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    PRESENTED BY:-

    GROUP NUMBER :-2 SECTION :-C

    MITHUN KUMAR MOHANTY 11202161ABHENDU CHANDRA SAHA 11202162

    SURANJAN MAZUMDAR 11202164

    SOMNATH BAHTTACHARYA 11202167

    ADNAN AHMAD 11202170

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    Briefing on case study

    Issues involved

    Theoretical inputs

    Alternatives available

    Advantages & Disadvantages of Alternatives

    Recommendation

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    HR problems faced by Bata India Ltd. - End of the 1990s. Loss of 420 million in 1995.

    1995-Bata Shoe Organization Restructured entire board

    William Keith Weston-MD

    Mike Middleton- Deputy managing Director

    R Senonner headed Marketing division.

    The profit went down in 2000 after a consecutive increase in

    the profit margin for four years since 1995

    1996- BATA signed Bipartite agreement.

    1993-99 cut down the staff - to 6700 and welfare measures.

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    ASSAULT CASE

    1996- Chief welfare officer was assaulted in Batanagar.

    1998-Weston was assaulted by four workers at Batanagar

    Management dismissed three employees

    Batanagar employees went on strike after two days.

    BSO withdrew investment plans

    In 14 Jan 1999,BMU submitted demand list to the

    management.

    Economic and non economic issues(reinstatement of four

    dismissed employees)

    Demanded worker participation in management.

    Wage hike - Rs 90/ week.

    Increase ofplanbonus & introduction of attendance bonus

    for migrant workers.

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    INDUSTRIAL RELATIONS

    1995& 1998 Signed 3 years bipartite agreement with BMU

    and WB govt.

    Feb 1999- Lockout in BATAs Faridabad unit-manufacturingHawai Chappal & canvas.

    Oct 1999- Unit resumed production-3yrs wage agreement

    signed.

    March 8, 2000- Lockout in Peenyas.

    July-2000 BATA lifted lockout.

    Demanded Revocation of 20 fellow employees, maintaining

    normal production schedule, confirmation to standing orders

    not to be insisted upon. September-2000 Downsizing resulted Labor dispute as

    management increased outsourcing from china and perceived

    declining importance of Batanagar unit.

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    Financial Breakdown: The Bata company experienced a loss

    of 420 million in 1995 for the first time in the companyshistory. They were leading the Market single handedly for 60

    years and made the market almost a monopoly.

    Labor Problem: The Trade Union had conflicts with themanagement intentionally. Strike was a regular phenomena for

    this company also labor class employees assaulted their own

    MD, Mr. William Keith Weston in 1998.

    Labor Surplus: The company had surplus labor since a long

    time. The data shows, they had 15000 employees in India

    whereas their next competitor the Liberty Shoes had only 5000

    employees in 1995.

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    High-cost structure: This was another consequence andimportant concern of the organization. They were incurring a

    lot of employee wages, employee welfare wages. The data

    shows 22% of their sales were distributed among the

    employees as salary in 1999 whereas only 5% was the

    employee salary wages for Liberty Shoes.

    Change in Management: The entire Board of Directors were

    replaced with a new group in 1995. They laid off more than

    250 managers and stopped recruitment.

    Cost Cutting: They took several steps to cut the huge coststructure by phasing out several welfare wages, they

    employed forced retirement by asking juniors to quit.

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    Outsourcing: Earlier outsourcing was limited to assembly &sewing line job now company outsourced fully manufacturedshoes from China.

    Selection and recruitment issues: Bata offered its staffemployment policy linked to sales growth performance.Employees were resistant of such changes.

    Compensation(a) Basic remuneration issues: The basic remuneration was poor

    and there were no set standardized norms for increase in the

    pay.(b) Productivity Linked Incentives: Productivity linked

    incentives was utilized effectively. In 1997, Bata workersachieved 93% of their production targets. The managementrewarded the workers with a 17% bonus, up from the 15%

    given in 1996.(c) Employee Benefits and services: The company nearly

    withdrew management subsidies, canteen facilities, electricityand health care schemes for the employees' families whichincluded the plan of dismantling the public health unit

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    TRANING DEVELOPMENT & CARRER MANAGEMENT

    when the people were retrenched and others handled the

    same job no training or development issues were visible. The

    carrier development aspect of the employees was also missingwhich contributed to the low morale of the people.

    ENVIRONMENTAL CHANGE

    Due to post economic liberalization the percentage of cost

    towards employers was a massive 22% compared to its

    competitors 5%. as their profits were declining.

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    MANAGEMENT OF TRADE UNIONS.

    Trade unions had influence of the various political parties.

    These elements were scrupulous in nature and so usednegative tactics like militant force and assault on themanagement.

    JOB DESIGN

    Job design at Bata was identified and refined from time totime and so they were able to remove excess manpower aswell as cut down unnecessary expenditure.

    SURPLUS MANPOWER

    Heavily overstaffed and had a huge expenditure towardsemployees compared to their competitors.

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    SELECTION AND RECRUITMENT ISSUES

    Employees were resistant of such changes but the perception

    of corruption associated with Bata the change was a right step

    as these managers were indulging in large scale corruption.

    MANAGING SEPARATIONS AND RIGHTSIZING

    Retrenchment was carried out but no sensitization paid to

    these issues which had an adverse effect on the employees

    morale. Overstaffing issues were handled with a strong hand

    and people asked to leave.

    MOTIVATION

    As the company sold its Calcutta office the employee's morale

    was low due to the issue of honor associated with it. The

    motivation levels of the people who had to shift from a metro

    to a small town also would have taken a severe dip.

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    Individual rewards & recognition along with a revamped HR

    strategy with respect to hiring & compensating employees.

    Employees should had been given proper bonuses along with

    other perquisites,ie, Bata should have kept the promises it had

    previously made to its employees. This should have been the

    best alternative.

    The budget of employees welfare could have been omittedcompletely & salary should have been increased in place of

    that.

    There should have been a proper middle management who

    could bridge the gap between the BMU & The topManagement.

    Recruitment policy should have been restructured prior to

    1995 itself when it decided to stop recruitment.

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    Motivation level of the present employees would have been

    increased individually.

    Employees would do their work in more effective & efficient

    manner. The team work could have been more efficient inorder to get more bonus.

    Companies fund would have been increased in better manner

    & employees would also become happy due to the increaseof salary.

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    This procedure would not enhance the motivation level much

    for some of the less efficient employees.

    The top level management would have been dissatisfied with

    this decision.

    This could bring some additional profit in the company

    overall. However, this could also bring more conflict between

    the top level management and the Union.

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    From the above case we can understand that having the right

    HR practices is very important for over-all profits & reputation

    of the company. Here the main thing is lack of people who

    would have acted as a mediator between the top management& the labor unions.

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