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Case Analysis: TESCOGroup 7, Section BAbhishek Nvale | Anish Barjatya | Jyothish Jose | Lipika Agarwal | Saaksh !hhabra | Shashank "othari
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Introduction
Single #ecision aker
!onstant icroanageent o$ the workers
%istrust an# iscounication between the anageent
an# the workers
Gera acting reactively an# shutting the plant #own
No utual e$$orts being put in by the con$licting si#es
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3
Factors
contributing to
the breakdown
of IR in TESCO
Expectations
of each
party
Power with
different
actors in
the case
Issues that Gera
ust consider
and address
!essons
"earned
&uestions
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What Factors Contributed to The Breakdon o! I" In TESCO#
$
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'is strong wille# an# business in#e# personality ha# le# to an
establishent o$ a boss( subor#inate relationship as the workers
were always constantly #irecte# an# supervise# by the anager )ohit Singh, lea#er o$ the tra#e union saw his own interest as the
workers were a constant source $or hi to earn his incoe*
+here$ore, his personal an# sel$ish interests a#e hi instigate
the workers
)igi#ity o$ Gera to not coe to a negotiation with his workerswhich $urther arouse# the*
+he conciliation o$$er with the workers was bribe# by Gera in an
attept to sub#ue the* 'owever, that worsene# the scenario
$urther an# the strike by workers continue#*
!losing #own o$ the sub(assebly plant peranently leaving all
the poor workers uneploye#*
%
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What Were the E&'ectations o! Each (arty)the oner*
Trade +nion* Workers)!ro, the other 'arties#
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+he other parties( the tra#e union an# the workers ecept a
certain aount o$ copliance $ro the anageent an# not
continue his #oinating behavior
+he tra#e union consists o$ workers an# )ohit Singh* +he
workers epect Gera to un#erstan# their #ean#s an# not be
so rigi# in their #ealings with the* )ohit, on the other han#,
has his own personal interests in #eriving constant incoe$ro the workers
+he workers are upset about the prevelant #oinance on the
part o$ the anager an# epect certain aount o$
un#erstan#ing $ro hi to atleast increase the wages by soe
aount
.
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What 'oer in I" did di!!erent actors in the case ha/e* ho
did they deri/e it* and ho did they use it#
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#anish Gera
$Chairan% #& and #a'ority Owner of Tesco(
+ype o$ -erson.
%ynaic, enthusiastic an# sel$(otivate# person
Genuinely kin# an# help$ul
'a# a penchant $or e$$iciency an# #iscipline*
-re /nion #ays
Showe# a #eep concern $or the wel$are o$ his worker 0orkers treate# hi with #ignity* 'e was bestowe# with power relate# to personnel atters an# a relationship o$ superor#ination an#
subor#ination eiste#*
1verall in pre union #ays Geras source o$ power was his strong relation with eployees an# he use# it
to ensure no con$licts arose by a people oriente# approach*
-ost /nion #ays
'e was very #eterine# not to coproise* 'e #irectly spoke with the workers but the solution #i#n2t last long*
3nitially he use# #elay tactics an# later strong(ar tactics*
4inally he #eci#e# to close the plant*
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Rohit Singh
$Trade )nion !eader% #eber of the Indian *ationa" +anata Party
and a"so had c"ose "inks with soe inisters in the state go,ernent(
'is objectives.
+he labour situation at this ancillary plant o$$ere# iense scope $or hi to
carve out a $ollowing $or hisel$
5aluable capital $or hi an# assure# hi a stea#y incoe
-ost /nion #ays
0ante# to #eonstrate his utility when the wage settleent was negotiate#
between the anageent an# workers
'e woul# thus arouse a $eeling o$ unrest aong workers, which woul# also
serve his ulterior otives
Stubborn with the proposal
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-orkers
Source o$ -ower.
-re union #ays. Goo# relation with owner-ost /nion #ays. Strong union presence
!aught in the power battle between union lea#er an# copany
owner6%
Supporte# the union uncon#itionally an# #i# not stick to their stance
8A$ter Gera #irectly approache# the an# resolve# the issue theie#iately $lip($loppe# a$ter eternal in$luence9
Governent6Legal bo#ies
%i# not eercise any power
%i# not consi#er iplication o$ $actory closing #own on workers
8/neployent9
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What issues ,ust era consider and address be!ore
'lannin4 ahead#
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'e nee#s to iprove his iage to win back the or#ers
'e nee#s to buil# up his capacity by possibly renegotiating with
eployees regar#ing a reopening o$ the plant, but with no unionactivities
'e also nee#s to ensure that such union activities #o not happen
in other ain plants
'e nee#s to have echaniss like regular eetings with workers
to #iscuss their concerns
Since he is attepting to $ollow paternal unitaris, he nee#s to
counicate ore with workers an# arket his characteristics
o$ caring towar#s the better*
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What lessons in I" do you learn !ro, this case#
1$
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+he owner strongly believes in #oinating his eployees
an# at no point in tie will he negotiate with the workersto reach a cor#ial solution
+he tra#e union is le# by )ohit Singh who has his
personal interests in earning incoes constantly*
+here$ore, he has provoke# the workers $urther toaintain a constant ri$t between the anageent an# the
workers
1%
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1-
T./*0 1O)