Case Study 1

Mr. Jaggi, Human Resource Manager of ABC Group of Companies approached the CEO on 30th
March, 2007 and appraised him of the absence of Mr. Pradeep Assistant Accountant in the
Corporate Finance Department, for the past one month and requested him to send the show-cause
notice to Mr. Pradeep as per the Labour Laws in force. The CEO told Mr. Oberoi ‘‘When Mr.
Pradeep has been absent for the last one month, your duty is to go to his house and find out the
reason and solve his problem rather than reporting the absence. Go immediately to Mr. Pradeep’s
house and find the reason and report it to me before 5.00 p.m. today.’’ Mr. Jaggi immediately left
for Mr. Pradeep’s house and came to know from Mr. Pradeep’s wife that Mr. Pradeep has been
in grief as he has been trying to collect ` 1,00,000 for the surgery of his sick wife in a reputed
hospital in Mumbai. Mr. Oberoi could meet Mr. Pradeep around 3 p.m. and both of them then
met the CEO. Both of them told the CEO the reason for the absence and suffering of Mr.
Pradeep.

The CEO immediately contacted the hospital and informed them that the company will pay `
1,00,000 tomorrow i.e., 31st March, 2007 and requested the doctor to carry out the surgery for
Pradeep’s wife tomorrow itself. The CEO ordered Mr. Oberoi to issue a cheque for ` 1,00,000 in
favour of hospital and also pay ` 10,000 in cash to Mr. Pradeep to meet subsidiary expenses as a
grant. Mr. Pradeep as well as Mr. Oberoi were amazed at the decision of the CEO Mr. Pradeep
became emotional and touched the feet of the CEO. The CEO told Mr. Oberoi ‘‘The problems of
our employees are the companies problems. We treat the employees as a part of our family’’.
This news spread in the entire company within no time and the employees felt highly secured.
The productivity level increased by 100% in the next quarter itself and continued over the years
to come.

Questions :

(1) Why did Mr. Oberoi favour to follow legal approach to the problem ?

(2) Why did CEO provide ` 1,10,000 as just a grant to Mr. Pradeep ?

(3) What would be the morale of employee’s family members after this event ?

(4) Suggest a suitable title for the above case and justify that title.
 Case Study 2
Shri Fashions Pvt. Ltd. is a garment manufacturing company and employs nearly 2000 workers.
The workers are organised under the flag of ‘Swaraj’ trade union. Last year irrespective of
competitive market conditions, the company earned huge profits. The personnel manager met
and urged the Managing Director to consider substantially higher percentage of bonus in order to
better industrial relations. The MD pointed out a number of difficulties—claims from
shareholders for higher dividends, replacement of machinery, allocation of funds for future
expansion etc. He also said that labour alone has not been responsible for such a higher increase
in bonus. The personnel manager got disturbed and expressed fear about the likely serious unrest
among workers over the issue.

Questions :

(a) Analyse the case.

(b) Is the demand from personnel manager regarding higher bonus appropriate ?

(c) Why is MD not ready to increase the bonus ?

(d) Assuming that you are a Management Consultant, hired by the MD, suggest proper solution.

Case Study 3
Smt. Prachi Ketkar joined Vikas Bank in 1995 as a clerk after graduation. She completed her
bank examination (CAITB) in 1999 and become eligible for promotion. She was expecting
promotion and applied for the post of officer but could not get promotion due to low score in the
written test. She was transferred to her native place in 2002. Again she applied for the post of
officer (from promotion quota) but could not succeed. She started union activities and elected as
a President of local unit. She solved number of problems of the members and naturally almost all
the employees of the branch joined her union. Since then she has become a problem to the
management. In 2005 again she was not given promotion though her score was more than
minimum in the written test stating that her score of personal interview was less. In fact,
promotion was denied on the basis of confidential report of the Branch Manager regarding her
trade union activities. Smt. Ketkar decided later not to make any application for promotion and
devoted more time to union activities. She also started her own business as well as she diverted
deposits of business community to other banks. In 2006 Vikas Bank’s management decided to
promote Smt. Ketkar as an officer as per the recommendation of new branch manager and
accordingly appointment order was given. But unfortunately she refused to accept the order.

Questions :

(1) Analyse the above case.

(2) Why did Smt. Ketkar refused the promotion ?

(3) What is your opinion regarding management of bank ?

(4) Your opinion regarding Smt. Prachi Ketkar.

Case Study 4
Jones Construction Ltd. (JC Ltd.) is a local cons 2. truction who are working as principal
contractor in the construction of forty six, two, three and four-bedroom domestic properties. The
site on which they are located has a separate access road that is used for the delivery of income-
building materials that are unloaded from the vehicles by forklift trucks. The employees of JC
Ltd. are responsible for any such unloading of vehicles and for the transfer of any materials to
points of storage on site, such as compound or places of use.

JC Ltd. has recently recruited six additional part-time employees to work allocated days and
weekends. The new employees include five students and a former employee who had taken early
retirement. Their duties include taking deliveries, checking deliveries for quality and quantity,
unloading/loading and assisting with the transfer of materials to points of storage and around
site. On his second day at work, one of the new employees, a 17 years old student, receives leg
injuries when he is struck by a forklift truck while walking across the compound area. The
forklift was being driven without authorisation by an employee of a sub-contractor who was in a
hurry to get materials to his place of work. The employee of the sub-contractors claims that the
brakes on the truck where ineffective. Thr normal driver of the forklift truck, who was taking a
scheduled break at the time of the accident, has refused this claim and continues to drive the
truck. The injury was properly notified to the Health & Safety Executive under the Reporting of
injuries, Diseases & Dangerous, Occurrence Regulations 1995. Two weeks later, the employees
who had previously retired telephones the site manager to inform him that he has sustained an
injury to his back while unloading bagged materials from a lorry.

Questions :

(a) Analyze the case.

(b) Explain the legal options open to the inspector and the factors that may influence which
options are decided upon.

(c) Prepare an action plan of any short-term or long-term measures.

(d) Outline defences that may be used by JC Ltd. in disputing the claim.

Case Study 5
Mr. David Thomas is working as a confirmed stenographer in Rob 3. ertson Company,
employing about 400 employees. The company is producing spare-parts required for four-
wheelers. As a matter of orthodox policy of the company, secretarial services are shared by two
or more bosses and as such Mr. Thomas was asked to look after the work of Manager-Finance
and Manager-Material. The Finance Manager Mr. Karwande engaged Mr. Thomas normally for
a longer period, due to which Mr. Narayanan, the Manager-Material suffered from absence of
prompt secretarial work. The relations for Mr. Narayanan with Mr. Thomas, steno were strained.
He complained on several occasions against Mr. Thomas and requested the personal department
to take action against Mr. Thomas. Due to the overwhelming influence of Mr. Karwande, the
Finance Manager, some-how no action was take. Once Mr. Narayan had really very urgent job,
which Mr. Thomas’s services are needed. He could not become available. When Mr. Narayan
made written complaints to the General Manager stating part experience of Mr. Thomas, the
General Manager (Personnel) issued show-cause notice to Mr. Thomas.
The Finance Manager attempted to intervene, but show-cause notice issued to Mr. Thomas was
not withdrawn.

Next day Mr. Thomas tendered resignation and without waiting for acceptance of the
resignation, left the office, saying that he was the victim of defective personnel policy and
system of dual control.

Questions :

(a) Analyze the case.

(b) State the principle of management to which the system of dual central relates.

(c) Comment on the policy of constructions work of two bosses to one person in case of
Robertson Company.

(d) React on the remarks of Mr. Thomas that he was a victim at detective personnel system of
dual control and his abrupt departure.

Case Study 6
The foundry has always been regarded as one of the worst places to work in the Kale
manufacturing company. The work is hot dirty and heavy. Brawn rather than brains is considered
the Chief requirement to get the job done. Yet according to the job evaluation plan, ‘‘Physical
Ability’’ and ‘‘Working Conditions’’ are weighted relatively lower than ‘‘responsibility’’,
‘‘training’’ and ‘‘skill’’. As a consequecne, most of the foundry jobs are rated at the bottom of
the wages scale. In recent years it has become increasingly difficult to get employees for the
foundry management has had to take men who could not get jobs elsewhere thus further
lowering the already low social status of the foundry job in the eyes of the other men in the plant.
The whole matter has now reached a crisis. There are now 17 vacancies in the foundry and it is
impossible to hire new men at the evaluated rate.

Questions :

(i) Analyse the case.

(ii) How should this problem be handled ?

(iii) Should management completely revise wages in foundry but not in other department.

(iv) Why workers are not available in foundry job ?

Case Study 7
Dinesh a machine operator, worked as a mechanist for Ganesh, the supervisor Ganesh told
Dinesh to pick up some trash that had fallen from Dinesh’s work-area and Dinesh replied, ‘‘I
won’t do the janitor’s work.’’ Ganesh replied ‘‘When you drop it. You pick it up’’ Dinesh
became angry and abusive calling Ganesh a number of names in a loud vice and refusing to pick
up the trash. All employees in the departement heard Dinesh’s comments. Ganesh had been
trying for two weeks to get his employees to pick up trash in order to have cleaner workplace and
prevent accidents. He talked to all employees in a weekly departmental meeting and to each
employee individually at least once. He stated that he was following the instructions of the
General Manager. The only objection came from Dinesh. Dinesh has been with the company for
five years and in this department for six months. Ganesh had spoken to him twice about
excessive alcoholism but otherwise his record was good. He was known to have quick temper.
This outburst by Dinesh hurt Ganesh badly. Ganesh told Dinesh to come to the office and
suspended him for one day for insubordination and abusive language to supervisor. The decision
was within company policy and similar behaviours had been punished in other department. After
Dinesh left Ganesh’s office, Ganesh phoned the HR Manager, reported what he had done and
said that he was sending a copy of the suspension order for Dinesh’s file.

Questions :

Analyse the case.

How would you rate Dinesh’s behaviour ?

Do you assess any training needs of employees ?

Do you think that suspension of Dinesh is a proper action ?

 Case Study 8
A workman who committed a grave misconduct was issued a charge sheet which was followed
by a domestic enquiry. In the enquiry the charges were proved. Taking into consideration the
gravity of the misconduct and past record of service the management had decided to dismiss the
workman from service. Accordingly he was served the dismissal order but since there was a
conciliation matter pending before the Assistant Commissioner of Labour (Central) though not
connected with the dismissal matter, the management had to file an application for approval of
its action u/s 33 (2) (b) of the I.D. Act accordingly the management had passed the dismissal
order but in the meanwhile the workman went on total mike for reasons not connected with the
dismissal case. The matter went for conciliation before the Assistant Commissioner of Labour
(Central) Delhi. In the meanwhile the Union President (an outsider) brought pressure on the
chairman of the corporation to remit the punishment of dismissal to the workman on
humanitarian grounds. The dismissed workman was an important functionary of the Union.
Before the CC-19 (Central), Delhi a comprehensive agreement was reached to resolve the on-
going strike and one of the clauses was that the management had agreed to remit dismissal and
demote the workman for a period of three years and transfer him to a far off place incidentally
demotion was not included in the list of punishments in this establishment. The workman in
question who was in W-IV grade with Rs. 944 basic was demoted to W-11 grade and transferred
to a far off location copies of the office order together with relevant portions of the settlement
were sent to the payroll department for implementation. Since demotion was unknown earlier in
that organisation many doubts were raised. Finally the payroll department trained the following
questions and sought clarification from the personnel department.

Questions :

In demotion should the present basic salary be protected ?

Is the demotion cumulative or not ?

(If the present basic salary is beyond the maximum of the lower pay scale how should it be
treated.
What will happen to his seniority while he is in demoted grade ?