HRM Case Study 1
Harsha and Franklin both of them are post graduates in management under different streams from same B-School. Both of them are close to each other f rom the college days itself and the same friendship is continuing in the organisation too as they are placed in the same company, Hy-tech technology solutions. Harsha placed in HR department as employee counselor and Franklin in finance department as key finance executive. As per the grade is concerned both are at same level but when responsibility is concerned Franklin is holding more responsibility being in core finance. By nature Harsha is friendly in nature and ready to help the needy. Franklin is silent in nature ready to help if approached personally personally and always a bit egoistic in nature. They have successfully completed 4 years in the organization. And management is very much satisfied with both of them as they are equally talented and constant performers. Harsha felt that now a day’s Franklin is not like as he use to be in past. She noticed
some behavioral changes with him. During general conversations she feels that Franklin is taunting her that she is famous among the employees in the organisation in the other hand he is not even recognised by fellow fel low employees. One morning Mr. Mehta General G eneral Manager Hy-tech technology solutions shocked while go through the mail received from Franklin about his resignation. Mr. Mehta called Harsha immediately and discussed about the same as she is close to Franklin. By hearing the news Harsha got stunned and said that she do not know this before she also reveled here current experience with him. Mr. Mehta who do not want to loose both of them promised her that he will handle this and he won’t allow Franklin to resign. In the afternoon Mr. Metha took Franklin to Canteen to make him comfortable after some general discussion he starts on the issue. Franklin, after some hesitations opened his thinking in front of Mr. Mehta. The problem of Franklin is 1) when he comes alone to canteen the people from other don’t even recognize him but if he accompanied by Harsha he get well treated by others. 2) one day Both of them entered the company together the security in the gate wished them but the next day when he came alone the same security did not do so. 3) Even in
meetings held in the office the points raised by Harsha will get more value so many a times he keeps silent in the meeting. It happens to Franklin that he has to face such degradation in each day of work which totally disturbs him. Franklin also questioned that ” Harsha and myself have same qualification, from same institute, passed out in the same year both with first class. We have same number of experience in this organisation. More over the responsibilities with me are more valuable than that of Harsha. After all this things if I am been ignored or unrecognized by the fellow employees my ego does not allow me to continue here”. By listening this statement Mr.Metha felt that it is not going to be very difficult to stop his resignation. Mr. Mehta explained Franklin the reasons for such partial behavior of the employees. After listening to Mr. Mehta Franklin said sorry for his reaction and ready to take back his resignation. And he called Harsha and spoke with like before. Question
Find the reason that Mr. Mehta would have given to Franklin.
PLANT LOCATION PROBLEMS
Location of a plant has direct relevance to raw materials, market, human resources, civic amenitiestransportation etc. However, in some countries the problem becomes complicated due to (i) Inter-Statecompetitions and tussles, (ii) Regional development and (iii) Political pressures and biased decision.Around 1970 Government of India mooted the idea of expanding steel production under public sector units to be established at suitable locations. A committee of eminent personalities was formed to gothrough claims of (i) Vijaynagar Steel plant near Bellary in Karnataka, (ii) Salem St ee l in TN an d (i ii )Vishakapatam steel plant in A.P. Since it was under PSU the political pressure was going on and if it wasunder private sector, there would not have been any kind of political pressure.The most important raw materials for steel plant are i ron core power and coal. Again in iron ore the iron percentage should be preferably more than 60% and ash content in coal should be less than 30%. Thesefactors enable production of iron and steel at competitive price. From experts’ reports the following brief was available:(a ) V i z a g – T h e I r o n o r e i s r i c h w i t h 6 5 % I r o n a n d c o a l c a n b e a r r a n g e d f r o m M P a n d B i h a r a n d Vizag is well connected by broad gauge railway line to all important cities and the place has sea port and airport. Hence this place has more natural advantage than other cities. (b) Salem – Iron ore was having 60 to 65%. Iron content and hence be economically exploited. Thecoal is in lignite form which is low quality coal. Hence this needs to be converted as coke for use.The place has broad gauge li ne and Madras sea port and airport are nearby. This place wasconsidered second preference.(c ) V i j a y n a g a r – B e l l a r y b e l t h a s I r o n or e of 60 % ir on but coa l has to com e fr om AP (Si ng are ni Colliery). The place had meter gauge railway line and hence not well connected to all India network. The seaport and airports were far away and hence this place was not found suitable.As per the expert committee report steel plant work started Vizag and Salem and these plants came up as per the plan and are doing well. However, to everyone’s surprise the them PM, Smt. Indira Gandhi, didfoundation stone laying in 1971 at T oranagallu in Bellary district for Vijayna gar steel plant also. Thisultimately proved to be an election gimmick to please the votes, though the PSU unit did not come upt h e r e a t a l l . T h i s i s a c l e a r e x a m p l e h o w p o l i t i c i a n s t r y t o f o o l g u l l i a b l e v o t e r s b y w a y o f inaugurations/foundation stone laying.Steel plants are quite huge with township having about 50,000 to 1,00,000 people. Hence requirements of housing, electricity, water, hospitals, education, institutions, entertainment facilities are very essential.The investment is huge and this helps to develop the surrounding area quite well and there is abundantscope for ancillary units, engineering services and employment inside and outside the steel plant. BothViza g an d Sal em go t th es e advantages and production standard as per the plan and these industriescontinue to run profitably.The expert committee had made comment on Vijaynagar proposal that, the unit can be viable if it useslatest foreign technology. In this method oxygen is injected to force oxidation of ores instead of natural
air. Though PSU was not started a private enterprise JInal Group took interest and applied for license tothe Central Government. By the year 1990 they obtained license and Vijaynagar Steel plant with foreigntechnology and d ecide d to make o nly sheet produ cts, which fetch higher prices. They also kept bareminimum workforce and executives to make it economical right from inception. By this time broad gaugelin es wer e fo rm ed and ne ar es t seaport was Go a and hence some problems were taken c are. This unit became operative in about 3 years and is also running profitably. QUESTIONS
1.What are essential factors for locating a Steel plant and why? 2.Explain how political pressures and pulls effect decision making and delays in starting industries. 3.Explain how it was possible to make Vijaynagar plant visible. 4.Technology, HR, natural facilities play vital role to start new enterprise. Explain your views
