Case Study summary - Term Paper Example

Summary Beginning of the year 2006 was a time of confrontation for the president and chief executive officer of Honda Motorcycles and Scooters IndiaLtd (HMSI).He was in a position of re-establishing the worker’s confidence, goodwill and productivity of the company. His target was to increase the gurgoan plant’s productivity to 0.6 million motorcycles and 1.2 million two wheelers by 2007-2008. HMSI being a subsidiary of Honda Motor Company Limited employed 3,000 employees and had the capacity of producing 1, 00,000 scooters per year.

The company had staff performance appraisal program and believed in giving satisfaction to both staff and customers. Company provided many benefits to its workers which ensured a smooth running of the organization. However, problems aroused among employees with an issue of diwali gift and also gradually other problems started appearing slowly. The issues were relating to break, granting of leave, hostile attitude of workers etc. Eventually, company offered a raise in salary which was denied by the workers.

Also some indiscipline behavior from the workers made the situation worse. The workers formed a union in due course and there was an attempt of conciliation between the company and workers which resulted in failure. With the onset of disruptive conduct from workers, the company banned the entry of workers to the company premises. A clash between police and employees occurred and all this led to a decrease in the productivity of the company .Ultimately, with the involvement of minister of haryana the situation in company got back to normal .

The unrest among workers brought about a big damage to the productivity and goodwill of the company. The company had a big shock due to its damaged goodwill and declined productivity and this left the CEO of the company skeptical about his future growth. The key factors that led to the breakdown of industrial relations at HMSI. Poor management skills of the company Inappropriate incentive and compensative package Less competitive managerial staff Inefficient job description. Lack of proper training program.

Lack of understanding between managerial level and workers. HRM strategy used by management and the factors lead to its failure. The company introduced week long drives in which application of henna tattoos resembling the HMSI logo was made. In two of the road shows, company even introduced two of its popular scooter models namely: Eterno and Unicorn.A meeting was also organized between top level management and departments heads to normalize the situation. A senior manager was appointed for the training department and proper training program was also initiated.

All these attempts failed because the understanding and treatment of the management towards workers were poor. Cross-cultural issues critical to a turnaround of a company like HMSI The prime cause of the pathetic position of the company was due to the fact that the managerial level and workers shared a cultural indifference. The managers were not in a position to understand the emotions of the workers and could not hold a proper communication with them. Lack of communication along with less cultural unity gave rise to all root problems.