HUMAN RESOURCE MANAGEMENT

PROJECT
CASE STUDY ANALYSIS

Submitted By

Submitted To

Amit Pande (12BLL035)

Mrs. Nandini Sinha

Gandharv Anand (12BLL062)

Assistant Professor

Section-D

ILNU

CASE
Encore Automobile was a family managed group, which was founded by an enterprising
businessman Mukesh Roy. The company had its main unit at Kolkata. However the
promoter's family had a vice grip over the company. There were frequent changes at the
middle management level through the top management. Also there were many instances of
workers losing their jobs for protesting against the arbitrariness of management and trying to
form the union. Initially the worker's strength was relatively low but gradually increased due
to expansion of the unit. The management preferred to hire people mostly from outside with
scattered domicile. Occasional instances of violence were suppressed by using crude force.
The promoters had managed government machinery and local media in their own way,
mostly through inducement and periodic settlement with them. They were also known to be
very close to the ruling government.
The situation changed gradually with the change in the ruling government. The new
government was tough with the management. The new local MLA who was a trade union
leader virtually forced the management to hire local people including contract workers of all
kinds of operations. The local MLA also actively intervened to form a union which
constituted mostly from the rank of local employees and some outsiders. The union raised
many issues such as huge disparity in terms of wages between permanent and contract
workers, the canteens were not maintained properly, the workers colony was bereft of basic
facilities. The promotion policy lacked transparency. There was a great deal of discontent
among the workers with technical qualification as promotion to the executive cadre always
looked grim. Also the workers were unhappy with their manager Tushar Banerjee, a retired
Colonel with very little industrial experience. Tushar Banerjee was known for his high
handedness and stubborn nature in dealing with the employees. He introduced CCTV
cameras at the shop floor and was strict about timings. There were deduction in wages and
memos issued even in case of slightest delays during breaks. The union workers also
complained about the lack of medical facilities and safety provisions at the plant.
A few members had a heated argument with Tushar Banerjee regarding the provision of
having a round the clock doctor and ambulance facility inside the plant and colony. Tushar
Banerjee refused their demand, the workers reacted aggressively and used objectionable
language. The management took immediate action of suspending three workers. The union
members resorted to demonstration and even heckled few executives outside the gate, the
workers went on an indefinite strike. The work suffered enormously and management hired
Nilesh Kumar as a group head of Human Resource with the purpose of improving the
employment relations scenario at Encore Automobile.

Questions:
1. Who is to be blamed for the strike, the management or the workers?
2. What steps should be taken by Nilesh to handle the labour issues at Encore
Automobile?

CASE ANALYSIS
1. Who is to be blamed for the violence, the management or the workers?
The management of Encore Automobile has the history of firing workers for bringing any
issues and protest against the management. Also their manager, Tushar Banerjee was very
strict and stubborn and don't entertain any issues relating with workers health and interest.
Employees walked the path of violence when they felt that all standard mode of dialogues
with management has failed. In a way, they communicated with the management and the
external world through violent behaviour. While violence cannot be justified, the
management should have provided the interaction forums and escalation routes to resolve
employee issues and should have taken the feedbacks of workers about their supervisors,
work life conditions etc.
Denial of basic amenities, non transparent policies, not allowing unionization, managing
media and government machinery against workers were all seeds of the employee
dissatisfaction and hence the management has to be blamed for the violence that occurred.
Off course, this does not give the right to the employees to do what they have done. It is
necessary to understand that the violence is an effect, and the cause could have been
addressed and resolved.

2. What steps should be taken by Nilesh to handle the labour issues at Encore
Automobile?
There is a serious need for the management to undergo a 'change' initiative. The management
may or may not loosen the family vice grip but a change is must that will help them
appreciate a linkage and importance of employee relations in the business.
The first step Nilesh should take to handle the labour issues at Encore Automobile is to build
a communication channel between the union and management. Building a positive
relationship which includes trust and confidence in a long process. Nilesh should form a
small team comprising of shop floor and HR employees to understand the issue related to the
basic infrastructure, and should also take into consideration the basic facilities such as
improving the canteen conditions or worker colony facilities and making arrangements to
provide snacks near the work place, should not cost high and will help in earning quick
confidence of the employees.
Similarly, issues such as lack of medical facilities and safety needs should be reviewed more
than just for the statutory compliances. The HR team should review the ideal mix of
permanent and contract employees, wages and policies related to employees discipline and
promotion to bring in fair and transparent process. The management should also avoid
interference of government machinery and media in the internal matters of the organization.

Secondly, multiple platforms should be created from communications on a daily, monthly,

quarterly basis which would discuss business and departmental performance, productivity,
quality, safety, welfare etc. Daily and monthly meeting should be about departmental affairs,
the quarterly meeting should have representation from all the departments of the plant. All
these meetings should have a twin objectives of communication and problem solving. A
reward and recognition programme should be put in place for celebrating above and beyond
performance. An incentive programme, a transparent assessment based promotions etc. with
help to reward performance and potential.
Thirdly, Nilesh should advice a management to co create a vision in which every single
worker should be involved (Through a large scale interactive process). Nilesh need to create a
culture which magnifies the need for mutual problem solving and marginalise the artificial
difference between executives and workers cemented through age-old stereotypes.

The management must understand that it is not only the money that employees get paid is
sufficient for a healthy life but employees also has other needs such as social and spiritual
needs. Encore automobiles must respect and value their employees for their contribution and
be fare in giving them what they deserve.
The story of Encore automobile is not unique in this county, the India IR history is replete
with countless instances of management having bartered their long term interest for short
term gains. Instead of getting overly cost workers, and undercutting legal dues, engaging
contract labour in core processes and shunning any collectivism, management of Encore
automobile has a great opportunity of forging sustaining trust by investing in employee
welfare, competency building and collaborative communication.