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IMT 12 Human Resource Management M3
1. Explain the factors affecting and barriers to HRP
2. Describe the reasons why employees join unions and taking examples, elaborate upon the
tactics used by unions
3. Explain the concept of an orientation program and elaborate upon the requisites for an effective
4. Taking examples, describe some of the impediments to effective training
5. Taking examples, elaborate upon the various methods of performance appraisal.
1. Explain HRM models with particular emphasis on the Guest Model
2. Taking examples, elaborate upon the various rating errors.
3. What is job design? Taking examples, describe some of the approaches to job design.
4. With examples, explain the approaches to labour welfare
5. Briefly describe the causes of Employee Separations and elaborate upon the various types of
involuntary separations. Human Resource Management Page 2 of 4 IMT‐12
1. Describe the purpose and methods of job evaluation
2. Briefly describe the components of Executive Remuneration and explain the ESOP varieties
3. Elaborate upon the various types of non‐monetary rewards and explain the benefits a company
may derive from providing employee benefits and services
4. Elaborate upon the various causes of disputes and their relative impact on the workings of the
organization as a whole
5. With examples, describe some fringe benefits and non‐monetary awards.
CASE STUDY – I
Retention Challenges at Bharat Fertilisers
Ms. Swamy is the manager of the computer division of Bharat Fertilizers. It is one of the older Fertilizer
companies in the country and is located sixty‐three kms. from Hyderabad. In spite of a somewhat old
technology it has been making profits consistently in the regulated Fertilizer market. Its turnover last
year was Rs. 620 crores. It employs 2100 workers and staff and 297 managerial staff.
Ms. Swamy is forty years old and has been working for the present company for the last sixteen years.
She is presently a manager in M.I.S. department. She is a God‐fearing lady and is liked by her colleagues
and subordinates. Among her various responsibilities is the central data entry office. It has a sanctioned
strength of ten grade GS‐4 data entry clerks and one GS‐5 supervisor.
The starting salary of a trainee clerk is comparable to the compensation paid to clerks with little skills in
other companies. However after nearly six months’ job experience; most data entry clerks are able to
get a substantial salary increase in other companies. It has become known in the market that Ms.
Swamy has an excellent training programme for data entry clerks and her division has become a
favourite poaching ground for nearby companies. As a result of all this Ms. Swamy has experienced
more than 50% turnover over the last two years. A huge backlog of work has resulted. Even after
replacements are recruited their productivity is low for many months and a disproportionate time of the
supervisor and also of the manager is spent in training the new recruits. Within the data entry section
there are three exceptions who have worked for Ms. Swamy for many years. In fact, they have been
responsible for most of the work that has been turned out of the section.
The GS‐5 supervisor has been running the section for seven years. Yesterday, she informed Ms. Swamy
that she has received another offer from an Engineering company in Hyderabad with larger and more
challenging responsibilities and a substantial increase in pay and benefits. She has just now given the
one‐month’s notice as required by her employment contract and requested leave starting from
tomorrow. Human Resource Management Page 3 of 4 IMT‐12
Ms. Swamy is at her wit’s end. She had once recommended that the clerks should be given two special
increments on completion of six month’s service, but the Personnel department had replied that the
rules of the company did not permit increments before the completion of one year, that it could not be
given en masse, and that any exception would have serious repercussions among the rest of the
employees, and they had earlier turned down similar requests from other Divisions. In any case, the
management had imposed a strict control on manpower cost. She had always felt that the supervisor
should be upgraded to GS‐6 and data entry clerks to GS‐5. In fact, she had even mentioned it to her
boss, Shiva Lamba. Unfortunately, the matter did not progress beyond that.
Q1. Identify and explain some of the HR issues presented in the above case.
Q2. What would you do if you are Shiv Lamba, the boss of the M.I.S. department?
Q3. What can the company do to prevent such issues from arising in any other department?
Local Colour – Challenges at Global Operations
“We are not an American company. We are a Thai company.” This is what C. William Carey, Chairman
and CEO of Town and Country Corporation, the largest U.S. jewellery manufacturer and whole seller,
said about his Thailand subsidiary, Essex International Company Ltd. Carey has built a successful
business and on the basis of respect for native customs and cultural traditions. Carey proclaims, “I don’t
believe in Americanizing them. You have to go to a place and understand its strengths and massage
them.” He goes on to say that people “don’t want outside influences coming in that distort their values
and work ethics.”
“If you take a cookie‐cutter approach and stay open on a Buddhist Holiday workers will be resentful and
feel you are disrespectful of their culture. They don’t care if you are closed on the Fourth of July, but
they do care if you’re closed on the Queen’s birthday in April.” Carey’s views are shared by a majority of
CEO’s, who feel that adapting to the local culture is the biggest problem of globalization. Carey has
apparently accomplished the goal of cultural awareness to its fullest extent. When Town and Country
established a subsidiary in Hong Kong, he spent $15,000 on fortune‐tellers to tell the workers the fate of
the company. Carey also gave all public holidays after his purchase of Little Switzerland, based in the
Thailand is where Carey has proved to be most culturally sensitive. Essex enjoys being ranked in the top
5 of over 800 jewellery manufacturers in Thailand, with net annual sales of $19.4 in U.S. dollars. Carey
chose Thailand which ranks second in the world in jewellery exports, because of the people’s tradition in
stone cutting, the low labour cost and the work ethics. Also, Thailand’s pro‐business attitude gave Essex
a four‐year tax holiday and permission to build a warehouse free of restrictions and duties. Carey’s
original goal was to make it acceptable to the people of Thailand, who are motivated by security and
respect from their employer. Carey had to do many things to gain their confidence, including sitting Human Resource Management Page 4 of 4 IMT‐12
cross‐legged for a three and a half hour ceremony, inviting nine Buddhist monks to bless their seven‐
storey factory, and building a Buddhist spirit house at the factory for daily prayers and offerings.
After using 115 expatriates to set up the company in the first year, Carey sent them all back and used a
polycentric recruitment policy to fill all positions. Essex’s initial 200 workers were between the ages of
17 and 22 and had previously worked rice fields. Essex lured women from 500 miles with rent‐free
dormitories and the opportunity to learn a trade and increase their standard of living. The women
received on‐site medical care and exams, three meals a day, and uniforms. Courses for high school
equivalent diplomas are offered, as are classes in home economics and self‐improvement. There is a
library and a number of recreational facilities. These benefits are intended to both help the workers
develop and keep them occupied. “We wanted to give them spirit de corps…to mould them in what we
wanted by getting them to excel,” Carey stated.
These women, who at one time had nothing, were able to send money home, open bank accounts, and
join the profit‐sharing programmes. They were offered company stock in 1991, and these workers now
own approximately 10% of the 30% publicly held stock. The total cost is hard to figure, but Carey
estimates that these benefits add around $250 a month per employee.
Recognition is another factor in Essex’s success. There are both team and individual incentives. While at
first people were reluctant about individual incentives, the recognition is now welcome. As their
performance improves people can move up the line and earn even more money, relocate to semi‐
private dormitory, be named employee of the month, or receive a pat on the back in a public ceremony.
Carey’s cultural sensitivity knows no bounds. In the beginning stages of Essex, he allowed a work
schedule that started much later than in the western world. After employees were comfortable with the
company, he was able to slowly move up the time to 8 A.M.
To sum up, 95% of the employees have stayed, unlike the Thai average. There is a low level of
absenteeism and a waiting list of job applicants. When there is a large order, Essex has no problem
getting the workers to stay late. “The workers feel proud of the company,” says Carey. “They are proud
and appreciative of working in a company where they are recognized.”
Answer these questions:
1. What are the challenges one can face in managing a cross‐cultural workforce/organization?
2. What was the strategy of Carey for building a successful operation in Thailand?
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