Human Resource Management is the process of managing people in an organization in a structured manner. HRM is the art of managing people in an innovative way. HRM covers staffing, retention, pay and perks management, performance management, change management and taking care of exits from the company.
Here we present Human Resource Management Case Study No. 2 For Practice:
In one public sector undertaking with a chequered past, a line manager was appointed as the Chief of Personnel. Within a year after taking charge, he had to sign a wage agreement with the workers union. The union at that time was dominated by non technical staff. The union’s charter of demands favoured the interest of the dominant members group. It asked for a significant revision in gardeners pay, but was not equally vocal in pressing for the increase in the pay scale of the workers in certain technical grades. The management conceded these demands because the union cooperated with them in keeping the burden of the pay revision well within the guideline of Bureau of Public Enterprises (BPE).
Once the agreement was signed and communicated to the employees / members by the management and the union respectively, there was commotion among the technical employees. They walked out of the union and formed a separate technical staff union. They marched round the company premises holding the placard which read, “Here grass cutters get more than the gas cutters.” In the engineering assembly unit till the pay revision occurred, welding was a highly rated job. But not any longer.
Q.1) Was the action of the union management justified and why?
Q.2) If you were in place of the management, what factors would you like to consider before finalizing the wages?
Q.3) What will be your strategy as the HRD Manager to guide the organization to meet the challenges?