Bata India

By: Mohammed Masood

Neha Sharma Nitish Khandelwal Pavan Puranik Prachi Nanda

ContentsHR Issues at Bata IndiaMeasures taken by Bata

Management to resolve issuesImplication of the measures taken by

BataWhy BMU was unable to resolve

issues internally?Intervention of the West Bengal

Government into the matters at Bata

Implications of Outsourcing – Pros & Cons

Why the management failed to ease out matters ?

Bata India TodayHR at Bata IndiaFinancial Details Of Bata - Now

HR Issues at Bata IndiaHigh cost structureRedundancy at all levels of operationsExcess personnel than required for

the task at handLack of a vision oriented man at the

helmNo proper appraisal systemNo rewards or recognition

contd….

Lack of HR policiesNo place for participative

managementNo transparency in operations

regarding personnel recruitment & termination

Pursuing targets aggressively – at the cost of personnel

Measures taken by Bata to resolve personnel issuesBipartite agreements to resolve

labour concernsRevamping of the management

hierarchyImplementation of performance

based pay system for personnelAsking managers and juniors to quit

without the management reasoning the move

Stopping recruitment

Implications of the measures taken by BataProfits returned but only for a brief

period of time – the company paid bonusNo respite from the high cost structure –

no steps were taken to reduce thisWeston was unable to strike a deal with

AIBSMU regarding the 1990 agreement – was disregarded

Resentment in employees at all rungsDiscontentment rose and the union

became aggressive in its demands

Why BMU was unable to resolve issues internally?Reasons:

1) No proper connect b/w the management & the workforce2) Management unaware of the actual requirements of the workforce3) Resolving to strikes which further incensed the matter4) The Union looked at its own interest and disregarded that of the management

Outcome – lack of productivity & decline in revenues

Intervention of West Bengal Government into matters at BataBata was running in losses and had

to figure out ways to deal with itIt removed incentives to workers – to

further its move in cutting costsBMU requested the then West Bengal

Government to intervene & resolve issues

Intervention resolved matters momentarily – agreements signed to get matters back on track

Implications of Outsourcing – Pros & ConsPros:

1) Freed up labour for other tasks2) Product quality improved

3) Expansion of business

Cons:1) Increase in surplus labour2) Workers were without job and that led them to protest

Why the management failed to ease out matters?Discord & mistrust b/w the

management & BMUOutsourcing – implied that Batanagar

unit was losing importanceImplied that more jobs will be lostStoppage of recruitment – lack of

fresh talent to undertake operationsManagement was not receptive to

requests made by Unions

Management drove out the incentive for labourers to work at Bata factories

Agreements reached were too little & too late

Bata India Today Bata India is the largest retailer and

leading manufacturer of footwear in India

Transformed from a loss-making to profit-making company in 2005.

In 2006, the company paid dividends after a gap of five years as well.

Re-structuring during 2004-07 helped the company achieve high levels of efficiency in its manufacturing processes while reducing costs

Global Statistics:- Serves 1 million customers per day- Employs more than 50,000 people- Operates 5000 retail stores- Manages a retail presence in over 70 countries- Runs 27 production facilities across 20

countries

Courtesy: http://www.bata.com/about-us.php

HR at Bata India"We believe that the

fundamental vitality and strength of our organization lies in our people" – Thomas J. Bata.

Now, it’s driven by principles, respect for human rights

Initiatives are in place to recruit & retain the best people

Opportunities are provided for personal development & advancement by:-Running courses for training and improving skills -Organizing several national and international courses at all

levels on a regular basis for teaching new technologies

and systems -Encouraging life long learning.-Focused Leadership Development Initiatives-Cross Functional and Cross Business Opportunities

It’s socially responsible & encourages the same amongst its workforce

Courtesy:

http://www.bata.in/webbata/faces/jsp/static.jsp?articleid=1966&orgId=0&lang=en

Financial Details of BATA - Now

Bata reported Net Profit (millions INR)of 12.49, 40.15, 47.44, 60.74 & 67.23 for the years 2005 through 2009 respectively.

Bata has slowly but surely returned to its old ways of making profits