CS Final :: Human Resource Management and INdustrial Relations : June 2005

Recently, Elerex International Corporation (EIC), an MNC, as part of its India-entry strategy, took over two companies in Baroda :

Bristol Components : A 100 year old company, systems driven with professional managers and MBO culture – engaged in making components for infrastructural projects; and

Gapro Consultants : A company in project management business. It was a product of many mergers and acquisitions with European style military ethos – especially carrot and stick practices – bureaucratic managers and quasi robot manpower hired to execute numerous projects at hand.

As a result, EIC faced a piquant situation involving different pushes and pulls, units’ differential growth-levels, polarised and demoralised manpower, which could not be reshuffled even. EIC’s initial tasks were :

to infuse its productivity and quality management as its organisational objectives to the grass-root levels of employees;

to delicately handle group hostilities and atmosphere of threatened future and demoralisation;

to facilitate induction of new young blood for efficient handling of time-bound projects.

In this do-or-die situation, EIC’s MBO approach seems to hit hard rock. To solve this imbroglio EIC appoints you as Company Secretary, In-charge of its Personnel Division with following specific challenges :

To instil company’s effective HRM ethos in the light of Indian legal, managerial and labour scenario.

To carry engineers, employees and workforce through upheaval due to organisational restructuring.

To ensure effective and high standards of productivity, morale and quality management as bedrocks of its goodwill
How would you do that ? Put up a brief but lucid plan of action

339

Overheard at a works committee meeting of Rapid Automobiles Ltd. (RAL), employing 438 blue collars :
Samaksh (Union Leader) : “Sir, most of our members are distressed over their dark future in this company. We request something should be done for them.”
Tambuwala (Company Secretary) : “I also feel that we should frame proper policies.....”
Karanav (CEO) : “Future, what future ? Framing exercise is wastage of time and money. Work hard day and night. You will have no time to think about past or future.”
Tambuwala : “But, sir, our competitors gain above us because of such policies.”
Puneet (CMD) : “Alright, alright, Tambuwala will frame a policy outline in this regard. Next item ...”
As the Company Secretary of RAL, you are required to —

(i)	Give your independent view to CMD about the correctness of Karnav’s observations and approach; and

“Organisations are often skeptical to incur expenditure on training.” Discuss.

“Disqualifications of a human resources manager are more of a rule than exception.” Comment.

In organisations, if speaking is silver, silence is golden. Is that really so and always ? Discuss.

With an MBA Degree with three years experience, you have recently joined as a Chief Supervisor of Amrutanjan Ltd., Chennai. Three junior supervisors work under you to manage 150 workforce. The company enjoys an edge in a duopolistic market due to brand loyalty, yet employees require closer attention. In fact, you are keen on their development. How would you go about it ? Draw a brief action plan.

339

Read the following case and answer the questions given at the end, citing relevant case law, if any :
Vision Electroniks (P) Ltd., Pune, manufactures TV components. It appointed Rajender as a Junior Engineer to carry out technical and general supervisions over company’s 250 employees.
He reports to Lalit, Human Resources Manager. With Lalit’s permission, he became a member of the company’s trade union named Vision Karamchari Kalyan Samaj. Soon, he was elected as its President. Thereupon, the company’s CMD, Chanakya asked him to ensure workers’ welfare, motivation and morale. But due to overwork in multiple assignments, Rajinder is confused. So, guide him —

Can he be treated as a workman to be eligible for union’s membership ? If yes, under which law ? If not, why ?

What actions should be initiated to pave way for the enhanced workers welfare, motivation and morale, keeping in view relevant legal provisions and decided case law

Prakash, the Production Manager of Wellbeing Pharma Ltd., decided to opt for VRS being offered by the company. As per rules, he gave three months notice on 25th December, 2003 stating that he would demit his office on 31st March, 2004. The company appointed Easwar as its new Production Manager and decided to intimate VRS acceptance to Prakash. In the meantime, Prakash changed his mind and withdrew his VRS application. Can the company force Prakash to demit his office on 31st March, 2004 ? What is the status of new incumbent, Easwar, if company decides to continue with Prakash ? Cite case law.

Madhav, a workman, is discharged from employment due to closure of the business. Is it ‘retrenchment in disguise’ or ‘termination simplictor’ ? Discuss.

Industrial democracy.
Duties and responsibilities of a conciliation officer.

‘Hospitals’ as an industry as per decided cases and the Industrial Disputes Act, 1947.

Rights and obligations of employees under the Industrial Employment (Standing Orders) Act, 1946.

“The Minimum Wages Act, 1948 is a landmark in the history of labour legislation in the country.” Elucidate.

Briefly discuss the main provisions relating to payment of wages to contract labour under the Contract Labour (Regulation and Abolition) Act, 1970.