Which is more importantRecruiting or Retaining ??

UEL
is a pioneering and internationally reputed firm in theindustry.
One of the largest firms in the country.
Recruitment policy
: attracts employees frominternationally reputed institutes and industries by
offering high salaries and perks
Case Situation
Co. advertised for the position of electronics engineer.
150 candidates applied.
130 appeared for test and interview.
Mr. Sashidhar, an electronics engineering graduate fromIIT with 5 years working
experience in a medium sizedelectronics firm was selected.
Interview board enhanced his salary by Rs. 5000 from hispresent salary at his request.
He joined UEL on 21
st
January, 199
On the job experience:
He joined the job with great enthusiasm
Found his job quite comfortable and challenging.
He felt it prestigious to work with this company during theformative years of his career.
Found his superiors and subordinates to be very friendlyand cooperative.
But, this climate did not
live long..
After one year
of his service, he learnt about a number of unpleasant stories about
Company
Managemen t
Superior-subordinate relations
Rate of employee turnover(especially at higher level)But decided to stay on as per his
promises to the management in the interview..He wanted to please and change the

attitude of management through his Diligent performance,firm commitment,

and,dedication.
He started maximizing his contributions, and,the management got the
impression
that
Mr. Sashidhar hassettled down and will remain in the company.
As a result,
Superiors started riding over him, overloaded him withmultifarious jobs.
His freedom in deciding and executing was cut down tosize.
He was ill-treated on number of occasions before hissubordinates.
His colleagues also started assigning their responsibilitiesto him.
Consequently,
there were imbalances in his family life,social life and organizational life.
But,
he seemed to be
calm and contented.
Management felt that Mr. Sashidhar had thepotential to bear with many more

organizationalresponsibilities
theGeneralManager was quite surprised to see theresignation letter of Mr. Sashidhar
along with a cheque
equivalent to one months salary one fine morning
on18thJanuary, 1999.
GM failed to convince him to withdraw his resignation.
GM relieved him on 25th
January, 1999.
GM wanted to appoint a committee to go into thematter immediately, but dropped the idea
later

Question1)What prevented the general managerfrom appointing a committee?

2)What is wrong with the recruitment policyof the company?
3)Why did Mr.Sashidhars resignationsurprise the general manager