Professional Documents
Culture Documents
Honda Case Labor Union Case
Honda Case Labor Union Case
t
os
rP
'(%,66$,1,
yo
$W WKH RQVHW RI WKH SUHVLGHQW RI +RQGD 0RWRUF\FOHV DQG 6FRRWHUV ,QGLD /WG +06,
ZKRZDVDOVRLWVFKLHIH[HFXWLYHRIILFHUKDGWRPDNHVRPHUDGLFDOGHFLVLRQVRQDQXPEHURI
LVVXHV FRQIURQWLQJ WKH FRPSDQ\ IROORZLQJ WKH -XO\ DOWHUFDWLRQV ZLWK LWV ZRUNHUV 1RW
RQO\GLGKHKDYHWRUHSDLUWKHGDPDJHWRWKHFRPSDQ\¶VLPDJHEXWKHDOVRKDGWRGHYHORSD
VWUDWHJ\ IRU ORQJWHUP FRRSHUDWLRQ ZLWK LWV HPSOR\HHV $V KH UHIOHFWHG XSRQ WKH ELWWHU
PHPRULHVRIWKHODVWWZHOYHPRQWKVKHZRQGHUHGLIWKHFRPSDQ\FRXOGDFKLHYHWDUJHWVODLG
op
RXW LQWKH DJJUHVVLYH H[SDQVLRQ SODQGHYHORSHG EHIRUH WKH XQUHVW 7KLV LQFOXGHG WULSOLQJ WKH
*XUJDRQSODQW¶VSURGXFWLRQFDSDFLW\WRPLOOLRQPRWRUF\FOHVDQGPLOOLRQWZRZKHHOHUV
E\WKHHQGRIILVFDO±
1HLWKHUKHQRUSHUKDSVDQ\RIWKHPHPEHUVLQKLVPDQDJHULDOWHDPFRXOGKDYHLPDJLQHGWKDW
ZRUNHUV¶VHHPLQJO\PLQRUJULHYDQFHVZRXOGWXUQLQWRDZDUOLNHVLWXDWLRQDVWKH\GLGLQ-XO\
tC
7KHFRPSDQ\GHVSLWHDOOLWVHIIRUWVKDGQRWEHHQDEOHWRSUHYHQWWKHXQLRQIRUPDWLRQ
WKDWWRRZLWKDQDIILOLDWLRQWR$OO,QGLD7UDGH8QLRQ&RQJUHVV$,78&ZKLFKZDVWKHWUDGH
XQLRQZLQJRIWKH&RPPXQLVW3DUW\RI,QGLD:LWKWKHHYHQWVWDNLQJDQDVW\YLROHQWRYHUWRQH
WKH DGYHUVH SXEOLFLW\ PLJKW KDYH GRQH SHUKDSV LUUHSDUDEOH KDUP WR WKH SXEOLF LPDJH RI WKH
FRPSDQ\,QDGGLWLRQWKHGURSLQWKHFRPSDQ\¶VVDOHVZDVDOVRZRUU\LQJ7KHFRPSDQ\KDG
VXIIHUHG D SURGXFWLRQ GHFOLQH UHVXOWLQJ LQ D ORVV RI 5V ELOOLRQDV D FRQVHTXHQFH RI WKH
VWULNHDQGJRVORZWDFWLFVE\WKHZRUNHUVHVSHFLDOO\GXULQJWKHPRQWKVRI0D\DQG-XQH
%XWWKHUHZDVPXFKPRUHDWVWDNHWKDQMXVWWKHPRQHWDU\ORVV:KLOHFKRRVLQJWKHFRPSDQ\¶V
No
ORJRRIWKHZLQJVWKHFRPSDQ\KDGDLPHGWRIO\KLJKE\WDNLQJDGRPLQDQWUROHLQWKH,QGLDQ
86 ,15RQ0D\VW
ZKRYLVLWHG0',DWKLVUHTXHVWWZLFHWRJLYHLQWHUYLHZV0U053DWODQWKH'HSXW\/DERXU&RPPLVVLRQHURI*XUJDRQDQGKLV
VWDIIZKRVKDUHGLQIRUPDWLRQDQGSURYLGHGRWKHUKHOSWRUHFRQVWUXFWVRPHRIWKHQXDQFHVRIWKHFDVHVRPHDQRQ\PRXVSHUVRQV
ZKRDOVRVKDUHGXVHIXOLQIRUPDWLRQWKDWIDFLOLWDWHGFURVVFKHFNLQJRIWKHFODLPVRIWKH+06,XQLRQDQGLQEXLOGLQJVHYHUDOQHZ
IRUPXODWLRQV 7KH DXWKRU DOVR WKDQNV 5DNKL 6HKJDO D GRFWRUDO VFKRODU LQ VRFLRORJ\ $PHULFDQ 8QLYHUVLW\ :DVKLQJWRQ IRU
KHOSLQJKLPHVWDEOLVKFRQWDFWVZLWKPDQ\UHVSRQGHQWV
E\ 7KH $VLD &DVH 5HVHDUFK &HQWUH 7KH 8QLYHUVLW\ RI +RQJ .RQJ 1R SDUW RI WKLV SXEOLFDWLRQ PD\ EH UHSURGXFHG RU
WUDQVPLWWHG LQ DQ\ IRUP RU E\ DQ\ PHDQV²HOHFWURQLF PHFKDQLFDO SKRWRFRS\LQJ UHFRUGLQJ RU RWKHUZLVH LQFOXGLQJ WKH
LQWHUQHW²ZLWKRXWWKHSHUPLVVLRQRI7KH8QLYHUVLW\RI+RQJ.RQJ
5HI&
This document is authorized for educator review use only by SABINA TULADHAR, Pokhara University until Apr 2020. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
& 3HRSOH0DQDJHPHQW)LDVFRLQ+RQGD0RWRUF\FOHVDQG6FRRWHUV,QGLD/WG
WZRZKHHOHU LQGXVWU\ VLPXOWDQHRXVO\ WDNLQJ DGYDQWDJH RI WKH UDSLGO\ JURZLQJ ,QGLDQ
HFRQRP\ *LYHQ WKH XQH[SHFWHG WXUQ RI HYHQWV ZRXOG WKH &(2 EH DEOH WR VXFFHVVIXOO\
t
LPSOHPHQW VWUDWHJLHV WKDW ZRXOG QRW RQO\ ZDVK DZD\ SDVW ZRXQGV EXW ZRXOG DOVR OD\ WKH
IRXQGDWLRQVRIDVRDULQJIXWXUH"
os
!
+06, ZDV D ZKROO\RZQHG VXEVLGLDU\ RI +RQGD 0RWRU &RPSDQ\ /LPLWHG +0&/ -DSDQ
7KH 7RN\RKHDGTXDUWHUHG +0&/ ZDV RQH RI WKH ZRUOG¶V OHDGLQJ PDQXIDFWXUHUV RI
rP
DXWRPRELOHVDQGSRZHUSURGXFWV:LWKPRUHWKDQPDQXIDFWXULQJIDFLOLWLHVLQFRXQWULHV
LWZDVDOVRWKHODUJHVWPDQXIDFWXUHURIWZRZKHHOHUVLQWKHZRUOG+0&/ZDVNQRZQWRKDYH
H[FHOOHG LQ WKH DGRSWLRQ RI WKH SRVW)RUGLVW SURGXFWLRQ V\VWHP DOVR FDOOHG WKH 7R\RWD
3URGXFWLRQ6\VWHP
+06,ZDVHVWDEOLVKHGRQ2FWREHUWKZLWKDQDLPWRSURGXFHZRUOGFODVVVFRRWHUVDQG
PRWRUF\FOHVLQ,QGLD7KHVWDWHRIWKHDUW+06,IDFWRU\ORFDWHGLQ*XUJDRQZDVVSUHDGRYHU
yo
DFUHV7KHLQLWLDOLQVWDOOHGFDSDFLW\ZDVVFRRWHUVSHU\HDUZKLFKZDVVFKHGXOHGWR
UHDFK VFRRWHUV E\ WKH HQG RI +06, RSHUDWHG RQ WKH SULQFLSOHV WKDW ZHUH
IROORZHG E\ DOO +RQGD FRPSDQLHV ZRUOGZLGH 0DLQWDLQLQJ D JOREDO YLHZSRLQW +06, ZDV
GHGLFDWHG WR VXSSO\LQJ SURGXFWV RI WKH KLJKHVW TXDOLW\ \HW DW D UHDVRQDEOH SULFH WR HQVXUH
FRPSOHWH FXVWRPHU VDWLVIDFWLRQ 7KHVH WZRZKHHOHUV PDQXIDFWXUHG ZLWK +RQGDWHVWHG
WHFKQRORJ\ ZHUH EDFNHG ZLWK DIWHUVDOHV VHUYLFH LQ OLQH ZLWK +RQGD¶V JOREDO VWDQGDUGV
,QVWHDG RI EHLQJ MXVW YHKLFOHV IRU WUDQVSRUWDWLRQ +06,¶V SURGXFWV ZHUH LQWHQGHG WR EH
op
YHKLFOHV IRU FKDQJH FKDQJH LQ WKH ZD\ SHRSOH ZRUNHG WKH ZD\ WKH\ WUDYHOOHG DQG WKH ZD\
WKH\OLYHG
+06,KDGDERXWHPSOR\HHVLQDOORIWKHVHZHUHLQWKHZRUNHUFDWHJRU\
ZHUH FRQILUPHG ZRUNHUV ZKLOH ZHUH FRQWUDFW ZRUNHUV 7KH RWKHU HPSOR\HHV
EHORQJHGWRWKHVXSHUYLVRU\DQGPDQDJHULDOVWDII,QDGGLWLRQSHUVRQVZHUHZRUNLQJDV
WUDLQHHVDQGZHUHDSSUHQWLFHVXQGHUWKH$SSUHQWLFHV$FW$OPRVWHYHU\ZRUNHURU
tC
"!!#$$!
7KH KXPDQ UHVRXUFH +5 SROLFLHV RI +06, ZHUH LQ DOLJQPHQW ZLWK WKH SKLORVRSK\ RI LWV
SDUHQW FRPSDQ\ +0&/ 7KH ODWWHU FRQVLGHUHG LWVHOI D XQLTXH RUJDQLVDWLRQ KDYLQJ DGRSWHG
VRPHGLVWLQFWLYHHPSOR\PHQWDQGSURGXFWLRQSUDFWLFHV,WDOVRKDGFHUWDLQIXQGDPHQWDOEHOLHIV
ZKLFK DPRQJ RWKHUV LQFOXGHG WKH YDOXH RI HDFK LQGLYLGXDO +06,¶V SKLORVRSK\ DGYRFDWHG
WZR IXQGDPHQWDO EHOLHIV UHVSHFW IRU LQGLYLGXDO GLIIHUHQFHV DQG WKH ³7KUHH -R\V´ WKDW LW
Do
ZDQWHGWRSURPRWHIRUDOORUJDQLVDWLRQDOPHPEHUV
8QGHUWKH)DFWRULHV$FWDZRUNHULV³DSHUVRQHPSOR\HGGLUHFWO\RUE\RUWKURXJKDQ\DJHQF\LQFOXGLQJDFRQWUDFWRU«
LQDQ\PDQXIDFWXULQJSURFHVVRULQFOHDQLQJDQ\SDUWRIWKHPDFKLQHU\RUSUHPLVHVXVHGIRUDPDQXIDFWXULQJSURFHVVRULQDQ\
RWKHUNLQGRIZRUNLQFLGHQWDOWRRUFRQQHFWHGZLWKWKHPDQXIDFWXULQJSURFHVV«´
,QWKHVWDWHRI+DU\DQD,QGLDWKHPLQLPXPZDJHUDWHVIRUXQVNLOOHGVHPLVNLOOHGVNLOOHGDQGKLJKO\VNLOOHGZRUNHUVLQWKH
PRQWKRI0D\ZHUH5V5V5VDQG5VUHVSHFWLYHO\
This document is authorized for educator review use only by SABINA TULADHAR, Pokhara University until Apr 2020. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
& 3HRSOH0DQDJHPHQW)LDVFRLQ+RQGD0RWRUF\FOHVDQG6FRRWHUV,QGLD/WG
5HVSHFWIRUWKHLQGLYLGXDOVWHPPHGIURPLQLWLDWLYHHTXDOLW\DQGWUXVW7KHFRPSDQ\EHOLHYHG
WKDWLWZDVWKHFRQWULEXWLRQRIHDFKHPSOR\HHWKDWZDVUHVSRQVLEOHIRUDFRPSDQ\¶VVXFFHVV
t
DQGZKLFKZRXOGWDNHWKHFRPSDQ\LQWRWKHIXWXUH%DVHGRQLWVSKLORVRSK\UHVSHFWIRUWKH
LQGLYLGXDO WUDQVODWHG LQWR LQGHSHQGHQFH RI VSLULW DQG IUHHGRP HTXDOLW\ DQG PXWXDO WUXVW RI
os
KXPDQEHLQJVZKRZRUNHGIRURUFDPHLQFRQWDFWZLWKWKHFRPSDQ\7KHFRPSDQ\FODLPHG
WKDWLWVSROLFLHVIRFXVHGRQGHYHORSLQJHDFKLQGLYLGXDO¶VFDSDFLW\WRWKLQNWRUHDVRQDQGPRVW
LPSRUWDQWO\WRGUHDP
,QOLQHZLWKLWVSDUHQW+RQGD¶VSKLORVRSK\+06,FRQGXFWHGDOOLWVGDLO\DFWLYLWLHVLQSXUVXLW
rP
RI WKH 7KUHH -R\V WKH MR\ RI EX\LQJ LH WKH MR\ RI XVLQJ ZRUOGFODVV SURGXFWV WKH MR\ RI
VHOOLQJLHWKHMR\RIVHOOLQJZRUOGFODVVSURGXFWVDQGWKHMR\RIPDQXIDFWXULQJLHWKHMR\
RI SURGXFLQJ KLJKTXDOLW\ SURGXFWV ,Q DGGLWLRQ DV DQ H[WHQVLRQ RI LWV NH\ PLVVLRQ WKH
FRPSDQ\KDGLPELEHGWKH³MR\RIFUHDWLQJ´DVDQLPSRUWDQWYDOXHIRULWVHOI7KHPDQDJHPHQW
EHOLHYHGWKDWWKHMR\RIFUHDWLQJZKLFKKHOSHGVWDIIGHULYHKDSSLQHVVIURPWKHLUGDLO\ZRUN
WKULOOHGLWVHPSOR\HHVWKHPRVW
7KH FRPSDQ\ DOVR SURPRWHG DVVRFLDWLRQ DPRQJ GLIIHUHQW FDWHJRULHV RI HPSOR\HHV WKURXJK
yo
SURYLVLRQ RI VLPLODU XQLIRUPV DQG FRPPRQ FDQWHHQ IDFLOLWLHV IRU DOO ,Q IDFW DOO HPSOR\HHV
ZHUH FDOOHG DVVRFLDWHV 7KH LQGXFWLRQ SURJUDPPH RI +06, LQYROYHG DPRQJ RWKHUV
DFFOLPDWL]LQJ WKH HPSOR\HHV WR WKH +RQGD SKLORVRSK\ ZKLFK ZDV D FOHDU ZULWWHQ VWDWHPHQW
7KH FRPSDQ\ DOVR WDONHG RI D ³+RQGD ZD\´ ZKLFK ZDV QRW D ZULWWHQ VWDWHPHQW EXW ZDV
H[SHFWHG WR UXQ WKURXJK WKH FRPSDQ\ ,W ZDV FRPPRQO\ XQGHUVWRRG WKDW WKH +RQGD ZD\
PHDQWµKXPDQEHKDYLRXURUZD\RIWKLQNLQJEDVHGRQ+RQGDSKLORVRSK\¶)RUH[DPSOHRQH
RI WKH SURPLQHQW +RQGD ZD\V ZDV SHUVHYHUDQFH WR HQVXUH VDIHW\ DQG TXDOLW\ LQ DOO DVSHFWV
op
7KH +5 GHSDUWPHQW ZDV H[SHFWHG WR RUJDQLVH WUDLQLQJ SURJUDPPHV DQG IDFLOLWDWH
LQWHUQDOLVDWLRQ RI FXOWXUHEXLOGLQJ VR DV WR SURPRWH WKH +RQGD ZD\ DPRQJ WKH HPSOR\HHV
$SDUWIURPWUDLQLQJLQ+RQGDSKLORVRSK\WKHFRPSDQ\RUJDQLVHGRWKHUW\SHVRIWUDLQLQJVXFK
DV 740 WRWDO TXDOLW\ PDQDJHPHQW WUDLQLQJ WUDLQLQJ IRU EXLOGLQJ WHDP OHDGHUV ,62
WUDLQLQJDQG6WUDLQLQJ
tC
7KH FRPSDQ\ DOVR SXEOLVKHG D VL[SDJH TXDUWHUO\ QHZVOHWWHU ³'UHDP 7HDP´ ,WV IRFXV
DPRQJ RWKHUV ZDV RQ FRYHULQJ WKH FRPSDQ\¶V DFKLHYHPHQW LQ WHUPV RI DZDUGV FRQWUDFWV
UHFRJQLWLRQVTXDOLW\FHUWLILFDWLRQQHZGHDOHUVDQGNDL]HQDFWLYLW\(PSOR\HHUHODWHGPDWWHUV
ZHUHUHVWULFWHGWRVSRUWVFRPSHWLWLRQUHVXOWVDQGDQQRXQFHPHQWVRIPDUULDJHVDQGFKLOGELUWKV
! "!%%$#&!"
+06,KDGDSHUIRUPDQFHDSSUDLVDOV\VWHPIRUDOOLWVHPSOR\HHVLQFOXGLQJWKRVHLQWKHZRUNHU
No
FDWHJRU\ $SSUDLVDO ZDV SHUIRUPHG E\WKH VHFWLRQ KHDG DQG WKH VKLIW LQ FKDUJH ZKR JUDGHG
WKH HPSOR\HH RQ D UDWLQJ VFDOH )URP WKLV JUDGH ZRUNHUV ZHUH GLYLGHG LQWR ILYH FDWHJRULHV
ZLWK LQFUHPHQWV UDQJLQJ IURP 5V WR SHU PRQWK 7KH FRPSDQ\ DQQRXQFHG DOO
DSSUDLVDOUHVXOWVDQGVDODU\KLNHVLPPHGLDWHO\RQWKHHQGRIWKHILVFDO\HDU7KXVRQ$SULOVW
RIHDFK\HDUDOOHPSOR\HHVZRXOGUHFHLYHWKHLUSD\KLNHRUSURPRWLRQOHWWHUV7KHSURPRWLRQ
RSSRUWXQLWLHVIRUZRUNHUVUDQJHGIURPZRUNHUWRVXEOHDGHUWRDVVLVWDQWH[HFXWLYHWRH[HFXWLYH
6LQFHDOPRVWQRHPSOR\HHZDVFRYHUHGE\WKH3D\PHQWRI%RQXV$FWWKHFRPSDQ\KDG
Do
7KH WUDLQLQJ GHSDUWPHQW ZKLFK ZDV D SDUW RI LWV KXPDQ UHVRXUFH GHSDUWPHQW ZDV VXSSRVHG WR EH KHDGHG E\ DQ DVVLVWDQW
PDQDJHUEXWWKLVSRVLWLRQOD\YDFDQWIRUDORQJWLPH
$ SHUXVDO RI WKH SDVW LVVXHV RI WKH QHZVOHWWHU UHYHDOHG WKDW LWV IRFXV ZDV RQ WDUJHWV VDIHW\ H[KRUWDWLRQV UHODWHG WR DQG
DQQRXQFHPHQW RI DFKLHYHPHQWV FRQFHUQLQJ TXDOLW\ VDIHW\ DQG WUDLQLQJ SURJUDPPHV RQ GHIHQVLYH DQG VDIH GULYLQJ RI WZR
ZKHHOHUV9HU\IHZHPSOR\HHUHODWHGPDWWHUVZHUHFRYHUHG1RUZDVWKHUHDQ\VFRSHIRUZRUNHUV¶H[SUHVVLRQWKURXJKDQ\OHWWHU
WRWKHHGLWRUUHODWHGWRLVVXHVWKDWFRQFHUQHGWKHP
This document is authorized for educator review use only by SABINA TULADHAR, Pokhara University until Apr 2020. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
& 3HRSOH0DQDJHPHQW)LDVFRLQ+RQGD0RWRUF\FOHVDQG6FRRWHUV,QGLD/WG
LQVWLWXWLRQDOLVHGDSROLF\RIJLYLQJDQH[JUDWLDRIRQHPRQWK¶VJURVVSD\WRHYHU\HPSOR\HH
DVLQFHQWLYHSD\DURXQGWKH'LZDOLIHVWLYDO
t
""$!!
os
6LQFH $SULO VW WKH FRPSDQ\ KDG FRQVWLWXWHG D ZRUNV FRPPLWWHH XQGHU WKH ,QGXVWULDO
'LVSXWHV$FW,'$FRQVLVWLQJRIZRUNHUVDQGPDQDJHPHQWUHSUHVHQWDWLYHV7KH
PDQDJHPHQW KDG DOVR FRQVWLWXWHG VRPH RWKHU FRPPLWWHHV FRQVLVWLQJ RI ZRUNHUV DQG
PDQDJHPHQW UHSUHVHQWDWLYHV 6RPH RI WKHVH ZHUH WKH FDQWHHQ FRPPLWWHH WKH WUDQVSRUW
FRPPLWWHHWKHKHDOWKFRPPLWWHHDQGWKHVSRUWVFRPPLWWHH1RPLQDWLRQVWRWKHVHFRPPLWWHHV
rP
ZHUHGRQHE\WKHPDQDJHPHQWEDVHGRQWKHSHUFHLYHGLQWHUHVWRIGLIIHUHQWSHUVRQV
"%#&!!!# !
,Q OLQH ZLWK LWV +5 SROLFLHV DOO HPSOR\HHV DW +06, LQFOXGLQJ WKH PDQDJHUV ZRUH VLPLODU
XQLIRUPV 7KH FRPSDQ\ SURYLGHG WZR VHWV RI XQLIRUPV RQH FRPSDQ\ FDS DQG RQH SDLU RI
VKRHV WR HDFK HPSOR\HH HYHU\ \HDU +06, KDG DOVR WDNHQ VHYHUDO LQLWLDWLYHV LQ WKH DUHD RI
HPSOR\HHZHOIDUHZKLFKUDQJHGIURPVXEVLGLVHGFDQWHHQIDFLOLWLHVWRDWWUDFWLYHKRVSLWDOLVDWLRQ
yo
UHLPEXUVHPHQW IRU DOO HPSOR\HHV %HVLGHV WKH FDQWHHQ DQRWKHU NH\ LQLWLDWLYH LQ WKLV UHJDUG
ZDV WUDQVSRUW IDFLOLWLHV WR DQG IURP ZRUNHUV¶ UHVLGHQFHV SURYLGHG DW VXEVLGLVHG UDWHV 7KH
FRPSDQ\DOVRKDGDVSRUWVFOXEIRUHPSOR\HHV¶XVHDW6XNKUDOLYLOODJHLQ*XUJDRQZKLFKKDG
IDFLOLWLHV IRU ERWK RXWGRRU DQG LQGRRU JDPHV :RUNHUV XVHG WKHVH IDFLOLWLHV WR RUJDQLVH
PDWFKHV ZLWK HPSOR\HHV RI RWKHU FRPSDQLHV LQ D YDULHW\ RI VSRUWV LQFOXGLQJ IRRWEDOO
YROOH\EDOOWDEOHWHQQLVFKHVVFDURPERDUGEDGPLQWRQWXJRIZDUKLJKMXPSDQGORQJMXPS
,QWKHLQLWLDO\HDUVWKHFRPSDQ\XVHGWRLQYLWHZRUNHUV¶IDPLOLHVWRFHOHEUDWHWKHIRXQGDWLRQ
op
GD\EXWDVWKHVL]HRIWKHZRUNIRUFHLQFUHDVHGWKHSUDFWLFHZDVGLVFRQWLQXHG
0RVWRIWKH+06,ZRUNHUVGLGQRWTXDOLI\IRUWKH(PSOR\HHV6WDWH,QVXUDQFHVFKHPHXQGHU
WKH(6,$FWDVWKHLUVDODULHVKDGFURVVHGWKHPD[LPXPVDODU\OLPLWIRUFRYHUDJH7KH
FRPSDQ\ FRYHUHG VXFK HPSOR\HHV XQGHU WKH 3DUDPRXQW +HDOWK &DUH IDFLOLW\ ,Q DGGLWLRQ WR
RXWSDWLHQW GHSDUWPHQW IDFLOLWLHV WKLV VFKHPH SURYLGHG UHLPEXUVHPHQW IRU KRVSLWDOLVDWLRQ
tC
H[SHQVHV7LOO6HSWHPEHUDZRUNHUDQGKLVRUKHUVSRXVHDQGXSWRWZRFKLOGUHQZHUH
FRYHUHG IRU 5V HDFK IRU KRVSLWDOLVDWLRQ LQVXUDQFH ZKLOH WKH ZRUNHU¶V PRWKHU DQG
IDWKHU ZHUH FRYHUHG IRU 5V HDFKSHU DQQXP ,Q DGGLWLRQ WR SURYLGH VXSSRUW WR DQ
DVVRFLDWHDWWLPHVRIILQDQFLDOQHHGWKHFRPSDQ\KDGDSROLF\RISD\LQJLQFDVK5VIRU
WKH ELUWK RI D FKLOG OLPLWHG WR D PD[LPXP QXPEHU RI WZR FKLOGUHQ DQG 5V RQ DQ
HPSOR\HH¶VPDUULDJH5VZDVJLYHQWRWKHIDPLO\RIDQHPSOR\HHRQKLVRUKHUGHDWK
DQG5VRQWKHGHDWKRIDQDVVRFLDWH¶VVSRXVHFKLOGRUSDUHQW7KHFRPSDQ\DOVRPHWLWV
OLDELOLWLHVXQGHUYDULRXVODERXUODZV
No
'LZDOLLVWKHPRVWLPSRUWDQWDQGPRVWZLGHO\REVHUYHGIHVWLYDORI+LQGXVZKRFRQVWLWXWHPRUHWKDQRIWKH,QGLDQ
SRSXODWLRQ)HVWLYLWLHVLQFOXGHJLIWH[FKDQJHVDQGSXUFKDVHVRIQHZFORWKHVDQGKRXVHKROGLWHPV7KHH[DFWGDWHRIWKHIHVWLYDOLV
GHFLGHGDFFRUGLQJWRWKH+LQGXFDOHQGDUQRUPDOO\IDOOLQJLQWKHPRQWKRI1RYHPEHUDQGRQRFFDVLRQLQWKHODVWZHHNRI
2FWREHU
$IWHUWKHXQLRQFDPHLQWREHLQJWKHZRUNVFRPPLWWHHKDGEHFRPHPHUHO\V\PEROLF
7KHSUDFWLFHZDVUHLQVWDWHGLQODWH6HSWHPEHUDIWHUXQLRQQHJRWLDWLRQV
6XEVHTXHQWO\DIWHUWKHXQLRQLQWHUYHQWLRQWKHVHUDWHVZHUHHQKDQFHG
This document is authorized for educator review use only by SABINA TULADHAR, Pokhara University until Apr 2020. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
& 3HRSOH0DQDJHPHQW)LDVFRLQ+RQGD0RWRUF\FOHVDQG6FRRWHUV,QGLD/WG
WKDW RXU FRPSDQ\ HQMR\V LQ WKH JOREDO PDUNHW ZH DOO IHOW EHOLWWOHG DW WKLV VPDOO JLIW´ $
PDQDJHU DGGHG WKDW WKH SHUFHSWLRQ RI XQIDLUQHVV DPRQJ ZRUNHUV ZDV H[DFHUEDWHG E\
t
DGGLWLRQDOUXPRXUVWKDW+HUR+RQGDDFRPSHWLWRURI+06,ZDVJLYLQJDUHIULJHUDWRUHDFK
WR LWV ZRUNHUV DV D 'LZDOL JLIW ,Q WKH HQG RI WKH +06, ZRUNHUV UHIXVHG WR DFFHSW WKH
os
'LZDOLJLIWDQGWKHFRPSDQ\WRRNLWEDFN$VDQDOWHUQDWLYHLWRIIHUHGDFRXSRQRI5V
ZLWKZKLFKZRUNHUVFRXOGEX\DQ\JLIWLWHPRIWKHLUFKRLFHIURPFHUWDLQVSHFLILHGGHDOHUVEXW
WKDWWRRZDVWXUQHGGRZQE\WKHZRUNHUV7HQGD\VDIWHU'LZDOLWKLVPRQH\ZDVWUDQVIHUUHG
WRWKHLUEDQNDFFRXQWV
rP
2WKHU UHVHQWPHQWV ZHUH DOVR IHVWHULQJ DPRQJVW WKH ZRUNHUV 7KH\ ZHUH PDGH WR VLJQ D
³PRYHPHQWVKHHW´ZKHQHYHUWKH\WRRNDEUHDNWRJRWRWKHWRLOHWRUGULQNZDWHU,QDPXFK
FLWHG LQFLGHQW D ZRUNHU ZDV RQFH GHQLHG SHUPLVVLRQ WR JR WR WKH WRLOHW :KHQ KH FRXOG QR
ORQJHUEHDULWKHSXOOHGWKHOLQHFKDLQWRVWRSWKHFRQYH\RUEHOWDQGUXVKHGWRUHOLHYHKLPVHOI
:KHQ KH UHWXUQHG VRPH PLQXWHV ODWHU KH ZDV GLVPLVVHG $OVR DV LQ WKH SRVW)RUGLVW
SURGXFWLRQ V\VWHP ZRUNHUV ZHUH RIWHQ UHTXLUHG WR DWWHQG WR PRUH WKDQ RQH PDFKLQH
VLPXOWDQHRXVO\ WKLV LQFUHDVHG VWUHVV OHYHOV RQ WKH VKRS IORRU 7KH FRPSDQ\ ZDV DOVR YHU\
VWULFWLQJUDQWLQJOHDYH(YHQZKHQDZRUNHU¶VFORVHUHODWLYHZDVVHULRXVO\LOORUFLUFXPVWDQFHV
yo
ZHUH RWKHUZLVH VHULRXV OHDYH ZRXOG QRW EH JUDQWHG $SSDUHQWO\ ZKLOH GHQ\LQJ WKH OHDYH
PDQDJHUVZRXOGOHFWXUHWKHHPSOR\HHV6RPHWLPHVWKH\ZRXOGEHWROGWROHDYHWKHFRPSDQ\
SHUPDQHQWO\LIWKH\FRXOGQRWSHUIRUPXSWRH[SHFWDWLRQV,IDZRUNHUZDQWHGWRFKDQJHDVKLIW
WHPSRUDULO\IRUVRPHREOLJDWRU\UHDVRQLWZDVDOPRVWQHYHUJUDQWHG$OPRVWHYHU\GD\VRPH
ZRUNHURUDQRWKHUZRXOGJHWDWKUHDWRIWHUPLQDWLRQ%HFDXVHWKHUHZDVFRQVLGHUDEOHIHDURI
PDQDJHPHQW¶VDXWKRULW\QRERG\GDUHGWRVSHDNXSRUVHHNDJULHYDQFHUHGUHVVDO
op
:RUNHUV DOVR SHUFHLYHG WKDW PDQ\ PDQDJHUV VKRZHG SDUWLDOLW\ LQ PDWWHUV UHODWHG WR MRE
SRVWLQJV 7KHLU IDYRXULWHV ZHUH SRVWHG LQ MREV RXWVLGH WKH SURGXFWLRQ OLQH 3URGXFWLRQOLQH
MREV ZHUH IDU PRUH H[HUWLQJ WKDQ DQ\ RWKHU SRVWLQJV 7KH HQRUPLW\ RI WKH SUREOHP WRRN RQ
VHULRXV SURSRUWLRQV DQG OHG WR FRQVLGHUDEOH ELFNHULQJ DPRQJ ZRUNHUV ,W VHHPHG WKDW ZKLOH
WKLVSUDFWLFHZDVLQSODFHVLQFHWKHEHJLQQLQJWKH-DSDQHVHWRSPDQDJHPHQWNQHZOLWWOHDERXW
LW 7KH ,QGLDQ PDQDJHUV ZRXOG QRW OHW WKH ZRUNHUV PHHW WKH WRS PDQDJHPHQW WR VKDUH WKHLU
tC
JULHYDQFHVEXWUDWKHUHQFRXUDJHGWKHVFHQDULRDVLWSUHYHQWHGZRUNHUVIURPXQLWLQJ8QLRQ
OHDGHUVUHLQIRUFHGWKLVYLHZDQGFODLPHGWKDWPDQDJHUVGLGVRWRFUHDWHIULFWLRQDPRQJVWWKH
FRPPRQZRUNHUV7KH\ZDQWHGWKHVHSRVWLQJVWREHGRQHRQWKHEDVLVRIVHQLRULW\
$W WKH VDPH WLPH ZRUNHUV ZHUH DOVR XQKDSS\ ZLWK WKH LGLRV\QFUDWLF DWWLWXGH RI WKH YLFH
SUHVLGHQW RI PDQXIDFWXULQJ D -DSDQHVH QDWLRQDO ZKR ZDV D VWULFW +RQGD GLVFLSOLQDULDQ
.QRZQ IRU KLV XQSUHGLFWDELOLW\ KH KDG D UHSXWDWLRQ IRU VD\LQJ DQ\WKLQJ WR DQ\ERG\ DW DQ\
No
WLPH+HZDVRIWHQVHHQSDWUROOLQJWKHVKRSIORRUZLWKDIRRWORQJVWLFNWKDWZDVXVHGIRU
PHDVXULQJ WKH KHLJKWV RI WUROOH\V 0RVW ZRUNHUV WRRN D GLP YLHZ RI KLP DQG FUDFNHG MRNHV
DERXWKLPEHKLQGKLVEDFN2QFHDZRUNHUUHWXUQHGWZRPLQXWHVODWHIURPWKHWHDWLPHEUHDN
7RVKRZKLVGLVDSSURYDOWKH93NLFNHGWKLVZRUNHULQWKHOHJDOEHLWLQDIULHQGO\PDQQHU$W
WKH WLPH QHLWKHU WKH FRQFHUQHG ZRUNHU QRU WKH RWKHU ZRUNHUV DURXQG KLP UHDFWHG DW DOO
+RZHYHU E\ HYHQLQJ WKH QHZV KDG VSUHDG DPRQJVW WKH RWKHUV DQG VORJDQV ZHUH UDLVHG
DJDLQVW WKH 93 7KH QH[W GD\ WKH 93 DSRORJLVHG LQ IURQW RI WKH ZRUNHUV¶ JDWKHULQJ
6XEVHTXHQWO\WKH,QGLDQPDQDJHUVDVNHGVRPHZRUNHUVWRKDYHDPHHWLQJZLWKWKHPRQ
WKHLVVXH7KHLQFLGHQWUHVXOWHGLQSURGXFWLRQVWRSSLQJIRUDGD\DQGDKDOI$VLPLODULQFLGHQW
Do
RFFXUUHGZKHQD6LNKRIILFHURIWKHFRPSDQ\ZDVZHDULQJDGLIIHUHQWFRORXUHGFDSDQGQRW
WKHXVXDOFRPSDQ\FDS7KH93JDYHDSXVKWRKLVFDSNQRFNLQJLWRIIKLP$OWKRXJKWKH
RIILFLDOFRQFHUQHGIHOWLQVXOWHGKHNHSWTXLHW
+HUR+RQGDLVDQ,QGLDQFRPSDQ\ZKLFKLVDMRLQWYHQWXUHEHWZHHQWKH+HURJURXSRIFRPSDQLHVDQG+0&/,WLVDVHSDUDWH
HQWLW\DQGKDVQRFRQQHFWLRQZLWK+06,+HUR+RQGDDOVRSURGXFHVPRWRUF\FOHVDQGVFRRWHUV,WKDVWZRSODQWVRQHDW*XUJDRQ
+DU\DQDDQGWKHRWKHUDW'KDUXKHUD+DU\DQD:KLOHWKHUHLVQRXQLRQLQWKH*XUJDRQSODQWWKH'KDUXKHUDSODQWLVXQLRQLVHG
6LNK¶VDVDSDUWRIWKHLUUHOLJLRQZHDUWXUEDQVDVDSDUWRIWKHLUQRUPDOGDLO\DWWLUH
This document is authorized for educator review use only by SABINA TULADHAR, Pokhara University until Apr 2020. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
& 3HRSOH0DQDJHPHQW)LDVFRLQ+RQGD0RWRUF\FOHVDQG6FRRWHUV,QGLD/WG
$OWKRXJKWKHHUUDQW93ZDVODWHUVHQWEDFNWR-DSDQQRRWKHUDFWLRQZDVWDNHQDJDLQVWKLP
1RWVDWLVILHGZLWKDPHUHDSRORJ\IURPWKH93LQWKHODVWZHHNRI0DUFKWKHZRUNHUV
t
FDPHRXWZLWKDFKDUWHUFRQVLVWLQJRIPRUHWKDQGHPDQGV7KHVHLQFOXGHGDQLQFUHDVHRI
5VSHUPRQWKLQZDJHVDDQQXDOLQFUHPHQWLQZDJHVKRXVHUHQWDOORZDQFHWREH
os
SHJJHGDWRIZDJHFRQYH\DQFHDOORZDQFHRI5VSHUPRQWKDERQXVRQZDJH
SOXV D GHDUQHVV DOORZDQFH SURYLVLRQ IRU IUHH GLVWULEXWLRQ RI RQH NLORJUDP RI PLON DQG ò
NLORJUDPRIJXUMDJJHU\SHUZRUNHUHYHU\GD\SURYLVLRQIRUDXQLRQRIILFHRQWKHFRPSDQ\
SUHPLVHV DORQJ ZLWK DOO LQFLGHQWDO IDFLOLWLHVLQFOXGLQJ D WHOHSKRQH D ORDQ RI 5V IRU
PDUULDJH RI D VLEOLQJ RU FKLOG SURYLVLRQ RI D OLEUDU\ RQ WKH FRPSDQ\ SUHPLVHV DQG WKH
rP
DEROLWLRQ RI WKH SROLF\ RI RYHUVWD\ LI WKH SURGXFWLRQ WDUJHW IRU WKH GD\ ZDV QRW DFKLHYHG
ZRUNHUVZHUHUHTXLUHGWRFRPSXOVRULO\VWD\EDFNXQWLOWKHWDUJHWZDVDFKLHYHG5HOXFWDQWO\
RQ$SULOVWWKHPDQDJHPHQWRIIHUHGWKHZRUNHUVDFRPSHQVDWLRQSDFNDJHFRPSULVLQJ
DQLQFUHPHQWRI5VSHUPRQWKRQWKHFRQGLWLRQWKDWWKHZRUNHUVQRWIRUPDXQLRQ7KH\
UHIXVHGWRDFFHSWWKHPDQDJHPHQW¶VRIIHU
:KHQWKHPDQDJHPHQWGLGQRW\LHOGWKHZRUNHUVVWDUWHGFROOHFWLQJPRQH\IRUIXQGLQJXQLRQ
DFWLYLWLHV+06,PDQDJHPHQWVXJJHVWHGWKDWWKHZRUNHUVIRUPDQLQWHUQDOFRPPLWWHHLQVWHDG
yo
:KHQZRUNHUVGHFOLQHGWKLVVXJJHVWLRQPDQ\ZHUHLQGLYLGXDOO\FDOOHGLQWRDPDQDJHU¶VURRP
DQGH[KRUWHGQRWWRMRLQWKHXQLRQ/HWWHUVZHUHVHQWWRFHUWDLQZRUNHUV¶KRPHVFODLPLQJWKDW
WKH\ZHUHLQGXOJLQJLQXQGHVLUDEOHDFWLYLWLHV7KHPDQDJHPHQWDOOHJHGO\KLUHGVRPHRXWVLGHU
WRXJKVWRIULJKWHQWKHZRUNHUVLIWKH\IRUPHGDXQLRQ%XWWKHLUUHVROYHZDVWRRVWURQJ:LWK
WKHKHOSRIORFDOXQLRQOHDGHUVDIILOLDWHGZLWKSROLWLFDOSDUWLHV+06,ZRUNHUVEHJDQPDNLQJ
HIIRUWVWRIRUPDXQLRQDQGVXEVHTXHQWO\PRYHGDQDSSOLFDWLRQIRUUHJLVWUDWLRQRIWKHXQLRQWR
WKHUHJLVWUDURIWUDGHXQLRQVLQ&KDQGLJDUK7KHPDQDJHPHQWQRWZDQWLQJWKHIRUPDWLRQRID
op
XQLRQ LQ WKH RUJDQLVDWLRQ WULHG LWV EHVW WR VWRS WKH XQLRQ UHJLVWUDWLRQ ,W UHVRUWHG WR YDULRXV
PHDQV OLNH OREE\LQJ ZLWK WKH JRYHUQPHQW RI +DU\DQD WR KHOS SUHYHQW WKH IRUPDWLRQ DQG
VXEVHTXHQWUHJLVWUDWLRQRIWKHXQLRQ$VDUHVXOWWKHUHJLVWUDUDOOHJHGO\GHQLHGUHJLVWUDWLRQRI
WKH XQLRQ RQ WKH JURXQG WKDW WKH SURSRVHG ZRUNHUV¶ DFWLRQ ZDV LQLWLDWHG LQ EDG WDVWH 7KH
UHJLVWUDUDOVRFODLPHGWKDWLWZRXOGUHVXOWLQGLVKDUPRQ\RIUHODWLRQVEHWZHHQWKHLQGXVWU\DQG
ZRUNHUVLQWKHUHJLRQDWODUJHDQGZRXOGSURYHGHWULPHQWDOWRWKHJURZWKDQGGHYHORSPHQWRI
tC
WKHLQGXVWULDOEHOWLQDQGDURXQG0DQHVDU
&RQVHTXHQWWRWKLVWKHZRUNHUVUHVRUWHGWRDVORZGRZQRIZRUNJRVORZDQGUHIXVHGWRSXW
LQ RYHUWLPH WR FRPSOHWH SURGXFWLRQ WDUJHWV 7KH PDQDJHPHQW YLHZHG WKH QHZ VWDQG RI WKH
ZRUNHUV DV D VHULRXV EUHDFK RI GLVFLSOLQH DQG VXVSHQGHG IRXU ZRUNHUV RQ FKDUJHV RI
LQVXERUGLQDWLRQWDPSHULQJZLWKWKHTXDOLW\RIRXWSXWDGRSWLQJDJRVORZSROLF\LQGLVFLSOLQH
DQG XQUHVW 'XULQJ WKH VDPH SHULRG WKH PDQDJHPHQW DOVR UHIXVHG WR DEVRUE VRPH WUDLQHHV
No
ZKR KDG FRPSOHWHG WKHLU WZR \HDUV RI LQWHUQVKLS 7KHVH DFWLRQV RI WKH PDQDJHPHQW OHG WR
ZLGHVSUHDG GLVFRQWHQW DPRQJ WKH ZRUNHUV 0RVW ZRUNHUV ZKHWKHU SHUPDQHQW RU WUDLQHHV
FROOHFWHGWRJHWKHUXQGHUWKHOHDGHUVKLSRIWKHVXVSHQGHGZRUNHUVDQGVWDUWHGUDLVLQJVORJDQV
7KH\ DOVR JKHUDRHG WKH PDQDJHPHQW ZLWKLQ WKH RIILFHV ORFDWHG DW WKH IDFWRU\ SUHPLVHV
'XULQJWKLVJKHUDRRQHSHUVRQIURPVHQLRUPDQDJHPHQWZDVPDQKDQGOHGDQGEHDWHQXS7KH
HQWLUH LQFLGHQW RI WKH JKHUDR DQG UHVXOWLQJ YLROHQFH UHVXOWHG LQ SURGXFWLRQ EHLQJ VKXW GRZQ
IRUPLQXWHV7KHPDQDJHPHQWVDZWKLVDVDJUDYHDQGDFXWHFDVHRIEUHDFKRIGLVFLSOLQH,W
UHWRUWHG E\ VXVSHQGLQJ ZRUNHUV DQG GLVPLVVLQJ WKH SUHYLRXVO\ VXVSHQGHG IRXU ZRUNHUV
ZLWKRXW DQ\ HQTXLU\ 7KLV PDGH WKH VLWXDWLRQ LQ WKH FRPSDQ\ VWLOO PRUH H[SORVLYH
Do
*XUJDRQIDOOVLQWKH,QGLDQVWDWHRI+DU\DQD&KDQGLJDUKLVWKHFDSLWDOFLW\RI+DU\DQDZKLFKKRXVHVDOOVWDWHRIILFHV
0DQHVDULVDQLQGXVWULDOEHOWRI+DU\DQDZKLFKLQFOXGHVVHFWLRQVRI*XUJDRQ
*KHUDRLVD+LQGLZRUG,WPHDQVWRHQFLUFOH,WLVRIWHQXVHGE\HPSOR\HHVDJDLQVWPDQDJHUVRURIILFHUVDVDSUHVVXUHWDFWLF
3HUVRQVLQGXOJLQJLQDJKHUDRVXUURXQGWKHSHUVRQFRQFHUQHGXVXDOO\RQHRUPRUHPDQDJHUVDQGGRQRWOHWKLPWKHPPRYHDW
DOO7HFKQLFDOO\LWLVLOOHJDODVLWYLRODWHVWKHSURYLVLRQVRIWKH,QGLDQODZRIFULPH,WOHDGVWRLOOHJDOFRQILQHPHQWRIWKHSHUVRQ
JKHUDRHG%XWLQFDVHDQ\RWKHUYLROHQFHLVQRWSUDFWLFHGQRUPDOO\QRDFWLRQLVWDNHQDJDLQVWWKRVHLQGXOJLQJLQDJKHUDRLQWKH
LQWHUHVWRILQGXVWULDOSHDFH
This document is authorized for educator review use only by SABINA TULADHAR, Pokhara University until Apr 2020. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
& 3HRSOH0DQDJHPHQW)LDVFRLQ+RQGD0RWRUF\FOHVDQG6FRRWHUV,QGLD/WG
,QWHUHVWLQJO\LQUHJDUGWRWKHLPSRUWDQFHRIORFDOODZVWKHJOREDOSKLORVRSK\RI+RQGDVWDWHG
DVIROORZV
t
+RQGD LV FRPPLWWHG WR SURYLGLQJ D ZRUN HQYLURQPHQW WKDW LV IUHH IURP
os
XQODZIXO GLVFULPLQDWLRQ LQFOXGLQJ KDUDVVPHQW WKDW LV EDVHG RQ DQ\ OHJDOO\
SURWHFWHGVWDWXV+RQGDZLOOQRWWROHUDWHDQ\IRUPRIKDUDVVPHQWWKDWYLRODWHV
WKLV SROLF\ 7KLV SROLF\ IRUELGV DQ\ XQZHOFRPH FRQGXFW WKDW LV EDVHG RQ DQ
LQGLYLGXDO¶VDJHUDFHFRORXUUHOLJLRQVH[QDWLRQDORULJLQDQFHVWU\PDULWDO
VWDWXVVH[XDORULHQWDWLRQ«RUDQ\RWKHUEDVLVSURWHFWHGE\VWDWHIHGHUDORU
rP
ORFDOODZ
,QYLHZRIWKHUHVLVWDQFHIURPWKHPDQDJHPHQWWKHUHJLVWUDWLRQRIWKHSURSRVHG+06,XQLRQ
ZDV IXUWKHU GHOD\HG E\ PRUH WKDQ D PRQWK ,W ZDV RQO\ ZKHQ WKH FDXVH RI WKH ZRUNHUV DQG
WKHLU DSSOLFDWLRQ IRU UHJLVWUDWLRQ ZDV VXSSRUWHG E\ D OHWWHU IURP $,78& FKLHI *XUXGDV
'DVJXSWD D PHPEHU RI ,QGLDQ 3DUOLDPHQW WKDW WKH +06, ODERXU XQLRQ UHJLVWUDWLRQ ILQDOO\
WRRNSODFH7KLVOHWWHUGDWHG0D\WKZDVDGGUHVVHGWRWKHFKLHIPLQLVWHURI+DU\DQD
DQGUHTXHVWHGWKDWKHORRNLQWRWKHPDWWHUWRVHFXUHHDUO\UHJLVWUDWLRQRIWKHSURSRVHGXQLRQ
yo
7KH QHZO\IRUPHG XQLRQ ZKLOH DGRSWLQJ WKH GHPDQGV UDLVHG HDUOLHU DOVR DGGHG DGGLWLRQDO
GHPDQGVWRWKHLUFKDUWHU
FRPSDQ\ZDVQRWUHTXLUHGRQDQ\JURXQGZKHWKHUOHJDORUHTXLWDEOHWRUDLVHWKHZDJHVRIWKH
ZRUNHUV VLQFH LW ZDV DOUHDG\ SD\LQJ PRUH WKDQ WKH UHJLRQFXPLQGXVWU\ VWDQGDUGV 7KH
UHSUHVHQWDWLYHV RI WKH XQLRQ KRZHYHU FKRVH WR VWLFN WR WKHLU GHPDQGV 7KH FRPPLVVLRQHU
WKRXJKWWKDWWKHFRQFLOLDWLRQSURFHHGLQJVIDLOHGGXHWR³WKHXQFRPSURPLVLQJVWDQGDGRSWHGE\
ERWK WKH XQLRQ DV ZHOO DV WKH PDQDJHPHQW UHSUHVHQWDWLYHV´ +H VXEPLWWHG D FRQILGHQWLDO
IDLOXUHUHSRUWWRWKH+DU\DQDJRYHUQPHQWXQGHUVHFWLRQRIWKH,QGXVWULDO'LVSXWHV$FW
,'$RQ-XO\WK
No
&RQFXUUHQWO\ SHQGLQJ WKH RXWFRPH RI WKH FRQFLOLDWLRQ SURFHHGLQJV WKH PDQDJHPHQW DVNHG
WKHZRUNHUVWRVLJQDVWDWHPHQWRIJRRGFRQGXFW7KLVVWDWHPHQWVWLSXODWHGWKDWWKHZRUNHUV
UHWXUQ WR ZRUN XQFRQGLWLRQDOO\ DQG UHPDLQ GLVFLSOLQHG ZKLOH RQ WKH IDFWRU\ SUHPLVHV 7KH
VWDWHPHQWDOVRFRQWDLQHGDFODXVHVWLSXODWLQJQRQSXUVXDQFHRIXQLRQDFWLYLWLHVE\WKHZRUNHUV
ZKLOHDWZRUN,WZDVWKLVFODXVHWKDWEHFDPHFRQWHQWLRXVDQGZKLFKFRPSHOOHGZRUNHUVQRWWR
VLJQWKHVWDWHPHQW7KHPDQDJHPHQWLQUHWDOLDWLRQUHIXVHGWROHWWKHZRUNHUVHQWHUWKHIDFWRU\
SUHPLVHVZLWKRXWWKHLUVLJQDWXUHVRQWKHJRRGFRQGXFWERQG
Do
,Q RUGHU WR PDLQWDLQ SURGXFWLRQ VFKHGXOHV WKH PDQDJHPHQW KLUHG VRPH WHPSRUDU\ ZRUNHUV
IURP LWV YHQGRU FRPSDQLHV 7KHVH WHPSRUDU\ ZRUNHUV ZHUH DVNHG WR VWD\ LQ WKH IDFWRU\
SUHPLVHVDQGUHTXLVLWHIDFLOLWLHVZHUHSURYLGHGWRWKHPZLWKLQWKHIDFWRU\(YHQWXDOO\LQ-XQH
WKHPDQDJHPHQWDQGWKHXQLRQUHDFKHGDQDJUHHPHQWZKHUHE\WKHPDQDJHPHQWDJUHHG
WRDOORZWKHZRUNHUVWRHQWHUWKHSUHPLVHVRIWKHFRPSDQ\DQGZRUNRQO\XQGHUWKHFRQGLWLRQ
WKDWWKHWHUPLQDWHGVWDIIZRXOGQRWEHWDNHQEDFNRUUHLQVWDWHG)XUWKHUPRUHLWZDVGHFLGHG
This document is authorized for educator review use only by SABINA TULADHAR, Pokhara University until Apr 2020. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
& 3HRSOH0DQDJHPHQW)LDVFRLQ+RQGD0RWRUF\FOHVDQG6FRRWHUV,QGLD/WG
WKDWWKHZRUNHUVZRXOGEHDOORZHGHQWU\LQWRWKHIDFWRU\SUHPLVHVLQEDWFKHVRIDQGWKDW
WRR RQO\ LI WKH\ VLJQHG JRRG FRQGXFW ERQGV +RZHYHU IXUWKHU DSSUHKHQVLRQV FRQWLQXHG WR
t
SODJXH WKH PDQDJHPHQW $ IHZ \HDUV SULRU DW +HUR+RQGD 0RWRUF\FOHV /WG 'KDUXKHUDD
VLPLODUVLWXDWLRQKDGDULVHQDQGWHPSRUDU\ZRUNHUVIURPYHQGRUFRPSDQLHVZHUHFDOOHGLQWR
os
FRQWLQXH WKH SURGXFWLRQ 7KH PDQDJHPHQW RI +HUR+RQGD 0RWRUF\FOHV /WG XQGHU
FLUFXPVWDQFHV VLPLODU WR WKRVH IDFHG E\ +06, KDG HQWHUHG LQWR DQ DJUHHPHQW ZLWK WKHLU
HPSOR\HHV DQG DOORZHG EDWFKHV RI ZRUNHUV WR HQWHU WKH SUHPLVHV DQG UHVXPH ZRUN
+RZHYHU DIWHU HQWHULQJ WKH SUHPLVHV WKHVH ZRUNHUV GLVUXSWHG WKH ZRUN GRQH E\ WKH
WHPSRUDU\ ZRUNHUV IURP WKH YHQGRU FRPSDQLHV DQG EURXJKW SURGXFWLRQ WR D KDOW 7KH
rP
PDQDJHPHQWDW+06,IHDUHGVLPLODUFRQVHTXHQFHVDWWKHLUIDFWRU\
:KLOHWKHZRUNHUVDJUHHGWRWKHPDQDJHPHQWSURSRVLWLRQRQWKHIROORZLQJGD\WKH\SXWXS
WKHXQLRQIODJDWWKHIDFWRU\JDWH+06,PDQDJHPHQWEHFDPHFDXWLRXVDQGGHFLGHGWRDOORZ
RQO\ EDWFKHV RI ZRUNHUV WR HQWHU WKH IDFWRU\ SUHPLVHV /DWHU WKH PDQDJHPHQW IXUWKHU
UHWUDFWHG DQG DQQRXQFHG WKDW LW ZRXOG WDNH EDFN ZRUNHUV LQ EDWFKHV RI QR PRUH WKDQ
$QJXLVKHGZRUNHUVDJUHHG\HWDJDLQEXWWKHPDQDJHPHQWHYHQWXDOO\GHFLGHGQRWWRDOORZDQ\
ZRUNHU WR HQWHU WKH IDFWRU\ 7KH PDQDJHPHQW DOVR UHTXHVWHG DQG UHFHLYHG D JRRG GHJUHH RI
yo
SROLFH SURWHFWLRQ 7KH SRWHQWLDOO\ H[SORVLYH VLWXDWLRQ LQ WKH IDFWRU\ UHVXOWHG LQ D IHDU LQ WKH
PLQGV RI WKHWHPSRUDU\ ZRUNHUV ZKRKDG FRPH IURP WKH YHQGRU FRPSDQLHV 0DQ\ RI WKHVH
ZRUNHUV IOHG IURP WKH IDFWRU\ SUHPLVHV 2Q -XQH WK RQO\ WHPSRUDU\ ZRUNHUV
UHSRUWHGWRZRUN$WSPWKHPDQDJHPHQWZDVIRUFHGWRVKXWGRZQSURGXFWLRQIRUWKH
GD\
$OOWKHVHGLVUXSWLRQVLQDGGLWLRQWRWKHJRVORZWDFWLFVDGRSWHGE\WKHZRUNHUVDIWHUWKHXQLRQ
op
UHJLVWUDWLRQVHYHUHO\DIIHFWHGGDLO\SURGXFWLRQDWWKHSODQW'XULQJWKHPRQWKVRI0D\-XQH
DQG-XO\SURGXFWLRQGURSSHGWRDPHUHRIQRUPDOOHYHOVIURPVFRRWHUVSHU
GD\WRDURXQG7KLVZDVDJUDYHFDXVHIRUFRQFHUQWRWKHPDQDJHPHQWFDXVLQJ+06,WR
SODFHDQHZVSDSHUDGYHUWLVHPHQWIRUWKHUHFUXLWPHQWRIQHZZRUNHUV
2Q-XO\WKZRUNHUVIURP+06,DQGVRPHIURPQHLJKERXULQJLQGXVWULHVVWDJHGDUDOO\
DWRIILFHVRIWKHGLVWULFWDXWKRULWLHVWRSUHVVWKHLUGHPDQGVIRUUHLQVWDWHPHQWRIWKHLUGLVPLVVHG
DQG VXVSHQGHG FROOHDJXHV 7KH SROLFH SURKLELWHG WKH ZRUNHUV IURP HQWHULQJ WKH &LYLO /LQHV
DUHDZKLFKKRXVHGWKHRIILFHVRIDOOPDMRUJRYHUQPHQWIXQFWLRQDULHVRIWKHGLVWULFWLQFOXGLQJ
WKHGLVWULFWFROOHFWRU$WWKLVSRLQWVHYHUDOPDVNHGPHQEHJDQWKURZLQJVWRQHV7KHSURWHVWHUV
DWWDFNHGWKHGHSXW\VXSHULQWHQGHQWRISROLFHZKRZDVEHDWHQPHUFLOHVVO\7KH\DOVRVHWILUH
No
WRWKHYHKLFOHEHORQJLQJWRWKHVXEGLYLVLRQDOPDJLVWUDWH(YHQWXDOO\WKHSROLFHVXFFHHGHGLQ
FRQWUROOLQJWKHPRE7KHLQFLGHQWZDVFRYHUHGE\WKHWHOHYLVLRQPHGLDDQGJHQHUDWHGDJUHDW
GHDORISXEOLFV\PSDWK\IRUWKHSROLFH7KHLGHQWLW\RIWKHPDVNHGPHQZDVQRWFRQILUPHG
DQG+06,ZRUNHUVGHQLHGWKDWDQ\RQHIURPWKHLUUDQNVZDVDPRQJWKHP
$IWHUWKLV PXFKSXEOLFLVHGFODVKD PHVVDJHZDVVHQWWRWKHZRUNHUVWKDWWKHDGPLQLVWUDWLRQ
ZRXOGPHHWWKHPDQGDFFHSWWKHLUPHPRUDQGXP7KH\ZHUHDVNHGWRDVVHPEOHDWWKHODZQVRI
WKHVHFUHWDULDW2QFHLQVLGHWKHHQFORVXUHRQVRPHVOLJKWSURYRFDWLRQWKHSROLFHUHVRUWHGWR
WKH XVH RI EUXWH IRUFH DJDLQVW WKH XQDUPHG ZRUNHUV UHSRUWHGO\ LQ UHWDOLDWLRQ IRU WKH HDUOLHU
Do
DWWDFNRQWKHSROLFH7KHFRQVWDEXODU\IRUFHGZRUNHUVLQGLVFULPLQDWHO\WRNQHHOKROGLQJWKHLU
HDUVZKLOHWKH\ZHUHWKUDVKHG7KHQXPEHURIZRUNHUVLQMXUHGZDVLQLWLDOO\FODLPHGWREH
:KLOHPRVWZRUNHUVZHUHGLVFKDUJHGDIWHUILUVWDLGRIWKHPVXIIHUHGVHYHUHLQMXULHV/DWHU
RQWKHSROLFHDUUHVWHGDQXPEHURIZRUNHUVDQGERRNHGWKHPXQGHUGLIIHUHQWVHFWLRQVRIWKH
,QGLDQ3HQDO&RGH7KH+DU\DQDSROLFHDOVRERRNHGWKHOHJDOFRXQVHORIWKH+06,XQLRQRQ
6HHIRRWQRWHQXPEHU
This document is authorized for educator review use only by SABINA TULADHAR, Pokhara University until Apr 2020. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
& 3HRSOH0DQDJHPHQW)LDVFRLQ+RQGD0RWRUF\FOHVDQG6FRRWHUV,QGLD/WG
FKDUJHV RI DWWHPSW WR PXUGHU 7KH PHGLD UHSRUWHG WKDW WKLV XVH RI WKH ZRUVW SRVVLEOH SROLFH
EUXWDOLW\RQWKHZRUNHUVWKRXJKLQH[FXVDEOHZDVQRWH[DFWO\XQSURYRNHG>VHH([KLELWIRU
t
PHGLDSLFWXUHVRIWKHHYHQW@7KHWHOHYLVLRQLPDJHVRIWKHVDYDJHU\H[KLELWHGE\WKHSROLFHLQ
WKHLU DWWDFN RQ WKH ZRUNHUV EURXJKW WRPDQ\ PLQGV WKH VDYDJHU\RI *HQHUDO '\HU¶V DUP\ DW
os
-DOLDQZDOD%DJKSHUSHWUDWHGLQWKHLQWHUHVWRIWKHLU%ULWLVKPDVWHUV36DLQDWKDMRXUQDOLVWIRU
WKH+LQGXDQ(QJOLVKODQJXDJHGDLO\ZURWH
7KHVFHQHVIURP*XUJDRQJDYHXVPRUHWKDQMXVWDSLFWXUHRIODERXUSURWHVW
SROLFH EUXWDOLW\ RU FRUSRUDWH W\UDQQ\ « 7KH VWUHHWV RI *XUJDRQ JDYH XV D
rP
JOLPSVHRIVRPHWKLQJODUJHUWKDQDVLQJOHSURWHVW%LJJHUWKDQDSRUWUDLWRI
WKH+DU\DQDSROLFH*UHDWHUWKDQ+RQGD)DUPRUHFRPSOH[WKDQWKH³LPDJH
RI ,QGLD´ DV DQ LQYHVWPHQW GHVWLQDWLRQ ,W SUHVHQWHG XV D PLFURFRVP RI WKH
QHZ DQG ROG ,QGLDV 2I SULYDWH FLWLHV DQG JDWHG FRPPXQLWLHV 2I GLIIHUHQW
UHDOLWLHVIRUGLIIHUHQWFODVVHVRIVRFLHW\2IHYHUJURZLQJLQHTXDOLW\
36DLQDWKMRXUQDOLVWIRUWKH+LQGX
yo
:KLOH LW ZDV DGPLWWHG WKDW VRPH SROLFH RIILFHUV ZHUH EHDWHQ E\ WKH PRE EHIRUH WKH SROLFH
UHVSRQGHG ZLWK LWV EUXWDOLW\ WKH +06, XQLRQ PDLQWDLQHG WKDW LW ZDV GRQH E\ RXWVLGHUV
9LROHQFHFRQWLQXHGRQWKHQH[WGD\UHSRUWHGO\VSDUNHGRIIE\HQUDJHGPHPEHUVRIWKHSXEOLF
ZKR WXUQHG XS DW WKH FLYLO KRVSLWDO DQG FRXOG QRW ILQG WKHLU UHODWLYHV 6RPH RI WKHVH ZHUH
ZKLVNHGDZD\E\WKHSROLFHDQGZHUHFKDUJHGZLWKWKHSUHYLRXVGD\¶VYLROHQFH7KLVLQIODPHG
PDWWHUV HYHQ IXUWKHU 7KH SROLFH DFWLRQ RQ ZRUNHUV ZDV VHYHUHO\ SURWHVWHG E\ WKH SULQW DQG
WHOHYLVLRQPHGLDDQGE\SROLWLFLDQVLQDQGRXWVLGHWKH3DUOLDPHQW$VDUHVXOWWKHLQVSHFWRU
JHQHUDORISROLFHFRQFHGHGWKDWWKHLQFLGHQWZDVDQDFWRIJURVVQHJOLJHQFHRQWKHSDUWRIWKH
op
SROLFH 7KH GHSXW\ VXSHULQWHQGHQW RI SROLFH DQG WKH VXEGLYLVLRQDO PDJLVWUDWH FRQFHUQHG
FODLPHGWKDWRXWRIWKHRGGSHUVRQVDUUHVWHGDIWHUWKHLQFLGHQWKDGQRWKLQJWRGRZLWK
WKHVWULNHDW+06,7KLVZDVODWHUYHULILHGE\WKHUHFRUGVRI+06,
2Q-XO\WKWKHGD\DIWHUWKHXQSUHFHGHQWHGYLROHQFH+06,FORVHGRSHUDWLRQVIRUKDOI
DGD\EXWLWGLGQRWGHFODUHDORFNRXW&RQVHTXHQWWRVHYHUHSURWHVWVLQGLIIHUHQWFLUFOHVRQ
tC
-XO\ WK WKH +DU\DQD FKLHI PLQLVWHU RUGHUHG D FRXUW RI HQTXLU\ WR LQYHVWLJDWH WKH YLROHQW
LQFLGHQW WR EH FRQGXFWHG E\ D UHWLUHG MXGJH RI WKH 3XQMDE DQG +DU\DQD +LJK &RXUW7KH
WHUPVRIUHIHUHQFHSURYLGHGIRUDPRQJRWKHUVFRPSOHWLQJWKHLQTXLU\ZLWKLQDSHULRGRIWKUHH
PRQWKVH[DPLQLQJWKHUROHRIRXWVLGHUVLQWKHLQFLGHQWH[DPLQLQJZKHWKHUWKHIRUFHXVHGE\
WKH SROLFH ZDV MXVWLILHG RU H[FHVVLYH DQG ZKHWKHU WKH PHDQV DYDLODEOH WR WKH SROLFH ZHUH
DGHTXDWH WR FRQWURO WKH FURZG 7KH +DU\DQD FKLHI PLQLVWHU ZDV DOVR GLUHFWHG E\ &RQJUHVV
SUHVLGHQW6RQLD*DQGKLWRKROGGLVFXVVLRQVZLWKWKH+06,PDQDJHPHQWDQGLWVZRUNHUV)RU
No
PRUH WKDQ WZR ZHHNV ZRUNHUV UHPDLQHG LQ MDLO 7KH\ ZHUH VXEVHTXHQWO\ UHOHDVHG RQ
$XJXVWWK
WKHVWULNLQJZRUNHUVZRXOGUHVXPHGXW\IURP0RQGD\$XJXVWVWDQGWKDWWKH\ZRXOG
QRWUDLVHDQ\QHZGHPDQGVGXULQJWKHQH[WRQH\HDU7KHWUDGHXQLRQZKLFKZDVWKHERQHRI
FRQWHQWLRQEHWZHHQWKHZRUNHUVDQGPDQDJHPHQWZRXOGKRZHYHUFRQWLQXHWRRSHUDWH7KH
DJUHHPHQWDOVRVWDWHGWKDWWKHVXVSHQGHGZRUNHUVZRXOGEHUHLQVWDWHGDVZHOODVWKHIRXU
XQLRQOHDGHUVZKRVHVHUYLFHVKDGEHHQSUHYLRXVO\WHUPLQDWHG+RZHYHUWKHHPSOR\HHVZRXOG
3XQMDEDQG+DU\DQDDUHWZR,QGLDQVWDWHVZKLFKVKDUHWKH8QLRQ7HUULWRU\RI&KDQGLJDUKDVWKHLUFDSLWDO
This document is authorized for educator review use only by SABINA TULADHAR, Pokhara University until Apr 2020. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
& 3HRSOH0DQDJHPHQW)LDVFRLQ+RQGD0RWRUF\FOHVDQG6FRRWHUV,QGLD/WG
EH UHLQVWDWHG RQO\ DIWHU WKH\ KDG VXEPLWWHG DQ XQFRQGLWLRQDO OHWWHU RI DSRORJ\ 7KH IRXU
WHUPLQDWHG ZRUNHUV ZHUH DOVR UHTXLUHG WR VXEPLW D VHSDUDWH DVVXUDQFH OHWWHU WR WKH WRS
t
PDQDJHPHQW7KHVHWWOHPHQWFRQWDLQHGDFODXVHVWLSXODWLQJWKDWWKHZRUNHUVSURPLVHGQRWWR
HQJDJH LQ DQ\ DFW RI LQGLVFLSOLQH DQG DVVXUH QRUPDO SURGXFWLRQ +RZHYHU WKH PDQDJHPHQW
os
UHWDLQHGWKHULJKWWRFRQGXFWDQHQTXLU\LQWRWKHUHDVRQVIRUWHUPLQDWLRQRIWKHDIRUHPHQWLRQHG
IRXU HPSOR\HHV DQG LI WKH HPSOR\HHV ZHUH IRXQG JXLOW\ WKH PDQDJHPHQW KDG WKH ULJKW WR
WUDQVIHU WKHP WR DQ\ RWKHU GHSDUWPHQW RWKHU WKDQ WKH PDQXIDFWXULQJ GHSDUWPHQW 7KH
DJUHHPHQWDOVRSURYLGHGIRUWHUPLQDWLRQRIDQ\HPSOR\HHRI+06,ZKRZDVFRQYLFWHGLQDQ\
RIWKHFRXUWFDVHVWKDWKDGEHHQLQLWLDWHGDJDLQVWWKHPE\WKHFLW\DGPLQLVWUDWLRQLQFRQQHFWLRQ
rP
ZLWKWKH-XO\WKLQFLGHQW7KHZRUNHUVZHUHDZDUGHGIXOOVDODU\IRUWKHPRQWKVRI0D\
DQG-XQH+RZHYHUIURP-XQHWKRQZDUGVWKHSULQFLSDORI³QRZRUNQRSD\´ZRXOG
EH LPSOHPHQWHG,W ZDV DOVR SURYLGHG WKDW WKH LQMXUHG ZRUNHUV ZKR ZHUH QRW DEOH WR ZRUN
LPPHGLDWHO\ZRXOGEHJLYHQSDLGOHDYH
$ERXW WKH ZRUNHUV¶ GHPDQG WR DEVRUE WKH WUDLQHHV DV SHUPDQHQW HPSOR\HHV DIWHU WKH
FRPSOHWLRQRIWKHLULQWHUQVKLSLWZDVGHFLGHGWKDWDSURSHUWHVWDQGDGHWDLOHGDSSUDLVDOIRUP
ZRXOGEHDGPLQLVWHUHGIRUHYDOXDWLQJWKHLUSHUIRUPDQFHEHIRUHLQGXFWLQJWKHPDVSHUPDQHQW
yo
VWDII)LQDOO\LWZDVGHFLGHGWKDWWKHDJUHHPHQWEHFRQVLGHUHGDVILQDOFRQFLOLDWLRQLQUHVSHFW
WRDOOGHPDQGVUDLVHGE\WKHZRUNHUVDQGWKDWLQWKHIXWXUHERWKWKHSDUWLHVZRXOGPDLQWDLQ
FRUGLDOUHODWLRQV
'$+,!"!&"$$(!-*$#!!!$
op
7KHXQLRQRIILFHEHDUHUVIHOWWKDWDJRRGGHJUHHRIFKDQJHFRXOGEHVHHQLQWKHDWWLWXGHRIWKH
PDQDJHUV LQ WKH SRVW-XO\ WK VFHQDULR 7KH PDQDJHPHQW DOORZHG FRQFHVVLRQV RQ VHYHUDO
IURQWV 2Q WKH GD\ RI WKH WULSDUWLWH DJUHHPHQW WKH PDQDJHPHQW ZDQWHG WR WHUPLQDWH WKH
VHUYLFHV RI VRPH FRQWUDFW ZRUNHUV HYHQ WKRXJK WKH WULSDUWLWH DJUHHPHQW SURYLGHG IRU
UHLQVWDWHPHQW RI DOO ZRUNHUV %XW WKH XQLRQ ZDV DEOH WR FRQYLQFH WKH PDQDJHPHQW WKDW WKH
FRPSDQ\ VKRXOG VWLFN WR WKH DJUHHPHQW 1R GRPHVWLF HQTXLU\ SURFHHGLQJV ZHUH VWDUWHG
DJDLQVW WKH IRXU GLVPLVVHG ZRUNHUV ZKR KDG EHHQ WDNHQ EDFN QRU ZHUH WKH\ WUDQVIHUUHG WR
tC
RWKHUGHSDUWPHQWVDVHQYLVDJHGLQWKHWULSDUWLWHDJUHHPHQW
7KHPDQDJHPHQWKDGDOVRLQIRUPDOO\DOORWWHGDWHPSRUDU\URRPWRWKHXQLRQOHDGHUVWKRXJK
LWZDVQRWVXIILFLHQWO\ELJDQGSURPLVHGWKHPDSURSHUXQLRQRIILFHDIWHUVRPHWLPH7KHUH
ZDV DOVR DQ LQIRUPDO XQGHUVWDQGLQJ WKDW WKH XQLRQ OHDGHUV ZRXOG KDYH WKH IUHHGRP QRW WR
ZRUN RQ WKH VKRS IORRU DV ORQJ DV VHYHUDO LQGXVWULDO UHODWLRQV LVVXHV ZHUH VWLOO SHQGLQJ )RU
H[DPSOHSROLFHKDGUHJLVWHUHGFDVHVDJDLQVWZRUNHUVLQFOXGLQJDOOWKHVHYHQXQLRQRIILFH
No
EHDUHUV IRU WKH -XO\ WK YLROHQFH 7KLV QHFHVVLWDWHG UXQQLQJ DURXQG FRQWDFWLQJ GLIIHUHQW
SHRSOH WR EXLOG D VRXQG GHIHQFH 0HDQZKLOH WKH LQMXUHG ZRUNHUV KDG WKHLU RZQ SUREOHPV
UHTXLULQJWKHLQWHUYHQWLRQRIWKHXQLRQ2IWKHZRUNHUVZKRKDGVXIIHUHGPDMRULQMXULHV
FDVHVZHUHYHU\VHULRXVDQGLQYROYHGKHDGLQMXULHVPXOWLSOHIUDFWXUHVGDPDJHWRNQHHFDSV
HWF 7KH FRPSDQ\ VKRZHG DOO WKHVH LQMXUHG DV DEVHQW DQG ZDV KHVLWDQW WR SD\ WKHP WKHLU
VDODULHV$FFRUGLQJWRXQLRQOHDGHUVWKH\³KDGWRVWUXJJOHWRHQVXUHWKDWWKHLUVDODULHVDUHSDLG
UHJXODUO\´
7KH\ DOVR KDG WR PRQLWRU WKH ZRUNHU±VXSHUYLVRU UHODWLRQV FORVHO\ WR VHH WKDW ZRUNHUV ZHUH
Do
WUHDWHGEHWWHU$QRWKHUDUHDRIWKHXQLRQOHDGHUV¶LQYROYHPHQWZDVWKHLVVXHRIDEVRUSWLRQRI
WUDLQHHVLQWRUHJXODUSRVLWLRQV(YHQDVWKHDEVRUSWLRQRIDOOSHUVRQVZKRKDGFRPSOHWHGWKHLU
WUDLQLQJ LQWR UHJXODU VHUYLFH IRUPHG SDUW RI WKH WULSDUWLWH VHWWOHPHQW WKH PDQDJHPHQW ZDV
LQLWLDOO\UHIXVLQJWRWDNHPRVWRIWKHPRQGLIIHUHQWSUHWH[WV$VWKHVHWUDLQHHVKDGVXSSRUWHG
,QDFFRUGDQFHZLWKDQHDUOLHUUXOLQJRIWKHVXSUHPHFRXUWRI,QGLDLQWKHFDVHRI³%DQNRI,QGLDY76.HODZDOD´
/DERXUODZ5HSRUWHU
This document is authorized for educator review use only by SABINA TULADHAR, Pokhara University until Apr 2020. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
& 3HRSOH0DQDJHPHQW)LDVFRLQ+RQGD0RWRUF\FOHVDQG6FRRWHUV,QGLD/WG
WKHZRUNHUV¶VWUXJJOHWKHXQLRQJRWDOORIWKHPDEVRUEHGLQWRUHJXODUMREV6SHDNLQJRIWKH
FKDQJH6.6KDILWKHVHFUHWDU\RIWKHXQLRQREVHUYHG
t
1RZ ZKHQ D ZRUNHU DVNV IRU OHDYH PDQDJHUV VSHDN ZLWK PXFK UHVWUDLQW
os
WKHLUUHVSRQVHEHLQJIDUPRUHSRVLWLYH:RUNHUVDUHDEOHWRDGMXVWDKDOIGD\
VKLIWZLWKLQWKHQH[WGD\ZLWKQHJOLJLEOHKDVVOHV7KHQXPEHURIPHPRVWKDW
ZRUNHUVJHWLVQHJOLJLEOH7KHZRUNHUVZDQWHGIRXUGD\V¶OHDYHRQ'LZDOLLQ
1RYHPEHUDQGFRQVHTXHQWO\FORVXUHRIWKHIDFWRU\IRUIRXUGD\V7KLV
PHDQW WKUHH GD\V¶ FRPSHQVDWRU\ ZRUNLQJ RQ 6XQGD\ DQGRU KROLGD\V WKH
rP
PDQDJHPHQWKDVKHVLWDQWO\DJUHHGWRWKLVSURSRVDO)XUWKHUPRVWIDFWRULHVLQ
*XUJDRQ ZHUH ZRUNLQJ RQ WK 6HSWHPEHU ZKHQ VRPH RI WKH PDMRU
,QGLDQ WUDGH XQLRQ IHGHUDWLRQV JDYH D FDOO IRU LQGXVWULDO VWULNH DOO RYHU WKH
FRXQWU\LQSURWHVWDJDLQVWWKH&HQWUDO*RYHUQPHQW¶VHFRQRPLFSROLFLHV2XU
XQLRQKRZHYHUREVHUYHGWKHGD\DVVWULNH7KRXJKWKHPDQDJHPHQWIHOWEDG
WRNQRZLWVGHFLVLRQWKHXQLRQFRPSHQVDWHGWKHORVVE\ZRUNLQJRQD6XQGD\
6.6KDILVHFUHWDU\RIWKH+06,ZRUNHUV¶XQLRQ
yo
$QRWKHU PDMRU DFKLHYHPHQW E\ WKH XQLRQ ZDV WKH KLNH LQ WKH FRYHUDJH RI WKH ZRUNHUV DQG
WKHLUIDPLO\PHPEHUVXQGHUWKHPHGLFDOLQVXUDQFHVFKHPH7KLVZDVDUHVXOWRIQHJRWLDWLRQV
IROORZLQJDQLQFLGHQWLQ6HSWHPEHUZKHQWKHKRVSLWDOLVDWLRQH[SHQVHRIDZRUNHU¶VZLIH
FRVWKLP5V$OWKRXJKWKHZRUNHUZDVLQH[WUHPHGLVWUHVVRYHUWKHGHDWKRIKLVZLIH
WKHPDQDJHPHQWUHIXVHGWRSD\WKHH[FHVVRIWKHFRYHUDJHOLPLW(DUOLHUQRERG\ZRXOGKDYH
GDUHGWRWDONDERXWVXFKDQLQFLGHQWZLWKWKHPDQDJHPHQW,QWKHFKDQJHGFLUFXPVWDQFHVWKH
XQLRQ QHJRWLDWHG WKH LVVXH DQG PDGH WKH PDQDJHPHQW DJUHH WR D IDPLO\ IORDWHU FRYHUDJH
op
VFKHPHRI5V7KLVRYHUDOOOLPLWFRXOGEHXWLOLVHGE\RQHRUPRUHRUDOOWKHIDPLO\
PHPEHUV ,I WKH H[SHQVHV VWLOO H[FHHGHG WKLV DPRXQW WKH FRPSDQ\ DJUHHG WR SD\ XS WR 5V
7KLVDJUHHPHQWZDVUHDFKHGQRWWKURXJKDQ\ZULWWHQVHWWOHPHQWZLWKWKHXQLRQEXW
E\ZD\RIDFKDQJHLQPDQDJHPHQWSROLF\DWWKHLQVLVWHQFHRIWKHXQLRQDQGFDPHLQWRHIIHFW
RQ2FWREHUVW
tC
$QRWKHUQHZGHYHORSPHQWZDVWKDWZKHQHYHUWKHUHZDVDZRUNHUVUHODWHGSUREOHPRULVVXH
WKHPDQDJHPHQWLQYLWHGDOOVHYHQRIWKHXQLRQRIILFHEHDUHUVIRUGLVFXVVLRQ7KLVKDGQHYHU
EHHQ GRQH HDUOLHU )RU H[DPSOH WKH PDQDJHPHQW IDFHG D SUREOHP RI LQFUHDVLQJO\ VWUHVVHG
ZRUNHUVZKRKDGWRZRUNRYHUWLPHWRPHHWWKHSURGXFWLRQWDUJHWV2YHUWLPHZDVEHLQJSDLGDW
WKHUDWHRIGRXEOHWKHEDVLFZDJHUDWH:RUNHUVIRXQGLWVRPHZKDWDWWUDFWLYHWRZRUNRYHUWLPH
DQGPDNHH[WUDPRQH\%XWWKLVKDGOHGWRDPRQJRWKHUVPHGLFDOSUREOHPV:RUNHUVQHYHU
IHOW IUHVK ZKLOH DW ZRUN WKXV KDPSHULQJ RYHUDOO SURGXFWLYLW\ 7KH XQLRQ¶V KHOS ZDV VRXJKW
No
DQG D GHFLVLRQ ZDV WDNHQ WR VFUDS RYHUWLPH FRPSOHWHO\ H[FHSW XQGHU H[FHSWLRQDO
FLUFXPVWDQFHV
,QDODQGPDUNLQFLGHQWRQ6HSWHPEHUWKWKH³$VKLIW´LQDVVHPEO\DFKLHYHGLWVWDUJHWRI
VFRRWHUVIRUWKHILUVWWLPHDIWHUWKHXQLRQIRUPDWLRQ3ULRUWRWKHXQUHVWWKHWDUJHWZDV
DFKLHYHGLQDOPRVWHYHU\VKLIW8QLRQOHDGHUVVDLGWKDWWKHWDUJHWVFRXOGQRWEHDFKLHYHGGXH
WR YDULRXV LQWHUUXSWLRQV +RZHYHU WKH\ FRXOG QRW VDWLVIDFWRULO\ H[SODLQ ZK\ WKHVH
LQWHUUXSWLRQV KDG QRW DIIHFWHG WKH WDUJHW DFKLHYHPHQW HDUOLHU 2Q KHDULQJ WKH WDUJHW
DFKLHYHPHQWWKDWGD\WKHYLFHSUHVLGHQWRIPDQXIDFWXULQJDORQJZLWKWKHJHQHUDOPDQDJHURI
Do
SURGXFWLRQFDPHWRWKHVKRSIORRUGXULQJWKHOXQFKWLPHDQGFRPPHQGHGWKHDFKLHYHPHQWRI
WKHZRUNHUV7KHQH[WGD\VZHHWVZHUHGLVWULEXWHGWRDOOZRUNHUV
7KH VFKHPH RI LQYLWLQJ ZRUNHUV¶ IDPLOLHV RQ WKH IRXQGHUV¶ GD\ KDG EHHQ VWRSSHG DV WKH
QXPEHURIHPSOR\HHVKDGLQFUHDVHGDQGWKHSUDFWLFHZDVEHFRPLQJXQPDQDJHDEOHLQYLHZRI
WKHIDFWWKDW +RQGDZRUNHUVZHUHIURP PRUHWKDQGLIIHUHQWVWDWHVRI,QGLD7KLVSUDFWLFH
ZDVUHYLYHGLQODWH6HSWHPEHU7KHUHDIWHUIDPLO\PHPEHUVZHUHLQYLWHGWRWKHIDFWRU\DW
This document is authorized for educator review use only by SABINA TULADHAR, Pokhara University until Apr 2020. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
& 3HRSOH0DQDJHPHQW)LDVFRLQ+RQGD0RWRUF\FOHVDQG6FRRWHUV,QGLD/WG
WKH FRPSDQ\¶V H[SHQVH LQ EDWFKHV DQG ZHUH VKRZQ WKH FRQGLWLRQV XQGHU ZKLFK WKHLU ORYHG
RQHVZRUNHG
t
7KH'LZDOLJLIWIRUWKH\HDUZDVDOVRVHWWOHGWKURXJKQHJRWLDWLRQV(DFKHPSOR\HHZDV
os
JLYHQ D JLIWRI 5V DQG DQ LQFHQWLYH ERQXV LQWKH IRUP RI D EDQN DFFRXQW FUHGLW RI 5V
7KLV LQFOXGHG DOO PDQDJHULDO VWDII ,URQLFDOO\ XQOLNH WKH RQH PRQWK¶V JURVV SD\
GLVEXUVHG IRU WKH \HDU WKH ERQXV PRQH\ IRU WKH \HDU ZDV VPDOOHU 7KH
PDQDJHPHQWZDVDEOHWRFRQYLQFHWKHXQLRQWKDWWKHIDFWRU\KDGVXIIHUHGKXJHORVVHVDQGWKXV
WKHH[JUDWLDERQXVKDGWREHFXWGRZQ7KHELJJHVWVXIIHUHUVIURPWKLVDJUHHPHQWZHUHWKH
rP
PDQDJHULDOHPSOR\HHVZKRUHFHLYHGVXEVWDQWLDOO\OHVVWKDQWKHLURQHPRQWKRIJURVVVDODU\LQ
SUHYLRXV\HDUV
'HVSLWHWKHVHGHYHORSPHQWVWKHUHZHUHVWLOOVRPHRGGLQFLGHQWVUHPLQLVFHQWRIWKHSUHYLRXV
XQUHVW 2QH WRRN SODFH RQ 6HSWHPEHU QG ZKHQ WZR VXSHUYLVRUV LQ WKH DOXPLQLXP
PDFKLQH VKRS WUHDWHG ZRUNHUV DXWKRULWDWLYHO\ DQG LQ D SURYRFDWLYH PDQQHU MXVW DV WKH\ KDG
GRQH EHIRUH 7KH ZRUNHUV RI WKLV GHSDUWPHQW UHDFWHG 6RPH RI WKHP FDPH WR WKH XQLRQ
OHDGHUV VHHNLQJ WKHLU LQWHUYHQWLRQ :KHQ WKH XQLRQ OHDGHUV ZHQW WR VHWWOH WKH LVVXH ZLWK WKH
yo
VHQLRUPDQDJHUFRQFHUQHGKHVSRNHDQJULO\ZLWKWKHXQLRQOHDGHUVWRR:RUNHUVRIWKHZKROH
VKLIW KDOWHG ZRUN IRU DURXQG PLQXWHV $ XQLRQ OHDGHU ODWHU VDLG ³ZH ZHQW WR DOO WKH
GHSDUWPHQWVWRH[KRUWWKHZRUNHUVWRVWDUWWKHZRUNZHGLGQRWZDQWZRUNWREHLQWHUUXSWHG
7KDWGD\PRVWVHQLRUPDQDJHUVKDGJRQHWR&KDQGLJDUKIRUVRPHZRUN$IWHUWKH\FDPHEDFN
WKHQH[WGD\WKH\DOOIHOWVRUU\IRUWKHLQFLGHQWDQGDSSUHFLDWHGRXULQWHUYHQWLRQLQWKHPDWWHU´
([SDWLDWLQJ RQ WKH G\QDPLFV LQYROYHG &' 7LNDU WKH JHQHUDO VHFUHWDU\ RI WKH XQLRQ
op
REVHUYHG
:HDUHFRPPLWWHGWRWKHFRPSDQ\:HFRQVLGHULWDVRXUVDQGDOZD\VZDQW
WR GR RXU EHVW IRU LW 7KH UHVSHFW IRU WKH LQGLYLGXDO DQG WKH -R\V WKDW WKH
FRPSDQ\FODLPVWREHSUDFWLFLQJDUHPHUHO\LQWKHERRN6RPHRIWKHVHQLRU
PDQDJHUV ZDQW WR VHH D ELJ GLVWDQFH EHWZHHQ WKH WRS PDQDJHPHQW DQG WKH
tC
ZRUNHUV 7KH +5 PDQDJHU QHYHU ZDQWV WKDW ZH PHHW WKH -DSDQHVH WRS
PDQDJHPHQW DV KH IHHOV WKDW LI KH LV DVNHG WR EHFRPH WUDQVSDUHQW LQ KLV
ZRUNLQJWKLVZLOOSUHYHQWKLPIURPUHDOL]LQJKLVKLGGHQREMHFWLYHVLQFOXGLQJ
IDYRXULQJ KLV FKRVHQ IHZ 2QO\ VRPH SHU FHQW RI WKH PDQDJHUV WUHDW XV
ZLWKWKHGLJQLW\WKDWZHH[SHFWDVPHPEHUVRIWKHFRPSDQ\PRVWRWKHUVKDYH
ELJHJRV7KHPDQDJHUVDVZHOODVWKHZRUNHUVQHHGWRFKDQJH<RXNQRZWKH
SUREOHPV DOZD\V HPDQDWH DW WKH VKRS IORRU EXW QRERG\ ERWKHUV DERXW
No
DQDO\]LQJ WKHLU FDXVHV DQG SRVVLEOH VROXWLRQV LQ D PRUH SUDFWLFDO DQG
DFFHSWDEOH PDQQHU 7KH ZRUNHU DOZD\V ZDQWV IDLU DQG MXVW ZRUNLQJ RI WKH
FRPSDQ\:KHQWKLVGRHVQRWKDSSHQKHUHDFWV
&'7LNDUJHQHUDOVHFUHWDU\RIWKH+06,ZRUNHUV¶XQLRQ
7KHFRPSDQ\KDGEHHQSHUIRUPLQJH[WUHPHO\ZHOOVLQFHEHJLQQLQJDQGKDGVKRZQSURPLVLQJ
UHVXOWV RQ VHYHUDO IURQWV >VHH ([KLELW @ WKH 716 $XWRPRWLYH 'HDOHUV 6DWLVIDFWLRQ 6WXG\
UDQNHG +06, DV WKH OHDGHU LQ WKH WZRZKHHOHU FDWHJRU\ LQ ,QGLD ZLWK SRLQWV
IROORZHGE\+HUR+RQGDZLWKSRLQWV7KHFRPSDQ\DOVRUHFHLYHGVHYHUDOUHFRJQLWLRQVLQ
RWKHUVSKHUHV%XWLQWKHSRVW-XO\WKVFHQDULRWKHFRPSDQ\WRRNTXLWHVRPHWLPHWRDEVRUE
WKHVKRFNRIZKDWKDGKDSSHQHG7KHPDQDJHPHQWZDQWHGWRNQRZZKDWKDGJRQHZURQJDQG
This document is authorized for educator review use only by SABINA TULADHAR, Pokhara University until Apr 2020. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
& 3HRSOH0DQDJHPHQW)LDVFRLQ+RQGD0RWRUF\FOHVDQG6FRRWHUV,QGLD/WG
ZKHUHDQGKRZWKLQJVFRXOGEHLPSURYHG6RPHRIWKHLVVXHVDWKDQGWKDWQHHGHGDWWHQWLRQ
ZHUHVXPPDULVHGE\DQDQRQ\PRXVPDQDJHURI+06,DVIROORZV
t
7KH FRPSDQ\ KDG D WRWDO ODFN RI GLUHFWLRQ RQ WKH SHRSOH IURQW ZKLFK WR D
os
JUHDW H[WHQW LV VWLOO SHUVLVWLQJ 0DQDJHPHQW GRHV QRW NQRZ ZKDW WR GR WR
RYHUFRPHWKHVKRFNRI-XO\DQGLWVDIWHUPDWK-DSDQHVHZHUHFRQYHUVDQW
GHDOLQJ ZLWK WKH -DSDQHVH XQLRQV ZKLFK ZHUH NQRZQ WR EH PXFK PRUH
WROHUDQW7KHFRPSDQ\DOVRKDVDORWRISUREOHPVRIKLHUDUFK\FRQVFLRXVQHVV
7KH SUHVHQW *0±2SHUDWLRQV FDPH IURP 0DUXWL D 6X]XNLFRQWUROOHG
rP
DXWRPRELOH FRPSDQ\ ZKHUH KH FRXOG VXFFHVVIXOO\ WDFNOH VRPHZKDW VLPLODU
GLVFRQWHQW DPRQJ ZRUNHUV 7KH -DSDQHVH GR QRW XQGHUVWDQG WKH ZRUNHUV¶
ODQJXDJH DOVR 7KH 'LUHFWRU±±*HQHUDO $IIDLUV ZKR DOVR LV UHVSRQVLEOH IRU
RYHUDOO +5 PDQDJHPHQW FDPH ZLWK D ORW RI LGHDV EXW KH FRXOG QRW
XQGHUVWDQG WKH RUJDQLVDWLRQDO ZRUNLQJ IURP WKH HPSOR\HHV¶ SRLQW RI YLHZ
:KHQ ZRUNHUV KDG UHVRUWHG WR JRVORZ -DSDQHVH PDQDJHUV GLG QRW NQRZ
ZKDW WR GR 2Q WKH RWKHU KDQG ,QGLDQ PDQDJHUV ZHUH VSHFLDOLVWV LQ
SURGXFWLRQ WKH\ GLG QRW XQGHUVWDQG KRZ WR KDQGOH LQGXVWULDO UHODWLRQV ,5
yo
LVVXHV ,I '3 6LQJK >ZKR ZDV +5 FKLHI WLOO VRPH WLPH DJR DQG KDG OHIW
+06, FRPPDQGHG UHVSHFW DPRQJ PRVW ZRUNHUV@ KDG QRW OHIW SHUKDSV WKH
SUREOHPV PD\ QHYHU KDYH DULVHQ +H KDG D JRRG UDSSRUW ZLWK WKH ZRUNHUV
$QRWKHUSUREOHPZDVWKDWWKH-DSDQHVHKDGQRWJLYHQ,QGLDQPDQDJHUVPXFK
SRZHUWRWDNHPDMRULQLWLDWLYHVLQGLIIHUHQWGLPHQVLRQV7KLQJVKDYHKRZHYHU
VRPHZKDWLPSURYHGLQWKLVUHJDUGVQRZDIWHU-XO\
op
$V RQH RI WKH GLUHFW FRQVHTXHQFHV RI WKH XQUHVW WKH FRPSDQ\ UHYDPSHG DQG LQWHQVLILHG LWV
WUDLQLQJ IXQFWLRQ 0DQDJHUV ZHUH VHQW RXW WR DWWHQG PDQDJHPHQW GHYHORSPHQW SURJUDPPHV
RUJDQLVHG E\ DPRQJ RWKHUV WKH &RQIHGHUDWLRQ RI ,QGLDQ ,QGXVWU\ DQG WKH $OO ,QGLD
0DQDJHPHQW $VVRFLDWLRQ 7UDLQLQJ DUHDV LQFOXGHG LQWHUSHUVRQDO VNLOOV QHJRWLDWLRQ VNLOOV
WHDPEXLOGLQJDQGFRQIOLFWPDQDJHPHQWDQGOHDGHUVKLSEXLOGLQJ,QWHUHVWLQJO\KRZHYHUWKH
SRVLWLRQRIDVVLVWDQWPDQDJHURIWUDLQLQJUHPDLQHGYDFDQW
tC
,QYLHZRIWKHGDPDJHGRQHWRWKHFRPSDQ\¶VUHSXWDWLRQ+60,ZDVDOVREXV\LQDQLPDJH
EXLOGLQJ H[HUFLVH (DUOLHU WKH PDQDJHUV ZHUH XQGHU WKH LPSUHVVLRQ WKDW +RQGD SURGXFWV
ZRXOGVHOOEHFDXVHRIWKHFRPSDQ\¶VLPDJHDVDJOREDOEUDQG1RZLWKDGFRPHWRUHDOLVHWKDW
IROORZLQJ WKH -XO\ WK YLROHQFH LWV DGYHUWLVHPHQWV ZHUH QR ORQJHU HIIHFWLYH 7KH FRPSDQ\
ZDVIRUFHGWRFRQVLGHUQHZZD\VRIHQKDQFLQJWKHLUPDUNHWLPDJH,QDQLQQRYDWLYHDWWHPSWD
ZHHNORQJGULYHZDVRUJDQLVHGGXULQJZKLFKKHQQDWDWWRRVRIWKH+06,ORJRZHUHDSSOLHGRQ
No
ZRPHQ¶V KDQGV,Q LWV HQGHDYRXU WR UHDFK WKH IDUIOXQJ PDVVHV DFURVV WKH FRXQWU\ +06,
DOVRUDQURDGVKRZVRIWZRRILWVSRSXODUWZRZKHHOHUPRGHOV(WHUQRDQG8QLFRUQ
$VWUDWHJLFPHHWLQJRIWKHWRSPDQDJHPHQWDQGWKHGHSDUWPHQWKHDGVWRRNSODFHDWDFRXQWU\
UHVRUW WR GHFLGH WKH IXWXUH FRXUVH RI DFWLRQ 7KH\ ZHUH ZHOO DZDUH WKDW LQ DGGLWLRQ WR WKH
DVVLVWDQWPDQDJHURIWUDLQLQJSRVLWLRQWKHSRVWVRIVHQLRUPDQDJHURILQGXVWULDOUHODWLRQVDQG
VHQLRUPDQDJHURIDGPLQLVWUDWLRQZHUHDOVRO\LQJYDFDQW$QRXWFRPHRIWKHPHHWLQJZDVWKH
GHFLVLRQWRDSSRLQWDQHZSHUVRQDVWKHVHQLRUPDQDJHUIRUERWKWKHVHIXQFWLRQV,Q6HSWHPEHU
DOO XQLRQ RIILFHEHDUHUV ZHUH WUDLQHG E\ WKH +5 GHSDUWPHQW RQ EXLOGLQJ FRRSHUDWLYH
Do
LQGXVWULDOUHODWLRQV([WHUQDOWUDLQHUVZHUHDOVRLQYLWHGWRSDUWLFLSDWHLQWKLVSURJUDPPH7KH
FRPSDQ\DOVRQRPLQDWHGDFRPPLWWHHFRQVLVWLQJRIVHYHQZRUNHUUHSUHVHQWDWLYHVZKRZRXOG
EULQJWKHZRUNHUV¶JULHYDQFHVWRWKHQRWLFHRIWKHPDQDJHPHQWDQGWKHXQLRQOHDGHUV
7KHDSSOLFDWLRQRIKHQQDWDWWRRVLVDSRSXODU,QGLDQULWXDOXQGHUWDNHQE\ZRPHQRQKDSS\RFFDVLRQVVXFKDVZHGGLQJVRU
IHVWLYDOV
This document is authorized for educator review use only by SABINA TULADHAR, Pokhara University until Apr 2020. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
& 3HRSOH0DQDJHPHQW)LDVFRLQ+RQGD0RWRUF\FOHVDQG6FRRWHUV,QGLD/WG
7KH VKRUW EXW ELWWHU KLVWRU\ RI LQGXVWULDO UHODWLRQV RI +06, KDG VKDNHQ WKH FRPSDQ\¶V WRS
PDQDJHPHQW ,WV &(2 ZDV ZRQGHULQJ ZKDW LPSDFW WKLV ZRXOG KDYH RQ WKH DPELWLRXV
t
H[SDQVLRQ SODQV WKDW KH KDG GUDZQ RXW MXVW D IHZ PRQWKV EHIRUH WKH -XO\ WK YLROHQFH ,Q
SUHSDUDWLRQ IRU WKH PRYH IRUZDUG KH ZDV ORRNLQJ IRU ZD\V WR XQGR WKH ELWWHU IHHOLQJV
os
DPRQJVWWKHZRUNHUVZKLOHDWWKHVDPHWLPHGHOLEHUDWLQJZKDWVWHSVKHVKRXOGLPSOHPHQWQRW
RQO\ WR UHSDLU WKH GDPDJH WR WKH FRPSDQ\¶V LPDJH EXW DOVR WR PDLQWDLQ DQG HQKDQFH
SURGXFWLYLW\
rP
yo
op
tC
No
Do
This document is authorized for educator review use only by SABINA TULADHAR, Pokhara University until Apr 2020. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
& 3HRSOH0DQDJHPHQW)LDVFRLQ+RQGD0RWRUF\FOHVDQG6FRRWHUV,QGLD/WG
/
.
0
1'2334'
t
3LFWXUH3ROLFHEHDWLQJ+06,ZRUNHUVRQ-XO\WK
os
rP
yo
3LFWXUH $Q DQJU\ UHODWLYH RI DQ LQMXUHG ZRUNHU
DWWHPSWLQJ WR KLW D SROLFHPDQ IRU KLV UROH LQ EHDWLQJ
+06,ZRUNHUV
op
tC
No
Do
This document is authorized for educator review use only by SABINA TULADHAR, Pokhara University until Apr 2020. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
& 3HRSOH0DQDJHPHQW)LDVFRLQ+RQGD0RWRUF\FOHVDQG6FRRWHUV,QGLD/WG
t
VHHNKHOSDJDLQVWWKHSROLFHDFWLRQ
os
rP
yo
op
tC
No
Do
This document is authorized for educator review use only by SABINA TULADHAR, Pokhara University until Apr 2020. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
& 3HRSOH0DQDJHPHQW)LDVFRLQ+RQGD0RWRUF\FOHVDQG6FRRWHUV,QGLD/WG
t
os
/0/
+HUR0RWRUV
.LQHWLF(QJLQHHULQJ
rP
<DPDKD
5R\DO(QILHOG
7960RWRUV
%DMDM$XWR
+HUR+RQGD
yo
+06,
7ZR:KHHOHU$YHUDJH
,QGXVWU\$YHUDJH
op
6RXUFH716$XWRPRWLYH'HDOHUV6DWLVIDFWLRQ6WXG\DVSXEOLVKHGLQ'UHDP7HDP+06,
1HZVOHWWHU$SULO-XQH
tC
No
Do
This document is authorized for educator review use only by SABINA TULADHAR, Pokhara University until Apr 2020. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860