People-Management Fiasco People-Management Fiasco at HMSIat HMSI

Presented By: Group 8Presented By: Group 8

J. Satheesh Kannan(23NMP 40)J. Satheesh Kannan(23NMP 40)

Naveen Kumar (23NMP 42)Naveen Kumar (23NMP 42)

Saugata S. Sarkar(23NMP 44)Saugata S. Sarkar(23NMP 44)

Tanweer Alam(23NMP 47)Tanweer Alam(23NMP 47)

Q11. NEW IR ISSUES THAT HMSI MUST FOCUS ON SO AS Q11. NEW IR ISSUES THAT HMSI MUST FOCUS ON SO AS TO PURSUE IT’S PEOPLE MANAGEMENT STRATEGY IN TO PURSUE IT’S PEOPLE MANAGEMENT STRATEGY IN POST JULY’2005 SCENERIO.POST JULY’2005 SCENERIO.

Building of trust, transparency and fairness in Building of trust, transparency and fairness in organizational working. organizational working.

Enhance employees commitment to the organization.Enhance employees commitment to the organization. Creating sense of belongingness among employees.Creating sense of belongingness among employees. Creating a transparent, effective & fast grievance redressal Creating a transparent, effective & fast grievance redressal

system.system. Providing platform to employees to express their views, Providing platform to employees to express their views,

suggestions & job related issues.suggestions & job related issues. Sensitizing of Managers towards IR issues.Sensitizing of Managers towards IR issues.

Q12. PRINCIPAL CAUSES OF TROUBLE HMSI FACEDQ12. PRINCIPAL CAUSES OF TROUBLE HMSI FACED

Workers felt a sense of betrayal on comparing themselves Workers felt a sense of betrayal on comparing themselves with their neighbouring company Hero Honda.with their neighbouring company Hero Honda.

Wide gulf between its projected HR policies and actual Wide gulf between its projected HR policies and actual practices.practices.

Due to cross cultural differences Japanese Management Due to cross cultural differences Japanese Management did not understand Indian Worker’s psyche.did not understand Indian Worker’s psyche.

Reluctance of HMSI management for formation of union.Reluctance of HMSI management for formation of union.

Q13. Key Challenges Post July 25 ScenerioQ13. Key Challenges Post July 25 Scenerio

Creating congenial atmosphere between management & Creating congenial atmosphere between management & employees & promote interpersonal sensitivities.employees & promote interpersonal sensitivities.

Building of trust, transparency and fairness in Building of trust, transparency and fairness in organizational working.organizational working.

Upgrade skills of employees by identifying their training Upgrade skills of employees by identifying their training needs.needs.

Promote open channel of communication to build trust & Promote open channel of communication to build trust & commitment, & allay the fear from the mind of workers.commitment, & allay the fear from the mind of workers.

Train managers to transform them into enablers, Train managers to transform them into enablers, empowerers & facilitators rather than enforcers of rules & empowerers & facilitators rather than enforcers of rules & regulations.regulations.

Q14. HRM Strategy followed at HMSI & Reason for Q14. HRM Strategy followed at HMSI & Reason for differences from it’s global HR strategydifferences from it’s global HR strategy

HMSI:HMSI:Hard HRM Strategy followed at HMSI:-Hard HRM Strategy followed at HMSI:- Views employee as an commodity/resource to be Views employee as an commodity/resource to be used/deployed for productionused/deployed for production

Honda Global:Honda Global:Global HR strategy of Honda is Soft HRM:- Global HR strategy of Honda is Soft HRM:- emphasizes on employee being “resourceful (as against just emphasizes on employee being “resourceful (as against just being a resource) and a major source of competitive being a resource) and a major source of competitive advantage .advantage . Employees called as AssociatesEmployees called as AssociatesHonda Global HR philosophy consists of two fundamental Honda Global HR philosophy consists of two fundamental beliefs:beliefs:1.1.Respect for the individualRespect for the individual2.2.Three joys- joy of buying, joy of selling and joy of Three joys- joy of buying, joy of selling and joy of manufacturingmanufacturingDifference in pursuit of Global and local strategy : may be due Difference in pursuit of Global and local strategy : may be due to cross cultural misunderstanding of Indian workers’ psyche by to cross cultural misunderstanding of Indian workers’ psyche by Japanese top mgmt. Japanese top mgmt.

Q15. Failure of Strategy and causal roots of Q15. Failure of Strategy and causal roots of breakdown of IR in HMSIbreakdown of IR in HMSI

Management wanted to pursue a non union model but failed Management wanted to pursue a non union model but failed to devise and implement an appropriate HRM strategy.to devise and implement an appropriate HRM strategy.

Wide gulf between its projected HR policies and actual Wide gulf between its projected HR policies and actual practices.practices.

Cross cultural differences along with highhandedness of Cross cultural differences along with highhandedness of Japanese top management complicated situation more.Japanese top management complicated situation more.

Workers noticed a high incentive difference between HMSI Workers noticed a high incentive difference between HMSI and Hero Honda which led to heartburn among workers.and Hero Honda which led to heartburn among workers.

Managers conducted themselves like autocrats and abused Managers conducted themselves like autocrats and abused their authority which aggravated the situation more.their authority which aggravated the situation more.

Non availability of suitable grievance readressal forum led Non availability of suitable grievance readressal forum led to piling of grievances.to piling of grievances.

Management caught unawares when accumulated Management caught unawares when accumulated grievances made workers hostile and they tried to form a grievances made workers hostile and they tried to form a union which was also vehemently opposed by mgmt.union which was also vehemently opposed by mgmt.

Lack of transparency and trust Lack of transparency and trust

Q16. People management strategy that Q16. People management strategy that HMSI should adopt to come out as market HMSI should adopt to come out as market leader in two wheeler segments.leader in two wheeler segments.

HMSI should adopt HMSI should adopt Empowerment /Soft HR Empowerment /Soft HR strategy strategy to promote harmonious working and cooperation to promote harmonious working and cooperation with employees:with employees:

Keep employees informed about business issues and Keep employees informed about business issues and performance.performance.

Encourage employees to contribute ideas and involve them in Encourage employees to contribute ideas and involve them in decision making.decision making.

Give employees autonomy and meaningful work experiences.Give employees autonomy and meaningful work experiences. Make them feel valued and personally recognized.Make them feel valued and personally recognized. Create an atmosphere of trust, transparency and fairness in Create an atmosphere of trust, transparency and fairness in

organizational working.organizational working. Introduce PRP related incentive scheme to encourage superior Introduce PRP related incentive scheme to encourage superior

performance from the employees and reduce the idle time.performance from the employees and reduce the idle time.

Q17. Lessons from the caseQ17. Lessons from the case

Not to neglect the slightest sign of discontentment among Not to neglect the slightest sign of discontentment among employees & address their grievances on priority.employees & address their grievances on priority.

Understand cross cultural differences of foreign country Understand cross cultural differences of foreign country & modify it’s HR policies accordingly.& modify it’s HR policies accordingly.

Management to follow a proactive welfare measures Management to follow a proactive welfare measures commensurate commensurate with the existing standards in the with the existing standards in the industry.industry.

Training needs of employees and managers should be Training needs of employees and managers should be identified and appropriate measures to be taken to identified and appropriate measures to be taken to address the same.address the same.

Treat the employees as treasure & not as commodities.Treat the employees as treasure & not as commodities.