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CASE STUDY COMPETITION
WELCOMES YOU ALL
INDUSTRIAL REALATIONS at MARUTI
SUZUKI
Agenda of the session.
The case brief.
Strategic analysis,
Roots of dispute,
PEST Analysis,
Approaches to Industrial Relations,
The Case Brief
Maruti Udyog Limited was launched in the year 1981.
Due to change in ownership, Maruti became pre-dominantly govt. controlled.
The laborers readily accepted Japanese work culture and use of modern manufacturing process.
The case
Plant was hit by violence on July 18th 2012.
Workers attacked supervisor,
Started fire, killing company officials and injuring 100 managers.
The General Manager was charred to death.
13 day plant shutdown
Demands raised-
3-fold increase in basic salary. Monthly conveyance allowance of
INR 10,000. Laundry allowance of INR 3,000. A gift with every new car launch. A house for every worker who wants or cheaper home loans
Industrial Relations
Concerns with the relationship between management and worker, and
The role of regulatory mechanism in resolving any industrial dispute.
STRATEGIC ANALYSIS: SWOT
STRENGTHS
First major player.Brand Image An Established brand in Indian market. Experience in Indian market .Very old player in Indian market.
Labour Union Issues,Plant working conditions,Improper production and floor working,Demotivated employees,Introduce improved recruitment policies.
WEAKNESS
If the Situation is handled properly, there would be huge turnaround by the company.The Union has understood mistakes which they would never repeat again.Lakhs of customers would regain the “Brand trust”Expanding competitions from new automobile companies in India.
OPPORTUNITY
THREATS
Threats of new entry of automobile companies.Depleting market share of Maruti since 1999-2000.Expanding competitions from new automobile companies in India.
The root of Dispute
Dates to year 2000, when employees went for indefinite strike.
To press demand of revision of incentive-linked pay.
Nearly 4,500 employees went on strike for 26 days
The root of Dispute
May 2011, workers applied for the registrationof Trade Union, Maruti Suzuki Employees Union (MSEU)
Management refused its recognition, being existing union in Maruti-
Maruti Udyog Kamgar Union
PEST Analysis-
POLITICALGovernment dominated the managerial
regulations extensively.
The state and central govt. should have been proactive towards the crises.
Implement some legislative decisive rule to curb such gasty violence.
Introduce temporary stations of militant workforce.
ECONOMIC
Providing adequate financial remunerations to employees.
Incorporate slight amendments in annual Incentive scheme to employees.
Introduce certain non-monetary motivators to boost employees morale.
Social factors
Promote initiative to restore corporate confidence.
Introduce quarterly or half yearly get-together celebrations.
Avoiding usage of aggressive language in the organization.
Incorporate civil or law bidding education.
Technological factors
Implement new call-up policies, based on subscriber base system.
Disaster Management System.
INDUSTRIAL RELATION
Marxist approac
h
Unitary approa
ch
Pluralistic
approach
Unitary
Mutual cooperation, Conflict arise out of poor management, Require extensive teamwork
Mediates among different interest groups. A strong trade union is essential. Also, societal interest are protected.
Individual conflict has wider implications. The conflict is equated with social and political
unrest.
Pluralistic
Marxist
The PR by Maruti has not been proactive. Instead, it has been reactionary.Legal action on accused: show that proactive action is being taken against any violations of law.
Maruti CSR campaignA Maruti grassroots CSR campaign that undertakes fundraising for education and healthcare of labour families, to prevent further grassroots support for planned violence or mutiny.
Rebuild Maruti’s India-ConnectMentions of increasingly Japanese management at Maruti was raised during reportage. A campaign to associate Maruti’s traditional image with India will foster unity amongst employees
Flexibility in labor law should be allowed.Workers should have initiated other peaceful ways to conduct agitations.
Reccomendations
Reccomendations
Implement new recruitment methods. Implement regular performance
appraisal mechanism for workers. Effective procedure in resolving
grievances within the organization. Change in attitude- management,
employees and union. There should be a legal framework
within which IR exists.
Conclusion
Motivated and satisfied employees have no reason to indulge in strikes or gheraos.
It is the role of the HR manager to keep employees motivated and satisfied.
THANKING YOU