People management fiasco in HMSI Ltd.

Group 1 Aashirwad Bomboriya (001) Apurba Roy Chowdhury(012) Khushboo Lather(022) Sarika Chauhan(044) Rajesh Kumar Singh(036) Usha Bhakuni(057)

Workforce breakup at HMSI

Apprentices 8% Trainees 18% Contract Workers 17%

Employees

Supervisory and Managerial staff 25%

Confirmed workers 32%

HR policies
Good paymaster as compared to region-cum-industry average Respect for individual differences
Initiative, Equality and Trust

Promoted Three Joys

Buying, Selling and Manufacturing

Promoted association Similar uniforms and common canteen All employees were called associates Training programs for promoting Honda Way among new employees Quarterly newsletter Dream Team focused on companys achievements
Employee related news were limited to sports competitions, wedding announcements and childbirth

Performance Appraisal System

For all employees, including workers Appraisal done by Section Head and shift in-charge graded employee on a rating scale Workers divided into 5 categories increments from Rs 400 to 1400 pm PA results announced immediately at the end of the FY Promotion opportunity for workers
Worker Sub-leader Assistant Executive Executive

No bonus payment Ex-gratia of 1 months gross on Diwali

Works Committee
Constituted under Industrial Disputes Act (IDA), 1947
15 workers, 5 managerial representatives Other committees : Canteen, Transport, Health and Sports Nominations done by management based on employees interests

Employee Welfare
Subsidized canteen facilities Transport facility at subsidized rates Sports club for employees use Same uniform for everyone uniforms given every year Employees not covered under ESI, as the salary was higher than maximum limit
Covered by Paramount Healthcare facility Worker, his/her spouse and upto 2 children covered for Rs 75,000 each Workers parents insured for Rs 150,000 each

Support through cash payments on several occasions marriage, childbirth, death of family member

How it all began

Problems between workers and management
Employees were not happy with the Diwali gifts Restrictions on movement Increased stress levels on the shop floor Company was strict in granting leave Threats of termination No grievance redressal Managers were partial in job postings Workers were unhappy with the VP of manufacturing

Increased unrest
Employees not satisfied with the apology from the VP Charter with 50 demands, including increase in wages, DA, provision of milk and jaggery, etc Refused managements offer of hike of Rs 3000 pm Started collecting funds for formation of union Management tried its best to stop formation of the union Employees resorted to slowdown of work Employees suspended

Formation of the union

Gherao of the management office by workers One senior manager was manhandled and beaten up More suspensions followed Letter from AITUC chief for the registration of the HMSI labour Union Labour Union formed in May, 2005 Increased demands in the charter

Major problems
Managers did not listen to the problems of the workers Workers thought management was repressive Issues in cross-cultural management