Bharat Vehicle Limited is a superstar company with an annual turnover of Rs. 8,000 crore. The company produces auto-rickshaws (sales – rs. 2,000 crore) and 2 wheelers (sales – rs.6,000 crore) and enjoys a 60% market share. It has got 40,000 employees (12,000 at the Pune plant, 24,000 at Jamshedpur plant and 4,000 at its Mumbai Head Office). Company’s sales are handled by the head office employees. Each location has got a separate personnel department, without any common employee policy for the company as a whole.

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Presently, interdepartmental and inter locational transfers have become difficult, due to the varied labour policies. Decision-making has also slowed down due to high bureaucracy in the organization, on account of too many employee levels and time consuming style of reporting.

The pune plant manufactures rickshaws, whereas 2 wheelers are manufactured at Jamshedpur. It is been found out that, both Pune and Mumbai have surplus labour. The company does not have any regional area offices to coordinate sales. Supplies to customers are directly made from the plants, as per the instructions from the HO. This has caused delay in supplies, mismatch between customers requirements and supply from plant, delay in recovery etc.

Training requirements, promotions etc are decided by HO, without the active role of locational personal department. These personal departments are handling only wage payments, transfers, disputes and other welfare schemes.

Research and development has been totally neglected. There is no system to recharge the creativity of the employees. Overall work-culture in the organization has deteriorated, due to loose control and low motivation. Size of the company has also created the problem of unmanageable units of operations.’

Q.

Re-organize the company, for the effective and efficient use of its human resources.

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