Case Studies in Human Resource Management 9789389795554

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Case Incidents in Human Resource Management Understanding Cases with Cartoons

Case Incidents in Human Resource Management Understanding Cases with Cartoons

D. Gopala Krishna Associate Professor Canara Bank School of Management Studies Post Graduate Department of Management Bangalore University Bangalore, India

©Copyright 2020 I.K. International Pvt. Ltd., New Delhi-110002. This book may not be duplicated in any way without the express written consent of the publisher, except in the form of brief excerpts or quotations for the purposes of review. The information contained herein is for the personal use of the reader and may not be incorporated in any commercial programs, other books, databases, or any kind of software without written consent of the publisher. Making copies of this book or any portion for any purpose other than your own is a violation of copyright laws. Limits of Liability/disclaimer of Warranty: The author and publisher have used their best efforts in preparing this book. The author make no representation or warranties with respect to the accuracy or completeness of the contents of this book, and specifically disclaim any implied warranties of merchantability or fitness of any particular purpose. There are no warranties which extend beyond the descriptions contained in this paragraph. No warranty may be created or extended by sales representatives or written sales materials. The accuracy and completeness of the information provided herein and the opinions stated herein are not guaranteed or warranted to produce any particulars results, and the advice and strategies contained herein may not be suitable for every individual. Neither Dreamtech Press nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages. Trademarks: All brand names and product names used in this book are trademarks, registered trademarks, or trade names of their respective holders. Dreamtech Press is not associated with any product or vendor mentioned in this book. ISBN: 978-93-89795-55-4

EISBN: 978-93-90078-92-9

Dedicated to Sri. A. Krishnamurthy, Prof. P. N. Shetty and Dr. K. V. Prabhakar for upholding values

Resource Utilization A key factor which adds values to performance is complete utilization of resources. Following is a powerful illustration. The story is on Buddha and his principle of using the available resources to the fullest extent possible. Sure, you will find it to be interesting! Buddha, one day, was on deep thought about the worldly activities and the ways of installing goodness in human. The following is the text of conversation between him and his disciple. One of his disciples approached him and said humbly “Oh my teacher! While you are so much concerned about the world and others, why don't you look into the welfare and needs of your own disciples also”? Buddha : “Ok. Tell me how I can help you”? Disciple : “Master! My attire is worn out and is beyond the decency to wear the same. Can I get a new one, please”? Buddha found the robe indeed was in a bad condition which needed replacement. He asked storekeeper to give the disciple a new robe to wear on. The disciple thanked Buddha and retired to his room. Though he met his disciple's requirement, Buddha was not at all contended on his decision. He realized he missed out some point. A while after he realized what he should have asked the disciple. He went to his disciple's place and asked him “is your new attire comfortable? Do you need anything more?” Disciple : “Thank you my master. The attire is indeed very comfortable. I need nothing more”. Buddha : “Having got the new one, what did you do with your old attire?”

viii  Resource Utilization

Disciple : “I am using it as my bed spread”. Buddha : “Then... Hope you have disposed of your old bedspread.” Disciple : “No...No... Master. I am using my old bedspread as my window curtain” Buddha : “What about your old curtain?” Disciple : “Being used to handle hot utensils in the kitchen” Buddha : “Oh...I see...Can you tell me what did they do with the old cloth they used in kitchen”? Disciple : “They being used to wash the floor”. Buddha : “Then, the old rug being used to wash the floor???” Disciple : “Master, since they were torn off so much, we could not find any better use, but to use as at wig in the oil lamp, which is right now lit in your study room”. Buddha smiled in contentment and left for his room. Buddha

Foreword The author has made my dreamed academic book come true. This is the real “Edutainment Book” that any generation of readers wish for. Since I started reading this book, I found it difficult to close it till the end. While reading each case with interest, I have found lots of stimulating questions. Most of the cases are written in Indian context but still I have understood all the cases well. The cases and their context can be generalized to what happens in the Thai workplace. I can foresee that the “Case Incidents in Human Resource Management: Understanding Cases with Cartoons” will be popular among HR professionals, not only in India but also in the international market. Assoc. Prof. Dr. Chiraprapha Tan Akaraborworn Former Dean, School of HRD

Preface Case study is a simulation technique used in the classrooms to make the students understand the corporate real-life problems in depth. The case studies are used as experiential exercises, widely adopted in most of the training centres and B-schools worldwide. The purpose of the case study is to provide students with experience of the Human Resource Management problems actually faced by the organizations. The critical case studies are complex in nature, through indepth discussions; students find and evolve multiple solutions to the complex problems which are cost effective. The short case incidents presented in this book are based on my experience and observations in the industry. In the classroom, when these cases are explained, students have shown keen interest and got involved deeply in discussions. In fact, the students have encouraged me to write and publish these case incidents for the benefit of large student community. Sometimes when these case incidents were introduced in the class, some of the students found it difficult to understand the problems in the case, so I thought it fit to introduce the cases with cartoons, for easy understanding. When the cartoons are attached with the case incidents, students involve, enjoy and understand the cases fast. These case incidents are short and crisp with cartoons, for quick grasp of the solutions. These case incidents are not only meant for classroom discussions, for commerce, management students and trainees, but it can also be used by the corporate executives to seek solutions for complex problems. It is fond hope of the author that these case incidents will help in better understandings of the industry problems. D. Gopala Krishna

Acknowledgements This book would not have seen the light of the day without the help and support of my family members, friends and students. So it is my duty to express gratitude to all of them. I express my gratitude to my family members for their support and encouragement. I thank my MBA (Day) and MBA (Executive, Evening) students who have involved, appreciated and encouraged me in writing the book. I also thank Prof. Panchanathan, Allagappa University. Prof. Rajan has taken interest and revised the draft and given valuable suggestions. I express my gratitude to him. I also thank Dr. Amar Datt, my Ph.D. student, who helped me to prepare the manuscripts. My whole-hearted thanks to Mr. Anil Kumar Y. N., my MBA student, who has creatively drawn the cartoons giving life to the cases within a short span of time. I profusely thank, Dr. Chiraprapha Tan Akaraborwarn, Former Dean, School of HRD, Assistant to the President for the International Accreditation National Institute of Development Administration, Bangkok, Thailand, for writing realistic and thoughtful foreword. Sri Pradeep M. Chandramouli my student and Madhu M.C, White Leaf Designs have developed and created excellent cover page design for the book. My special thanks to them. I thank my friends Mr. Lucas, Mr.Momocha Singh, Prof. Shadakshara Swamy Mrs. Roohieh Basery and Mr. Madhusudhana. B, MAAV Technologies for their moral support. My thanks to faculty and staff of Canara Bank School of Management Studies, MBA Department, Bangalore University for their encouragement and support. There are many who have helped me directly and indirectly. I express my gratitude to all of them. Dr . D. Gopala Krishna

Contents Resource Utilization Foreword Preface Acknowledgements 1. The Ethical Chief 2. Was the Selection Process Right? 3. No Requisite Qualification for Work 4. Wrongful Implication 5. Safety: A Matter of Life and Compensation 6. Selection Manipulated 7. Theft of Company Property 8. Accident on the Way to Office 9. Harassment by Colleagues 10. Death on Tour 11. Training for Employees 12. Death by Electric Shock 13. Multitasking, Boon or Bane? 14. Miscarriage of Employment 15. Politicisation of Unions 16. Cockroach in Food – Industrial Relations Problem 17. Neglecting the Family 18. Prolonged Strike and Violence 19. Cooked-up Recruitment 20. Multiple Claims of Provident Fund 21. Tailor-Made Advertisement 22. Termination During Probationary Period 23. Auditing the Audit Department 24. Good Welfare Officer 25. Misappropriation of Cash 26. Is it Sexual Harassment?

vii ix xi xii 1 4 7 9 12 14 17 20 22 25 27 29 31 33 36 38 41 44 47 49 51 53 55 58 62 64

xiv  Contents

27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50.

Deaddiction of Employees Who is Right? – The Court or Management Is it Ethical? Biased Performance Rating Sleeping While on Duty Loan Scandal Cultural Conflict Ends in Violence Security Check Doctor’s Negligenece Results in Death Drunken Chief Security Officer Impersonation Strike for Coffee Break Telecom Products to Floriculture – Where is the Connection? Victimisation of an Honest Officer Motivational Recruitment Transfer of Trade Union Leader Death Relief Committee Mass Leave Save PSU Forum Accident during Lunch Time Theft in the Stores Challenges of Creating a New Culture Promotion on Time Scale Misuse of Travel Concession Perk

66 69 72 74 76 79 82 85 87 91 93 95 98 100 104 107 110 112 114 116 119 122 125 128

1

The Ethical Chief

The chairmen of companies are mostly provided with several fringe benefits and extra facilities like a big bungalow with servants, big garden, swimming pool, air-conditioning, security personnel, private secretary, car driver, etc. depending upon and as per the company rules and regulations. One Chairman by the name Mr. Pundilika Rao was a highly disciplined and task oriented leader, leading the Mukunda and Mukunda Public Ltd. Company having 35,000 employees in various divisions of the company. One Ambassador car was provided to him for official use only. However, an audit officer Mr. Mukund while verifying the logbook of the chairman’s car found that the car was taken to a temple outside the state covering 400 km by the family members of the chairman. As per rule, whenever the vehicle is used for personal work like attending social functions, shopping, temple, etc., the company charges Rs. 2 per km. Hence, in this case, it means that Rs. 800 is due from the chairman, for using the car for personal work. Mr. Mukund observed that the chairman has to deposit Rs. 800 to the company for using the car for personal work. Mr. Mukund’s boss, the Chief Audit Officer, advised him not to raise any memo because it is a small amount and the chairman may mistake and he may create problems for the staff who raised memo for depositing the money. But Mr. Mukund took the risk and sent the memo to the chairman for depositing the money. The chairman promptly replied stating that by oversight the money was not deposited and the amount may be deducted from his salary. The audit officer appreciated his honesty and integrity, during the period the company was making huge profits.

2  Case Incidents in Human Resource Management

Later on one more chairman Mr. Shankar took over the charge as CMD of the company. Similarly, his family also took the company’s car outside the state to attend some religious

function covering 300 km. Mr. Mukund sent the memo to the chairman to deposit Rs. 600. The chairman’s office replied stating that the vehicle broke down near Hosakote, therefore the chairman’s family had not travelled to the destination. Hence, the matter may be treated as closed. The audit officer was surprised seeing the reply. If it broke down how it ran 300 km? This was not a correct reply. During this time the company was suffering from losses.

The Ethical Chief  3

Questions 1. Do you think if the top people are value based and honest, the company’s image and profit enhance? 2. Who respected the rules and values: Mr. Pundilika Rao or Mr. Shankar? 3. Do you think there is a relationship between ethics and profitability? Yes or No? Discuss.

2

Was the Selection Process Right?

Mr. Pandu is a postgraduate in Commerce working as an Assistant Accounts Officer-Gr II in Sundaram Company, for the last 10 years. Seeing an advertisement for the post of Assistant Finance Manager from Himalaya Company, which is a higher position, with substantial financial benefits, he applied for the said post and got selected. After receiving the appointment order, he resigned the post of AAO from Sundaram Company and went to report for duty at Himalaya Company.

Was the Selection Process Right?  5

There, the Personnel Manager requested him to bring the medical certificate from the company’s doctor, before reporting for duty. The doctor examined Mr. Pandu and found that he was suffering from heart disease and declared that Mr. Pandu was medically unfit. The personnel officer after studying the medical report, recommended for cancellation of the appointment order of Mr. Pandu.

Mr. Pandu is married, and has family. He has lost his previous employment, and on medical grounds he is not getting the present post. He is in despair.

6  Case Incidents in Human Resource Management

Questions 1. 2. 3.

What is wrong with the selection process? Whose mistake has led to the problem? How will you ensure such problems do not recur?

3

No Requisite Qualification for Work

Mr. Madan was working as a helper in a public sector company for the past 10 years. After 10 years of service the administration department came to know that he doesn’t possess the requisite basic educational qualification for his post. One day Mr. Madan was summoned to the security office to record a statement with regard to his qualification. Mr. Madan confessed that he had produced a false transfer certificate, and admitted that he has not studied in that school. Based on the confession statement, the management suspended and charge-sheeted him. Further an enquiry was conducted on Mr. Madan.

8  Case Incidents in Human Resource Management

During the enquiry, he stated that he has not submitted any eighth standard certificate. Further, he said that he is illiterate and someone in the personnel department filled the application form and he signed in Kannada. He did not know the contents written in English. Somebody has enclosed a Xerox copy of TC to his application to harass him. Further, he stated that he made the confession because of the threats posed by the security. The enquiry went on for more than one year. During the process, several witnesses including the headmaster were also examined. The enquiry officer at last gave clean chit and found Mr. Madan innocent and not guilty.

Questions 1. Who is wrong in this case? (a) The management (b) Mr. Madan (c) The Enquiry Officer (d) The Security officer (e) All 2. How can Mr. Madan continue in service without requisite basic qualification? 3. If you are a Manager (HR), how would you deal with such a case?

4

Wrongful Implication

Mr. Murthy was placed under suspension alleging that he was involved in violent incidents inside the factory premises and it was notified in the leading newspapers in Bangalore. A charge sheet was issued to Mr. Murthy making serious allegations such as that he has incited and coerced other employees to strike the work on October 25, 1998 at 6 A.M. in the morning inside the factory premises shouting slogans against the management like “down, down management”, “we want bonus”, “we want justice”, etc. Further, it is alleged that Mr. Murthy along with others pelted stones, chappals, shoes, parts and components and broke flower pots against the company officers causing injuries and damage to the company property. The charge sheet further adds that these acts are grave in nature amounts to serious misconduct and asked Mr. Murthy to explain within 3 days why disciplinary action should not be taken against him as per the standing orders of the company. Mr. Murthy expressed surprise to see his name in the newspaper. Mr. Murthy replied to the charge sheet stating that on October 25, 1998 he has not attended the office as he had applied leave to attend death ceremony of his mother-inlaw in Malavahalli who died in an accident. He states that he was on leave and there was no question of his participation in the strike involving violent activities. He further stated that the management has wrongly implicated him and deliberately with malafide intentions, to victimise him for no fault of him. To prove his point Mr. Murthy has submitted the mother-inlaw’s death ceremony invitation and the leave letter. Further he submits that he has not punched his attendance card and not signed in the attendance register. Therefore, he requested the management to close the case as he is innocent.

10  Case Incidents in Human Resource Management

The Management did not accept his explanation and decided to conduct an enquiry. Mr. Murthy was given an opportunity to take any co-worker to defend his case providing all the documents. In the enquiry the witnesses, Mr. Murthy’s supervisor and bosses, deposed that he was absent and that they have not seen Mr. Murthy in the department. Mr. Murthy also produced the documents like attendance punching card where there is no punching marks, which proves his absence. The witnesses also said that he was not present in the factory on that day. The enquiry went on for a long time. At last the enquiry committee found him guilty and punished him with demotion. Aggrieved by the order Mr. Murthy appealed to higher authorities stating that he was not present on that day and he was victimised with malafide intentions. The appellate authority rejected

Wrongful Implication  11

his appeal and upheld the punishment. Mr. Murthy suffered silently as he was punished for no fault of his.

Questions 1. Who is at fault? Mr. Murthy or the Management? How? 2. Why Mr. Murthy was punished when he has proved that he was not present on that day? Is it justifiable? 3. When the appellate authority rejected his appeal what remedies do you suggest to Mr. Murthy to secure justice?

5

Safety: A Matter of Life and Compensation

Public sector undertakings often engage contractors to execute pieceworks like building repair, machinery repair, vehicle maintenance, lift repairs, etc., to save costs and time. One such building maintenance work was entrusted by Bharath Ltd. to an outside contractor Mr. Ramanath. Mr. Ramanath engaged contract labourers from outside to carry out the building maintenance work. One contract labourer Mr. Santosh was carrying the building material in a lift (which belongs to the public sector company) from the ground floor to the fourth floor. Unfortunately, the lift crashed due to mechanical fault. Mr. Santosh, the poor contract labourer, died inside the lift with grievous injuries. Who was responsible for the death of

Safety: A Matter of Life and Compensation  13

Mr. Santosh, the contractor or the company? Mr. Santosh was the only bread earner of his family. They claimed the compensation from the contractor. The contractor said it was not his fault, and he was not responsible for the death of Mr. Santosh. The death was caused due to the mechanical fault of the lift which belongs to the company. Therefore the company has to pay the compensation. He aruged that the principal employer should own the responsibility and pay the compensation because the accident occurred in the company premises due to their negligence. The management argued that it is the duty of contractor to pay compensation because Mr. Santosh is the employee appointed by the contractor and not an employee of the copany. In this fight between the management and contractor, the parents continue to suffer and they do not know what to do.

Questions 1. Who is responsible for the death of Mr. Santosh? 2. Who should pay the compensation? 3. What other remedies are available to the parents to claim the compensation? 4. Is it possible to file criminal case against both the management and the contractor for negligence and death?

6

Selection Manipulated

Ms. Sudha was appointed a stenographer in a public limited company in the year 1985, along with two others. The other two stenographers were confirmed in their service after the successful completion of one-year probation period. Surprisingly, Ms. Sudha was kept under suspension for having submitted false information with regard to her qualifications. She was issued a charge sheet giving 7 days to explain why disciplinary action should not be taken under the relevant standing orders of the company.

Selection Manipulated  15

Ms. Sudha gave explanation stating that she was registered with Employment Exchange to which she had submitted copies of marks sheets with regards to qualification as passed in 1st year secretarial practice and failed in one subject, i.e., senior shorthand in final year. She stated that her name was sponsored by Employment Exchange and two company officials scrutinized her application and relevant documents and was called for the interview. Before reporting to duty the original records were again verified and retained by the company.

Ms. Sudha claimed that she had not submitted any false information in the company’s employment application form. She also stated that her application should have been rejected at the interview stage if the originals verified were incorrect. Further, she requested the management to revoke suspension and close the case.

16  Case Incidents in Human Resource Management

The management constituted an enquiry committee giving reasonable opportunity to Ms. Sudha to defend her. Ms. Sudha claimed that she had not submitted any false information and later submitted marks sheets of passing senior short hand and requested the management to close the case. The enquiry officer found Ms. Sudha not guilty and hence the management revoked suspension and closed the case.

Questions 1. How did the management appoint a candidate who has failed in one subject? Do you think the officials were bribed? 2. Why the company did not initiate disciplinary action against the officials who did not verify marks sheets correctly? 3. If Ms. Sudha had submitted false information, why the company has not punished her even after enquiry? 4. If you were the Chief Personnel Manager, what action you would have taken against officials and also against Ms. Sudha? What measures would you take to prevent similar cases?

7

Theft of Company Property

Mr. Tilak was working as a clerk in a reputed company for the last 15 years. Once he was caught red handed by the security personnel at the main gate, carrying two small textbooks photocopied inside the company, using company papers.

The security personnel took him to the security office, and interrogated Mr. Tilak, who confessed that he photocopied the books using company’s papers. Based on the confession, security guard recorded the confession statement of Mr. Tilak. As per the standing orders of the company, carrying company material outside the factory, amounts to theft. Therefore, the management charge-sheeted and sought explanation from

18  Case Incidents in Human Resource Management

Mr. Tilak as to why disciplinary action should not be taken against him for the misconduct. Mr. Tilak after receiving the charges sheet, in his reply, denied the allegation of the management and said that he was threatened and forced by the security officers to give a confession statement. Further, he requested the management to close the case as he was innocent. However, the management found the explanation misleading, hence constituted an enquiry committee to probe the matter. Reasonable opportunity was given to Mr. Tilak to defend his case according to the natural justice. During the course of enquiry Mr. Tilak submitted that he had photocopied the books in a shop nearby the office and a bill was also submitted to the enquiry committee. The photocopies of the books (which were photocopied outside) were brought inside the company by oversight and while he was going out, the security guard caught and harassed him. The enquiry went for a year and at last the enquiry officer found Mr. Tilak was “not guilty”. The management also accepted the findings of the enquiry officer, and declared Mr. Tilak innocent and discharged him from the charges without giving any punishment.

Theft of Company Property  19

Questions 1. Do you think taking photocopy (using company’s papers) inside the company is an offence/misconduct constituting theft? 2. Do you think it is worth conducting an enquiry spending a lot of time and money on such a simple issue (costing just Rs. 200)? 3. Do you think the management is right in discharging him without giving any punishment? 4. Assuming that you are the personnel manager, what decision you would have taken under such circumstances to save costs and infuse discipline?

8

Accident on the Way to Office

Since safety of the employees is important to most companies in Bangalore both in public and private sector, they provide transport to their employees. Buses, cars, mini buses are engaged to pick up and drop employees from home to workplace and back. One of the public sector employees, Mr. Nanjappa was walking from his house to the nearest bus stop to board the company’s bus. While he was crossing the road a private car hit him.

He was taken to a hospital with bleeding head injuries and after 2 days he died in the hospital.

Accident on the Way to Office  21

The family members of Mr. Nanjappa claimed compensation from the company, though he met with an accident outside the company stating that while he was going to the office he died.

Questions 1. Do you think the company should pay compensation to the employee who dies outside the company? Yes or No. Give reasons. 2. Is there any law to pay compensation to employees who die or meet with an accident while on the way coming to the office? 3. How do we prove that he was on the way and coming to office only?

9

Harassment by Colleagues

Mr. Sriramappa was working in Konark Brick Manufacturing Company for more than 10 years. Recently he was transferred to brick moulding section. Mr. Sriramappa was new to the section and did not know the work. Some of the old employees started teasing him using filthy language; however, Sriramappa was tolerating all the humiliation because he was new to the section.

Harassment by Colleagues  23

The older employees harassed Sriramappa by throwing mud and water on his uniform. They also complained to Mr. Nagaraj, the supervisor, that Sriramappa was inefficient. The mud and water on his uniform was its proof.

As the supervisor listened to old employees and did not entertain the complaint of Mr. Sriramappa, the harassment went on for six months. Mr. Sriramappa was mentally disturbed and was admitted in hospital in the psychiatric department. After his treatment in the hospital he became normal again. He went to work again in the same department and as usual old employees started teasing by calling him a mental case. Further, since he was mentally disturbed he frequently absented from the work. If the family members

24  Case Incidents in Human Resource Management

forced him to go to work, he used to assault them. Somehow, the family members pursued and sent him to work. One day when he was doing work in the department the old employees again threw mud and water on Mr. Sriramappa. Unable to tolerate this he assaulted one of the old employees Mr. Shankar causing serious injuries. Now the matter went to the top management who suspended both the employees– Mr. Sriramappa and Mr. Shankar and ordered an enquiry. The enquiry committee found that both the employees were guilty and punished both with demotion.

Questions 1. Is it not the supervisor Mr. Nagaraj responsible for indiscipline in the department leading to assault? 2. Do you think the ugly situation would have been avoided if the supervisor Mr. Nagaraj had acted and prevented indiscipline in the initial stages? Why the management did not take any action against the supervisor? 3. Mr. Sriramappa was a victim of harassment, is it right to punish him? 4. If you are a manager what action you would have taken to prevent such incidents?

10

Death on Tour

Many public and private sector companies provide leave travelling facilities to employees to visit their home town once a year and an all-India tour once in three years. The employees are permitted to take their dependent parents also on tour. The employees are paid to and fro fare, may be air fare, train or bus fare depending upon the grade. Air fare is paid only to top level management. They will be sanctioned paid leave during the tour.

One of the employees, Smt. Meenakshi along with her father Mr. Ponnuswamy went on tour to Delhi availing the leave travel facilities from the management. The management approved the leave travel concession to the said employee.

26  Case Incidents in Human Resource Management

Unfortunately, Mr. Ponnuswamy, the father of Smt. Meenakshi died in Delhi due to heart attack. Smt. Meenakshi did not know what to do with the body which had to be brought to Bangalore immediately to conduct last rites. If the body is brought by train, it takes 3 days, which is horrifying. Therefore, she requested the management to pay flight charges to bring the body back because it is a company sponsored tour. As an employee, she is not eligible for flight charges, she requested the management to pay the flight charges as a special case on humanitarian grounds but the management did not concur to her request to pay the flight charges.

Questions 1. Do you think the management is rigid in rejecting her request to pay flight charges? 2. Is it not human to meet the flight charges as a special case, because it is a death case? 3. If you are the general manager, what decision you would take?

11

Training for Employees

Sylicon Company is a leading public sector company dealing in chemicals and related processes. Chemicals are used for plating and coating of metals in the company. The chemicals are handled and mixed by the employees who are not qualified and some of them are even illiterate. These chemicals are hazardous and affect health. Therefore, they are provided with milk, vitamins, regular medical checkup once in every 15 days by the chief medical officer of the company.

In spite of these precautions, sometimes, accidents occur leading to serious health hazards, and sometimes even death. Hence, the company decided to train the people to

28  Case Incidents in Human Resource Management

prevent accidents and improve the health of the employees and requested the manager to prepare a training schedule/ programme for the employees working in the chemical department. Accordingly, the manager prepared a schedule of 30 days for the on-the-job and off-the-job training programme. The first module – literacy development for 10 days, the second – lectures on chemicals for 5 days, the third – practical applications of chemicals in the chemical department for 10 days and the fourth – health management for 5 days.

Questions 1. Do you think 30 days training programme is sufficient to train the illiterate employees? 2. From the above four modules identify on-the-job and off-the-job training programmes. 3. Do you think these four modules are enough? Do you want to add or delete any of the modules? Yes or No. Give reasons.

12

Death by Electric Shock

Mr. Somanna was working in the canteen as a cleaner. His job is to clean all the plates, utensils in the canteen and was working in the first shift from 6.15 AM to 2.15 PM. Normally, all the cleaners take bath after the work. The bathroom had an electric geyser. Mr. Somanna, as usual, took bath and while switching-off the geyser, there was a severe electric shock and he died instantly. Immediately he was taken to hospital, where doctors declared him dead. The management just to cover-up the issue declared Mr. Somanna died due to heart attack. The employees became furious, gathered in hundreds and demanded the management to conduct post-mortem of the body. The employees did not

30  Case Incidents in Human Resource Management

allow the body to be shifted till the enquiry was ordered in order to know the cause of death. The mob became violent. The employees also demanded employment to one dependant of the deceased and suitable compensation. The situation became tense. At this stage the police arrived to maintain law and order. The Inspector of Factories arrived and ordered an enquiry. The police promised to conduct the post-mortem. The post-mortem report revealed that Mr. Somanna died due to electric shock. It was revealed that the switch was faulty and there was leakage of current. The Inspector of Factories declared that the factory management was responsible for the death of Mr. Somanna. He ordered for suitable compensation and employment to one of the dependants of Mr. Somanna.

Questions 1. Why did the management conceal the cause of death of Mr. Somanna? Is it not inhuman? 2. Do you think the employees became violent due to the management’s false statement on the cause of death? 3. Is it not the management’s legal and moral responsibility to pay compensation and provide employment to one dependant of the deseased on compassionate grounds, yes or no? Give reasons.

13

Multitasking, Boon or Bane?

In any hotel one can see the cleaners who clean the table and plates, helpers who help in kitchen, storeroom, and servers who serve the food. In some hotels, one can see helpers who are also doing the serving job. However, in Raman & Co there are 10,000 employees and there is a canteen to serve subsidized food. In the canteen, the employees are designated as Helper, Cleaner, Server (HCS). There are about 250 employees in the canteen. These canteen employees have to do all the jobs simultaneously. The employees have to clean, help and serve. Three designations are given to one employee to reduce the manpower and exploit the workers. The employees protested against this and requested the management to give one designation to one employee and separate the employees on designation basis like the cleaners will do only cleaning job, helpers will do only helper job and servers will do serving job. One should not be forced to do all the jobs. According to designation they will be doing their respective jobs. Employees also argued from the hygiene point of view that if cleaners and helpers serve the food it may pollute and affect the health of customers and the servers cannot do cleaning job for the same reason. The management argued that if separate designation is given for each employee they have to recruit more employees which will increase the manpower cost. The management also said that new recruitment was banned in the company, they cannot recruit more employees therefore the management decided to continue the three designations to one employee and all employees have to do all the three jobs simultaneously.

32  Case Incidents in Human Resource Management

The employees protested and because of heavy workload there was heavy absenteeism in the canteen and the management was finding it difficult to serve the food on time. This became a serious industrial relations problem.

Questions 1. Do you think it is right to give three (cleaner, helper and server) designations to one employee? 2. Is it hygienic? Will it not affect the health if the employees do simultaneously the cleaner, helper and server jobs? 3. If you are manager, how will you solve this problem?

14

Miscarriage of Employment

Smt. Santha Mary joined as a clerk in a public sector company. She has put one year of service and not confirmed. She was married. After four months, she submitted a certificate that she suffered from miscarriage (abortion) and claimed the benefits as per the Maternity Act.

34  Case Incidents in Human Resource Management

Meanwhile the management received an unanimous letter stating that Smt. Santha Mary has not suffered any miscarriage and she is making false claims to get the benefits. The management in order to find out the truth requested Smt. Santha Mary to have a medical check up by the company’s medical officer. After examining the doctor gave the medical report which stated that Smt. Santha Mary did not suffer miscarriage and she had submitted false certificate in order to claim the benefit.

Based on the report, the management issued a charge sheet on the grounds of dishonesty, false statement and misrepresentation of facts and conducted an enquiry. The enquiry committee found Smt. Santha Mary guilty of misconduct under the provisions of the standing orders of the company. The management, based on the enquiry committee findings, dismissed Smt. Santha Mary from the service.

Miscarriage of Employment  35

Questions 1. Do you think dismissal is the right punishment for the minor misconduct? Discuss with reasons. 2. When an employee is under probation period, do you think the management has powers to dismiss him without enquiry? 3. Do you think that Smt. Santha Mary deserves the punishment for dishonesty?

15

Politicisation of Unions

Mr. Raghu, a film actor turned politician, became the chief minister of Andhra Pradesh. For certain political reasons, Mr. Raghu’s government was dismissed and president’s rule was imposed in the State.

Then all the opposition political parties and affiliated trade unions called for one-day strike and national bundh. Opposition trade unions collected money from the employees to support the bundh. Some employees opposed the collection

Politicisation of Unions  37

of money for political purposes. The opposition party trade union called the dismissal of the Mr. Raghu’s Government was murder of democracy and hence they decided to stop the work all over India in support of the bundh. The national bundh was not successful.

Questions 1. Do you think it is right to declare strike and bundh when a government is dismissed? 2. Is it not national waste to declare bundh on such issues? 3. Is it not misuse of workers strength to gain political mileage? 4. Can the trade unions contribute money to political parties?

16

Cockroach in Food – Industrial Relations Problem

Industrial Relations (IR) section is humorously called the the firefighting section in Human Resource Management Department. In Bangalore, there are many public sector organisations where thousands of workers are working in the factories. Several issues flare up every day. Some are settled peacefully and some become serious law and order problems leading to deaths and even closure of factories. One day in Roman Co. Ltd., during lunch time, the employees were served food. The food items were rice, sambar (gravy), rasam, butter milk, etc. The food used to be served for more than 4000 employees in half-an-hour.

Cockroach in Food – Industrial Relations Problem  39

When the employees were about to eat they found cockroaches in the sambar. The news of cockroaches in the sambar spread like wildfire and all the employees in the canteen stopped eating, and started throwing plates, shouting against the canteen managers and management for supplying cockroaches and unhygienic food. The incident led to violence and several people got injured. It was through police intervention that the situation was controlled. The employees unions demanded enquiry to know the truth. The management ordered an enquiry. During the enquiry it was revealed that some of the employees working in the canteen had dumped cockroaches in the sambar just to create problems because their long pending grievances had not been solved. Some of the pending issues were: (a) heavy workload (b) bifurcation of cleaner, helper and server roles separately (c) posting additional staff (d) rest rooms (e) modernising the kitchen with washing machine facilities, etc. These were genuine grievances. The Inspector of Factories who visited the factory recommended the management to attend to these grievances. The canteen employees were suffering and requested the management on several occasions to solve these grievances but management neglected it. Therefore the canteen employees indirectly started to create problems for the management to draw the attention of top management and government statutory authorities so that these authorities pressurise the management to solve their grievances. At last, the government agencies intervened and directed the management to resolve the grievances of the canteen employees.

40  Case Incidents in Human Resource Management

Questions 1. Who is responsible for the violent incidents in the canteen: (a) Canteen employees? (b) The management? (c) General employees who came to take lunch? Give reasons. 2. Do you think the management is responsible for not settling the demands for a long time? 3. Do you the think the canteen employees are right in dumping cockroaches in sambar to create problems?

17

Neglecting the Family

Human Resources Management departments sometimes have to attend peculiar problems of employees. The wife and children of some of the employees come and meet the personnel officers and welfare officers to complain that their husbands are not giving salary and not maintaining them, and neglect them because and are living with some other women. Sometimes the personnel officers call the concerned employed and counsel them that it is their duty to take care of their wives and children and not to have any illegal affair which disturbs their married life. Some employees correct themselves and some do not.

42  Case Incidents in Human Resource Management

One Mr. Venkataiah, a helper was married and had two children, neglected his family since he was having an affair with another woman. The legally wedded wife gave complaint to the personnel manager stating the facts. The personnel manager counselled him, that it is his duty to maintain the family but he continued to neglect and ill treat the legally wedded wife and children. Once again the legally wedded wife gave complaint against Mr. Venkataiah. Since Mr. Venkataiah did not yield to the oral advice, the personnel manager Mr. Santosh issued him a memo, seeking explanation why disciplinary action should not be taken against him for neglecting the legally wedded wife and his children and living with another woman which is against the law.

The personnel officer deducted 25% of the salary of Mr. Venkataiah and gave it to the legally wedded wife. Mr. Venkataiah received the memo, and replied stating that as per the standing order of the company he has not

Neglecting the Family  43

committed any misconduct and hence no action should be initiated against him. According to Mr. Venkataiah, not taking care of the family and having an affair with another woman is not misconduct as per the standing orders of the company. Mr. Venkataiah also stated that the company had no powers to deduct the salary and give it to his legally wedded wife. The courts are empowered to pass such orders and not the management. Now the management was helpless. When more such cases were reported, and to prevent such cases, the management and unions with the approval of labour commissioner amended the standing orders appropriately to include clauses that living with another woman and neglecting the legally wedded wife is misconduct. After amending the standing orders, the incident of such complaints drastically reduced.

Questions 1. Is it not the responsibility of Mr. Venkataiah to maintain his legally wedded wife and not to have an affair with another woman though it is not misconduct under the standing orders? 2. Is the personnel manager’s advice and counselling to Mr. Venkataiah justifiable, though it is not misconduct? 3. Can the management deduct the salary without the court’s order? 4. Do you think the management’s action to amend the standing orders is right?

18

Prolonged Strike and Violence

Bangalore is an industrialised city and a hub of trade unions. There are more than one trade union in one organisation affiliated to one political party or the other. Managements find it difficult to manage and coordinate inter-rivalry conflicts of these trade unions. As if this is not enough all these Bangalore based trade unions have formed a federation which is named as “Joint co-ordination committee” of trade union (JCC). The main objective of the JCC is to consider the common problems and grievances of all the employees in all the organisations and redress these grievances jointly.

Prolonged Strike and Violence  45

The JCC submitted a common charter of demands of all public sector employees to respective managements and to the central government. The demand included the issues such as: (1) Common wage parity in all public sectors (that means the clerk in HMT and clerk in BEL, HAL and other PSUs should get the same salary) (2) Common promotion policy in all the PSUs (3) Common fringe benefits, etc. After one month JCC held meetings with the managements and the central government. The talks failed. The JCC further gave one month notice to the managements and central government to settle the demands and failing which JCC (along with all the trade unions) will go on strike. The government and managements did not budge. The JCC declared strike. Around 3 lakh public sector workers participated in the strike. The strike went on for one month. One more meeting was held but again the talks failed. Agitated JCC called for Bangalore bundh. The bundh turned violent, many buses and vehicles were burnt and shops looted. Police lathi-charged the workers, who indulged in violence. The violence escalated and police issued shoot-atsight orders. Some people died in police firing, and curfew was imposed. But the demands were not settled. The employees and their families underwent untold miseries. The employees were not paid salary. There was no money to buy foodgrains, milk, vegetables, and employees’ children discontinued the schools. Many employees were caught in debt trap, borrowing loans and pledging their jewellery, etc. Even after three months, there was no sign of settling the demands. The suffering employees pressurised the JCC to withdraw the strike since the management and central government were not budging. As a prestige issue, the JCC did not want to withdraw the strike. Meanwhile the State Labour Commissioner intervened and invited both the parties for conciliation. The Commissioner requested the JCC to withdraw strike as employees were suffering and requested

46  Case Incidents in Human Resource Management

the managements to settle some of the demands of JCC after withdrawal of the strike. At last the JCC withdrew the strike. During the strike, the managements suffered huge losses and employees also suffered without salary.

Questions 1. Who is wrong: (a) Management, (b) JCC, or (c) Central Govt.? Give reasons. 2. Do you think the JCC demands for parity in wages, promotion, fringe benefits, etc., among all public sectors employees is right? 3. Why the managements and central government did not solve grievances even after 3 months?

19

Cooked-up Recruitment

The chairman of a company is a high profile powerful post. He is provided with good salary, perks, fringe benefits and monetary and non-monetary rewards. In Chetak company, one Mr. Pratap was appointed chairman. He was a high profile chairman and had the capacity to turn around the loss making company into profit making company. But this chairman was in the habit of taking his servants like cook, gardener and driver with him wherever he goes.

48  Case Incidents in Human Resource Management

When Mr. Pratap took over as chairman he called the General Manager (HR) and asked him to appoint his personal cook, driver and gardener whom he brought with him. Now, the General Manager (HR) was in dilemma. The GM explained to the chairman that as per the recruitment policy these people cannot be appointed directly and they have to apply against the advertisement or they should come through Employment Exchange. GM (HR) also informed him that they should have requisite qualifications and go through the selection process. After listening to GM (HR), the chairman got angry and shouted at him to appoint his personal staff within two days. The GM (HR) expressed his inability as it violated the recruitment policy. Further, GM (HR) requested the chairman to give in writing to appoint his personal staff in the company. Chairman refused to give in writing and the next day GM (HR) was transferred.

Questions 1. Do you think the chairman is right in forcing the GM (HR) to appoint his personal staff violating the rules? 2. Do you think the GM (HR) is right in refusing the request of the chairman? 3. Is the transfer of GM (HR) justified?

20

Multiple Claims of Provident Fund

Mr. Arogyaswamy has put in 25 years of service in Anand & Co Ltd. He died due to heart attack while in service. He has declared his family details to the company who are dependent on him. The dependants are his wife Rosa, son Tilak, daughter Mani as the dependants to claim the gratuity, provident fund and all other arrears due to him from the company. The company also provides employment to one dependant on compassionate grounds. After his death, his wife Rosa, son Tilak and daughter Mani made an application with a family photograph to settle the accounts of his late father Mr. Arogyaswamy. Surprisingly, there was one more application from a lady by the name Smt. Puttama stating that she is legally wedded wife of Mr. Arogyaswamy (late) and she has a son by name Mr. Rama.

50  Case Incidents in Human Resource Management

This lady Smt. Puttama also submitted the family photograph and other details requested by the management to settle arrears and provide employment to his graduate son on compassionate grounds. The management has now two claims for the arrears as well as for employment. The management is in dilemma.

Questions 1. How will you decide who is the legally wedded wife and children? 2. How will you settle the arrears and to whom employment should be given? 3. Whether the arrears and employment are given only to the dependant declared to the company by late Mr. Arogyaswamy?

21

Tailor-Made Advertisement

In any company, recruitment is made as per the recruitment policy of the company. The qualification, experience, etc., are prescribed as stated in the policies of the company. In Rohit Public Limited Co. there was a vacancy of chief internal auditor. As per the policy, the qualification prescribed for the post is CA/ICWA/MBA (Finance) and 15 years of experience in the finance and audit area.

An internal advertisement was released for the post; the qualification prescribed was SSLC with 20 years of experience in finance and audit. External advertisement was not released

52  Case Incidents in Human Resource Management

just to avoid outside candidates. This was objected by the trade union and also officers’ association stating that it is against the policies of the company and further they said that this internal advertisement was released just to accommodate a relative of the company’s Director. They questioned how an employee holding SSLC qualification can head the internal audit department when the prescribed qualification was CA/ICWA/MBA (Finance). The management did not care the objections and appointed one person having SSLC qualification. The unions wrote to the government about the violation of recruitment rules and appointing unqualified person. The government sought the explanation from the management. The management replied stating that the candidate has 20 years of experience and they have relaxed the qualification and hence the appointment.

Questions 1. Do you think it is right to appoint an SSLC candidate to the top post like chief internal auditor? 2. Do you think it is right to relax the standard of qualification for the candidates who have more experience? 3. Can the management relax the qualifications without amending the recruitment policy of the company?

22

Termination during Probationary Period

M/s Murugappa Designs is a famous interior decorator and handicrafts wholesale dealership firm. Mr. Joseph is an MBA graduate appointed as an executive in the company. He was posted in the purchase department and was on probation for one year. Mr. Joseph’s job is to draw the money and purchase the goods from different artists and submit the bills and return the balance amount to the department. Mr. Joseph is new to the company and does not know the procedures correctly. One day, he drew Rs. 5000 from the department to purchase the goods. He purchased the goods for Rs. 4975 and submitted the goods and bills to the department but he did not return Rs 25 balance amount to the department.

54  Case Incidents in Human Resource Management

After two days the management issued him a memo asking why he has not returned Rs. 25 the balance amount and why disciplinary action should not be taken against him. Mr. Joseph explained that he forgot to return the amount and now he is ready to return the money. Further, he requested the management to close the matter as he has not committed mistake with malafide intentions. The management did not accept his explanation and terminated him.

Questions 1. Is it not the duty of Mr. Joseph to return Rs. 25 to the department immediately? Is it not dishonesty? 2. Do you think ‘termination’ is the right punishment in this case? 3. Mr. Joseph should have been cautious during probation. Do you agree?

23

Auditing the Audit Department

Large organisations having thousands of employees create normally functional structures such as HR, Marketing, Production, Finance, Quality, Audit, Materials Management and the like. In these departments there are many sections and they coordinate and integrate through control mechanisms for smooth functioning to achieve organisational goals. These departments have to focus independently for achieving functional goals and coordinate with other departments to achieve competitive advantage. If the departments focus only on the departmental goals and do not cooperate with the other departments then the organisation will not achieve competitive advantage. Hence, these departments are independent and as well as interdependent like the wheels of vehicles.

56  Case Incidents in Human Resource Management

In Shyam Private Ltd. more than 10,000 employees work. Horizontal differentiation is done on the functions such as HR Department, Production Department, Marketing Department, Systems Department, Strategy & Planning Department, Quality Department, Inspection Department, Finance Department, and Audit Department. In the company all the files of all the departments have to pass through Finance and Audit Department. This department has to verify and check the files and see that activities and files are cleared as per the rules and regulations of the company. If there are any deviations from the budgets, rules and procedures the audit department suggests the concerned department to correct it. Since all the files pass through the Audit Department. there was heavy work load on the audit staff. Many files remain pending for a long time. Even most urgent files, which have to be cleared on hourly basis and day-to-day basis remain pending for weeks. Due to these delays urgent projects could not be cleared. All the departments blamed the Audit Department, for the delay in execution of work. The complaint reached the chairman and managing director. The chairman called for a meeting of all the general managers, divisional managers of all the departments to discuss the matter with the audit department. All the GMs and managers suggested that the audit department should be removed and all the staff working in the audit should be given to the finance department, who will report to the finance manager. These audit staff working under the finance officer should check and verify the files and clear these on priority basis without any delay. This reporting system has made the audit system ineffective. The audit staff found it difficult to point out the mistakes of the finance department because they were reporting to the finance manager. When the audit department was independent and staff were independently reporting to

Auditing the Audit Department  57

the audit manager they were highly effective and powerful. Because they were reporting to the finance manager, the audit department has become ineffective and powerless. Due to this restructuring, the effective audit system has collapsed.

Questions 1. Is it a right decision to abolish the independent audit department.? Discuss. 2. Don’t you think after the abolition of the audit department and changing the reporting structure the effectiveness of audit department weakened? 3. Should the audit department have been restructured by posting more qualified staff to resolve the delay problem? Discuss. 4. What is the long-term solution to speed up the process?

24

Good Welfare Officer

Mr. Kurian was working in the finance department of Kandan & Co. for the last 20 years. He was honest and hardworking. He had two grown-up daughters. One year back, his elder daughter, Smt. Sumathi got married and the other one Smt. Santha got married only last month. Mr. Kurian was under heavy debt. He had borrowed money from everywhere — from friends, banks, moneylenders at high interest rates. These lenders, one after the other often pestered Mr. Kurian to return the money or at least pay interest. Unable to bear the pressure due to heavy stress, one fine day he submitted his resignation and left for his native place, Thrissur in Kerala. But his worried family requested the management not to accept his the resignation as he had done so under stress. The management referred the matter to the welfare officer Mr. Paramesh to study and report.

Good Welfare Officer  59

In a similar case, one Mr. Thopaiah was working as machine operator in the same company. He was obedient and hardworking. One day he met with an accident while operating the machine. He was treated for two months, and injury was healed but his right thumb could not be used in the normal way after the incident. He was finding it extremely difficult to work without folding the thumb and it was painful too. His colleagues who were jealous of him started teasing as well as forcing him to work fast. He was depressed due to the harassment of his colleagues. One day he resigned and ran away to his native place in Kolar. Again, in this case, the worried family members requested the management not to accept his resignation as he had done so under depression. The matter was referred again to the welfare officer Mr. Paramesh to know the truth.

To know the truth Mr. Paramesh to visit Thrissur in Kerala where Mr. Kurian was staying. Mr. Paramesh found him under depression. He brought him back to Bangalore

60  Case Incidents in Human Resource Management

and got him admitted in a hospital for psychiatric treatment, and in due course Mr. Kurian was alright. Similarly, Mr. Paramesh visited Mr. Thopaiah in Kolar and found him also mentally depressed. Mr. Paramesh brought him to Bangalore and got him treated with the help of a psychiatrist. Mr. Thopaiah too, became alright in the due course after the treatment. Later on the welfare officer Mr. Paramesh found that these two employees were hardworking persons and honest and due to personal problems submitted resignations. The welfare officer Mr. Paramesh recommended that their resignations should not be accepted. Based on the welfare officer’s recommendations the resignations were rejected and their absence was treated as medical leave and were permitted to report for the duty. Later on the welfare officer was transferred suddenly.

Good Welfare Officer  61

Questions 1. Is it the duty of the welfare officer to visit the places of the employees and get them treatment? 2. Why the management did not accept the resignations of the employees? 3. Why was the welfare officer Mr. Paramesh transferred suddenly?

25

Misappropriation of Cash

Mr. Chandrappa, from day one, was working in the cash section of Anandan & Co. He joined as a junior clerk and became officer working for more than 25 years in the same section. He is highly trustworthy and a reliable person and he rarely takes leave, hence he was continued in the same cash section for long time. Normally, there is job rotation among employees working in the cash section but Mr. Chandrappa was allowed to continue because he was highly trustworthy. Regularly, there were surprise checks by the audit department to find out the correct cash available in the section. Every time the cash was found correct. But one day after closing the cash section, the auditors came and verified all the transactions, both receipts and payments of cash. The receipts and payments did not tally. The auditors found shortage of cash to the tune of Rs. 2 lakh. They asked Mr. Chandrappa, the section officer of cash, the reasons for shortage. He did not give proper explanation. The audit officer recorded the shortage of cash in the books of accounts and reported the matter to higher authorities who in turn referred the matter to the legal section. Manger (legal) recommended issuing charge-sheet and suspending Mr. Chandrappa. Mr. Chandrappa was issued charge-sheet seeking explanation and he was also suspended. Mr. Chandrappa, in his reply admitted that he has taken Rs. 2 lakh on the same day to his house to meet some exigencies since his daughter is getting married. He further submitted that he would deposit the money immediately and for the first time he has committed the mistake due to urgency and stated that he will not repeat it.

Misappropriation of Cash  63

He also submitted that he is an honest worker and he has served the company for more than 25 years hence the matter may be treated as closed. But the management conducted an enquiry and found Mr. Chandrappa guilty of misappropriation of cash and also dishonesty as per the standing orders of the company. But the management took a lenient view and gave him minor punishment of warning, and later Mr. Chandrappa was transferred.

Questions 1. Don’t you think misappropriation and dishonesty come under serious misconduct? 2. Why did the management took a lenient view and award minor punishment? 3. What steps do you suggest to prevent such incidents?

26

Is it Sexual Harassment?

Smt. Vally was appointed an attender on compassionate grounds as her husband had died while in service at Ganesh & Co. She was posted in the accounts department as an attender to the finance officer, Mr. Mukunda aged 50 years. Her job is to carry the papers, files, books, etc., from accounts department to other departments, attending the miscellaneous helping work and serving the coffee, tea, washing cups, plates, etc. Normally, the cups and plates are cleaned in the ladies washing/toilet rooms because she is a lady attender. One day the ladies washroom was under minor repair and water supply was stopped to the toilet/washroom. As usual coffee/ tea was served to the finance officer and guests. But the cups and plates were not cleaned since the ladies washroom was under repair. As the regular visitors are there, the cups are needed to serve the coffee/tea. Since the cups were not washed the finance officer asked the lady attender to clean it. The lady replied that it could not be washed because the ladies toilet is under repair. The finance officer asked her to go to gents toilet/washroom to clean the cups/plates, etc. She refused to go to gent’s toilet because many gents will be visiting the toilet. But the finance officer forced her to go and wash the cups because of the urgency. Later on Smt. Vally went to the trade union office and reported the matter to the union leaders. The trade union leaders took the written complaint from Smt. Vally stating that finance officer is asking her to go to gent’s toilet to wash the cups/plates which amounts to defaming the women and sexual harassment. After receiving

Is it Sexual Harassment?  65

the complaint, the union leaders protested and demonstrated before the Director (HR) office and requested him to conduct an enquiry and suspend the finance officer for harassing the lady attender. The management constituted a committee to enquire into the matter. The committee submitted the report. Based on the report the finance officer was warned. And the lady attender was posted under a woman lady officer in some other department.

Questions 1. Is it right to ask the lady attender to go to gents washroom to wash the cups? 2. Do you think it amounts to sexual harassment? 3. The action taken by the management in the case – warning the finance officer and posting the lady attender under woman officer is justified?

27

Deaddiction of Employees

There are some employees who are addicted to alcohol, drugs, etc. Managing these employees is a serious problem for the management. These addicted employees are highly indisciplined and create problems not only for themselves but also for others. These employees are absent from work, abuse the boss, colleagues and they also create problems for family members and assault them and do not maintain family well. It adds to low productivity. The management cannot take stringent action against them as the family members come and plead not to take any disciplinary action, since they are dependent on such employees. The management thinks that removing them from service is inhuman.

Deaddiction of Employees  67

The management of most of the public sector units considers this as a human and social problem which should be handled with compassion. The management thinks these people can be transformed with the help of counselling and psychiatric treatment. Many of the PSU managements reserve some funds to rehabilitate them. These employees are admitted to the deaddiction centres and are treated. The managements are confident that many have transformed and leading a happy life. One such transformed case is that of Mr. Nagappa, who is working as a driver. He an alcoholic addict. He was absent from work for more than 6 months, and neglected his family. The welfare officers visited the family of Mr. Nagappa and got him admitted to a deaddiction centre. He was treated for 3 months, and he became a normal person. His family is maintained well now. There are many such cases where the employees after the treatment have become normal and become asset to the company and family.

68  Case Incidents in Human Resource Management

Questions 1. Is it not a waste of money spent on deaddiction of employees? 2. Removal of such employees from service solves many problems. Do you agree? 3. Spending money on such employees adds to the losses and burden, when the motto of the company is to make profit? What do you say? 4. Do you think this problem should be solved with compassion?

28

Who is Right? – The Court or Management

Mr. Sekhar is working as an engineer in Ramakanth & Co., which is a public sector unit. The employees and officers working in the company can avail medical benefits for them and their family in any of the recognised hospitals and clinics. They can avail cashless treatment or take treatment and submit bills to the company which are reimbursed subsequently. Some employees honestly take the treatment and claim the benefits. Some of the employees cheat the company by producing bogus bills. These dishonest employees in collusion with doctors of recognised clinics and with medical stores get false medical bills from the medical stores and claim the bills which will be in thousands. The company’s case worker in the accounts, who passes the bills, is also involved in the false bills claim. This is a network of the employee, doctor, medical store and the case worker. All these people share the money which was claimed from the company by providing bogus bills. Mr. Sekhar claimed the bills worth thousands of rupees in the last 4 years, for him and his family members without any hindrance. Later a new finance officer was posted in the section. The finance officer got doubt because Mr. Sekhar was claiming the bills on regular basis and the doctor and the medical store were same. The finance officer referred the matter to vigilance officer for investigation. The vigilance officer investigated the matter and found a network of Mr. Sekhar, doctor, medical stores person and the accounts clerk. The report was submitted to the finance officer and to the management. The management with the help of legal department filed police complaint for cheating, dishonesty and misappropriation of funds against all the persons

70  Case Incidents in Human Resource Management

involved in the network. The police registered an FIR and started investigation. The management also immediately issued charge-sheet to Mr. Sekhar and accounts clerk and suspended them as there was apprehension of destroying the evidence. An enquiry committee was constituted to conduct the domestic enquiry. The police arrested these people and produced them before the court, and the court granted them bail. Later the police submitted the charge-sheet and after the trials the court found them not guilty on technical grounds and acquitted them.

Meanwhile, the management also conducted an enquiry and found Mr. Sekhar and accounts case worker guilty of cheating, dishonesty and misappropriation. Mr. Sekhar and the case worker were dismissed from the service as per the standing orders of the company.

Who is Right? – The Court or Management  71

Questions 1. Do you agree with the court’s verdict of acquitting Mr. Sekhar, case worker, doctor and the medical store? Give reasons. 2. When the court found Mr. Sekhar and clerk not guilty and acquitted them, the management found them guilty in the domestic enquiry and dismissed them. Is it right? 3. Who is right: the management or the court?

29

Is it Ethical?

Many companies provide coffee, tea, bread and snacks at subsidised rates to the employees. Some companies also provide free food and snacks to the employees. These benefits are provided within the premises of the company but these subsidised food items should not be carried outside the premises of the company.

Mr. Naik was an employee in Chand & Co. as security guard. Mr. Naik was caught carrying four pounds of bread outside the company premises. He was taken to security office; a statement was recorded and allowed to go. Next day a memo was issued as to why disciplinary action should not be taken against him for stealing the bread. The company

Is it Ethical?  73

contended that the security guard regularly steals the bread and sells the same at higher rate outside. Mr. Naik after receiving the memo explained that he was carrying bread outside to give it to his mother who is sick at his home. But the management was not satisfied with the employee and conducted an enquiry and his annual increment was postponed for six months. Mr. Naik appealed to the Chairman against the punishment order. The chairman ordered to cancel the minor punishment of postponement of increments.

Questions 1. Is it ethical to conduct an enquiry into such small incidents carrying bread outside the company? 2. Is it not a waste of money, the money spent on enquiry is more than the cost of bread? 3. Do you think it is a question of reinforcing of discipline, not waste of money?

30

Biased Performance Rating

In the government sector normally annual confidential report (ACR) method is adopted to measure the performance of the employees. The evaluation is done by the immediate supervisor with respect to some important performance parameters like attendance, team work, honesty, technical skills, communication skills, leadership qualities, and interpersonal relations, etc. Sometimes self-appraisal technique or methods are used to know and assess the performance of the employees. The performance appraisal given by supervisors and self-appraisal given by the subordinate employees is compared to get the balanced view of the performance. Mr. Rajanna is working as assistant finance manager and he is hard working and a team player. He was reporting to one Mr. Pandit, who is the Chief Finance Manager (CFM). Mr. Pandit (CFM) has rated Mr. Rajanna as ‘outstanding’ on all the parameters, and put up the same to GM (F) for approval. The GM (F) after going through performance appraisal of Mr. Rajanna asked Mr. Pandit to specify the extraordinary contributions made by Mr. Rajanna to the company. Mr. Pandit did not give proper explanation; hence the GM (F) reduced the rating of Mr. Rajanna to ‘good’. Mr. Pandit objected the rating given by GM (F). The GM (F) explained to Mr. Pandit that whenever an employee is rated very high, sufficient reasons and extraordinary contributions as evidence have to be shown. And similarly, if any employee is rated poor, the reasons with evidence have to be shown. Without proper evidence no employee should be rated very high or low. Mr. Pandit did

Biased Performance Rating  75

not agree with the GM (F) and insisted that Mr. Rajanna be rated as ‘outstanding’. Thereafter Mr. Pandit was transferred to some other department.

Questions 1. Do you agree that the immediate supervisor knows the performance of the subordinates better? 2. Why did the General Manager (F) reduce the ratings of Mr. Rajanna? Did he suspect Mr. Pandit was biased? 3. Why did Mr. Pandit not give evidence for rating Mr. Rajanna as “outstanding”?

31

Sleeping While on Duty

Sleeping while on duty is misconduct as per the standing orders of Alpha Limited. But many employees sleep while on duty for various reasons may be some of them sleep occasionally because they are not well, some of them sleep because they will be rejuvenated and some sleep because they are lazy. Whatever may be the reason, the management discourages this habit since it affects the productivity and work culture.

Sleeping While on Duty  77

One day, Smt. Priyanka who is a stenographer-cumcomputer operator, as usual after the lunch sitting on the chair and resting the head on the computer table was snoring while sleeping. Many times her subordinates and boss advised her not to sleep but she did not listen as she was an adamant lady. Unfortunately, one day after the lunch as usual she was sleeping and suddenly the general manager came for inspection to check whether all the employees have returned to their seats on time after the lunch. All the staff was present and doing their work but this lady was caught while napping. The general manager asked her why was she sleeping and not doing the work. But she denied she was sleeping and she was only bending the head. The general manager got angry. He directed her to come to his office and he directed the general manager (HR) to issue her a memo. The GM (HR) issued a memo asking her to explain within three days why disciplinary action should not be taken against her under the standing orders of the company. Smt. Priyanka gave a reply denying the allegation and replied that she was not at all sleeping and she had been deliberately implicated in the case.

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The reply was not satisfactory because the GM himself has seen her sleeping. Hence, it was decided to conduct an enquiry. The enquiry committee was constituted which was headed by a legal officer. During the enquiry all the documents and assistance was provided to Smt. Priyanka. The enquiry committee found that Smt. Priyanka was guilty of misconduct and she was given the punishment of demotion.

Questions 1. Do you think sleeping while on duty is a serious misconduct? 2. Why did Smt. Priyanka deny that she was not sleeping, when GM was witness? 3. Do you think the demotion is a major punishment disproportionate to the misconduct? Do you think warning would have been sufficient? 4. What is the Supreme Court’s verdict on misconduct of sleeping while on duty?

32

Loan Scandal

Many people borrow loans from private moneylenders. These moneylenders take open cheques and unfilled promissory notes as guarantee while giving the loans. Amount and rate and name are not filled deliberately in the said documents just to claim more money in case of default of payment by the borrower. This is a huge business, where the employees are trapped in debt. These moneylenders charge high interest ranging from 5 to 10 per cent per month. If the loan is not repaid on time, these moneylenders fill more amount on their own and file a case in the court and take decree for more amount. Suppose the initial loan given is Rs. 5000, they claim Rs. 15,000 and if borrower asks why more, they say it is interest. There is no escape for the employees because they have signed and given blank cheques and promissory note while borrowing loan due to some urgency. In Madhura Public Ltd. hundreds of employees have borrowed loans from the moneylenders. Many of them do not repay the loan, hence, the moneylenders approach court and get decree to attach salary. The court gives directions to the finance officer of the company to recover the loan amount every month from the employees’ salaries who have borrowed the loan. Since there are many employees getting attachments, Madhura Public Ltd have entrusted this work to one officer Mr. Mukunda and one clerk Mr. Munda in the IR section of HR department. These two employees process the court attachments and collect the salary of employees who have borrowed the loan, as per the court’s directions and remit it to the court. If the amount is not remitted as

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per the court’s directions it amounts to contempt of court, a serious matter where top management people are pulled up. During the last 6 months the remittances were not made to the court in spite of the court directions. The court issued many directions to the management of the company but the money was not remitted. Some of the moneylenders filed contempt of court case against the management for not implementing the court orders. The management ordered for an enquiry. The enquiry revealed that Mr. Munda, the clerk incharge of dealing with court attachments has kept the court orders pending deliberately, as he colluded with the employees who have borrowed loan. The enquiry revealed that the employees who have borrowed loan, bribed Mr. Munda not to process the court attachments. Based on the enquiry report, Mr. Munda was demoted and transferred to some other department. Now the problem was temporarily solved but the major problem is to prevent the employees’ borrowing loans from moneylenders and creating trouble to the management. How to prevent this headache?

Loan Scandal  81

The management entered into an agreement with the union and amended the standing orders stating that borrowing loans from moneylenders is misconduct. This was approved by the labour commissioner. After amending the standing order there was drastic reduction of borrowing loan from the moneylenders and workload related to processing of court attachment was considerably reduced.

Questions 1. Was Mr. Munda right in keeping the court’s orders pending? 2. Was the punishment given to Mr. Munda justified? 3. Amending the standing order to prevent the borrowing of loan is a right decision? Do you suggest any other solution?

33

Cultural Conflict Ends in Violence

Jawaharlal Nehru, the first prime minister of India, called the public sector undertakings as modern temples of India, created to serve the nation by providing employment to lakhs of people. In these PSUs, people from all over India with diverse cultures, languages are working. Each PSU is a mini India, with thousands of workers, who have come from north, south, east and west parts of India. These employees speak different languages. These employees have formed associations on the language basis, like Karnataka Sangha for Kannada employees, Tamil Mandram for Tamil employees, Malayalam Sangham for Malayalee employees, Bengali Association for Bengali speaking employees, Telugu Association for Telugu employees, Maratha Sangha for Marathi speaking employees, etc. These associations used to organise cultural functions annually in the factory campus honouring the top management officers and local leaders just to have social interaction and harmony. The managements have encouraged the language associations by providing office buildings and other amenities also. But unfortunately once language conflict broke out, and it turned violent. This is because the local people the sons of the soil raised the objections that in PSUs more outsiders are recruited and local people are not given employment. The statistics also proved that there are less local employees than outsiders. The violence was such that everyday employees attacked and stabbed each other. The hospital used to register an average 5 to 6 stabbing cases everyday for treatment. One day, the chief executive was attacked and stabbed while he was coming to the factory and an attempt was made on his life.

Cultural Conflict Ends in Violence  83

After prolonged treatment he survived. After this incident, the government and the management took serious view of the violence and identified some 20 important leaders who had indulged in violence and dismissed them from the service. These leaders went to the High Court but the management submitted that in the interest of protecting the life, property and peace and curb the violence they dismissed the employees who were creating violence and endangering the life. The management provided sufficient evidence to the court. After hearing both the parties, the court dismissed the petition of the employees. The aggrieved employees appealed to Supreme Court. Meanwhile some of these employees retired and some died. But after dismissing the employees, peace prevailed in the company.

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Questions 1. Do you think that violence could have been prevented effectively at the initial stage when it started, before attacking the CEO? 2. Do you think the local employees are justified in demanding more employment for the local people? 3. Did the management fail in managing the cultural dynamics? 4. How would you have managed the situation?

34

Security Check

In most of the manufacturing companies, the security systems are introduced to regulate the movement of men, materials and to safeguard the resources and property of the company. In spite of introducing several policies and procedures to regularise the movement of materials and resources and the behaviour of employees, still pilferage of materials and manpower exists. To prevent the pilferage ABD Limited introduced the security check of the employees, both men and women. While entering the gate the employees have to show the identity badge to the security and then enter. This is to prevent unauthorised persons entering the factory. But while coming out from the factory near the gate, all the employees are subjected to security check. Men security guards frisk/check the men employees and women employees are checked by women security guards. This consumes lot of time, where thousands of employees are working. This checking is there only for workers/employees who are not in the cadre of officers. Whereas for the officers (both for men and women) there is no security check. The employees union raised an objection to the discriminatory practices. The union requested the management to subject the officer to security check/ frisking as is done in the case of employees. The union has raised objections stating that to safeguard company resources and property all the staff including officers should be subjected to security check. The union said, why check employees? That means the management is suspecting the employees’ integrity. The officers are honest and employees are not? This is a discriminatory practice, and rule of law

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applies to all the staff including the officers. The management did not accept the union’s demand to introduce security check for officers. The union gave strike notice, the management did not yield. The labour commissioner invited both the parties for conciliation. One conciliation officer requested the union to postpone the strike and continue the dialogue to settle the issue as it affects the production and peace in the company.

The union agreed to postpone the strike, and the management continued to maintain same stand that officers will not be subjected to security check. The conciliation officer continued to have meetings to convince both parties.

Questions 1. Is it right to continue security check only for lower level employees? 2. Is it not discriminatory? Why the rule of law is not applied to officers? 3. Why the management is not ready to introduce security check to the officers? Do you think it is justifiable?

35

Doctor’s Negligenece Results in Death

TDM Company is a tool manufacturing company having more than 5000 employees. There is also a strong trade union. The TDM Company has started its own hospital for providing treatment to the employees who are working in the company.

The hospital provides treatment to minor ailments and diseases. Mr Prem, an employee of the company, took his daughter Meghna to the hospital as she was suffering from fever. Mr. Prem met Dr. Somu, General Physician, who prescribed some medicines for his daughter.

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Mr. Prem met the doctor after 2 days and told him the fever has not come down and it has increased. Again the doctor tested Meghna and prescribed different medicines. Even after taking the medicines, the fever did not come down. After one week again he went to the same doctor who again changed the medicine. This was a very strong medicine, the baby’s condition deteriorated and she died after 10 days. The employees union took up the case and blamed Mr. Somu for the death of Meghna. The employees union demanded for the dismissal of the doctor.

The management convinced the union that it was an accidental death and the doctor has not caused the death intentionally. The management said, the doctor has treated Meghna well, but the baby did not respond to the treatment and died. Hence, the management has not taken any action against

Doctor’s Negligenece Results in Death  89

the doctor. Later on, Mr. Karuna, an Administrative Officer who dealt with the Mr. Prem’s daughter case approached Dr. Somu for treatment of mouth ulcer. Dr. Somu prescribed the medicines. After taking the medicines, he suffered from constipation for three days. Mr. Karuna approached another doctor who said the medicine prescribed by Dr. Somu is to stop loose motion. The Administrative Officer realised that Dr. Somu is not a competent doctor and is giving wrong prescriptions. Mr. Karuna called the union leaders and asked them to give complaints stating that Dr. Somu is responsible for the death of Meghna. The Administrative Officer conducted an enquiry and suspended the doctor on the grounds that the baby died due to wrong diagnosis and wrong medicines. When the detailed enquiry was in progress, the doctor resigned from the service and left the company.

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Questions 1. Who is responsible for the death of Meghna? Why the management has not taken action against the doctor immediately when the union lodged the complaint? 2. Is it right to accept the resignation when the detailed enquiry was in progress? 3. The Administrative Officer ordered for an enquiry only after he suffered from wrong diagnosis. Is it fair?

36

Drunken Chief Security Officer

Mr. Andrew was working as a Chief Security Officer (CSO) in Sujatha & Co., where more than 10,000 employees were working. This is a top post reporting directly to CEO. Several junior officers and security guards report to him and their duty is to protect the life and property of the company. The chief security officer is an alcohol addict. On the midnight of New Year as usual he drunk more and came to inspect the security guards on duty.

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During the inspection he found all the guards doing their duty sincerely. But he still abused them with foul language. Some of them requested him not to abuse them and as CSO it is not correct to consume alcohol on duty and abuse them. This angered the CSO, who then kicked on the stomach of one security guard Mr. Chandran, who fell down and was admitted to hospital. Next day the matter was reported to the Chairman of the company, who ordered an enquiry. The enquiry committee found that CSO was drunk and assaulted the security guard on duty which is a serious misconduct as per the standing orders of the company. The Chairman immediately ordered for the transfer of the CSO to a distant place without any major punishment.

Questions 1. Can an alcoholic Chief Security Officer protect and safeguard the interest of the organisation and employees? 2. Do you think the management should have awarded more stringent punishment to the Chief Security Officer than just a transfer? 3. What action you would have taken against Chief Security Officer if you were the Chairman?

37

Impersonation

One Mr. Kumaran changed his name as Venkatappa and joined a public sector company as Junior Assistant providing SSLC, PUC and B.Sc degree marks cards. He was promoted as a supervisor during the period. Somehow the management got information that Mr. Venkatappa’s original name is “Kumaran” and studied only SSLC and he has changed his name as Venkatappa, and produced the marks cards belonging to one Mr. Venkatappa and secured the employment. This is nothing but cheating, dishonesty and impersonation. Mr. Kumaran in order to secure employment produced the certificate belonging to Mr. Venkatappa (those days photo was not produced on the marks cards).

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The management investigated the matter and found that Kumaran is not a graduate and studied only up to SSLC. The management lodged report with police and conducted an enquiry. Mr. Kumaran was dismissed. Mr. Venkatappa was first class B.Sc. graduate aged 40 years and was working in a private company, and while he was travelling in a bus he lost his SSLC, PUC and B.Sc degree marks cards. He lodged a complaint but he did not get it. Later, the police recovered the marks cards from Mr. Kumaran and handed over to it to MR. Venkatappa, the real owner of the certificates.

Questions 1. This problem could have been avoided if marks cards were sent for verification to the university at the time of appointment? Do you agree? 2. What other punishment do you suggest for Mr. Kumaran than dismissal? 3. How to recover the salary and other benefits paid to Mr. Kumaran who has cheated the company with dishonesty?

38

Strike for Coffee Break

TTT Ltd. has only one union, TTT Trade Union for the last 30 years with a membership of more than 15,000 employees. TTT is the only recognised powerful union which has strong bargaining capacity. The management regularly negotiates all the issues of employees with the TTT trade union. In the TTT Ltd. morning coffee/tea and afternoon post-lunch coffee is served to the employees at subsidised rates. During the coffee/tea break, the employees waste time chattering for longer time than the allotted time of ten minutes. This was creating indiscipline, lower productivity, waste of time, etc. The management just to reinforce discipline suddenly discontinued serving the coffee/tea as post-lunch without discussing it with the union. Many employees were unhappy with the decision of the management and pressurised the union to talk to the management to reintroduce the postlunch coffee/tea. The union’s request was turned down by the management. To pressurise the management the union went on relay hunger strike for three days but the management did not respond. Now the matter became serious, the union declared indefinite hunger strike. The president, secretary and other office-bearers of the union sat for indefinite hunger strike for 48 hours (2 days). There was no response from the management. The hunger strike further continued, the health condition of the union leaders started deteriorating and the employees became more tensed and agitated. The Industrial Relation section got the information that the employees are losing the cool and not doing the work, and slowly they may turn violent. The top management became alert and on the

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the fourth day all the top management including the Director of the company visited the place where union leaders were sitting on indefinite hunger strike and informed that postlunch coffee/tea will be reintroduced and requested them to end the hunger strike.

However, the union leader took one day’s time to break the fast because they had to take decision in the General Council meeting of the employees. The next day General Council took the decision to withdraw the hunger strike considering the assurance given by the management. The General Council also decided to go on strike if the management does not implement the decision. Thereafter, the Director and other top management officials came and offered tender coconut water to top union leaders and the strike was withdrawn.

Strike for Coffee Break  97

Questions 1. Why did the management withdraw the post-lunch coffee/tea session without informing the union? Is it not a bad Industrial Relation practice? 2. Why did the union went on indefinite hunger strike on such a small issue of reintroducing post-lunch coffee/ tea service? Is it justifiable? 3. Don’t you think the management and union wasted time and resources on a trivial issue?

39

Telecom Products to Floriculture – Where is the Connection?

Tam & Tam Company is a giant in manufacturing telecom products such as telephones, exchanges and allied products. The company had about 40,000 employees in all the divisions across India. Due to liberalisation, privatisation and globalisation (LPG), the demand for the products had drastically declined and the company incurred losses. The top management thought of diversifying into other areas of business. Brainstorming sessions were conducted by the top officers in five-star hotels and resorts spending lakhs of rupees. Top officials visited foreign countries, and huge amounts were spent on consultation both within and outside the country. Several workshops and training programmes were conducted and organised for the top management officers. Huge amounts were spent on all these training programmes. Ultimately after 2 years of deliberations the top management decided to shift the business to floriculture from manufacture, which is totally unrelated. The committee constituted by the top management gave a report stating that there is high global demand for floriculture, which consists of growing flowers, fruits, grass, agricultural products like peanuts, coffee, vegetables etc. Further the committee observed that the available 500 acres of land can be used optimally and all the employees who are working in the manufacturing area for more than 20 years can be trained to work in the agricultural land to grow fruits, flowers, grass, etc. The committee’s recommendations were discussed with the union leaders. The union leaders found that the recommendations are unrealistic because it is very difficult

Telecom Products to Floriculture – Where is the Connection?  99

to shift the business from manufacturing to floriculture and employees who are working for long time in manufacturing area it is practically not possible to change the skill sets suddenly as the areas of operation are totally different. The company shareholders also rejected the recommendations of the committee as totally impractical.

Questions 1. Do you think that the top management wasted and enjoyed the money working on unrelated diversification which is totally impractical? 2. Is it practically possible to train the employees in manufacturing sector to work in the agriculture/ floriculture area? 3. Do you think that the union and shareholders are right in rejecting the committee’s recommendations?

40

Victimisation of an Honest Officer

Prof. Sathya Vratha is a BE, PGDM from IIM having vast industry experience. He has joined Vastu & Co. as a General Manager (HR) which had around sixteen thousand employees. He is honest, kind, and deals with the employees’ grievances as per the rules. He became very popular in a short span of time, since he was attending the employees with a humane approach. During his term many complicated, serious IR problems were solved. He addressed the problems within the rules without any bias and discrimination. His approach to the problem was unique and creative. He worked hard, overtime to clear the files. This was not tolerated by the lazy, biased, inefficient officers, who were waiting to pull him down somehow, one way or the other. In the Vastu & Co., there was one strong trade union which was fighting for settlement of long pending issues like wage revision, new promotion and transfer policy, etc. Since these were pending for more than 4 years the union with one-day notice to the management, went on strike. The production stalled, and the situation was tense. To discuss the matter, the top level management officers consisting of Executive Director and all the GMs and Mr. Sathya Vratha, GM(HR) conducted meetings. In the meetings, all the management officers, except Mr. Sathya Vratha GM (HR), decided to initiate disciplinary action for instigating the employees to go on strike. Mr. Sathya Vratha GM (HR) alternatively suggested that it is better to talk to the union leaders and convince them if they do not budge, the management can start disciplinary action. This decision was opposed by the majority and

Victimisation of an Honest Officer  101

finally decided to suspend the office-bearers. After serving the suspension notice, the situation became tense and the employees’ union intensified the agitation and demanded to revoke the suspension unconditionally. The management refused the demand to revoke the suspension, the striking employees turned violent throwing stones, etc. on the officers who tried to enter the factory. The situation became uncontrollable, police was called as it became the law and order problem. Mr. Sathya Vratha again suggested to the management to withdraw the suspension to ease the tension. The top management did not agree, the officers who were waiting for a reason, charged Mr. Sathya Vratha of supporting and favouring the union and he was transferred to an another unit of the company located in north India. Mr. Sathya Vratha denied that he is supporting the union and he explained that he is only trying to help the management to reduce the tension. The management did not accept Mr. Sathya Vratha statement and forced him to go on transfer. But Mr. Sathya Vratha refused to go on transfer as he was innocent.

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During that period, Mr. Rangaraju was posted as CMD, who was new to the company. All the officers met the CMD and informed him that Mr. Sathya Vratha was supporting the striking union and was responsible for the tense situation. Mr. Sathya Vratha was transferred to the other unit but he disobeyed the orders. These officers requested the CMD to suspend Mr. Sathya Vratha. The CMD who was new to the company, unaware of the truth suspended Mr. Sathya Vratha.

An enquiry officer Mr. Paddu was appointed from Chennai. Mr. Sathya Vratha was forced to attend the enquiry at Chennai, travelling all the way from Bangalore to Chennai. This was done just to harass Mr. Sathya Vratha. He requested the management to conduct the enquiry in Bangalore as it is waste of time and money to travel to Chennai when the company is located in Bangalore. The management did not agree. Mr. Sathya Vratha did not attend enquiry. The enquiry officer passed ex-parte order stating that Mr. Sathya Vratha was guilty of

Victimisation of an Honest Officer  103

charges, that he supported the union to go on strike causing damage to company property and life. Based on the enquiry officer report, Mr. Sathya Vratha was dismissed.

Questions 1. Is Mr. Sathya Vratha’s transfer justifiable? 2. Is it right for the CMD to suspend Mr. Sathya Vratha without knowing the truth based on the biased officers’ report? 3. Do you think Mr. Sathya Vratha was victimised for no fault of him? 4. If you are a CMD how you would have solved the problem?

41

Motivational Recruitment

Brace & Brace Co has several manufacturing plants all over India. All these plants including one in Ramalingapuram were established more than 25 years back. In these plants, organisational structure was hierarchical with closed culture, where the decision process was very slow, adding to the costs. The growth in the plants was slowed down due to stagnation of structure. Just to accelerate the growth and develop an open culture, the management of Brace & Brace Co established a new small plant in Chandrapur in Bangalore, which was 30 km away from the main plant.

Motivational Recruitment  105

The management created flat structure with open culture in the new small plant. The management invited applications from internal candidates, from the main plant with requisite qualifications and experience. The advertisement is similar to that of horizontal transfer with the same designation, scale and responsibilities. There was no response from the employees of the main plant because the distance from the main plant was more and more travelling time causing stress and strain and that too without any additional monetary benefits and growth prospects. Since there is no response from the internal candidates the management revised the recruitment policy wherein, it is stated that the eligible candidates who are applying for the new plant will be given one jump, that is, one grade higher than what they are holding.

Because of this incentive many employees applied to various posts and there was tough competition. Among them, the best suitable candidates were selected for the new plant. This new plant within a short time achieved higher profits and growth.

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Questions 1. Why were the employees unwilling to apply to new plant? 2. Do you think the revised recruitment rules motivated the employees to apply for the new plant? 3. Is there a relationship between culture and growth?

42

Transfer of Trade Union Leader

Moots was a large manufacturing company having 16,000 employees. This company has two units at Bangalore, one at Peenya industrial area, and another at Bommanahally industrial area. There was only one trade union for both the units. Some of the trade union leaders were highly qualified with two post-graduation degrees, working as employees below the supervisory level. During the time, the management needed officers in key areas, hence decided to fill the internal candidates, who have acquired additional qualifications while working in the company. An internal advertisement was released exclusively for internal candidates to fill the officers’ post. One trade union leader Mr. Narendra, who was working in the Peenya unit applied for the officers’ post, as he fulfilled all the requirements such as postgraduate qualification, experience, age, etc. The Board of Appointment was constituted headed by the chairman of the company with top directors of HR, Finance, etc., just to check the capabilities of Mr. Narendra, the trade union leader. The interview was conducted for more than 2 hours just for this candidate. Ultimately, they found him fit and selected for the post of officer. The management having selected Mr. Narendra, posted him to another unit at Bommanahally industrial area, which is 40 km away from the Peenya unit. Mr. Narendra was a strong trade union leader at Peenya unit, having mass contact with employees, fighting for their rights seriously. The management tactfully and intentionally selected Mr. Narendra, and posted him to the far away unit to curb his trade union activities. Mr. Narendra made an

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application to the management and requested to retain him in the Peenya unit, since the vacancy exists there. But the management rejected his application. The management said if he wants promotion he has to go and report at the Bommanahally unit otherwise he has to forgo his promotion and stay as an employee in the Peenya unit.

Mr. Narendra, to avoid conflict reported at Bommanahally unit. Meanwhile a large number of employees at Peenya unit made a mass representation to management to transfer back Mr. Narendra to Peenya unit as they needed his services. The management did not budge, refused to transfer Mr. Narendra back to Peenya unit. The employees at Peenya threatened to stop work and adopt ‘go slow’ tactics if the management did not transfer back Mr. Narendra within 15 days. This became a serious IR problem. Since it was peak production period, the management took one month time to reconsider their decision. But the employees did not agree for one month time and allowed 15 days time. After 15 days, the management

Transfer of Trade Union Leader  109

did not transfer Mr. Narendra. The employees adopted ‘go slow’ tactics, and production came down, the workers were demoralised. After one month, understanding the gravity of the problem, the management transferred Mr. Narendra back to Peenya unit, and thereafter the situation became normal.

Questions 1. Do you think the management’s strategy of transferring Mr. Narendra is justified? 2. Why did employees adopt ‘’go slow” tactics? Is it right? 3. Do you think the management’s decision to transfer Mr. Narendra back to Peenya unit is right? How?

43

Death Relief Committee

In any company, the HR department follows people, wherever they go, that is from recruitment to separation. Separation of employees may be due to resignations, superannuation, voluntary retirement, dismissal and death. Death of an employee is a sad event in the organisation. The relatives, friends, the employees who are closely associated with the person who died will pay last respects by visiting the place where the dead body is kept. In some of the companies, a committee is constituted who wear black badges and carry garlands and cash of Rs. 5000 towards funeral expenses and visit the place where the dead body is kept. The members of the committee console the family members and give them the cash, and place the garland on the dead body as a mark of respect. In some other organisations, the company provides the hearse van at free of cost to carry the dead body to the burial ground. In addition to this, company also provides buses from the company free of cost to the employees, friends, who want to visit where the dead body is kept for last respects. This is a kind gesture of the management practised over three decades. This gesture was practised to express the sympathy and solidarity and support to the employees at sad times. One Mr. Sampath took over as a managing director of the company. Mr. Sampath was not happy with the practice of providing company buses to the employees to attend the funeral of the dead employees. He ordered the HR department to stop the facility of providing company buses to employees to visit the place where dead body is kept to pay last respect, attend funeral, etc. The union requested the managing director not to discontinue the facility as it

Death Relief Committee  111

does not cost much, but actually, it reflects the kindness of the management and creates confidence in the minds of the employees. However, the managing director did not accept the arguments of the union. The managing director ultimately cancelled the facility. The union and employees felt sad about the decision of the managing director. The union decided to protest in a peaceful manner.

Questions 1. Do you think the facility of providing transport by the company for three decades was right and humane? 2. Do you think the decision of Mr. Sampath to cancel the facility is right? 3. If you are a managing director do you support the old decision to provide transport facility? Give reasons.

44

Mass Leave

Krone and Co. is a public limited company, manufacturing electronic goods. There were more than 6000 employees and only one trade union called Krone Trade Union. This trade union was highly effective in the early years solving the problems and grievances of the employees. Some of the trade union leaders, who were working for the betterment of the working class, have retired and one important leader expired. Later, some new leaders took over the trade union. These leaders were ineffective because they had no experience and mismanaged the affairs of trade union. These trade union leaders were demanding money from the employees to solve their problems. This union colluded with the management. To stop these illegal activities, one more trade union, by name Krone Workers Association was formed. This new union honestly decided to work for the welfare of the working class. This association submitted a charter of demands to the management and gave one-month notice to solve the problems. The management refused to negotiate with the Krone Workers Association on the grounds that it is not a recognised trade union. The management said it is authorised to negotiate only with recognised trade union called Krone Trade Union. To protest the management refusal, the Krone Workers Association consisting of 3000 members went on mass leave. Due to this mass leave, canteen services, security services and other services were seriously affected and the whole production and distribution systems totally paralysed. The employees had applied the leave on medical grounds, and subsequently produced medical certificates. The management decided to take punitive action against all the 3000 employees. They issued show-cause notice to all

Mass Leave  113

the 3000 employees asking why disciplinary action should not be taken for participating in the mass protest by applying leave. The employees replied that they had not participated in mass protest, but they had taken leave on medical grounds. The management found it extremely difficult to conduct enquiry for 3000 employees collecting the evidence. Therefore, the management disposed the idea of taking punitive action against the employees. The Krone Workers Association created impact on the management, applying the strategy of mass leave. The management later, invited the Krone Workers Association trade union also for negotiations.

Questions 1. Why did the management drop the punitive action against employees who are members of Krone Workers Association? 2. Do you think Krone Workers Association is right in going on mass leave? 3. Is it right to call the unrecognised trade union for negotiations?

45

Save PSU Forum

The joint action forum of various public sectors, a federation of various trade unions went on one day nationwide strike all over India placing the important demands to protect public sector undertakings (PSU).

The joint action forum has placed the demands before the central government. The demands are: • Stop privatisation and disinvestment of profit making PSUs including banks, telecom, airports, etc. • To enact comprehensive legislation on service conditions and social security for unorganised sector workers.

Save PSU Forum  115

• To stop downsizing of workforce and lift ban on recruitment. • Prevent sexual harassment of women at workplace and protection for women. • To revive sick and loss making PSUs. • Interest rates on EPF (Employees Provident Fund), GPF (Government Provident Fund), CMPF (Coal Mines Provident Fund), PPF (Public Provident Fund) should be raised. • Check price rise of essential commodities. • To ensure strict enforcement of labour laws. • To strictly implement the National Rural Employment Guarantee Bill.

Questions 1. Do you think the demands are placed to protect the PSU workers? 2. If these demands are implemented, what are the advantages and disadvantages? 3. Why the government is going for disinvestment of PSUs and what are the pros and cons?

46

Accident during Lunch Time

Mr. Puttappa is working as a clerk in Prem Company. He is working in the general Shift (from 8.15 AM to 4.15 PM) and the lunch hour for the shift is fixed at 1 PM to 1.30 PM. All the employees in general shift have to take lunch during this time. Some of the employees take lunch in the general canteen which is situated inside the company premises and come outside the company to eat fruits or to make some purchase of, vegetables, greens, etc. It is difficult to manage time, that is eating inside canteen and coming out requires more time, therefore employees will be running from inside to outside and outside to inside during the lunch hour. After half an hour lunch time, if any employee is found here and there, they will be booked by security as it amounts to loitering while on duty which is a misconduct as per the standing orders of the company. One day after taking lunch inside the canteen Mr. Puttappa went outside to have some fruits. As the half an hour lunch time was just getting over Mr. Puttappa came running inside the company in the last minute. As he was running in a hurry to his department he dashed against a lorry carrying company goods coming from opposite direction inside the company premises and Mr. Puttappa died on the spot. It was an accident as the lorry driver could not control the vehicle because Mr. Puttappa suddenly dashed against the lorry. All the employees gathered and assaulted the driver. The trade union blamed the management for allowing the lorry during the lunch hour. The employees and union leader did not allow the body to be shifted to hospital for post-mortem. The union demanded that they will not allow the body to be shifted till the CMD openly declares the compensation

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amount and employment to the accident victim’s family. The chairman informed the union office bearers that as per the rules whatever help is to be done it will be done fast and early. The company has the responsibility to help the victim’s family and will do the needful at the earliest. But the union office-bearers said that the management gives assurance but they will not implement it. Therefore, the union demanded that the compensation to the victim’s family be declared immediately.

It was more than 3 hours the body was lying and not shifted to the hospital. Also, the employees stopped doing the work and supported the trade union. As the police platoon entered the premises, the situation became tense. The police officers intervened and requested both the parties to settle the matter fast before it becomes law and order problem. The police officers separately discussed with the CMD, and appraised of the seriousness of the problem. The CMD immediately called for top management meeting and discussed the issue. The CMD after the top management

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meeting came out and discussed with the trade union leaders. Thereafter, CMD announced the compensation and employment to the victim’s family. After this announcement, the union leaders allowed the body to be taken to hospital for post-mortem and all the employees left the place.

Questions 1. Who is responsible for the death of Mr. Puttappa? Is it the lorry driver or the management? 2. Is it right to allow the lorry inside the company during lunch time? 3. Why did union leader not allow the body to be taken to hospital for post-mortem? Is it right? 4. Was the CMD’s assurance of giving compensation and employment to the deceased victim’s family right? Give justification?

47

Theft in the Stores

Mr. Ranganna is an experienced storekeeper and has worked for more than 25 years in the Marco Company Ltd, Bangalore. He has worked in different stores, where material and machinery components worth crores of rupees have been kept for issuing it to production shop. Throughout his service he maintained good records and earned good name. Once he was transferred to a big store where the transactions were very high. After one month of taking charge, the audit department conducted stock verification of all the materials in the stores. The stock verification is conducted once in two years. This time when the stock verification was conducted it was found that there is shortage of material and machinery components worth lakhs. The management lodged police complaint as they suspected theft of machinery components and materials. The police after investigation found the material in a scrap yard in Chennai and they seized the stolen materials. Meanwhile, the management issued charge-sheet to one Mr. Ranganna, the storekeeper, who has taken charge recently asking him to explain why disciplinary action should not be taken against him for theft and shortage of materials and machinery components in the stores. Mr. Ranganna was surprised to see the charge-sheet because he has taken the charge recently and he was not aware of shortage or theft in the stores. Mr. Ranganna replied to the charge-sheet that he was innocent, the shortage and theft took place before he took charge and further he submitted that after he took over the charge no shortage and theft has taken place, therefore he requested the management to close the case against him as he is innocent and should not be held responsible

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for the lapses occurred in the previous regime. The management found the reply unsatisfactory and suspended Mr. Ranganna and constituted an enquiry committee headed by legal officer. Mr. Ranganna unable to face this unnecessary harassment fell sick and was hospitalised. Mr. Ranganna’s family approached the union office bearers and informed the whole matter. The union took the case of Mr. Ranganna, after studying it requested the management to close the case. The management refused to accept stating that since the enquiry process has already started and let Mr. Ranganna place all the records before the enquiry committee. The union requested the management to revoke the suspension of Mr. Ranganna so that he can face the enquiry confidently.

The management did not revoke the suspension. The enquiry proceedings started, the union assured Mr. Ranganna their support. In the enquiry proceedings, all the documents were placed before the enquiry and witnesses were examined and cross-examined. After the enquiry, the enquiry officer submitted a report stating that Mr. Ranganna was innocent

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and loss and theft had not happened during his period. Mr. Ranganna was relieved but the union blamed the management for unnecessarily harassing Mr. Ranganna. The union demanded that the officers who are responsible for issuing charge-sheet on false charges be suspended. The management refused to suspend the officers. The union office bearers threatened to go on hunger strike within a week if the management does not suspend the officers responsible for harassment of Mr. Ranganna. At last the management suspended the concerned officers.

Questions 1. Why the management did not verify the records before issuing the charge-sheet to Mr. Ranganna? Is it right to suspend an innocent and honest employee without verifying the records properly? 2. Why did the union support Mr. Ranganna? Is it justifiable? 3. If you are a director (HR), what steps and measures do you suggest to prevent such unnecessary harassment to the innocent employees?

48

Challenges of Creating a New Culture

Brace & Brace Co located at Bangalore was a very old company having more than 25,000 employees. The employees have been working for more than 25 years adapting to traditional style of work culture. These employees resist change of technology, new work culture and discipline. The management spent money on training these employees but results were not encouraging. Not much change has taken place in the attitude of employees. Therefore, the management established a new unit of the same company about 50 km away from the main unit to develop new culture, with young employees, who can adapt to new technology, product, etc. Many youngsters were selected to the new unit. However, only with new and young employees alone, it was difficult to manage and run the company without the experienced employees. The management then decided to transfer some of the experienced employees of old main unit to the new unit. This was strongly opposed by the trade union and hence the transfer idea was dropped. The unions suggested to select the people through internal recruitment process. This suggestion was accepted by the management and released internal advertisement for various posts on the horizontal transfer basis without change in designation and pay scale from old unit to new unit. Surprisingly, none of the experienced employees had applied for the new unit because there is no change in the designation and pay scales. Since there is no response from the experienced employees, the management changed the strategy. The management released internal advertisement offering one

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jump, that is, one category or grade higher than what they are holding and along with higher pay scale. This strategy worked, many experienced employees responded to the new internal advertisement and applied and was selected to the post. The management with blend of experienced employees, and new employees, with new culture made fast progress and achieved higher profits within 2 years of its establishment.

The new unit declared higher maximum bonus for the employees of the new unit. But the employees of the old unit also demanded higher bonus, though it was making losses, on par with the new unit because it is a part of the old unit. But the management declined to pay the higher bonus for the employees of the old unit. The old unit employees threatened to go on strike. The management did not budge.

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Questions 1. Why the old experienced employees did not respond for the first internal advertisement? 2. Was the management’s strategy of offering higher grade and pay scale justifiable? 3. The demand of employees working in the old unit for higher bonus on par with new unit is logical and justifiable? 4. Do you agree with the management decision of declining the higher bonus demand of employees of old unit?

49

Promotion on Time Scale

Promotion is one of the important components of career planning. Promotion is upward reassignment of an employee in an organisation with or without additional power and compensation. Several criteria are adopted to promote the employees. Some of them are seniority, merit, ability, minimum duration of service, etc. Based on the culture of the organisation, an important criteria or combination of these criteria are considered for promotion like (a) seniority and merit, (b) ability and merit, (c) ability and duration of service, (d) minimum duration of service, etc. Promotion is an important motivational tool.

In Sundar Company Limited, a promotion policy called ‘Time Scale Promotion’ was introduced. According to the policy the employees after a stipulated period of time will be automatically promoted. For example, an employee working as Junior Clerk, will be automatically promoted as a Senior Clerk (whether vacancy exists or not) after completion of 4

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years, provided they have satisfied the attendance norms. If 10 Junior Clerks have completed 4 years, all the 10 will be promoted as Senior Clerks.

In this system, most of the clerks in the company have become officers within span of 15 years. Due to this policy there are more officers than workers, the situation became worst, there is 1 worker and 4 officers. Actually 4 employees report to 1 officer but here the order is reverse.

The officers’ canteen has become full and unmanageable because all the employees have become officers. The management has landed in confusion because everybody is an officer, they do not want to do the work of an employee. The management in order to solve this problem decided to transfer some of the officers to other units located in various

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parts of northern India. But these officers refused to go there because they are already well settled in Bangalore with grown-up children, have built a house, etc. The company suffered huge losses and introduced voluntary retirement scheme (VRS) to reduce the staff. But the talented and good skilled workers availed the benefits of VRS and left the company, and others did not avail the VRS benefit and remained in the company. The management does not know what to do? The company continued to suffer losses.

Questions 1. Is it right to promote employees without vacancies on Time Scale Promotion? 2. Do you think the management is responsible for huge losses and the mess? 3. How will you solve the problem if you are a CEO and revive the company?

50

Misuse of Travel Concession Perk

Mr. Narendra is a clerk in the administrative department of Cylinders Public Ltd. Company. He is entrusted with an important work of checking, verifying and passing the Leave Travel Concession (LTC) bills of employees. In the company, LTC facility is provided to the employees and their families, who can go on all-India tour by train, bus once in 3 years. These employees are sanctioned paid leave for the tour period. Some employees utilised the facility honestly and subsequently submitted the original bills along with train tickets, bus tickets, etc. But some employees misused the facility by submitting false train or bus tickets and claimed the amount.

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Mr. Narendra applied leave for 20 days to go on allIndia tour. These 20 days he did not come to the duty. Afterwards he submitted the bus tickets, train tickets and claimed Rs. 20,000 stating that he has gone on all-India tour. Sometime later, someone wrote an anonymous letter stating that Mr. Narendra has not gone on tour and submitted false bills and claimed the amount. These 20 days Mr. Narendra was at home. The management verified the bills with railways and bus transport authorities and found that he did not travel on these dates. The management issued a memo and conducted an enquiry. The enquiry committee found him guilty of misconduct of false claims, dishonesty and cheating the company. On these grounds he was dismissed from services.

Questions 1. Do you think the management is right in dismissing Mr. Narendra? 2. Instead of awarding such a harsh punishment the management should have asked Mr. Narendra to refund the amount claimed. This would have solved the problem. What do you say? 3. Do you have any alternative solution other than dismissal?