Page 253 - DCOM506_DMGT502_STRATEGIC_MANAGEMENT

Unit 13: Functional and Operational Implementation

Unionised employees present a number of key strategic challenges for management: Notes
1. The power base within the organisation is redistributed
2. Management’s ability to manage workers at their discretion to achieve the organisation’s
strategic objectives will be severely curtailed.
3. Outside leadership may pose additional challenges to the management.
4. Unionised work setting can greatly impact the organisation’s cost structure. Since
liberalisation of the Indian economy since 1990s, there is a perceptible change in the
industrial relations scenario of our country. Labour militancy, strikes and lockouts have
reduced drastically. However, in certain sectors of the economy, especially the government
and public sector, there is not much change in the clout of the unions.
Through appropriate collective bargaining and participative management practices, industrial
relations can be managed effectively. HR strategy must incorporate long-term plans and
programmes to maintain industrial peace for effective implementation of the business strategy.

Case Study Does Sincerity Pay?

R ajdhani Tyres Ltd (RTL) was a medium-sized tyre company, manufacturing tyres
of various types and grades. It had 6000 workers and 400 executives on its rolls.

The manufacturing division was headed by Ramlal. Shekhar was the Chief Engineer
reporting to Ramlal directly. The division had 400 workers, 20 executives and 40 supervisors.
Baluja joined the manufacturing division four years back as a skilled worker. He was
technically sound, hardworking and performed his duties sincerely. He was promoted as
a supervisor recently.
On Monday, Baluja was taking rounds in the department. It was a routine inspection and
he spotted Raghu doing nothing. Baluja advised Raghu to concentrate on the job given to
him instead of wasting his time. Raghu shot back saying “You mind your business. I am
the senior most in this department. Don’t think you have become big after your recent
promotion.” Other workers witnessed the exchange of words with interest and finally
burst into laughter when Baluja tried to retort. Encouraged by the favourable response
from his team mates, Raghu retaliated by using unparliamentary words. In frustration,
Baluja had to report the matter to the Chief Engineer, Shekhar. Shekhar took a serious note
of the situation and issued a stern warning to Raghu, ignoring the fact that Raghu was
quite notorious for such incidents in the past as well.
Baluja was able to get along with others in the departments, despite occasional flare-ups
over matters relating to discipline and production targets. After a two-year stint, Baluja
was in the midst of a crisis again.
A worker named Roberts came to duty in a drunken state and was celebrating his birthday
with other colleagues, disrupting work. Even after half an hour the noise did not subside
and Baluja had to intervene and check Roberts to go back to work and allow others to
resume normal duties. Roberts got wild when he was physically forced to go to his
workspot. In a fit of anger, Roberts resorted to physical abuse and slapped Baluja in front
of others. Not content with this, Roberts reported the matter to the union, alleging verbal
as well as physical abuse from the supervisor, Baluja.
Contd...

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