golden egg version 1

8/7/2019 Golden Egg Version 1

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Group: Nine

The Goose that laid a Golden Egg

Presented by

Sa njeev P a ndeyRosh a n Mull a

Rush a bh Sha hRuchit ShethRohit P a tel


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Introduction of theCompany.

Nam

e: Pioneer Engineering Com

pa

nyAre a : Ma nuf a cture of Sw itchge a r co m ponents

Fe a turesFe a tures

Te am of Profession a l Ma na gers.Com petent Engineers w ith Indigenous Sk ill to bringa bout innov a tive develop m ent.

Work forceWork force

1100 Wor km en250 M a na geri a l & Supervisor in ch a rge


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MrMr. . V e rm aVe rm a H e is the M a na ging director of the co m pa ny a ndis very co m petent person in selecting engineers.

MrMr. . ShuklaShukla H e wa s the Personnel M a na ger of the Co m pa ny

MrMr. . Ram aniRam ani H e wa s the President of the recognized Tr a deUnion of the Co.

MrMr. . BakshiBakshi::

President of Union ina

notherSw

itchgea

r Co.- Lea der of a m ilit a nt tr a de union.- Lea der of Engineering Wor k ers Associ a tion.

Persons in-ch a rge


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In 1979

Pioneer Engineering Co. received its firstexport order due to follo w ing re a sons :Product m et the client specific a tionsPrices w ere lo w er th a n the co m petitorsMr. Ver ma ha d Gu a ra nteed the qu a lity


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In 1979 Continued..Export order wa s i m port a nt for the Co m pa ny bec a use:To e a rn Foreign Exch a ngePrestigious N am eH igher profit a bilityBre ak fro m extre m ely co m petitive Indi a n ma rk et


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P ioneer Engineering Mazdoor Sanghy

Nam

e of the la

bour union of the Co.y Recognized under MRTU & PULP Act 1976.y It got recognition under the a ct in A ugust 1980 .y Led by Mr. R ama ni.y The union wa s the sole ba r gaining agent on

beh a lf of a ll w or km en for a ll collective ma ttersrel a ting to l a bour of the Co. for a period of t w oye a rs fro m the d a te of recognition.

y The role of other unions wa s li m ited to defendingtheir m e m bers during enquiry & courtproceedings.


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December 1979y Co. - declared a Bonus of 8.33% for the years 1978 &

1979.y In the year 1979, it received an export order worth 20

Cr.y Its annual turnover was 45 Cr.y Due to increased sales, the Co. declared a bonus of

20% & a wage rise of Rs.150 per worker.y The wage rate was not the leading among the other

engineering industries but the workmen were notdissatisfied with it.

y The declaration of 20% Bonus prevented the workersfrom being disenchanted with the Co. policy.


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J anuary 1980 to December 1980y The Co. was able to double its export for the year

1980.y Total turnover = Rs.70 Cr.

a) Export order = Rs.40 Cr.

b) Local Sales = Rs.30 Cr.y The Co. planned to maintain & improve its

performance.y

The co. did not raise the bonus or the wage rate.y This agitated a few workers.


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1981- Beginning of P roblemsJanuary

y A few disgruntled workers approached Mr.Bakshi, amilitant trade union leader to organise the workers of the Co.

y Mr.Bakshi had got for the workers in another

switchgear factory, a wage raise of Rs.350 to Rs.500+ an additional bonus of 10% over 20% maximumbonus payable under the Bonus A ct.

15 th J an:y A t the behest of Mr. Bakshi, workers started :

Go-Slow process andGot involved in cases of assaults outside the factory.


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Contd..

Mid Februaryy Management filed a complaint of Unfair Labour P ractice

against the Mazdoor Sangh.y Mr.Ramani, the P resident of the Mazdoor sangh asked the

Management to withdraw the complain & undertakenegotiations.

y The production came down to 40%y The leaders of the Mazdoor Sangh privately admitted that

they could do nothing as many workers were backing Mr.Bakshi.They also were careful in not putting a demand tothe management for recognition.

y Management thought it could not file a case againstMr.Bakshi as a person for the production loss.


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W orsening of problems25 th M arc h

y Gate meeting held by Mr. Bakshiy Criticized management for miserliness and heaping

misery on workers.y Said that workers were fooled by poor wage hike

and low bonus.y One of the leaders and signatories claimed that

Mr.Ramani was bribed by the management intosigning the agreement.T ill A ugus t

y Continuity of the Go-Slow process


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W hat did the Management think?y They wanted to keep the excess money for the

future growth and expansion of the Company.y P ained to see that workmen did not understand this.

W hat did the Recognised Union do?W hat did the Recognised Union do?y Obtained injunction from holding negotiations with

the Engineering W orkers A ssociation led byMr.Bakshi.

Mr.Shukla, theP

ersonnel Manager Mr.Shukla, theP

ersonnel Manager y Failed to give a satisfactory explanation of workers

behaviour.


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P ossible outcome of the agitation

y Severe penalty for the failure to fulfill the exportorder on time.

y Not in the long term interest of both workers and theunion.

Mr.Bakshis Stand:Mr.Bakshis Stand:y Demanded immediate negotiations and reopening of

the clauses in the agreement.y Refused to go to court for recognition.y Ready to make up for lost production only if

management agreed to their terms.


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Mr.Ramanis Opiniony Threatened management against legal action and

contempt of court.y Held management responsible for the current state

of affairs.y W anted to punish all workers disobeying orders of

the recognised union.y Had the support of hardly 20% of the workers.


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W here did the Union go wrong and W hat should havebeen done by them??

y The Union is the communication link between themanagement & the workers.

y Mr.Ramani, as a P resident of the Union for the Co.should have taken charge of the matter.

y

Mr.Ramani couldnt perform his job as a leader as themembers preferred to go to Mr.Bakshi ( P resident of theUnion of a competitors Co.) instead of him to putforward their demands.

y

Mr.Ramani failed to act on behalf of the workers as themanagement was not aware about the reason for unrestamong the workers.

y A s the sole bargaining agent for the workers, the union

could have done a better job.


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W here did the Management go wrong and W hatshould have been done by them??

y The Management should have paid the workers both,wages & bonus as per the industry norms, even if theworkers were satisfied with a lower amount.

y The management should have had strict rules for

workers going against the Mazdoor Sangh & supportingor joining militant trade unions.

y Employees are at the base of the pyramid & by payingthem less, the base of the company structure is

weakened. Because of alleged miserliness of thecompany the base structure is distorted, therebyaffecting the company reputation and profitability.W orkmen shouldnt have been taken for granted.


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Management Lessons Learnt

y The Management should pay what it is required to pay,no matter what! This helps to motivate the staff. Theymust be made to feel that their work is recognised andhighly appreciated.

y A ny union formed in a company acts as an intermediary

between the workers & the management. Hence theunion should have a regular communication processwith the management & workers so as to enable thingsto run smoothly.

y The Union leader should have all qualities of a goodleader. He should have a vision, integrity, dedication,humility, assertiveness and should be calm, confidentand committed to excellence.


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golden egg version 1

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