Institute of Rural Management Anand

Course Name: Human Resource Management (HRM) PRM 40 (2019-21)

Mid-Term Examination (Term – III) Date: 29th April, 2020
Duration: 2 hours Total Marks: 30 marks Weightage: 30 percent

Please note:
1. All the questions are compulsory
2. Be brief and to the point. Be clear on your logical argument.
3. Diagrams/Models presented, if any, need to be properly labelled and explained.
4. Do not answer any question in more than 600 words.

Case 1: Maruti Suzuki India Limited

In June 2011, workers in Maruti Suzuki India Limited (MSIL), Manesar Plant applied to the registrar
of trade union at Chandigarh for registration of a new union named Maruti Suzuki Employees’ Union
(MSEU). The management being aware about the workers’ initiative for a new union forced and
threatened the workers to sign documents that they will not join the new union. To protest against the
management’s action, 3000 workers started a sit-in from 4 June 2011 at the Manesar Plant, demanding
recognition of newly formed MSEU. To pressurize the workers, on 6 June, the management dismissed
11 workers including the MSEU office bearers for allegedly inciting the workers to go on a strike.

Question 1. What are the interests pursued by the employer and employees in this case (of employment
relationship)? (4 marks)

Question 2. Which Principle of Labour Legislation and Industrial Jurisprudence is applicable (violation
or non-violation/enforcement) here and why? (4 marks)

Case 2: Rejected pilots find Air India recruitment test flawed 1

A day after Air India rejected 56 candidates out of the 160 pilots selected for selection interviews for
flying A320 aircraft, a group of pilots, has alleged that the psychometric test that was the ground for
their rejection was conducted in an improper manner. Following the Germanwings 2 flight crash, Air

1 Adapted from https://indianexpress.com/article/cities/mumbai/rejected-pilots-find-ai-recrurejected-pilots-find-air-india-

recruitment-test-flawed-itment-test-flawed/. Event described above is from year 2015.
2 Germanwings Flight 9525 was a scheduled international passenger flight from Barcelona–El to Düsseldorf Airport in
Germany. The flight was operated by Germanwings, a low-cost carrier owned by Lufthansa. On 24 March 2015, the aircraft,
an Airbus A320, crashed 100 kilometres north-west of Nice in the French Alps. All 144 passengers and six crew members
were killed. It was Germanwings' first fatal crash in the history of the company. The investigation determined that the crash
was caused deliberately by the co-pilot, Andreas Lubitz, who had previously been treated for suicidal tendencies and declared
"unfit to work" by a doctor. Lubitz kept this information from his employer and instead reported for duty. Shortly after reaching
India had made psychometric tests mandatory for induction of pilots and cabin crew and had a
psychologist from the Indian Air Force (IAF) to check mental fitness of candidates.

In February, the national carrier had advertised 197 posts of pilots for its A320 aircraft that mainly flies
on domestic routes. According to the airline, around 260 candidates were called for the first round, the
simulator test, and 160 were selected for the interviews, that was to be followed by hiring. After the
results, a group of the candidates in a letter to AI executives alleged that the psychometric tests were
not conducted properly. “A pilot cannot be judged in a psychometric test in a span of 10 minutes and,
that too, via verbal communication. Without conducting a proper psychometric test, how can a doctor
conclude that all the rejected candidates are mentally unfit? If that is the case, then can Air India explain
how among the rejected candidates there are some who have been selected to pilot Go Air and Indigo
Airlines,” said the letter.

The group pointed out that the candidates who did not make it had cleared the DGCA Class-1 Medicals,
which includes electroencephalography (EEG). “If we were mentally unstable, then why grant us
medical certificate in the first place? Instead of a written test or a detailed questionnaire, the doctor just
asked us random questions for 10 minutes and was scribbling notes the whole time, without inquiring
about any medical condition or prior mental health history or checking our records, “a pilot said. The
group has requested Air India officials to re-evaluate the list and conduct a mandatory written test for
all the 160 short-listed candidates, which will give a better insight into the candidate’s mental status
rather than just one doctor making the evaluation, that too in a 10-minute verbal communication. The
airline, however, said that only those who cleared both tests were selected, as per the new policy.

“The tests were verbal and the doctor took notes. We are following new method and got a psychologist
from the Air Force. This is the first time that a psychologist from the Indian Air Force is being associated
with the selection board. Candidates found suitable by the selection board, which includes the
psychologist, and taking into account the marks obtained both in simulator proficiency assessment
check and personal interview, they have been empanelled for the post merit-wise,” said an Air India
spokesperson, in an email response.

Question 3. Do you think the choice of selection method in this case was appropriate? (3 marks)

Question 4. State reasons for your assertion following two criteria of reliability and validity. (2 marks)

Question 5. What kind of error is AI likely to commit if it continues using the same selection method?
(3 marks)

Case 3: Prayag Union3

Prayag District Coop Milk Producers Union Limited (Prayag Union) was registered in late 1990s under
the Cooperative Societies Act, 1912 to carry out activities conducive to the socio-economic
development of agriculturists and milk producers of Prayag district. It was one of the 11 districts unions
of a state in northern India having the Anand Pattern Milk Coop Structure. By 2006, over 950 Primary

cruise altitude and while the captain was out of the cockpit, he locked the cockpit door and initiated a controlled descent that
continued until the aircraft crashed into a mountain.
3 The course instructor prepared this case solely as a basis for class discussion and evaluation purpose and not as an

endorsement, a source of primary data, or an illustration of effective or ineffective management. This case, though based on
real events, is fictionalized, and any resemblance to actual persons or entities is coincidental.
Societies were members of the Prayag Union with over 1.9 Lakh milk producers as members of the
primaries. The Union handled about 1.45 LLPD milk, on an average.

The Prayag Union performed broadly the following main activities:

1. Enhancement of milk production at the producers’ level

2. Enhancement of procurement by the primaries
3. Transportation of milk from the primaries to the dairy plant at Prayag
4. Processing milk into liquid milk and milk products
5. Marketing liquid milk and milk products by itself and through state federation.

Prayag Milk Union had a total staff strength of approximately 750, of which about 525 were workers
and the remaining placed at different levels of management. The administrative office and the dairy
plant were located in the same premises at the Prayag, the district headquarters. There were also 6
chilling centers located at different parts of the district, which were also run by the union.

Ms. Sushma Sharma

Ms. Sushma Shamra was a BVSc from a reputed Veterinary College of Pantnagar. Her academic
achievements were above average (70% marks throughout). After completing her BVSc, in the year
2006, she worked as an assistant to a leading veterinarian at Prayag, for Rs. 27,000 per month. She was
unmarried and had a reputation both at college and her work as an assistant to be a sincere and diligent
person. Before her appointment, in 2008 at Prayag Union, the MD of Prayag Union, contacted the
Veterinary doctor under whom Ms. Sharma worked to find out her capabilities as a veterinarian. Ms.
Sharma accepted the Offer in October 2008, since she wanted a stable job. When she received the offer
letter, she was slightly upset about the probationary service. But she was assured that she would be
confirmed in due date.

First Year at Work

On her first day of Joining Ms. Sharma was introduced formally to the MD by one Mr. Singh who was
responsible for Admin Dept. She was then introduced to other people working in the Input Service
section of the Union. There were a total of 15 people in the Input Service, on first day she could meet
6 of them and was expected to meet others as her work would progress. One month passed at the Prayag
Union for Ms. Sharma. Once in a while, she was visiting the village with her team and providing
services as per need. She was still unsure of the entire objective of the Milk Union. She also started
pondering over her move to join a Coop instead of entering a corporate. Her encounter with the head of
procurement was incidental and happened only after six months. It wasn’t a pleasant encounter as he
pointed out towards the deficiency of services in the field. She expected a better introduction to a full-
time job. Come to the year-end, and she made up her mind to meet the MD and talk about her future
with the Prayag Union.

Question 6. Prayag Union was an unfamiliar setting for Ms. Sharma, which model of socialization can
best explain her position in the first few months of her Job at Prayag Union? (6 marks)

Question 7. What improvements could be made to Prayag Union’s socialization practices? Present a
summary of your recommendations to the MD with operational requirements (who should initiate the
process of socialization, when and for how long should it last). (8 marks)