Case No. 1:
In a Company employing 500 employees, a Settlement has been signed between the Representatives of the Management and the Union. The Settlement has been signed with the Recognised Union. Under the terms of the Settlement the average raise given per workman is Rs.900/- per month .The Settlement is for a period of 3 years effective from 1st January 2002 to 31st December 2004. The settlement provides for improvement in productivity by 10%. The workmen are generally happy with the Settlement. All of them are religiously implementing the provisions of the Settlement as far as improvement in productivity is concerned. After about one year when the other Companies signed new settlements there was discontentment among the workers as the wages of workers in the other Companies had gone up substantially. The workers were now discussing with their Union Leaders and telling them about the need to get some further increases in their emoluments.
The Union leaders met the Representatives of the Management and told them that they were under very severe pressure from the workers for demanding further increase in view of the changed industrial scenario .The Management Representatives told the Union leaders that till the subsisting Settlement was in force they should not expect any increase in their emoluments
The Union under pressure from the workers gives a supplementary Demand to the Management demanding an adhoc increase of Rs.600/= per employee. They also told the Management that hereafter the operators would not do the job of pushing the trolleys as this job has to be done by Helpers. Immediately thereafter one of the operator refused to push the trolley which he had been doing for years together. The Supervisor told the workman that he should do the allotted job otherwise it will be treated as a case of insubordination for which would be liable for punishment.
The workman however was reluctant to do the job of pushing the trolley and therefore the Supervisor reported the matter to his Department Head. The Department Head took up the matter with the Top Management and it was decided to Suspend the Workman pending enquiry. As soon as this was done the Union Committee Members who were present gave a call for a lightening strike and the entire operations came to a standstill.
Analyse the case and answer the following questions
1. Do you think the Union was right in putting up supplementary demands When the Settlement was still in force.
2. What do you think about the legality of the Settlement?.
3. What advise would you give to the Management to deal with the lightening strike?.
4. What action do you think should be taken against the workman who has refused to push the trolley?.
Case No. 2
Sunil Deshpande T.No. 2121 is working as a turner for the last 15 years in a Chemical Industry employing 1400 employees. The wages are distributed on the 10th of each month in this concern.
Sunil Deshpande was on privilege leave from 4th to 11 February 2002. He reported for duty in the second shift at 3.00 p.m. on 13th February, 2002. Monday being the date for payment of unpaid wages, Sunil Deshpande went to the cash counter to collect his wages. The Cashier noted Sunil Deshpande’s ticket number and searched for his wage packet and he found that the said wage packet was already issued. The Cashier told Sunil Deshpande that he was already paid his wages.
Sunil Deshpande was surprised and told the Cashier that he had yet to collect his wages and that’s why he had come. On this the Cashier showed Sunil Deshpande the wage slip bearing his signature. After some time, the Cashier asked for the identity card from Sunil Deshpande to check up the validity of the signature. Sunil Deshpande said that he had lost his identity card but added that the signature on the payment slip was not his.
Sunil Deshpande approached the Personnel Manager with a grievance that he was not getting his wages to which he was legitimately entitled. Suresh and Direj, union representatives, accompanied Sunil Deshpande to the Personnel Manager.
Questions:-
As a Personnel manager, how will you deal with this grievance of Mr. Deshpande.
Case No. 3: The main business of Damodar Electric Supply Corporation is to supply electric energy to the entire district. The Corporation has a work for, Mazdoors etc. General Manager is the Chief Executive, having full authority on all matters of administration. During the last two years, the Corporation has come into financial problems due to economic recession. As such, to bring control on the expenses the General Manager, has issued an unconditional order forbidding supervisory foremen to authorise over-time work under any circumstances.
One day, a cable-laying workman was working inside a wet manhole, in the marshy area near a river. About an hour before closing time he realised that he could not finish the job within the regular working hours. He estimated, that the work would be over within four hours more. The foreman having no authority to grant over-time telephoned the Section Officer at the Head Office. Section Officer, unwilling to breach the rule, contacted the Superintendent who in turn asked the Section Officer, to use his discretion. Section Officer conveyed the same message to the foreman. The Foreman, however, was still afraid of the consequences of over-time order. He therefore told the cable lay-man to wrap the cable securely and leave the work, to be finished the next day.
During the night, the river went on flood. Water entered the man-hole by the river-side and the ‘cabling ‘was damaged. The damage to the cable was corrected after many days, involving a great expenditure.
Questions :
1. Was the Corporation’s over-time policy wrong ?
2. Does the ‘Management-by-rule’ restrict the initiative of the staff and suppress innovativeness?
3. Under such rules, can there be a sense of achievement and job satisfaction for the subordinates?
4. Do you feel ‘No Rules Situation’ can be advisable for a company?
5. Recommend an over-time Policy to the Damodar Electric Supply Corporation.
Some more Case Studies:
A) In a company employing 200 workmen there is a stalemate in the negotiations between the Management and the Union. The Union has asked the workmen to resort to a slow down to pressurise the management to concede their demands. The slowdown is to the extent of 50 to 60 %. You are the Personnel Manager of this Company. The Managing Director of this Company has asked you to take drastic action to curb the slow down tactics of the Workmen. Explain as to how you would handle the situation.
B) You are the Personnel manager of XYZ Company. On 3rd May, 2008 at about 19.30 hours you receive a phone call from the Shift –in-charge that a fatal accident has taken place on account of which 2 workers have died on the spot. There is a lot of commotion inside the factory. He has asked you to advise him as to what is to be done in order .to comply with the provisions of the Factories Act, 1948. Advise the Shift-in-charge accordingly.
C) In a Company employing 300 workmen, the wages have not been paid on the seventh of the month on account of financial crunch. Some five workmen of this Company have filed a complaint with the Authority under the Payment of Wages Act, 1936. The Director of the Company has received a summons from the Authority under the Payment of Wages Act, 1936. The Director of the Company has passed on the summons to you and asked for your comments on the same. The Director of the Company wants to know as to what is his liability under the Payment of Wages Act, 1936.
D) In a Factory employing 300 workers an accident takes place resulting in death of a worker, The accident took place on account of non compliance with the provisions of the Chapter IV of the Factories Act, 1948.
The factory inspector has prosecuted the Occupier and Manager of this factory for violation of the provisions of the Factories Act, 1948. The Occupier wants to know from you as to what is the maximum and minimum punishment that can be awarded to him under the Factories Act.
E) Ashok, a Supervisor working in Bajaj Industries has been a member of the New Pension for the past 22 years. He has now resigned from the services of the Company at the age of 54 years. He was drawing basic wage and dearness allowance of Rs. 8000/- per month. He wants to draw pension immediately on separation from the services of the Company. Calculate the pension which Ashok should draw.
F) The General Manager of a Company found that 15 of his workmen had stopped work and were holding a meeting in the corner of the machine shop He immediately contacted the Personnel Manager and asked him whether these workmen had taken permission for holding the meeting. When the Personnel manager told him that no permission had been taken, he told the Personnel Manager to take stern action against these 15 workmen so that no workmen in future could dare to stop work and hold meeting in the factory premises. Inform the General Manager about the action you intend to take against these 15 workmen.
In a Company employing 500 employees, a Settlement has been signed between the Representatives of the Management and the Union. The Settlement has been signed with the Recognised Union. Under the terms of the Settlement the average raise given per workman is Rs.900/- per month .The Settlement is for a period of 3 years effective from 1st January 2002 to 31st December 2004. The settlement provides for improvement in productivity by 10%. The workmen are generally happy with the Settlement. All of them are religiously implementing the provisions of the Settlement as far as improvement in productivity is concerned. After about one year when the other Companies signed new settlements there was discontentment among the workers as the wages of workers in the other Companies had gone up substantially. The workers were now discussing with their Union Leaders and telling them about the need to get some further increases in their emoluments.
The Union leaders met the Representatives of the Management and told them that they were under very severe pressure from the workers for demanding further increase in view of the changed industrial scenario .The Management Representatives told the Union leaders that till the subsisting Settlement was in force they should not expect any increase in their emoluments
The Union under pressure from the workers gives a supplementary Demand to the Management demanding an adhoc increase of Rs.600/= per employee. They also told the Management that hereafter the operators would not do the job of pushing the trolleys as this job has to be done by Helpers. Immediately thereafter one of the operator refused to push the trolley which he had been doing for years together. The Supervisor told the workman that he should do the allotted job otherwise it will be treated as a case of insubordination for which would be liable for punishment.
The workman however was reluctant to do the job of pushing the trolley and therefore the Supervisor reported the matter to his Department Head. The Department Head took up the matter with the Top Management and it was decided to Suspend the Workman pending enquiry. As soon as this was done the Union Committee Members who were present gave a call for a lightening strike and the entire operations came to a standstill.
Analyse the case and answer the following questions
1. Do you think the Union was right in putting up supplementary demands When the Settlement was still in force.
2. What do you think about the legality of the Settlement?.
3. What advise would you give to the Management to deal with the lightening strike?.
4. What action do you think should be taken against the workman who has refused to push the trolley?.
Case No. 2
Sunil Deshpande T.No. 2121 is working as a turner for the last 15 years in a Chemical Industry employing 1400 employees. The wages are distributed on the 10th of each month in this concern.
Sunil Deshpande was on privilege leave from 4th to 11 February 2002. He reported for duty in the second shift at 3.00 p.m. on 13th February, 2002. Monday being the date for payment of unpaid wages, Sunil Deshpande went to the cash counter to collect his wages. The Cashier noted Sunil Deshpande’s ticket number and searched for his wage packet and he found that the said wage packet was already issued. The Cashier told Sunil Deshpande that he was already paid his wages.
Sunil Deshpande was surprised and told the Cashier that he had yet to collect his wages and that’s why he had come. On this the Cashier showed Sunil Deshpande the wage slip bearing his signature. After some time, the Cashier asked for the identity card from Sunil Deshpande to check up the validity of the signature. Sunil Deshpande said that he had lost his identity card but added that the signature on the payment slip was not his.
Sunil Deshpande approached the Personnel Manager with a grievance that he was not getting his wages to which he was legitimately entitled. Suresh and Direj, union representatives, accompanied Sunil Deshpande to the Personnel Manager.
Questions:-
As a Personnel manager, how will you deal with this grievance of Mr. Deshpande.
Case No. 3: The main business of Damodar Electric Supply Corporation is to supply electric energy to the entire district. The Corporation has a work for, Mazdoors etc. General Manager is the Chief Executive, having full authority on all matters of administration. During the last two years, the Corporation has come into financial problems due to economic recession. As such, to bring control on the expenses the General Manager, has issued an unconditional order forbidding supervisory foremen to authorise over-time work under any circumstances.
One day, a cable-laying workman was working inside a wet manhole, in the marshy area near a river. About an hour before closing time he realised that he could not finish the job within the regular working hours. He estimated, that the work would be over within four hours more. The foreman having no authority to grant over-time telephoned the Section Officer at the Head Office. Section Officer, unwilling to breach the rule, contacted the Superintendent who in turn asked the Section Officer, to use his discretion. Section Officer conveyed the same message to the foreman. The Foreman, however, was still afraid of the consequences of over-time order. He therefore told the cable lay-man to wrap the cable securely and leave the work, to be finished the next day.
During the night, the river went on flood. Water entered the man-hole by the river-side and the ‘cabling ‘was damaged. The damage to the cable was corrected after many days, involving a great expenditure.
Questions :
1. Was the Corporation’s over-time policy wrong ?
2. Does the ‘Management-by-rule’ restrict the initiative of the staff and suppress innovativeness?
3. Under such rules, can there be a sense of achievement and job satisfaction for the subordinates?
4. Do you feel ‘No Rules Situation’ can be advisable for a company?
5. Recommend an over-time Policy to the Damodar Electric Supply Corporation.
Some more Case Studies:
A) In a company employing 200 workmen there is a stalemate in the negotiations between the Management and the Union. The Union has asked the workmen to resort to a slow down to pressurise the management to concede their demands. The slowdown is to the extent of 50 to 60 %. You are the Personnel Manager of this Company. The Managing Director of this Company has asked you to take drastic action to curb the slow down tactics of the Workmen. Explain as to how you would handle the situation.
B) You are the Personnel manager of XYZ Company. On 3rd May, 2008 at about 19.30 hours you receive a phone call from the Shift –in-charge that a fatal accident has taken place on account of which 2 workers have died on the spot. There is a lot of commotion inside the factory. He has asked you to advise him as to what is to be done in order .to comply with the provisions of the Factories Act, 1948. Advise the Shift-in-charge accordingly.
C) In a Company employing 300 workmen, the wages have not been paid on the seventh of the month on account of financial crunch. Some five workmen of this Company have filed a complaint with the Authority under the Payment of Wages Act, 1936. The Director of the Company has received a summons from the Authority under the Payment of Wages Act, 1936. The Director of the Company has passed on the summons to you and asked for your comments on the same. The Director of the Company wants to know as to what is his liability under the Payment of Wages Act, 1936.
D) In a Factory employing 300 workers an accident takes place resulting in death of a worker, The accident took place on account of non compliance with the provisions of the Chapter IV of the Factories Act, 1948.
The factory inspector has prosecuted the Occupier and Manager of this factory for violation of the provisions of the Factories Act, 1948. The Occupier wants to know from you as to what is the maximum and minimum punishment that can be awarded to him under the Factories Act.
E) Ashok, a Supervisor working in Bajaj Industries has been a member of the New Pension for the past 22 years. He has now resigned from the services of the Company at the age of 54 years. He was drawing basic wage and dearness allowance of Rs. 8000/- per month. He wants to draw pension immediately on separation from the services of the Company. Calculate the pension which Ashok should draw.
F) The General Manager of a Company found that 15 of his workmen had stopped work and were holding a meeting in the corner of the machine shop He immediately contacted the Personnel Manager and asked him whether these workmen had taken permission for holding the meeting. When the Personnel manager told him that no permission had been taken, he told the Personnel Manager to take stern action against these 15 workmen so that no workmen in future could dare to stop work and hold meeting in the factory premises. Inform the General Manager about the action you intend to take against these 15 workmen.
