Escolar Documentos
Profissional Documentos
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Ameet Kr. Sinha(12PT-005) Prem Kumar(12PT-026) Maneesh D Singh(12PT-021) Gaurav Kr. Singh(12PT-018)
It is the world's largest manufacturer of motorcycles. It has more than 120 manufacturing units in across 30 countries for twowheelers production. Its the world's largest manufacturer of internal combustion engines measured by volume, producing more than 14 million internal combustion engines each year. Honda spends about 5% of its revenues into R&D
It is a wholly owned subsidiary of HMCL Japan. The company aims to manufacture world class scooters and motorcycles from this plant. The plant had a initial capacity of 0.1 million which was to be raised to 0.6 million by 2005.
The company in India wants to become the vehicle of change. Apart from a focus on good quality the company also wanted to keep a reasonable price.
Workforce in HMSI
1000
2000
Workers
Workforce Breakup
300 Confirmed Workers 1300
700
700
Contract Workers
Trainees
Apprentice
The trainees generally had a certificate from some or the other (ITI).
All trainees were generally taken by the company. 15% of apprentice use to get the job after the apprenticeship period was over. The company was believed to be a good paymaster. In October 2005 salaries of workers ranged from Rs 8150 for unskilled to Rs 11200 for skilled workers including Rs 2000 for house allowance. Also apart from these the workers were entitled for bonuses in the Diwali season.
Sports club for employees use at Sukhrali village in Gurgaon with indoor games facilities Football, volleyball,TT, carom ,chess matches organized against employees of other companies 2 sets of uniforms, 1 company cap, 1 pair of shoes provided to employees every year; same uniform for all including managers
Most HMSI workers not covered by Employees State Insurance (ESI) scheme under the ESI Act, 1948 as salary had crossed maximum salary limit for coverage Such employees covered by Paramount Health care facility ; reimbursement of hospitalization expenses Worker, his/her spouse & up to 2 children covered for RS. 75,000 each; workers parents covered for Rs. 1,50,000 each. Invited workers families for celebrating foundation day; later stopped with increase in workforce size. Support through cash payments on happy and sad occasions: Rs. 2,100 at birth of a child (max. 2 children) Rs. 3,000 on workers marriage Rs. 5,000 to family on employees death; Rs. 3,000 on death of spouse/children/parent.
Aligned with philosophy of parent company: HMCL though considered itself unique with some distinct employment & production practices. HMSIs philosophy had 2 fundamental beliefs: Respect for individual differences- initiative, equality & trust The Three joys joy of buying, joy of selling , joy of manufacturing Employees were called associates association promoted among all employees through similar uniforms and same canteen facilities for all. Induction programme involved acclimatizing employees to the Honda philosophy HR department expected to The Honda Way: human behaviour or way of thinking based on Honda philosophy.
Organize training programs for: Internalization of culture building and Honda philosophy Training for building team leaders TQM training; ISO 9000 training; 5S training Training dept. Supposed to be headed by an assistant manager; position lying vacant for a long time.
Works Committee (WC) constituted under Industrial Disputes Act (IDA), 1947 on 1st April, 2004 consisting of 15 workers and 5 managerial representatives Other committees: Canteen committee, transport committee, health committee, and sports committee. Management nominated workers for the communities based on perceived interest. 6-paged, quarterly newsletter: Dream Team Focussed on covering companys achievements in terms of awards, contracts, recognitions, quality certifications, list of new dealers and kaizen activities Very few employee related matters covered like sports competition results and news about marriages and childbirth related to employees No scope for workers expression through any letter to the editor.
July 30 : Truce between Mgmt & Workmen July 27 : Enquiry ordered by Haryana CM
Nov 2004
Dec 2004
Jan 2005
Feb 2005
Mar 2005
Apr - May : Efforts for forming Union; Gherao of Mgmt; Go-Slow
Apr 2005
May 2005
June 2005
July 2005
Aug 2005
Aug 1 : Back to Work
July 19 : DLC sends the Conciliation Report July 25 : Another Jallianwala sort of brute treatment of the Honda Workmen
1st sight for need of Unionization : Stringent Company rules e.g.:- movement sheet, leave policy Fear of Managements Authority Idiosyncratic attitude of VP-Manufacturing (Japanese) Charter consisting of more than 50 demands Help from local union leaders
The Whole Issue was covered by Media and the atrocities by the Police was highlighted and the incident was termed as Another Jallianwala Bagh. The act of Police was compared to that of General Dyers.
Clash between Police & HONDA Workers Dt. 25th July 2005
Workers meet Sonia Gandhi against alleged highhandedness of Honda management and the police
Workers resuming duty from Aug 1, 2005 No new demands during the next 1 year
Trade Union would continue to operate Reinstatement of 50 suspended workers & 4 Union leaders Right to conduct an enquiry into the case of 4 terminated employees Termination of any convicted employee (in court) No Work No Pay Principle to be implemented from June 27, 2005 Proper test to decide on the absorption of the trainees To be considered as Final Conciliation
Management:
Change in management attitude felt by union leaders; concessions allowed on various fronts Freedom of not working on shop floor for union leaders to take care of pending IR issues A small room allotted to union leaders with a promise of a union office in future Invitation to all 7 union office-bearers to discuss workers-related problems or issues Overtime working issues: lure of extra money; medical problems, workers not fresh overtime working was scraped in most cases
Management:
Practice of inviting workers family on founders' day revived family members invited to factory on company expenses in batches Diwali gift: Rs. 2000 & credit in bank account of Rs. 4000 as incentive bonus for all including managerial staff 09/09/2010: 'A shift' in assembly achieved its target of 1000 scooters for the first time after union formation. VP- Manufacturing, GM- Productions came to shop floor & commended achievement of workers; sweet distributed to all workers next day.
Union:
Police case against 63 workers including all 7 union leaders - contact different people to make sound defence Got all the trainees absorbed in regular work Ensured no domestic enquiry proceedings or transfer for the 4 dismissed workers Union leaders monitored worker-supervisor relations to ensure workers were treated better than before: number of memos to workers negligible far more positive managers' response towards leave applications 4 days' leave for Diwali => 4 days factory closed ; 3 day's compensatory work on Sundays/holidays hike in coverage of workers & their family members under medical insurance scheme :
Union:
Joined the nation-wide industrial strike against Central Govt's economic policies on 29/09; compensated loss by working on Sunday
02/09/2005: Authoritative and provocative behaviour of 2 supervisors and a senior manager A Union office bearer's views: company claims of respect for individuals & the 3 joys : merely bookish concepts Some senior managers creating distance between top management & workers HR manager prevents the union from meeting Japanese top management fearing exposure of their ulterior designs and motives
Only 20% managers treat union leaders as members of the company; rest have ego issues
No one bothered about analyzing the causes and possible solutions of shop floor problems in a practical & acceptable manner
Mgmt.s approach to practicing a non-union model made them blind to reality DID NOT LISTEN TO WORKERS Workers viewed Mgmt activity as coercive and repressive
The most effective functioning of the organization was achieved through the traditional principles of direction and control
The traditional managerial beliefs and practices concerning HRM resulted in structural contradictions between the hierarchical nature of managerial direction and control and the need for integration, consensus, and commitment
Management distinguished between market relations (wages, service conditions, etc.) and managerial relations (direction, surveillance, and discipline) and advocate a say for employees and trade unions in the former but not the latter (Fox 1966)
Honda lacked participation and grievance redressal which are the most critical determinants of organizational climate in India (B.R. Sharma, 1986)
Honda should have integrated HRM into the organizations mainstream with
Proper representation on all major decision-making forums/bodies;
between the Employees & the Management, upsetting the existing equilibrium per se had far-reaching consequences that were not easy to predict
Unitary
HONDA
Authoritarian Paternalism
Pluralistic
HONDA
Cooperation Conflict
Marxist
HONDA
Evolution Revolution
Approaches to IR Input
Conflict differences
Conversion
Institutions & processes
Output
Regulation (rules)
Social action
Comparative
Wider approaches
Management
Union
Government
Ideal Role
Actual Role
Lack of farsightedness
Ideal Role
Protect and promote interests of workers organizations & affiliates through cooperation strategies where feasible
Actual Role
It was not able to highlight the problems of the workers through the proper channel It was unable to check the actions of its union members resulting to major trouble It had a rigid stance and was nonnegotiable
Ideal Role
Manage the contradiction which arise in this relationship Strive for goal congruence between the employer, employees and Society
Actual Role
Power - protect/support through strength in association - a countervailing force, pressure group. Note: bargaining leverage & member willingness to act together. Economic regulation - maximize member returns within wage-work framework. Note: political nature of TU wage policy - comparability & differentials. Inflation & unemployment (cost-push & demand pull). Win bigger slice of national income. Job regulation - establish a joint-rule making system to protect members from arbitrary management action . Enable participation in decisions affecting their employment. Expand job opportunities? Social change - express social cohesion, aspirations, political ideology & develop a society which reflects this? Institutionalize class & conflict? Dilemma of participating in government. Member services - provide benefits/services to members Self-fulfillment - assist individuals to develop outside their job domain & participate in wider decision-making processes
India is governed by a Constitution that foresaw a welfare state and espouses the values of trade unionism and social justice
Government as facilitator
Protecting environment Gender issues Safety promotion Child labour abolition Medias role in new issues
Figure 16.6
Competencies development
Leadership matters Competent HR department is key Well crafted and communicated Mission and Vision Maintain channels of communication
Recruit and Retain Talent - right person In right job at the right time
The HRM-IR-HRD interface integration should be such that it should move away from the principle of direction and control to a system based on the philosophy of consent and commitment Being sensitive to human needs & human problems at work & beyond work
THANK YOU!!!