Discussion Questions & Solutions

1) According to you, what is the root cause of the problem in the

Malhotra episode and who is to be blamed for his present troubles?

The HR Policy of X-Look, a fast-growing textile company provided clear guidelines on how
the HR should function like direct recruitment for entry-level categories and senior managerial
positions to be filled through internal promotions.

Malhotra's contribution recommended Malhotra's name to Management for the post of Design
Manager when it fell vacant. This was duly executed by the HR Dept. and Malhotra was
appointed as the Design Manager surpassing the HR policies by treating it as an exception.
Here the problems started for both Malhotra and X-Look Company.

The promotion of Malhotra could have been handled in a better way. He was deserving the
promotion as highlighted in the case study. The HR Dept. should have consulted all
stakeholders before executing the management’s decision and communicated it with
appropriate reasons.

It is also the Management’s responsibility for setting the policies of the company and ensuring
that its practices do not have an adverse impact on day to day operations or violate ethical
standards.

2) If you had been Malhotra, what would have been your response
to these developments?

One can understand how demoralizing it would have been for Malhotra to find himself
removed from his new position & how it would be perceived and interpreted by everyone in
the company including his trainee batch mates whom he had surpassed by way of his work
performance to promotion. Malhotra resigned from his job voluntarily, quit the firm and found
his career to be in shambles for which he is to be also partly blamed by way of his actions

Malhotra should realize that resigning from the job and quitting the company is not the
solution. Even if he were to do so, he will have to start afresh in whichever other company, he
finds a job next. Chances are that prospective recruiters may also question his removal from
Managerial position in X-Look Company. They will not listen to negative reasons about X-
Look Company from him like internal dissent, lack of co-operation from other co-
workers, etc…Doubts may arise about the capability of Malhotra although that may not be the
case.

3) What steps should the management take to avert the recurrence

of such situation in the future?

Looking back at the Malhotra episode, X-Look Company realized that it had not properly
considered the human element involved in all its decisions concerning him and was merely
guided by the mechanical elements.

In order to better achieve its overall goals, the company should create internal
partnerships like labor-management-cooperation to improve flexibility, responsiveness, and
knowledge sharing amongst its employees.

Place special emphasis on a variety of approaches used to satisfy employees with differing
needs and expectations in order to reduce attrition and increase motivation. Examples include
personal and career counseling, career development and employability services, helping
employees develop learning objectives and plans. This could have been done in case of
Malhotra and thus pacified him and retained him. But lack of positive assurance action from
the company acted as a deterrent for Malhotra which eventually led him to take the decision.