Discussion Questions & Solutions

1) According to you, what is the root cause of the problem in the

Malhotra episode and who is to be blamed for his present troubles?

The HR Policy of X-Look, a fast-growing textile company provided clear guidelines on how
the HR should function like direct recruitment for entry-level categories and senior managerial
positions to be filled through internal promotions.

Mr. Malhotra, a topper in production engineering, joined as a management trainee

through campus interviews. He would be absorbed as an Assistant Manager in any one of the
engineering departments after completion of his one year probationary period as per the T&C
of his employment.

Malhotra excelled in his traineeship period in the R&D Dept. by his exemplary behavior and
performance. Mr. Ravi Shankar, his manager was also impressed by Malhotra's contribution
recommended Malhotra's name to Management for the post of Design Manager when it fell
vacant. This was duly executed by the HR Dept. and Malhotra was appointed as the Design
Manager surpassing the HR policies by treating it as an exception. Here the problems started
for both Malhotra and X-Look Company.

The promotion of Malhotra could have been handled in a better way. He was deserving the
promotion as highlighted in the case study. The HR Dept. should have consulted all
stakeholders before executing the management’s decision and communicated it with
appropriate reasons. This could have got the commitment of the people first and their
behavior change thereafter could have been avoided and, hopefully, their attitude too. This
was found lacking. Hence the internal dissent started ultimately leading to back-tracking of
the decision for Malhotra who eventually left the company.

It is also the Management’s responsibility for setting the policies of the company and ensuring
that its practices do not have an adverse impact on day to day operations or violate ethical
standards.
2) If you had been Malhotra, what would have been your response
to these developments?
One can understand how demoralizing it would have been for Malhotra to find himself
removed from his new position & how it would be perceived and interpreted by everyone in
the company including his trainee batch mates whom he had surpassed by way of his work
performance to promotion. Malhotra resigned from his job voluntarily, quit the firm and found
his career to be in shambles for which he is to be also partly blamed by way of his actions.
Agreed that the actions of Management of X-Look Company were dilly-dallying, but Malhotra
before taking such a serious decision could have given it another thought.

Malhotra could have had one-to-one meetings with the Management and asked for his future
career prospects in the organization – whether he as an outstanding performer will get
another promotion opportunity. If the chances indeed were there, then Malhotra should
have continued in another role assigned to him in the company for some time. Malhotra could
have also spoken to Mr. Ravi Shankar, his manager for guidance.

Malhotra should realize that resigning from the job and quitting the company is not the
solution. Even if he were to do so, he will have to start afresh in whichever other company, he
finds a job next. Chances are that prospective recruiters may also question his removal from
Managerial position in X-Look Company. They will not listen to negative reasons about X-
Look Company from him like internal dissent, lack of co-operation from other co-
workers, etc…Doubts may arise about the capability of Malhotra although that may not be the
case.

This was not a win-win situation for both Malhotra & X-Look Company who in their
process of not handling this situation properly lost out an efficient and enterprising
employee and Malhotra found his promising career to be derailed.

3) What steps should the management take to avert the recurrence

of such situation in the future?

Looking back at the Malhotra episode, X-Look Company realized that it had not properly
considered the human element involved in all its decisions concerning him and was merely
guided by the mechanical elements.

In order to better achieve its overall goals, the company should create internal
partnerships like labor-management-cooperation to improve flexibility, responsiveness, and
knowledge sharing amongst its employees. Successful partnerships create a basis for mutual
trust and respect and serve as a means for adapting to change.

Break old bureaucratic rules and policies that prevent or inhibit high-performance work
towards achieving company’s goals which was in the case of Malhotra. In doing so, the
employee's will be freed from bureaucratic silliness and the Management of the company
will find great energy and support from its employee's. The decision to promote Malhotra
was right as he fit all the eligibility criteria but the policies and the rules of the company did not
support it.

X-Look Company must provide appropriate services, benefits, and policies to enhance
employee well-being, satisfaction and motivation. Place special emphasis on a variety of
approaches used to satisfy employees with differing needs and expectations in order to
reduce attrition and increase motivation. Examples include personal and career counseling,
career development and employability services, helping employees develop learning
objectives and plans. This could have been done in case of Malhotra and thus pacified him
and retained him. But lack of positive assurance action from the company acted as a deterrent
for Malhotra which eventually led him to take the decision.