CASE STUDY 2:

Mr. Bhat, Human Resource Manager of IVS Group of companies approached the CEO
on 30th march, 2007 and apprised him of the absence of Mr.Ajay Vaidhya, Assistant
Accountant in the Corporate Finance Department, for the past one month and
requested him to approve the show-cause notice to be saved to Mr.Ajay as per the
Labour Laws in force.
The CEO told Mr.Bhat: When Mr.Ajay has been absent for the last one month , your
duty is to go to Mr.Ajay,s house, find out the reason and solve the problem of Mr.Ajay,
and not just to report the absence to me. Go immediately to Mr.Ajay,s house find the
reason and report it to me before 5.oo P.M. today.
Mr. Bhat immediately left for Mr.Ajays house and learnt from Mr.Ajay s Wife that
Mr.Ajay has been in distress as he has been trying to mobilise Rs.1,00,000 for the
surgery of his sick wife in a reputed hospital in Chennai. Mr.Bhat could meet Mr.Ajay
around 3.PM and both of them then met the CEO. Both of them apprised the CEO the
reason for the absence and distress of Mr.Ajay.
The CEO immediately contacted the hospital and informed them that the company will
pay Rs.1,00,000 tomorrow i.e., 31st March 2007 and requested the doctor to conduct
the surgery for Ajays wife tomorrow itself.
The CEO ordered Mr.Bhat to arrange to issue a cheque for Rs.1,00,000 in favour of the
hospital and also pay Rs.10,000 in cash to Mr.Ajay to meet incidental expenses as a
grant. Mr.Ajay as well as Mr.Bhat were surprised at the decision of the CEO Mr.Ajay
became emotional and touched the feet of the CEO.
The CEO told Mr.Bhat:Problems of our employees are the companys problems. We
treat the employees as human being and members of the companys family.
This piece of news spread in the entire company within no time and the employees felt
highly secured. The productivity level increased by 100% in the next quarter itself and
sustained over the years to come.

Questions:-
1. Why did Mr.Bhat prefer to follow a legal approach to the problem?
2. Why did the CEO provide Rs.1,10,000 as just a grant to Mr.Ajay ?
3. What would be the morale of employees family members after this incident?
4. Suggest a suitable title for the above said case and justify that title.
Solution
1. Why did Mr. Bhat prefer to follow a legal approach to the problem?
Solution:
Mr.Bhat preferred to follow a legal approach against Mr.Ajay for being absent from his
job, for the following reasons
As Mentioned in the case by Mr.Bhat noticed that Mr.Ajay kept himself absent from job
without being informed the authorities which is not considered as a fair practice done by
any employee as per Labour Law.
Mr.Ajay is working in an important department in the organisation ( corporate finance),
his absence might affect the performance of the department.
In the other hand remaining employees in the department are loaded with extra
responsibility as they need to share the duties of Mr. Ajay which may created stress on
them.
Above all if any legal action is not taken against Mr.Ajay this may lead to a bad
example to other employees and among some of them may take an advantage of this.
Hence by considering the above said reasons Mr.Bhat preffered to follow a legal
approach of issuing a Show cause notice to Mr.Ajay



2. Why did the CEO provide Rs.1,10,000 as just a grant to Mr.Ajay ?
Solution:
CEO Didnot approach the issue of an individual who didnot return to the job for more
than one month. He realise that there must be an valid reason behind this. So he
demand Mr.Bhat to visit Mr.Ajays resident and find out the reason for his absence.
When he get to know the issue he analysed it and considered it as an opportunity to
make the employees realise that they are the assets of the organisation. And being a
CEO employees well being and his family members well being matters for him.
He also knows that the loyalty of the all the employees will be improve and this will
ultimately increase the efficiency of the employees. Hence he granted Rs.1,10,000 to
Mr.Ajay and his family which will benefit both Ajay and his family and also create a
positive impact on the employees.
There are so many benefits behind this grant some of those benefits are increased Job
security, increased morale , strong loyalty, improve efficiency, employees family will
have faith on the organisation, increased production output etc
Considering the above said benefits CEO granted the above said amount to Mr. Ajay.
3. What would be the morale of employees family members after this incident?
Solution:
The incident spread like an fire in the organisation and through the employees to their
family also. After listening to this Ajays family members felt so thankful to the
organisation especially to the CEO who considered their problem and helped to solve
the issue. The concern of the CEO obvious saved a life in their family.
Along with Mr.Ajays Family members the family members of other employees also felt
that IVS is the safe place to work and it is safe not only to the employees but also to
their family also.
So the family members felt secured, loyal and very well satisfied about the organisation.