CASE II MANAGING A CHANGE

Akbar finished his MBA in May 1990 and was selected by BEW Ltd., Mumbai, in June.
He worked in the corporate office in the Finance Department with a small group of
newly hired professionals who were Knowledgeable about accounting, systems and
computers. The group was given the assignment of converting the accounting
groups located in the various plants to a new companywide computerized cost
system.
Damodar Joshi was head of the Finance Department. Joshi had a pretty good
reputation in the company although he had little formal accounting education. He
had been appointed twenty-five years ago as a clerk and gradually got promoted as
deputy General Manager (Finance). Akbar had doubts about Joshis abilities when he
came to discuss the accounts of the Ranchi plant. Akbar had felt that entire Ranchi
system had to be changed, and he had thought of making substantial change.
These thoughts used to be discussed with Joshi.
Akbar had carefully prepared his presentation. When he finished the presentation
Joshi merely thanked him; no appreciation, no comments. Akbar faced all sorts of
problems, in other parts of the corporate accounting procedures. Without giving up
his efforts Akbar continued his efforts and proposed to cut down on the amount of
time-sharing we would require in the new computer set-up. He presented these
ideas to Joshi at various times. Each time he was polite, but there was little
appreciation.
Anyhow Akbar was anxious to get out to the field. The biggest job was at Ranchi. It
was an old plant. His first job was to dig out information about the relevance of their
accounting systems to production, inventory and despatches. Rajendra Sinha was
head of the finance wing of the Ranchi plant.
When Akbar met him he explained that the corporate computerized set-up look
after a good deal of his work-load as soon as he was aware of the needs of
corporate finance department. He said he would happy to help Sinha in installing
the new system. Akbar experienced a good deal of difficulty getting relevant data. It
was like dragging it out of them. He discovered that it was easier to spend time
collecting the data himself rather than trying to get Sinha or his staff to help him.
He stayed there nearly a month, wading through old records over five years. At long
last, his recommendations were accepted and incorporated in the new system. It
was time to begin testing and debugging the programme. It was decided that for
some months there would be parallel accounts at corporate office (with the
computer) and at the plants (with their manual methods). Both corporate office and
plants would then be able to evaluate how the new system worked.
When the Ranchi office got the printouts, they were very unhappy. They said a
number of key parameters had been ignored, they didnt understand it at all, and

the computer-processed data were useless. Joshi called them and said that
problems were to be expected, Akbar was called to explain. At his presentation
meeting Akbar presented the rationale behind the whole programme which was
expected to accomplish better control by centralizing this data analysis. Sinha said
it would never work at Ranchi, and got into a long, emotional argument over how
different Ranchi was from the other plants.
Akbar got back to Mumbai; he made a number of modifications based on what he
had learned. However, the following week Ranchi Plant once again remarked that
the new system was not providing a true picture of their operations. However, Joshi
was satisfied about the new system.
Joshi decided to push the work ahead at other locations and let Ranchi lag behind.
Over the next few months the installation was completed at the other three plants
but was not finished at Ranchi. When Akbar decided to leave for another job, Ranchi
was still left out of the system. A good deal of blame can be placed on Joshi he is
too easy going and not forceful enough and on Sinha. Sinha just made up his mind
it wouldnt work. And being stubborn, he wouldnt change his mind.
Question:
Comment on Akbers view of this job and its problems.
What the processes at work are in re-design of the system?
What Akber could have done in the situation?

Ans1: The job Akber faced was to bringing a change in the old procedures and
system to be changed over to a new computerized system.
Akber had a very difficult notion about this job than others, as may be because of
the MBA he had a bigger perspective of the over all business and how the
accounting and other financial information should be presented for a better control
and decision making on various issues.
Hence Akber felt it is not just a job of computerization of the accounting but it is
building and IT system which should work on MIS concepts.
On the other hand the other managers who have been there in the organization in
finance and accounting work were only interested in getting a computerization of
the accounting with the way it is.
That is why there were not appreciative of Akbers work and as well reluctant to help
him as they see him as threat to their established system and work procedures. In
fact the finance DGM himself has no clear interest in the process and he seems not
to be appreciative of the extension that Akber has created without anyones
consent.

Ans2: The Data Analysis and report at of the Plant were being centralized so that
proper coordination of material men and money can be done at the same time the
Head office and be aware of the present situation of each plant. The work redesign
will impact the power and the decision making abilities of the Regional Finance
heads who will now be under scrutiny from the head office.
Ans3: Akber seems to be a highly enthusiastic graduate who has a lot of ambition
and wanting to prove himself. But at the same time he does not display the maturity
which is needed to manage change is systems.

CASE III MITCO

A company, by the name MITCO, has its employees rated by supervisors be means
of graphic scale. The qualities taken into account are performance at work,
responsibility, dependability, community activity, initiative, regularity and
punctuality and potentiality to develop. The ratings are discussed with the
employees and are used to counsel them, to make promotions and salary
adjustments and as criteria for evaluating sources, methods of selection, and
training. Recently, however, three of the Companys employees, who have not been
given annual salary increment due to their comparatively low ratings, have met the
Chairman to express their dissatisfaction with the ratings they have received. They
have argued that their ratings are not true indicators of their qualification or
performance. They insist that Community activity is not properly a part of their job
and that what they do off-the-job is none of the employers business. They wanted
that employees should organize a union and demand that salary increases be
automatic. The above experience convinced the top officers that rating was a
dangerous source of friction and that its disadvantages outweighed its advantages.
Questions:
Placing yourself in the role of Personnel Manager, prepare
Memorandum for possible submission to the Chairman outlining the
Importance of ratings and suggesting ways of handling problems
Arising out of ratings.
Prepare a merit-rating Performa which you feel would be ideal to
Appraise the merit of non-supervisory staff.
Answer a.
Memorandum

To:

The Chairman

From: Personnel Manager

Based on the recent even in the company where a group of workers made
representation to you in regard to
Their dissatisfaction from the rating that the got during the last appraisal process.
The proposal of an automatic raise for all employees through union negotiation.

The rating system as established in the company presently is based on important

presumptions and is being used in a verity of ways.
The graphic rating system is a scale based in instrument which offers advantages
like coverage of important variable which constitutes performance.
It offers a objective evaluation of performance which can be converted in numeric
which offers a clear indicator.
Here due to the compulsion of evaluating all the factors there is less chance
biasness.
In graphic process the supervisor also learns the difference between good to great
performance.
The variables of performance are set by top management hence what the top
management think the employee should focus upon becomes clear.
The graphic rating also offers a chance to identity different weak and strong areas
of employees which helps in counseling the employees in specific areas of
improvement.
But as the employee have a grievance that the rating provided to them does not
really indicate the real worth of their qualification and work and also that
community work is not a dimension which should be given significance is a matter
of importance an hence require a clarification.
The way to handle this situation is that employees should be asked to give self
appraisal on the same form as this will be helpful in identifying the difference in
their own perception in comparison to their supervisors.
Secondly as the supervisors some time due to leniency, halo effect and other
factors provide biased ratings which can be solved only by offering supervisors
training on the appraisal process and on the use of this data?
There is also a need of making a broad based committee which should offer a list of
key parameters of performance so it will be more acceptable.

Answer B:

Performance Appraisal Format

Name:

Department:

Job Title:

Supervisor:

Evaluation Date
Definition of performance factors
Safety:
Demonstrates a commitment to safety by following safety rules & guidelines;
follows good housekeeping practices, takes proper care of equipment. Meets
requirements of 100% participation in safety training & 100% safety actions
completed.
Attendance:
Regular & Punctual attendance at or below the 4 point threshold. Individual is at
workstation when scheduled and remains for the duration of shift.
Initiative & Energy:
Takes advantage of training opportunities and progresses through work stations at
an acceptable rate. Initiates actions without needing direction; Demonstrates a
sense of urgency; Corrects errors; Requests assistance in a timely manner; Handles
unexpected situations calmly & efficiently to minimize problems.
Quality:
Considers accuracy & the appearance of work, committed to producing a quality
product and to continuous improvement efforts. Recognizes & learns from mistakes,
taking appropriate action to reduce errors. Understands the role that quality plays in
customer satisfaction.
Productivity:
Properly uses materials and equipment to effectively and efficiently complete
varying workload in a timely fashion.
Problem Solving:
Demonstrates the ability to gather information, to critically evaluate options,
seeking alternative perspectives to identity root causes & develop solutions.

Accountable/Dependable:
Takes responsibility for decisions, actions and results; delivers on commitments to
stakeholders. Acts in the best interest of stakeholders; places success of the
organisation ahead of personal gain. Proactive in decisions and actions.
Teamwork:
Builds trust by respecting the ideas & contribution of everyone; works well with
others. Coaches & encourages others on a regular basis; contributes to positive
morale & spirit within the team; and embraces diverse & global cultures.
Integrity:
Demonstrates a commitment by adhering to its stated values, policies &
procedures. Does the right thing, conducts business in an ethical manner in
accordance with our conduct guidelines ideas.
Potentiality to develop:
Takes interest in new learnings and tries new method and previous training.
S no
1
2
3
4
5
6
7
8
9
10

Performance criteria
Safety
Attendance
Initiative and Energy
Quality
Productivity
Problem solving
Accountable/Dependable
Teamwork
Integrity
Potentiality to develop

5 Shows this behavior and attribute every time he works or participates in other
activities.
4 Shows this behavior and attribute Most of the time he works or participates in
other activities.
3 Shows this behavior and attribute Many times he works or participates in other
activities.

2 Shows this behavior and attribute only sometime he works or participates in

other activities.
1 Shows this behavior and attribute very less or not at all when he works or
participates in other activities.

CASE IX DIAMOND INTERNATIONAL

Read the following case carefully and answer the questions at the end. In 1981 the
325 employees who manufactured paper egg cartons at Diamond International
plant in Palmer, Massachusetts, faced an uncertain future. Styrofoam containers
were creating stiff competition, the recession was affecting profits adversely, and
workers were worried about being laid off. Labour management relations were
strained at best. Over 65 per cent of the plants workforce felt that management did
not treat them with respect, 56 per cent approached their work pessimistically, and
79 per cent thought they were not being rewarded for a job well done.
Then the personnel director of the Diamond plant devised a system of productivity
incentives called the 100 club. It is disarmingly simple. Employees are allocated
points in recognition of above average performance, Any employee who works a
full year without having a industrial accident is awarded 20 points; 100 per cent
attendance is worth 25 points. Every year on February 2 (the anniversary of the
programmes launching date), points are tallied and a record is sent to the
individuals home. Upon reaching 100 points, workers get a light blue nylon jacket
emblazoned with the company logo and patch signifying membership in the 100
club. Every one of the plants employee has now earned a jacket. Those who
accumulate more than 100 points can receive additional gifts. With 500 points,
employee can choose from such items as a blender, cooking accessories, a wall
clock, or a cribbage board. Diamonds management is quick to point out that none
of the prizes is beyond the purchasing power of the workers; the real value is this:

Its a sign of appreciation from the company. For too long, the people who have got
the majority of attention have been those who cause problems, says Diamonds
personnel Director (Our) programmes primary focus is the recognition of good
employees.
QUESTIONS:
Do you think recognition alone is enough to motivate employees, or does it always
have to be tied to pay?
How might Diamonds recognition programme affect errors, grievances, and time
lost due to absence?
Can such a programmed be sustained over time? If so, how?
Discuss the relevance of the example in the case to Indian situation.
Also mention at least one instance where an Indian organization has
Tried some creative/innovative/unique way of recognizing its employees and with
what effect?

Answer 1
The issue of motivation is affected by various things, as per Herzberg motivation
has a relation with recognition, Specialist development and opportunity for cross
growth (self actualization).
Pay and other issues like good working conditions can at the most offer good
satisfaction to the employees. Motivation definitely has a relation with recognition
as recognition is likely to change the social perception of the individual among peers
and other so it plays a great role in motivating the person.
The connecting of recognition with monitory benefits only like increments,
allowance etc has a positive but a short term impact. As after the receipt of such
monitory reward the value of the reward stars getting low and after some time it
becomes part of normal expectations.
Recognition should be offer a variety of chances to reward and recognize employees
and it should be done for variety of different behaviors so that the areas of behavior
which are key for the organization. The brings a set of reinforcement in the things
the organization wants the employees to be motivated towards.
Answer 2
The recognitions program ie the 100 Club. Is a very good program as it directs the
attention of the employees towards those key areas and behaviors which the
management appreciates and hence the employees can be motivated to achieve
those behaviors like safety, punctuality, productivity etc.

There is a very good system the Diamond management has built in this program as
it take into consideration that any employee who works a full year without having
an industrial accident is awarded 200 points; 100 per cent attendance is worth 25
points. This way the employees become habitual of continuously remain safety and
practice safety practices, one an employees is continuously thinking of accident free
working and is cautious in his work he is likely to also reduce errors. As both
accidents and errors are associated to low concentration, low awareness and lack of
carefulness.
Hence the continuous and conscious efforts by workers in this area will lead to error
free working.
Grievance in a organization is a common issue and leads to demotivation. And the
most grievances arise to dissatisfaction arising out of inequity of opportunities and
rewards. In an environment where clear communication on the area of specific
achievement is clear and the points are allocated on a clear method it will reduce
grievances of employees regarding inequity, and also as most of the employees will
achieve this in due course of time the achievement motivation will lower down their
grievances.
The major reason of low productivity is most of the organization is time lost due to
absenteeism and this is one menace which most of the organizations face this
recognition scheme has the potential to affect the absenteeism behavior and once
an employee has been rewarded they would like to retain their image and hence will
be more punctual in their behavior.
Answer 3
These type of recognition program have rather a short life as once after a large
number of employees have gained it, it becomes unattractive. The charm of
recognition is only when it offer distinction from others and hence it requires that
new and innovative ways of offering recognition and rewarding employees
displaying good behavior should be done.
To sustain such programs the need to devise new programs annually or enhance
those programs which became popular with employees is there.
The creative aspect of how too define the program what non monitory or monitory
reward should be attached need to be reviewed at quick succession.
Be most important part of recognition and rewarding is that it should be
Significance
Equitable distribution
Visibility
Flexibility
Low cost

Timeliness
If these principles are maintained any recognition program will work.
Answer 4
The Taj Mahal Hotel is a hotel which symbolizes the grace, Indian values of being a
host and quality.
The recent example of it could be see during the Mumbai Terror Attack where the
employees even after
Knowing the terrorist being there kept assisting the quest throughout the night and
many of them laid
down their life in the line of duty to save their guest. This is not just an accident that
this courage and
behavior was displayed by the employees of TAJ.
Taj hotel has created a deep rooted tradition and culture among its employees to
generate the high
level of commitment, quality consciousness and up keeping the values of customer
service and quest
services.
This could be achieved by the use of effective reward and recognition programs that
have been set up at
Taj. One of the programs is known as STARS Loyality and Reward Program.
The Features of STARS Program
It is a recognition and rewards system
Non monetary reward system
Pushes excellence and team work in employees.
Imbibes people in the organization philosophy
Helps in the over all appraisal program
Organizational Benefits of its HR initiatives
High Employee retention
Image and Market recognition. Helps in attracting good talent to the
company.
Better customer satisfaction and customer loyalty.
Business development.- Profitability.
International Recognitions.
High faith in investors and financial supporters.

Social benefits.

CASE XI Mr. Mathur

Mr. Mathur is the Director (Operations) of a large organisation and every year he
obtains services of graduates with academic background of science, engineering
and mathematics to work in his department. Those executives are engaged in
systems work to monitor the operation of the organisation. Mr. Mathur had got Mr.
Amin to move from technical department of his unit on transfer. Amin had put in ten

years service in the organisation and satisfactorily picked up the systems

programming functions of Mr. Mathur department. After about a year Mr. Mathur
secured the services of Mr. Ram on transfer from corporate office, who had
distinguished himself as a computer specialist. Both Amin and ram teamed up well
and the activities of the department were at its best.
After sometime Mr. Mathur problem surfaced principally because Amin came too
know the Rams emoluments were higher than his, although he had worked for
almost a decade, and had demonstrated good professional ability. Ram had put in
only four years service in the organisation and was also younger in age to Amin.
When Amin voiced his grievance he was told that the company had specific
guidelines for pay fixation. Although Amin and Ram were in the same salary scale.
Rams emoluments were higher, since he received special pay because of higher
professional qualifications. Mr. Mathur explained company policy to Amin, but it did
not satisfy him. Amin was not pleased with the situation, particularly because in
spite of the recent annual raise in his salary he was getting lesser amount and he
would continue like this, unless he secures promotion.
Amin thought he was more experienced and able and had more knowledge about
the operations of the company. His discontent was exhibited in his performance and
the operations of the company suffered.
Please discuss the following issues:
What role does Law and equity play in this case?
Should company demand that individuals do not disclosed their salaries? Why
or Why not?
Comment on the salary/allowance policy.
As Director (Operations) how would you handle Amin/
Answer 1
In this case there is a classic problem many old organizations face where on one
hand they have old
timers who have worked with the organization for a long duration and have good
experience and
experience based learning which they acquired from their experience in the
company. And on the other
hand are other new employees who have latest education and skills acquired which
are most recent and
update which could be key for future growth and managing. The conflict lies in
whom to pay higher and

what should be the parameter of compensation.

Law has its own role in company decision as policies and strategies are made to
gain certain type of
advantage for the company and its operation and such policies and Laws have
importance in running the
system hence the Policies should be kept intact as best as possible.
On the other hand Equity is a key concept which has a deep impact on the
motivation of the employee.
Equity can be understood by Understanding the following formula
As Output or reward/

Bs Output or reward

As Input as work and effort

Bs Input as work and effort

So if the input of two employees is equal and the output or reward is also equal than
a equity persist
than it would be seen as employees as fair treatment by management of their
work. But if the input is
same and reward is not it could lead to the feeling of inequity which can lead to low
motivation in the
employee which could lead to low productivity, disinterest, more conflicts and
grievances.
Which seems to have happened in this case where Amin is feeling inequity and
hence he is reacting to
the presence of inequity by lowering his productivity and may be cooperation.
Perfect equity can never happen as organizations are a body of people and the
Human process is not
necessarily logical.
Answer 2
The non disclosure of compensation is a clause is most of the organisation but as
employees while they work together they have curiosity to clear their feeling of
equity and hence they try too compare their input vs reward with others.
Equity is normally seen by employees in different ways
1. Equity inside the company

Self Inside Self work comparing with a similar person inside the company.
Others Inside observing two other people with similar work and comparing.
2. Equity with outside organization
Self Outside Self Input out put with of similar people in other companies.
Others Outside Other input out put with of similar people in other
companies.
So even with non disclosure agreement of compensation it is not really possible for
the company to hide the compensation of people within the organization.

So the company should not spend unnecessary time and energy for hiding and
placing wrong information. So the company should not keep the compensation a
secret.
This situation will lead to the management having a transparent system and then it
will be more responsible of its own decisions and the compensation. And if some
complaints arise it will give a chance to the management to solve uncomfortable
issues.
Answer 3
The salary and allowance policy of the company as the case fact reveals that the
company is very conventional in it compensation policies and has a rather rigid
salary structure which is dependent of variables like pre qualification and academic
qualifications which has rather created this situation.
The compensation for the same position same work out put and same expectations
should draw same rewards for both the candidates. The company should be
sensitive about these issues. It should understand when the management expects
same out from both they should pat they equally also. Hence the output skills
presently displayed should be the major variables on which salary should be fixed.
Answer 4
Amin should be handled very sensitively as he may even react by leaving the job if
the inequity he is feeling is not removed.
Ii would invite Amin and would communicate on the policies of the company once
and try to make him comfortable with the fact that there is a problem which lies in
the compensation structuring in the company.

And assure that I would put my own recommendations in front of the management
for a reevaluation of the Compensation to make it possible to bring equity based
compensation in the organization.

CASE XIII BHARAT BANK

The branch manager of Kenya Main Branch of Bharat Bank was faced with the
problem of punctuality in his staff. People took time off during duty hours resulting
in loss of work and overtime payment. Initially Mr. Vatia, the branch manager, tried
to persuade the staff to be punctual by sermonizing but it did not work. Failing in
these methods he resorted to punishment. The matters improved little but Mr. Vatia
was aware of the long-term consequences of punishment-centered approach. His
investigation revealed that time off was used for personal work by the staff.
Whenever caught the staff explained that they had gone for a cup of coffee. This
branch had no canteen facilities like other banks and the building had no space for
canteen. An automatic coffee vending machine was installed but the staff refused to
use the machine saying that the coffee was bad. One day it occurred to Mr. Vatia
that the muster roll of the branch did not have any provision for marking the period
of absence by the members in the event of going out for coffee. He decided to
install a time clock at the main gate and the staff was advised to punch their
attendance cards through this clock for checking their time out. Ones immediate
supervisor was authorised to sanction the short leave. The staff took the matter too
the union. Meanwhile, the services of three members of the staff were terminated
for dishonesty and fraud. They had altered the time in the muster roll for departure,
thereby claiming overtime for the period they did not work. It was proved by the
photocopy of the muster roll taken by Mr. Vatia without the knowledge of the
employees. Mr. Vatia used the above instance to impress upon the union members
the utility of time machine in preventing frauds. The union members almost came
round to accepting the idea but were somewhat hesitant. At this stage the Regional
Manager who came to know about the proposal suggested that Mr. Vatia talked to
the secretary, Kenya Bankers Association, as no other Bank in Kenya had this
machine. The secretary put his foot down. He was a man of British tradition and was
shocked at the idea of using time clock in banks. Other bankers when contacted
also did not favor the idea. Not willing to go all alone the Regional Manager advised
Mr. Vatia to give up the idea.

Comment on the above case offering suggestions on how best to tackle the
Situation.
Answer: The situation with in the case with bharat bank at Kenya branch is a of
work culture and employee discipline. There are evidence that the employees are
practicing convenient and unproductive behaviors by engaging their office time for
the personal work and as well just wasting time in many occasions.
These practices of employees if remain unchecked can result into a low level of
productivity, carelessness, customer dissatisfaction and many other problems.
Bharat Bank is a service unit and for a service unit manpower is their only real asset
which makes and breaks their organization. If the good culture and discipline is not
practiced it is going to put the organization in real trouble.
It is evident from the suspension of three employees that the trouble of indiscipline
and bad working culture has taken deep roots in the bank and people are using all
tacts to make their life convenient.
Mr. Vatia has clear vision of the problem and has shown a keen dedication in solving
the problem using different tactics like sermonizing and communicating with the
employees to positively impress them on the issue, when it did not impact he used
mild punishment which is not so easy as the organization is not having labor or
unskilled workers who can be punished but has highly educated skilled and
respected employees where punishment only leads to ego hurting and is not really
easy to do. He also set record that the fudging of data and other practices will not
be tolerated by suspending the employees which should instill some fear among
employees and deter them from such activities. But Mr. Vatia cannot do this alone
and it his not his job to be a detective in the organization.
His idea of short leave for genuine case of personal work and time machine is very
good as it will help in not just giving the required time out but will also deter people
casually using time off. As it will have a record of frequency.
Though this idea may seem radical to the Kenya Banker association but Mr. Vatia as
he has almost even convinced the union representatives also should not leave this
here as if he fails to use this opportunity people get a clear reinforcement that they
can take things at ease and will be more detrimental.
Mr. Vatia should send this to head quarters with a complete report and comments
on the customer service and other issues and try to get a nod from Bharat Bank
Head quarters.
Beyond this he should not just depend upon the time machine to change the
situation as it is a change in the human behavior is the need so he will have to use
some positive reinforcement and recognition techniques to bring a change in the
behavior of the employee.

As well treating the complaint of employees of bad coffee should be seen in a

positive light and a sincere effort to either appoint a vendor for delivering and a 5
10 min break before or after lunch should be announced for a coffee together kind
of session. So that people come together socialize. Get relaxed and also do not use
the coffee break for their personal work utility. The short leave concept should carry
on with a good orientation to the immediate supervisors about when how and what
to approve.

CASE XXI Mr. BANERJEE

Mr. Alok Banerjee is the chief executive of a medium-sized pharmaceutical firm in
Calcutta. He holds a Ph.D. in Pharmacy. However, he has not been involved in
research and development of new products for two decades. Though turnover is not
a problem for the company, Mr. Banerjee and his senior colleagues noticed that the
workers on hourly basis are not working up to their full potential. It is a well-known
fact that they filled their days with unnecessary and unproductive activities and
worked only for the sake of a pay cheque. In the recent past the situation has
become quite alarming as the organisation began to crumble under the weight of
uneconomical effort.
The situation demanded immediate managerial attention and prompt remedial
measures. Mr. Banerjee knew very well that the only way to progress and prosper is
to motivate workers to peak performance through various incentive plans.
On fine morning, Mr. Banerjee contacted the Personnel Manager and enquired:what
is the problem with the workers on hourly basis? The wage bill shows that we pay
them the highest in the industry. Our working conditions are fine. Our fringe benefits
are excellent. Still these workers are not motivated. What do they require really?
The personnel Manager gave the following Reply.
I have already informed you a number of times, that money, working
conditions and benefits are not enough. Other things are equally important. One of
the workers in that group recently gave me a clue as to why more and more workers

are joining the bandwagon of non-performers. He felt had that hard work and
efficiency go unnoticed and unrewarded in our organization. Our promotions and
benefit plans are tied to length of service.
Even the lazy workers, accordingly, enjoy all the benefits in the organization,
which, in fact. According to the workers, should go only to those who work hard. Mr.
Banerjee then wanted the Personnel Manager to look into the problem more closely
and find out a solution to the problems of workers on hourly basis.
Question:
Explain the motivational problem in this case by relating it to Herzbergs theory.
What would be your response to Banerjee statement (in the last Para of the case), if
you were the Personnel Manager in the company?
If you were the Manager, how would you motivate the employees so that they work
better?

Answer A: Herzbergs theory of motivation was a very significant turn in the

understanding of the concept of motivation and led to a great contribution to
organizations across the world.
Previously the motivation was seen in light of Maslow theory which identified five
factors starting from Physiological needs, safety needs, social needs,
Growth/esteem needs and self actualization. Each of these needs as per Maslow
arises once the previous need is fulfilled and becomes more important than the
previous one. But his theory was not specific to workforce but generic in nature and
also has a lot of gaps which could not give a concrete guidance to the industry in
specific to address the motivation of its workforce.
Herzberg came out with a theory commonly known as 2 factor theory or Hygiene
motivation theory. This theory explains a very important difference between
satisfaction and motivation where satisfaction only makes an employee perform his
normal capacity level but motivation is the force which brings a beyond the
expected level of energy zeal and performance from the employee.
Herzberg said not all need fulfillment will lead to motivation like good salary, good
supervision may lead to satisfaction among employees which is important to get the
optimal capacity of performance out of him but factors like growth, recognition and
self actualization are the once which lead to motivation which bring a high level of
energy which takes employee to his beyond normal level of performance.

For any organization to bring innovation, creativity, dedication, ownership kind of

attributes require the employee to be motivated, as these attributes are not really
possible to flourish only with satisfaction.
The same is being highlighted by the personnel manager when he says replying too
Mr. Banerjee that I have already informed you a number of times, that money,
working conditions and benefits are not enough. Other things are equally important.
One of the workers in that group recently gave me a clue as to why more and more
workers are joining the bandwagon of non-performers. He felt had that hard work
and efficiency go unnoticed and unrewarded in our organization. Our promotions
and benefit plans are tied to length of service.
So the personnel manager has really hit the right issue and recognized the issue
that only by paying good in comparison, offering benefits and facilities does not
lead to motivation but at the maximum satisfy the workers.
On the other hand beyond having no recognition and growth prospects the workers
are also getting affected by the inequity of reward and hence they have reduced
their effort in response to the inequity that they feel.
So the problem of motivation in this case is complex as it requires a overhaul of the
existing reward and compensation structure and also the approach of management
towards managing the motivation of its workers.
Answer B: Mr. Banerjee is definitely carrying a commonly misunderstood concept
when he say we pay the best among our type of industry we have good work
environment and as well the fringe benefits then what do the workers want.
The issue is that the company may have built a good compensation but the money
that is being invested in the compensation is not targeted and administered in a
way to give feeling of achievement for the employees and of growth and hence the
employees are not excited about the compensation and hence it does not motivated
the workers.
The compensation needs a restructuring to make it more exciting for workers. The
workers are facing a job situation which is very much a repetitive work process and
hence they require to feel their work is being given due importance and if the they
work hard they should be noticed but here in the company the work quality and
efforts offers no recognition as all the promotions and increments are related to
length of service and hence a culture of just holding on to the job rather than
performing the best on the job is getting established and leading to unproductive
behaviors.
This is an immediate need to see the different ways of motivating the workers using
not just monitory compensation and incentives but even beyond that. Like work
motivation.

Answer C: There is a great deal of understanding that is need to bring a new

approach to be able to enhance the motivation of workers.
It can be done by using a three phase activity which as separate focus and impact
on the motivation of employees.
1. Enhancing the work motivation
2. Implementing different incentives, rewards and recognition
3. Effectively communicating the connection of what will lead to the
achievement of the rewards

1. Work motivation can be enhanced by offering them the possibility of job rotation
was different skills will be imbibed in the workers and as well a newness of work will
happen. A team approach of work which is more autonomous and self managing
can be designed as this brings collaborative energy and feeling of achievement.

Beside this a communication process which offers help and feed back on their
performance and how to get ahead is available as this improves the interest in the
job
2. Possibility of achieving monitory incentives like
Spot bonuses
Punctuality rewards
Safety reward.
Best worker award
Special perks like family movie ticket on achievement of target before
time etc.
The schemes which are suggested above should be implemented with a very
meticulous was and a special attention should be given to provide clear guidelines
on how to evaluate the performance and eligibility for the reward and it should be
as circular be.

CASE VII OVERSEAS OVERTURES

Read the case entitled Overseas Overtures and answer the following questions:
(a) Do you agree with the view of Avinash Dwivedi on restructuring Sunlight
Chemicals? If yes, why? If no, why not?
(b) Comment on the strategies adopted by the company to groom global
managers. Explain the principles/concepts based on which the management
may have taken the decisions of recruiting and posting employees.

(c) Critically evaluate if proper use was made of employee training and
performance appraisal in Sunlight Chemicals.
(d) Comment on Sunlights technological competitiveness to be a global player.
Suggest how the company could improve its competitiveness in terms of
human resources.
Starting at the vast expanse of the Arabian Sea from his corner office at Mumbais
Nariman Point, Ramcharan Shukla, the 53-year-old executive vice-chairman and
managing director of the Rs 500 crore Sunlight Chemicals (Sunlight), felt both
adventurous and apprehensive. He knew he had to quicken to global strides that
Sunlight had made in the last four years if the company were to benefit from its
early gains in the world markets. However, he was also shaken by a doubt: would
his strategy of prising open international markets by leveraging the talents of a
breed of managers with transnational competencies succeed?
Globalisation had been an integral part of Sunlights business plans ever since
Shukla took over as managing director in 1990 with the aim of making it the
countrys first international chemicals major. Since then, Sunlight the countrys
third-largest chemicals-maker had developed export markets in as many as 40
markets, with international revenues contributing 40 per cent of its Rs 500-crore
turnover in 1994-95. The company also set up manufacturing bases in eight
countries most recently in Chinas Shenzhen free trade zone manned by a mix of
local and Indian employees. These efforts at going global first took shape in
December 1991 when Shukla, after months of deliberations with his senior
management team, outlined Sunlights Vision 2001 statement. It read: We will
achieve a turnover of $ 1 billion by 2001 by tapping global markets and developing
new products. The statement was well-received both within and outside the
company. The former CEO of a competitor has said in a newspaper report: Shukla
has clearly sensed the pressures of operating in a new trade order with a tough
patents regime. But Shukla also realised that global expertise could not be
developed overnight. Accordingly, to force the company out of an India-centric
mindset, he started a process of business restructuring. So the companys business
earlier divided into domestic and export divisions, was not split into five areas: Area
1 (India and China), Area 2 (Europe and Russia), Area 3 (Asia Pacific), Area 4 (Us)
and Area 5 (Africa and South America). Initially, managers were incredulous, with
one senior manager saying,: This is crazy. It lacks a sense of proportion. The
cynicism was not misplaced. After all, the domestic market which then contributed
over 90 per cent of the companys turnover had not only been with the Chinese
market, but had also been brought at par with the areas whose collective
contributions to the turnover was below 10 per cent. Shuklas explanation,
presented in an interview to a business magazine:
Actually, the rationale is quite simple and logical. We took a look at how the
market-mix would evolve a decade from now, and then created a matrix to suit that
mix. Of course, we will also set up manufacturing facilities in each of these areas to

change the sales-mix altogether. He wasnt wrong. Two years later, men as the first
manufacturing facility in Vietnam was about to go on stream, the overseas areas
contribution to revenues rose to 20 per cent. And the mood of the management
changed with the growing conviction that export income would soon surpass
domestic turnover. Almost simultaneously, Shukla told his senior managers that the
process of building global markets could materialize only if the organisation became
flat, flexible and fleet-footed. Avinash Dwivedi, a management consultant brought in
to oversee Sunlights restructuring exercise, told the board of directors: Hierarchies
built up over the years have blunted the companys reflexes, and this is a
disadvantage while working in the competitive global markets. Shukla agreed. For
too long, Sunlight has been structured around the two arms of marketing and
manufacturing, each headed by a vice-president. As par of the new plan, both
functions were integrated and brought under the common control of a newlycreated post, vice-president (chemicals). The new integratec set-up now had four
hierarchical layers as opposed to the earlier system of nine layers for each arm. And
each of the five reconstituted areas was headed by vice-president geographically
based at the epicenter of the market. So, them vice-president of Area I was based in
Mumbai, Area 2 in Frankfurt, Area 3 ii Hong Kong, Area 4 in Chicago, and Area 5 in
Cape Town.
The selection of vice-presidents for the newly-constituted regions posted n1
immediate problem. For, Sunlight had several general managers from bot arms of
marketing and manufacturing whose thinking had been shaped by the companys
long exposure to the export markets. For obvious reasons, the ability to built
markets was the primary criterion for selection. The second criterion was a broad
business perspective with a multi-functional, multimarket exposun that was because
Shukla felt it did not make good business sense to send battalion of functional
managers to foreign markets when two or three business managers could suffice.
But specific markets also needed specific competencies. That was how Sunlight
chose to appoint a South African national to head Area 5. The logic: only a local CEO
could keep track of changes in regulations and gauge the potential of the booming
chemicals market in the US. However, the effort was always focused on using inhouse talent. Shukla put it to his management team: We should groom managerial
talent whether local or expatriate for all our overseas operations from within the
company and should rotate this expertise worldwide.
In essence, we should develop global managers within the company. While doing
the personnel planning for each area and fixing the compensation packages for
overseas assignments, Sunlight realised the importance of human resource (HR)
initiatives. The HR division, headed by Vice-president Joseph Negi, had been
hobbled for years with industrial relations problems caused by the unionization of
the salesforce. You have to move in step with the companys global strategy,
Shukla had told his HR managers at a training session organized by Dwivedi, who
was spearheading the task of grooming global managers.

Four years down the line, Shukla felt that Sunlight was still finding its way around
the task. Sure, a system was in place. Depending on the requirements of each of
the four areas, Sunlight had started recruiting between 25 and 30 MBAs every year
from the countrys leading management institutes. During the first six months,
these young managers were given cross-functional training, including classroom
and on-the-job inputs. The training was then followed by a placement dialogue to
determine the manager-area fit. If a candidate were to land, for instance, on the
Asia-Pacific desk at the head office, he would be assigned a small region, say,
Singapore, and would be responsible for the entire gamut of brand building for a
period of one year in coordinate with the regional vice-president.
The Success with which he would complete his task would decide his next job: the
first full-time overseas posting. He could be appointed as the area had of, say,
Vietnam, which was equivalent to an area sales manager in the home market. After
a couple of years, he would return to base for a placement in brand management or
finance. A couple of years later, the same manager could well be in charge of a
region in a particular area. Over the past four years, Sunlight had developed 30 odd
potential global managers in the company spanning various regions, using this
system. But, considering that the grooming programme was only three years old,
Shukla felt that it would take some time for the companys homespun managers to
handle larger markets, like china, on their own. The real problem in this programme
was in matching the manager to the market. Dwivedi suggested a triangular
approach to get the right fit: define the business target for a market in an area. Look
at the candidates past performance in the market. And identify the key individual
characteristics for that market. Dwivedi also identified another criterion: a good
performance rating at home during the previous two years.
Once selected for an overseas posting, the candidate would be given crosscultural
training a course in foreign languages, interactive programmes with repatriated
managers on the nature of the assignment, and often, personality development
programmes on the nuances of country-specific business etiquette.
Further, an overseas manager would be appraised on two factors: the degree to
which he had met his business plan targets for the market, and the extent to which
he had developed his team. After all, he had to vacate the posting within three
years to make place for his replacement. Achievements were weighed quarterly and
annually against sales targets set at the beginning of the year by the vice-president
of the region. The appraisal would then be sent to the corporate headquarters in
Mumbai for review by the senior management committee. Shukla had often heard
his senior managers talk appreciatively of the benefits of transrepatriation. The
first batches of returnees are more patient, tolerant, and mature than when they left
home, said manohar Vishwas, vice-president (finance), and they handle people
better.

But the litmus test for the company, Shukla felt, would be in managing a foreign
workforce across diverse cultures at the manufacturing facilities in six countries
outside India. The Shenzhen unit, for instance, had 220 employees, out of which
only 10 were expatriate Indians. Further, the six-member top management team
had only two Indians. Of course, the mix had been dictated by the host countrys
laws and language considerations.
Some of the African markets had their own peculiarities. The entire team of medical
representatives, for example, comprised fully-qualified, professionals doctors.
Sharad Saxena, vice-president, Area 5, told Shukla: As there is heavy
unemployment in Africa, doctors are attracted to field sales work for higher
earnings. There were other problems too: as both Chinese and Russian managers
had been brought up on a diet of socialism, they were not used to displaying
initiative at the workplace. Dwivedi had suggested that regular training was one of
the ways of transforming the workforce. So, Shukla hired a training group from
Delhis institute of Human Resource Management Training to spend a month at
Shenzhen. This was later incorporated as an annual exercise.
Observing that interpersonal conflicts were common in situations where employees
with single country background were working together, a new organizational
structure was introduced. Here, Sunlight positioned local managers between an
Indian boss and subordinate. Similarly, some Indian Managers were positioned
between a local boss and subordinate. Says Abhishek Acharya, vice-president, Area
3: There were some uncomfortable moments, but it led to a faster and better
integration of management principles, work practices, and ethics.
Obviously, reflected Shukla, Dwivedi was doing a great job. As he watched the
setting sun, however, he found his thoughts turning to a more fundamental
question. However, immaculate his HR planning had been, had be made a mistake
by not developing his strategies first? Was he mixing up his priorities by putting
people management a head of issues like marketing, technology and global trade?
Even the HR strategy he had chosen worried Shukla. Should he have opted for more
locals in each country? If expatriate managers failed often then they succeeded in
India, wasnt the same true for other countries? Is Sunlight on the right track in
going global without trying to consolidate I position further back home? Can it
realise its global vision with its current mix o strategies? Are there any gaps in its
gameplan to conquer the globe?
Answers
Ans1: Definitely Yes, We are agree with the view of Avinash Dwivedi on
Restructuring of Sunlight Chemicals because hierarchies always creates a problem
in globalization operated business thats why Dwivedi wants to implement that flat
structure in an organisation so that everyone be aware of their task & activities.
According to Avinash Dwivedi, Hierarchies built up over the years have blunted the

companys reflexes, and this is a disadvantage while working in the competitive

global markets. While in the flat organization every individual can communicate
with each other easily and can take a fast decision so it is time saving & fast
operating structure also. Thats why we are with the Dwivedi decision of
restructuring the sunlight chemicals.
Ans2: From a long time, sunlight had been structured around the two arms of
marketing and manufacturing, each headed by a vice-president. As part of a new
plan, when company is going to become a globalized identity, both functions were
integrated and brought under the common control of a newly created post, vicepresident (chemical). The new integrated set-up now had four hierarchical layers as
opposed to the earlier system of the nine layers for each arm.
According to Management Principles, Sunlight started grooming managerial talent
whether local or expatriate for all overseas operations from within the company
and should rotate this expertise worldwide. In essence, management took the
decision the develop global managers within the company. While doing the
personnel planning for each area and fixing the compensation packages for
overseas assignments, Sunlight realized the importance of human resource (HR)
initiatives. The HR division, headed by Vice-president Joseph Negi, had been
hobbled for years with industrial relations problems caused by the unionization of
the sales force. You have to move in step with the companys global strategy,
Shukla had told his HR managers at a training session organized by Dwivedi, who
was spearheading the task of grooming global managers.
Depending on the requirements of each of the four areas, Sunlight had started
recruiting between 25 and 30 MBAs every year from the countrys leading
management institutes. During the first six months, these young managers were
given cross-functional training, including classroom and on-the-job inputs. The
training was then followed by a placement dialogue to determine the manager-area
fit. If a candidate were to land, for instance, on the Asia-Pacific desk at the head
office, he would be assigned a small region, say, Singapore, and would be
responsible for the entire gamut of brand building for a period of one year in
coordinate with the regional vice-president.
The Success with which he would complete his task would decide his next job: the
first full-time overseas posting. He could be appointed as the area had of, say,
Vietnam, which was equivalent to an area sales manager in the home market.
Dwivedi also identified another criterion: a good performance rating at home during
the previous two years. Once selected for an overseas posting, the candidate would
be given crosscultural training a course in foreign languages, interactive
programmes with repatriated managers on the nature of the assignment, and often,
personality development programmes on the nuances of country-specific business
etiquette. Dwivedi was doing a great job & has suggested that regular training was
one of the ways of transforming the workforce.

Observing that interpersonal conflicts were common in situations where employees

with single country background were working together, a new organizational
structure was introduced. Here, Sunlight positioned local managers between an
Indian boss and subordinate. Similarly, some Indian Managers were positioned
between a local boss and subordinate. Says Abhishek Acharya, vice-president, Area
3: There were some uncomfortable moments, but it led to a faster and better
integration of management principles, work practices, and ethics.
Ans3: Training has its own importance and in the globalizes company same as
sunlight chemical, training is required on the urgent basis because cross-cultural
employees is there if we not provide the cross-cultural training to each & every
employee than an individual cant survive at the workplace. And in the Sunlight
chemicals, Dwivedi was doing a great job & has suggested that regular training was
one of the ways of transforming the workforce. Shukla hired a training group from
Delhis Institute of Human Resource Management Training to spend a month at
Shenzhen. This was later incorporated as an annual exercise. Once selected for an
overseas posting, the candidate would be given crosscultural training a course in
foreign languages, interactive programmes with repatriated managers on the nature
of the assignment, and often, personality development programmes on the nuances
of country-specific business etiquette.
And for measuring the performance of every individual, Sunlight has its own fully
structured pre-defined process. Further, an overseas manager would be appraised
on two factors: the degree to which he had met his business plan targets for the
market, and the extent to which he had developed his team. After all, he had to
vacate the posting within three years to make place for his replacement.
Achievements were weighed quarterly and annually against sales targets set at the
beginning of the year by the vice-president of the region. The appraisal would then
be sent to the corporate headquarters in Mumbai for review by the senior
management committee.
Ans4: As a global player, company was doing well but some strategy was not prepanned and at that time when you are going to expand their business at other
countries then it is required that firstly you properly analyze the work culture of
particular country, nature of work force, and mindset of customer also. Sunlight
management team was adopted the good management practices & principles but
some confusion was there between the chairman & the consultant regarding the
which type of people they can recruit. Because chairman was focusing on recruiting
the more local candidate because they know the market & culture very well while
another side, Mr. Dwivedi was focusing on recruiting an expatriate candidate. So, if
company wants to survive in the global market so there is a need that firstly top
management analyzes the situation and after then take a respective action for
getting edge in the competitive globalized market.

CASE VIII THE CASE OF A DEFIANT WORKER

Examine critically the following case study of A Defiant Worker a identify the
problems involved, and answer the questions at the end. Mr. X aged 25, who had
been working in a large scale textile unit in Madurai, referred to the social worker by
the Labour Relations Department for social investigation of the defiant behavior
exhibited by him in the work place. He had absented himself from work many a time
due to certain disturbing habits. Mr. X has committed serious sets of misconduct of
riotous and disorderly behavior during working hours on 10 th January, 1982 as: 1 He
came to the Mill in a drunken state and quarreled with his coworkmen, And 2.
Abused the supervisor using foul language. On a cursory perusal of the past records
of the defiant worker, the social worker came to know that Mr. X has absented
himself continually for 176 days during 1981. In addition he had availed himself of
21 days medical leave and 22 days casual leave. As a result of his indisciplined
behavior, the company had taken the following disciplinary action against him: 1.
He was suspended three times for 30 days by the Labour Relations Department for
absenting himself from work for more than six consecutive days on two occasions,
and once for committing a serious act of misconduct, 2. He was suspended as many
as five times for being absent from the work spot. 3. Once he was fined
maximum for carelessly allowing the cotton to wrap on the cylinder roll. 4. He was
given a final warning on 27.8.82 regarding his habitual absence.
During the preliminary interview the Social worker had with Mr. X, he came to know
that Mr. X was married and had studied up to 6 th standard. He had been drawing a

salary of Rs. 800 and had put in six years of service as a worker in the Blow
section. As for the family background Mr. X is the youngest son of his parents. He
lost his father and mother when he was 7 years old. Since then his elder brother
had been looking after him. In order to know more about the socio-cultural
background of Mr. X, the factors which had driven him to indulge in alcoholism and
the causes of his indiscipline behavior at the work-place the social worker paid visits
to his house many a time and conferred with his family members. In the course of
an interview he had with the eldest brother of Mr. X the social Worker gathered
information about Mr. Xs life history right from time of schooling. The revealed that
Mr. X was never interested in schooling and frequently absented from the class. He
was associated with a gang of friends who used to take him to films regularly when
Mr. X was in the fifth standard.
During his youth, Mr. X seemed to take active interest in politics and ultimately fell
under the influence of gangsters, through whom he had developed certain Vices
such as consuming alcohol, ganja and gambling. Seeing the deteriorating morale
and social life of Mr. X, his brother procured a job for him in the local textile unit so
that Mr. X could settle down and assume certain responsibilities in life. As years
rolled by Mr. X got married but in course of time he started developing a feeling of
hatred towards his wife in as much as he did no. like her physical appearance. His
marital life lasted for only three months after which the nuptial bondage had
broken, once and for all. Dissatisfied with the kind of life he was leading, Mr. X
began to consume alcohol regularly only ft becomes an addict. He started playing
clucks and drakes with all his savings and the income derived from his land too. His
eldest brother began to reject him for he was beyond redemption and finally drove
him out of the house. Mr. Xs supervisor while interviewed by the social worker
stated that Mr. X relationship with him and co-workers had been unsatisfactory. He
was not efficient in his work. Often times, he quarreled with the supervisor and the
other workers when he came to the workspot under the influence of alcohol. The
supervisor was of the view that though Mr. X has been counseled and punished on
many occasions, he has not repented for the acts of misconduct he had committed.
Understandably, the factors contributing to the deviant behaviour of Mr. X might be
the lack of parental care during his childhood, his association with gangsters,
marital, disagreement due to dissatisfaction in his sexual relations, failure on the
part of the management to discover the problem at an early stage and control the
same, etc., and this might lead us to assume that Mr. x had developed disturbing
habits, such as alcoholic addiction and chronic absenteeism owing to various factors
indicated above. When the social worker pleaded with the labour officer to grant
pardon to Mr. X for the repeated deviant acts exhibited by him, the officer explained
that though Mr. X was given the absolute final warning the latter had absented
himself for about 45 days even after receiving the same and, therefore, he asserted
that he had no other option but to dismiss Mr. X from service.
Questions

The following questions arise from the above case:

1. Is it not the moral and ethical responsibility of the employer to concerned
about the quality of life of the defiant worker?
2. How could the misbehavior of the worker be constructively corrected with out
penalty?
3. Suppose the defiant worker had been counseled by the Supervisor/Manager
rather than progressively penalized, would he have been dismissed from
service?
4. Is the procedure adopted by the Organisation for disciplining the errant
behaviour of the worker justifiable?
5. Could the termination of the defiant workers service have been avoided?
6. What rehabilitative measures could be adopted for preventing and correcting
the deviant behaviour of workers who had exhibited disturbances in the work
place?
Answers
Ans1: There is a big change that has happened in the industrial scenario of the
past and the present and hence the way industrialization has progressed it has
taken various role which were never conceived as its role.
The organization today look for employees to take ownership of the work they do
put in their heart and sole for the organizational work. At the same it becomes
the moral and ethical responsibility of the organization to take interest and
nurture quality of work life of the people in the organization. As the industrial
and social life interfere with each other and many times the industrial life also
adversely affects the workers personal life similarly sometimes the social life of
the employee also has bearing impact on the life on the industrial work of the
person. Hence any organization has to take ownership of the employee as a
whole and try help the employee lead a better industrial and personal life hence
it becomes essential moral and ethical responsibility of the organization to offer
a better quality of work like to its employees.
There are a lot of key benefits of doing the efforts required to better QWL like.

Improved Loyalty.
Less grievances
More trust and understanding of each other
Brand of organization become better
Higher moral of the workforce

Ans2: This is a difficult but rewarding effort if a misbehaving worker can be correct
of his behaviors without penalty.

Penalty is punishment which can only repress some misbehavior for

sometime but as soon as the punishment is over the behaviour may surface
again.
On the other limitation of punishment is that people take it as a emotional
hurt and done not link it with their misbehaviors and find reasons justifying
their hurt likethis supervisor hates me that is why he punishes me.
Punishment can spoil relation

And hence punishment is difficult to administer and use effectively to change

behaviours.
Behaviours can be changed by enhancing the behaviours you wish the employee to
do more so that he does not do the misbehavior.
Like in this case defiant worker takes long leaves and sometimes uninformed
leaves. So if a special effort is taken by his supervisor to appreciate him regularly,
take special interest in his work and show concern by visiting him in case if he is
sick and offer help the worker may get in better relation with the supervisor and for
the group reason may skip less days.
Ans3: It is quite possible that if the elements of punishment could have been lower
and the supervisors could have used more of counseling and help it could have
averted the defiant worker from dismissal.
As in most cases punishment only makes the person more bitter and defiant as
punishment is taken as emotional hurt and the worker cannot link it with their
misbehaviors and find reasons justifying their hurt likethis supervisor hates me
that is why he punishes me.
Other than that punishment spoils relation between the supervisor and the worker
as they both are adults and find it difficult to accept such actions.
One other way people react to punishment is manipulation so they try spending
more time in finding more ways to avoid getting caught and getting punished than
reducing their misbehaviors.
Other way is to remain defiant and react more bitterly against the punishment by
doing more harsh misbehavior.
Same in the case of the defiant worker where an excessive punishment has really
spoilt the entire case.
Ans4: The Company had taken the following disciplinary action against him:
1. He was suspended three times for 30 days by the Labour Relations
Department for absenting himself from work for more than six consecutive
days on two occasions,

2. And once for committing a serious act of misconduct,

3. He was suspended as many as five times for being absent from the work
spot.
4. Once he was fined maximum for carelessly allowing the cotton to wrap on
the cylinder roll.
5. He was given a final warning on 27.8.82 regarding his habitual absence.
And now he is being dismissed, Mr. X was given the absolute the final warning the
latter had absented himself for about 45 days even after receiving the same and,
therefore, he asserted that he had no other option but to dismiss Mr. X from service.
The company technically is taking steps which are not challengeable and as the
misconduct as defined in the company is normally the basis of such actions it is
technically correct.
But as one can observe that the punishment in against of misbehavior are very
harsh and hence has made Mr. X more defiant.
Ans5: There is technically no way this decision can be challenged in a legal way as
the organization has a very strong case against Mr. X for the misconducts past
punishments and defiance of Mr. X on the last warning of the organization.
But this sad end to the situation could have been avoided if the corrective actions
could have been taking by inquiring the reasons behind the behaviour of Mr. X and
by intervention using good counseling and professional help.
At the very beginning if the organization could have asked the supervisors to take
active interest before punishing Mr. X and resort to punishment only if there is now
way of improving his behaviour.
Ans6: The organization at the first level will have to change its ideology of only
seeing the incident and not seeing the man behind. Misbehavior should be treated
as a problem as defiance against rules of the organizations.
Organizations should help individuals facing problems in their personal and social
life or atleast concern should be shown as their many problems the organization
cannot do anything about.
The corrective or rehabilitative action can be divided in to two areas.
Medical and psychological support.
The cases like Mr. X would require help in both the areas for alcoholism and for
sorting his personal life.
Many organizations are organizing medical camps for their workers.
Yoga camps, health counseling, food programs, diet programs.

Psychological counseling, behaviour modification programs. Team games for better

repo. Etc.

CASE I THE FOUNDRY

The foundry has always been regarded as one of the worst places to worst places to
work in Hindustan Steel Manufacturing Company. The work is hot, dirty and heavy.
Physical endurance, rather than brains and intelligence, is considered as chief
requirement to get the job done in the foundry. Yet according to the job evaluation
plan of the Company, physical ability and working conditions are weighted
relatively lower than responsibility, training and skill. As a consequence, most
of the foundry jobs are related at the bottom of the wage scale of the Company In
recent years, it has been increasingly difficult to get men for working in the foundry.
Management had to actively search for days to get men to work in the foundry.
Often, management had to employ men who could not get jobs elsewhere due to
their personal limitations in terms of ability, intelligence and competence. This had
led to further lowering of the already low social status of the foundry in the eyes of
other employees in the plant. The matter had reached a crisis now. There are
sixteen vacancies in the foundry at present and it is almost impossible to hire new
men for these jobs at the evaluated rate.
Personnel Manager of the Company, Mr. Siddhartha Ray, has a difficult task on his
hand. Following are some of the basic questions which need to be answered:
Question
(i)(a) How should this problem be handled?
(b) Should the Personnel Manager suggest the management to revise its job
evaluation programme?
Or, Should he suggest treating foundry job as an
exception to job evaluation?
(ii) How should management deal with the reactions of other workers if it decides to
increase foundry wages or change foundry working conditions, but not other wages
or working conditions?
Answer
1A. This is a very difficult but very usual issue in much industry. In job evaluation
process while we look at remunerating jobs it is normally perceived that jobs
requiring more intelligence and mental process need to be paid more hence the
wage rate for such task requirements are higher than the job which requires mainly
physical energy and endurance.
The major issue here is that the job of foundry in not just to be seen as a physically
demanding job but that it has many task which are in the category of hazard and
risk and high pressure which is not normally found in other jobs which only require

mainly physical workout. Hence the way to solve this issue is to sensitize the
management regarding to the job demands and how a new ideology should be
formed to look at the compensation rates for the job.
On the other hand as the job rates and the hardship of the job is leading to the
difficulty in finding workers who are willing to take this job which could lead to
quality and productivity.
The formation of new compensation structure as well as looking at making the
working conditions better which is more difficult as the conditions can only be
improved to a limit.
I B. The personnel Manager has two options if he has to suggest a change in the
compensation structure
1. To suggest management to change the job evaluation program which would
mean changing the wage rates of all jobs which are physical working
requirement and it would be raised. Which would change the perception that
job requiring more intelligence and brains are not superior that the once which
mainly require physical working. This also leads to more complexities like
change in all the levels or non equity among various jobs.
2. The other way is provide foundry working a special and exceptional status
which offers it more better job rates and hence offer a good respect to the job
and remunerative enough to attract good workers this would also improve
motivation of workers to endure the hardships.
I would recommend the second option this would solve both the issues one is be
able to find good workers for foundry and also not disturb the entire compensation
structure which is not posing a problem.
As the foundry job is not just physical job but also a hazardous job involving health
risk, stress, strain than any other job hence the factors for compensation need to
identify rates for the same and add the compensable factors to such jobs.
Answer ii
If the management if decides to change the compensation rates of the foundry
workers it will lead to many reactions and impressions which need to be dealt with.
The change in factors of compensation is being expanded in this case hence it is
going to affect only the foundry jobs but all the jobs which require very high
physical endurance and risk and hence the respect for such workers and these jobs.
And hence it will be a good move.
The announcement of such a change should be done in such a way to clarify the
thought process of the management. Hence a circular of such a change which adds
a new allowance to such jobs which are to be done in extreme conditions is being

added should be released. The circular about the environmental conditions which
shall be deemed extreme should be released. And it should ally to all the jobs which
fall in that category and thus it will be more acceptable as it provides a clear
scientific or logical reason for such a move.

CASE IV SELECTING A PROGRAMMER

Mariam has been a data processing supervisor for two years. She is in the process
of selecting a candidate for a programmer trainee position she has created. Her
plan is to develop the trainee in to a system analyst within two years. Since this is a
fast track, she needs a candidate whose aptitude and motivation is high.
Fourteen candidates applied for the job in the employment section of the personnel
department. Six were women, eight were men. As employment specialist screened
the candidates for Mariam using a carefully prepared interview format that included
questions to determine job related skills. Six candidates, three women and three
men, were referred to Mariam.
Mariam then conducted structured, in-depth interviews and further narrowed the
selection to one woman and two men. Her boss, a company vice-president, agrees
with her judgment after hearing Mariams description of the candidates. However,
Mariam boss feels particularly unsure of the abilities of the female candidate. From
the selection interview, past job experience and education, there is no clear
indication of the candidates ability to perform the job. The vice-president is
insistent that Mariam should screen the candidate with a programmer aptitude test
devised by a computer manufacturing firm. The test had been given four years ago,
and some of the most successful current analyst had scored high on it.
Mariam went to the personnel department and asked them to administer the test to
the questionable candidate. The personnel manager informed her that the company
policy had been to do no testing of any kind during the last two years. Mariam
explained that the request had come from a vice-president and asked that she be
given a decision on her request by Friday.
Question:
1. Identify and evaluate the stages of the selection process reflected in the
case.
2. If you were Mariam, what would you do?
3. Suggest a selection process which such organisations as that of Mariams
could adopt easily.

Answer1: The various stages of selection which are visible in the case are