Introduction to case parental Imposition

• This case study is of an automotive ancillary company located in

Bangalore
• This ancillary company under reference was asked to change its
production from just – in – case to just- in – time basis because of
significance change in production cycle by proposed parent company
• The proposed change in production basis was necessitude due to foreign
automotive companies sharing the domestic automotive business along
with ancillaries because of the globalization policy adopted by Gov.
• because of the proposed change in production implied proportionate
decrease in expenditure including downsizing of workforce and wagebill
(salary )
• Some of the domestic automotive companies like M&M , Telco etc…
designed exit policies and offer VRS packages to their employees for
getting rid of excessive manpower
 continued
• The head Hr of the Bangalore based
automotive ancillary company circulated the
above facts among its workers through a
memo , for the purpose of their knowledge
and cooperation ( for peaceful exit of the
excess workforce )
 Q4.
• A4. For management the implications are :-
• They have to realign the production with the reduced demand , reduce the
expenditure and improve the quality of the product

• The implications for workers are :-

• They have to upgrade their skills, work hard , and improve the quality of
the product , they may have to work on lower wages if need be .

• The implication for union are :-

• The workforce will be downsized resulting in reduced membership of the
union , union activities will be reduce to bare minimum .
 Q5.can the management or unions do anything to ensure that such system are not imposed on
transnational companies

• No the management and union cant do anything in this case ,

only Gov. can impose on transnational companies
• If as management or unions if we have to do anything we can
do the following
• We have to maintain the standards as compared to foreign
companies
• Changes should be there in order to grow
• There should be competitive and healthy atmosphere for the
work force
• Should be updated with technology