MANAGING EMPLOYEE RELATIONS

CASE PRESENTATION ON

LABOR UNREST AT HONDA MOTORCYCLE AND SCOOTER INDIA (PRIVATE) LIMITED

Group 06Sonali Mohanty (070)

K Sudha (093)Astha Rani (101)

Pallavi Agarwal (107)

ROADMAP BRIEF OUTLINE OF THE CASE

ISSUES INVOLVED

THEORIES CONNECTED TO THE ISSUES

VARIOUS ALTERNATIVES OR APPROACHES TO ADDRESS THE ISSUES

ADVANTAGES AND DISADVANTAGES OF EACH ALTERNATIVE

THE BEST ALTERNATIVE

CONCLUSION

BRIEF OUTLINE OF THE CASE

The case explains about the HMSI establishment and its various products.

The case discusses about the initial increase in the market share of HMSI.

The case study focuses on the HR problems faced by Honda Motor Cycle & Scooters India (HMSI).

The case discusses the various reasons which led to the dispute between the management and employees of HMSI.

• It elaborates the incidents, which led to the strike at the company that resulted in HMSI workers being severely beaten up by the police.

• Labor strikes and the management's inability to deal with it effectively had resulted in huge losses for the company due to the fall in the production level at the plant.

• The case explains the views of various analyst about the condition of Honda.

ISSUES INVOLVED

Management approach of non consideration to demand of workers .

Management considered workmen’s activity as indiscipline and violent protests.

Allegations of workmen on management like - Unhealthy working conditions - Low wages. - Management’s hostility to trade unionism - Arbitrary management decisions like

suspension, hiring temporary labour on contract basis.

ISSUES INVOLVEDIncompetent people management.

Incongruence between ideal and actual role of both the management and the workmen.

Issues in cross-cultural management.

No effective channels of communication.

THEORIES CONNECTED TO THE ISSUES

AREAS SPECIFIC TOPICS

Labour Laws Industrial Disputes Act (Strikes,Lock-outs, conciliation etc.) Trade Union Act Factories Act (Working Conditions)

Managing Employee Relations Principles of natural justice Globalisation and Industrial Relations

Human Resource Management

Collective Bargaining and Grievance management.

Human Resource Planning Employment Decisions like Hiring etc.

ALTERNATIVES OR APPROACHES TO ADDRESS THE ISSUES

1. Set up of strong machinery for resolving disputes through collective bargaining and grievance redressal forum.

-Advantages : Address to working conditions issues. Wage hike Women cell to address to the issues of female

workers. To ensure employee participation

-Disadvantages: Workmen may not support such forum due to lack of

faith in the management.

ALTERNATIVES OR APPROACHES TO ADDRESS THE ISSUES Implementation of certain important and path-

breaking recommendations made by the National Commission on Labour in the context of review of Labour law:

-Advantages: It explains the bonus systems for the employees I t recommends a three-tier system of Lok-

Adalats,Labour court and the Labour Relation Commission.

It will evolve policies and instruments to regulate employer -employee relationships .

-Disadvantages:. The approach of the Commission to treat strikes and lockouts at par is basically unjustified.

ALTERNATIVES OR APPROACHES TO ADDRESS THE ISSUES

3. A strong Indian management at the top to reduce the cultural differences between the Japanese and the Indians.

-Advantages: This will ensure healthy work environment. Mission and Values of the organisation can be

effectively communicated and easily understood.

-Disadvantages:This may reduce the diversity at the work place thus

restricting the creative ideas of the employees.

ALTERNATIVES OR APPROACHES TO ADDRESS THE ISSUES

4. Board of enquiry should be set up.

-Advantages: This would check the validity of allegations of both the

workmen and the management. This would also check under what conditions the

terms of agreement was signed and to what extent it was implemented .

Disadvantages:The external party may not be aware of all the facts as

this dispute has been continuing for quite a long time.It can be misled by any of the disputing party.

ALTERNATIVES OR APPROACHES TO ADDRESS THE ISSUES

5. Proper channels of communication to be set up by the management .

-Advantages: Objectives, vision and values can be easily

communicated to the employees. Improve the trust factor and transparency between

the management and the workmen. It shall reduce the levels of hierarchy between the

workmen and the management.

Disadvantages:It may be very difficult in such a scenario where there is no trust factor between the management and the workmen

BEST ALTERNATIVESet up of strong machinery for resolving disputes through collective bargaining and grievance redressal forum.

JUSTIFICATION FOR OUR RECOMMENDATION: This forum will address to all the issues covered in the case.

This HR strategy will align the business with the people management make a balance between the employee needs and the organizational needs.

It will also ensure the employee participation which is the most important determinant of organizational climate in India.

It will also act as a channel of communication thus restoring the trust factor between the management and the workmen.

ConclusionThere is a larger question of providing social security

to the workers

Employer and employees are not separate entities but two faces of the same coin.

The relationship between the two can only be harmonious if they work towards defending each other's interest rather than contesting the same.

Employers should pay more attention to human resource development and capacity building of their employees. Workers on the other hand realize the importance of 'no work no wages come'.

Thank You