OVERVIEW

The case is about the problems, the BATA India was facing with its union i.e. Bata Mazdoor Union (BMU) BATA incurred loss of 420 million for the first time in 1995 Managing Director post was handed over to William Keith Weston known as turnaround specialist He restructured the organization and got success for four consecutive years

OVERVIEW(CONTD.)
They actually started decreasing the man power in anyways to recover the losses Many of the Indians holding key position were replaced by non-Indians

OBSERVATIONS
Expenses occurred on employees were 22% of net sales, which was too high as compare to their competitors i.e. Liberty was having only 5% Indian key position holders were replaced by nonIndians Restructuring of organization resulted in profits for some initial years To further decrease the cost, they proposed to withdraw several facilities and improve productivity and reorganizing some department

ANALYSIS
To cut down the employees to decrease the overall cost was not a good idea Any organization if want to grow, give importance to its employees but the case is opposite here To avoid the problems, shut down of plants was bad done by organization Overall they are making their employees fool i.e. on one hand they try to provide some facilities to their employees but on the other hand, they are stealing their peace

ANALYSIS(CONTD.)
Some employees were also having involvement of politics. Lack of motivation to the employees. Emphasis was only on decreasing the cost and increasing the profit. Providing reasonable security of employment can improve industrial relations Govt. intervention is an effective and efficient authorization and reduces risks of public safety and improved information improvising

Outsourcing
PROS CONS

Cheap labor Reduces operating cost Access to better technology Increased productivity Increased focus on core business

Employees feel threatened Security issues

CONCLUSION
Rather than snatching employees peace, they should be motivated towards work by providing them essential facilities Proper coordination between the union and the Organization must be maintained They must not only look for the profit, because human risk is much greater than the financial risk Closing down the plants to avoid the problems is not going to help any more