Introduction to case parental Imposition

• This case study is of an automotive ancillary company located in Bangalore • This ancillary company under reference was asked to change its production from just – in – case to just- in – time basis because of significance change in production cycle by proposed parent company • The proposed change in production basis was necessitude due to foreign automotive companies sharing the domestic automotive business along with ancillaries because of the globalization policy adopted by Gov. • because of the proposed change in production implied proportionate decrease in expenditure including downsizing of workforce and wagebill (salary ) • Some of the domestic automotive companies like M&M , Telco etc…designed exit policies and offer VRS packages to their employees for getting rid of excessive manpower

• The head Hr of the Bangalore based automotive ancillary company circulated the above facts among its workers through a memo , for the purpose of their knowledge and cooperation ( for peaceful exit of the excess workforce )

• A4. For management the implications are :• They have to realign the production with the reduced demand , reduce the expenditure and improve the quality of the product • The implications for workers are :• They have to upgrade their skills, work hard , and improve the quality of the product , they may have to work on lower wages if need be . • The implication for union are :• The workforce will be downsized resulting in reduced membership of the union , union activities will be reduce to bare minimum .

Q5.can the management or unions do anything to ensure that such system are not imposed on transnational companies • No the management and union cant do anything in this case , only Gov. can impose on transnational companies • If as management or unions if we have to do anything we can do the following • We have to maintain the standards as compared to foreign companies • Changes should be there in order to grow • There should be competitive and healthy atmosphere for the work force • Should be updated with technology

Sign up to vote on this title
UsefulNot useful