Question

CASE STUDY
A Multinational Company specialised in food processing has been operating
in India for about 3 decades. The Company has recently decided to expand its
production. It was decided to shift the factory to a new locution about 20 kms.
away from its present site. As the workers transferred to the new site were
living in town, the union demanded an increase of Rs: 60 per month in the
salary, but the Company offered to give Rs. 25/- only to cover the transport
When the plant was being shifted to the new site, negotiations went on
uninterrupted between the Management and the Union on this issue. However,
both the parties could not come to a weltlenient even after 6 months.
The Management was firm on their decision even though the union indicated
some Nexibility. The Union reflexed to compromise fully on the issue. They
adopted posten tueties to pressurize the Murugement. The producton went
down drastically, but still the Management was firm on their stand. In the
meanwhile, the Management charge-sheeted some of the Trade Union leaders
and suspended them pending enquiry
Analyze the ease given above and elucidate the problem and causes. Do you
justify the Management's decision? If Yes
No- why? And as a General
Manager - HR of this Company how would you resolve the
problem?​

Answer 1

Explanation:

shifted to the new site, negotiations went on

uninterrupted between the Management and the Union on this issue. However,

both the parties could not come to a weltlenient even after 6 months.

The Management was firm on their decision even though the union indicated

some Nexibility. The Union reflexed to

Answer 2

No, I don't justify the management's decision.

• A change is always resisted so management needs to be sensitive and polite towards the employees and about their feelings and emotions.

• Covering only the transportation cost would not motivate the employees and accept the change in a smooth way.

• People need to adapt and it takes a course of time to adapt to the change.

• As an Hr, I would be understanding and try to come towards a common resolution catering to both sides. Thus the production would not go down drastically.