalad and established direct link with Ravi. Prahalad quit the company. With a diploma in engineering. Jaggu put in his papers. Jaggu excelled himself in the new role and became the blue-eyed boy of the management.SUBJECT: Human Resource Management The Indian Institute of Business Management & Studies Marks:100 CASE: V Rise and Fall Jagannath (Jaggu to his friends) is an over ambitious young man. 2. Jaggu was reverted to his old position—sales. in 1977. Ravi was convinced and requested Jaggu to head the production section so that things could be straightened up there. Ganesh was by nature corrupt. an equal in status. He had inducted his brother-in-law. He was made Manager-Sales in 1986 and Senior Manager-Marketing in 1988. The complaints included delay in executing orders. money and qualification. Jaggu was promoted as General Manager. Unable to swallow the insult. He prevailed upon Ravi and got sales and quality under his control. a Bangalore-based company as a Technical Assistant. Jaggu joined. He had everything going in his favour—position. as an engineer. Jaggu became a Ph. On the new-year day of 1993. Suresh was promoted and was asked to head production. From 1977 to 1993. Corruption charges were also leveled against Jaggu who was reported to have made nearly Rs. Suresh.5 lakh and was suspended. Suresh became the boss to Jaggu. scholar and obtained his doctoral degree in 1989. He divided workers and used them as pawns. Promotions came to him in quick succession. in addition to production.

There was initial resistance to accept the scorecard as the managers felt that they were already burdened since they were busy implementing other quality improvement initiatives. Eicher. scooters. The client list of ION comprises several big guns in Indian corporate sector. The scorecard principles were implemented successfully from November 2002 and completed by March 2003. has a network of 50 regional offices with over 4. Common thread binding all the departments is missing. TVS Motors. Hero Honda. L&T. the then Chairman of CII. motorbikes. Mathur and Raman Kumar acted fast. The task force travelled to all three factories as well as zonal headquarters to unfold the implementation of scorecard. They are now convinced and enthusiastic about the positives of the scorecard. There are positives nevertheless.M. and Raman Kumar. Realisation dawned on Mathur and Raman Kumar way back in 2001 when they both attended a two-day seminar on “Enhancing Organisational Capability through Balanced Scorecard” organised by CII at Kolkotta. They are ready to implement the system. manufactures 5. ION seems to have everything going in its favour.000 crore. Financial performance of ION Tyres. Swaraj Mazda. Suddenly both Chairman and CEO have realised that there are too many road blocks ahead of them and the journey to be rough and bumpy.K. Mahindra and Mahindra. 6 .000 dealers and 180 C&F agents. Maruti Udyog and Bajaj are the regularly buying ION’s tyres and tubes. High cost of production keeps the company in a disadvantaged position. The company offers a wide range of bias tyres and tubes catering to all users segments like heavy and light commercial vehicles. and autos. A two member task force was constituted comprising Director—HRD and G.—Strategy and Planning.SUBJECT: Human Resource Management The Indian Institute of Business Management & Studies Marks:100 CASE: VI Chairman and CEO Seeking a Solution and Finding It Sitting on 50-plus year old ION Tyres. They are now convinced that Balanced Score card is ideal performance assessment tool that could be used in ION with greater benefits. Figures 1 to 4 show the scorecards adopted by ION Tyres. “Boss is always right” culture has permeated everywhere.6 m tyres per year. the Kolkata-based tyres and tubes manufacturing company with a turnover of more than Rs. They soon organised a workshop on “Balanced Score” to educate in-house managers about the concept and the procedural aspects of its implementation. ION Tyres and tubes are famous world-wide for durability.1. Deliberations in the workshop changed them. The firm has state-of-the-art radial plant. Performance gap between the top performer in tyres and tubes and ION Tyres ranges from 4 per cent to 5 per cent. is poor as reflected in its falling PBT. the CEO are searching for solutions to problems which their company started unfolding. Mathur. and superior quality. both A. Each department is a stand alone entity. The company has aging managerial people and equally old plant and equipment. Tata Motors. The duo had personal talk with Sanjeev Kumar. It is the market leader in the Indian market enjoying 19 per cent of the market share.

25/kg in Mysore plant Initiatives • Develop acceptable 1000-20 lug tyres • Increasing number of sales offices from 180 to 220 • 7 day work week to be introduced at Bhopal plant • Improve fuel wastage and ensure lower power • VP Technology and MD to initiate technology tieups Fig.1850 crs by • PBIDT FY05 Target • To achieve turnover of Rs.21/kg in Bhopal plant and Rs.SUBJECT: Human Resource Management The Indian Institute of Business Management & Studies Marks:100 Financial “To succeed Objectives Measure financially how achieve • Sales should we appear to To turnover of turnover our shareholder Rs.1850 crs by FY05 • PBIDT of Rs.25 to Rs.150 crs (FY05) • Decrease in conversion cost from Rs. 1 7 .

how should we appear to out customers” Objectives Improvement customer satisfaction in Measure • Customer satisfaction survey (by external agency) Target • To improve from 65% to 70% • Customer engagement at 30% Initiatives • Claim settlement to be reduced from 8 to 2 days • Improvement of casing value of used tyres. 8 . 2 Outcomes of scorecard implementation have been very encouraging. A transparent and objective performance assessment system came to be kept in place.SUBJECT: Human Resource Management The Indian Institute of Business Management & Studies Marks:100 Customer “To achieve our vision. Thus. atleast by 15% • Cost per Kilometer of tyre comparable to competitors Fig. With inertia and the ennui being broken. both Mathur and Kumar felt galvanized and realised that the road ahead of them was no more bumpy and rough. PBT improved and the gap between ION Tyres and the toppers in the industry reduced by 50 per cent. solutions to the problems were found.

job rotation • Competency Assessment • Potential Appraisals Target • Career planning for the High-Fliers (expected to be around 30 managers) • Successions planning for all key positions •5 manday’s training/manager/year Initiatives • Move people within same functions. how will we sustain our ability to change an improve” Objectives Identification of “high-fliers”. in the first two years and at the year two move them to another function • Variable pay component in the ration 1:4 for the “highfliers” • Nonfinancial rewards • Felicitation by company chairman in presence of family members for recognizing extraordinary contributions Fig. job enlargement. 3 9 .SUBJECT: Human Resource Management The Indian Institute of Business Management & Studies Marks:100 Learning and Growth “To achieve our vision. Talents to be identified through development workshops Measure • Job enrichment.

Do you agree with the conclusion drawn at the end of the case that scorecard system has galvanised ION Tyres? In other words.SUBJECT: Human Resource Management The Indian Institute of Business Management & Studies Marks:100 Internal Business Processes “To satisfy our shareholders and customers. what business processes must we excel at” Objectives Introduction of new products in the commercial tyre segment Reduction of development time Quarterly reconciliation of accounts receivables from dealers Annual increases on-time to employees Measure • Introduction of 3-4 new products per year in commercial tyre segment • Reduction of development time from 18 months to 6 months • Achieve 100% reconciliation • Annual increases by on time by 1st July Target • Introduction of 3-4 new products per year in commercial tyre segment • Reduction of development time from 18 months to 6 months • Achieve 100% reconciliation • Annual increases by on time by 1st July Initiatives • Regular quarterly review of performance • KRA targets to be ready by 1st April • European certification for tyres Fig. how to avoid the clashes? 10 . does scorecard system deserve all the credit? Will quality improvement initiatives clash with scorecard implementation? If yes. 2.4 Question: 1.

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