BHEL , Bangalore – Personnel and Industrial relations take over issues

PRESENTED BY: ASHISH SINGH 131, PALLABI DUTTA123, SAYAK BISWAS 103,NISHITA SINGH 225, SREEJIB BISWAS 277

MER PRESENTATION

Brief Outline 1976, BHEL a giant public sector

undertaking took over two industrial units of the government of Karnataka, REMCO (CED) and Mysore Porcelains Limited (EPD)

Brief Outline

CED was performing well in its business but with a number of products in its line and low volume, the company was losing its image in the market with huge financial loses

EPD was just breaking even or was making very negligible profits even though they had 20% financial and technological collaboration with NGK insulators ltd., Japan and for the first quarter they were a monopoly

ISSUES : CED After a few decades of rapid expansion CED’s

finances were running thin, so much so that they could’nt remunerate their own employees. Having seen this state of Remco the current union was eager to be taken over by BHEL.

Poor remuneration led to absenteeism, pilferage, casual behavior at workplace

Employee selection became a political agenda

ISSUES : EPD

Illiterate & aged workforce given into groupism & casteeism

Current union leaders were apprehensive of loosing power and authority

Internal squabbling between Union leaders

THEORIES CONNECTED TO THE ISSUES: Collective Bargaining : Plant Level

Negotiation Trade Union Act 1926

ALTERNATIVE 1.

In the very beginning of the unrest Mr. Natraj should have been terminated from his services immediately and Mr. Hanumanthu should have been recognized as the new leader as he was second in lead to Mr. Natraj.

ADVANTAGES Terminating the service tenure of Mr. Nataraj

would set an example for future and create an impression about the management as a strict and serious authority.

Terminating Mr. Nataraj might not be acceptable among his follower and could create an unrest in the organization

DISADVANTAGES

ALTERNATIVE 2.

The management could offer Mr. Hanumanthu an ornamental position just to satisfy his ego and project him as the leader.

DISADVANTAGES Other leaders could come up with the

expectation of having a similar position in the management and try to form new groups and bring up new issues.

ADVANTAGES

This act would resist the immediate unrest in the organization and would also Help the management in making the leader work for the organization which would be beneficial for future.

ALTERNATIVE 3.

Mr. Hanumanthu should be fired for creating an unrest in the organization

ADVANTAGE

Mr. Hanumanthu being an egoistic person would bring down Mr. Nataraj along with him, which would result in both the leaders moving out of their positions.

Then the new leader could be influenced by the management to favor them.

DISADVANTAGE

With the removal of both the prominent union leaders their could be an unrest and chaos among the workers.

RECOMMENDATION

The management could have taken alternative 1 in the beginning of the problem

Alternative 2 in the middle of the situation

Alternative 3 as given in the case