The incidence at MSIL was a management union problem incidence related to contractual

work. The incident broke into a mob violence where 1 person die, 100 executives were
severely injured and there was huge loss of equipment and damage to property. While the
incidence at Dr. Reddy too included management union problem but there was no mob
violence and large-scale property damage. It involved labour strike owing to issues with
contractual employment. Both the case studies talk about the actions taken by the
management to resolve the issue

MSIL Dr. Reddy

Nature of the incident occurred
 The incident was the worst incident in
the company’s industrial relations (IR)
history.
 1 HR chief was burned alive, injury to
nearly 100 managers including
Japanese expatriates. The entire
administrative block was reduced to
ashes. Cars on production line and
parked outside were damaged. Security
cameras were destroyed.
 MSIL shares slumped by 8.9% the next
day. Per day loss was estimated at 70
crores. The total loss of 2012 was
estimated at 2500 billion .
 The incident was happen at pdb plant
in Andhra Pradesh of Dr reddy group
and is motivated by regularization and
pay hike for contract worker.
 This incident lasted for 100 days and in
this involve not only the worker but
their family as well as children in
hunger strike and demonstration and
on other side also involve organization
leadership.
 This demonstration involve loss for
both companies as well as workers
because of this Dr reddy has lose
300million in business and the worker
lose 10 Mn in salaries and lived under
pressure from families and constant
pestering by money lander and fear to
become irreverent to organization.

Time frame & Place of occurrence

 The incident occurred on July 18,2012  Pdb plant Srikakulam district of Andhra
in Manesar, Haryana. Pradesh. Started from February 2011
Nature of the organization & business
 Manufacturing organization. Its  Pharmaceutical company that manages
automobile industry so mass the entire value chain from
production. Volume.Keep cost low manufacturing APIs for producing drug
 India based production product to finish drugs.
 Pro- production based .  Market Russia, middle east, Mexico and
united states.
 API ingredient come from china
majorly.
 Performance governed by US license.
Management Structure
 Suzuki, a Japanese company, had a  Predominantly India
majority share in MSIL. All the top-level
managers, the decision makers, were
Japanese. Senior and operation level
managers were Indian.
 Even the Crisis management task force
comprised of 2 Japanese and 1 Indian.
Manpower structure
 Contractual over permanet employees
 18,911 manpower. Contactual 8554.
Almost 45%
 Power gain. No different policy .benefit
gap huge
Manpower charcteristics
 The majority of workforce at Manesar
plant aged around 22-24.
 There were no female workers contrary
to Gurgaon plant.
 The education background of Manesar
unit consisted of illiterates or semi
literatesworker. Not married not
responsible
 The workers had other sources of
income, so were not much dependent
on job for survival.
 Thus, the young aggressive workforce
had no stabilisation from experience or
responsibility or gender diversity. the
rough and tough upbringing of Haryana
culture further exacerbated the
problem.
Union structure, Management-Union relationship
 The Manesar union was not recognised
by MSIL while recognising Gurgaon
workers’ union.
 The Manesar union had a young
leadership with no political party
support. They lacked IR experience.
This led to problem in control of
agitation ultimately leading to mob
violence.
 The management union relationship
had huge communication gap. There
was no participatory decision making
process. The Indian manager didn’t
listened to workers grievances.
 After the management sponsored
candidates lost to nominees of jailed
union leader there was almost a
complete rift in relation.
Management practices
 Dr Reddy employ 17,000 people around
the world in various category.
 At Pdp plant 500 contractual employee
who were engaged in various support
function at plant.
 Compassionate to contractual labours
 Permanent employee with diploma
degree and post graduate.
 The contract worker who were involved
in support function have not completed
their high school some are exceptional.
 Tactful use of senior people such as
village head to convince worker to stop
demonstration.
 Minimum ITI. Helps as restrain
 10% women of contractual worker.
 Less aggressive, Diversity Stabilizing.
 Leftist and less aggressive ideology.
 Worker age is between the range of 25-
60.
 Always willing to listen to worker.
 Take proactive action.
 V. Narayan Reddy senior director
coordinates the relation ship between
management and union and
management is empathetic about the
contractual worker and know how to
Handel IR relation.
 Where as the union CITU was backed
by TNTCU which lost support in recent
election so with aspiration to get
control and power as the region have
highest no of contractual worker
started picking their issues. CITU
headed by Govind rao.
 And V. N. Reddy and Govind rao shared
a friendly relation.
  The management practices at MSIL can
be described as mechanistic and
authoritarian.
 The tight work schedule led to stressful
work under already harsh conditions.
Only two tea breaks of 7.5 min and one
30 minute lunch break were allowed. A
worker would lose his half day salary
for being a little late. He can’t also talk
to his colleagues during work.
 Earlier strikes were settled by secret
payments which made workers angry,
betrayed, defeated and disillusioned.
 Humanistic
 Management from their side doing
their best to provide support to this
contractual worker.
 Management is open for two way
dialogue.
 Organization was proactive in insuring
compliance with Indian statuory norm
for contractual worker.
 such as employee state insurance and
provident fund.

Action taken
 The corrective measures were  Police is only involved to control the
punishment based aimed to discipline people when they are pestering
and teach lessons. There was company permanent employee and
involvement of police and lathi charge. there was no such violence involved.
Disciplinary action were taken for  Police was involved to make this
inconsequential events. stalemate to end as the unrest in this
 There was differential treatment for region will discourage further industrial
worker and executives in Jiyalal’s case. development and defame the image of
He was suspended for misconduct; region.
even when he was at the receiving end
of cast-related slur and had full right to
enjoy his tea break.
Cross-cultural issues
 Haryana culture has a higher degree of There is no cross cultural issue.
conflict characteristic. People get easily
provoked and pay less heed to logic or
settlement.
 Hofstede’s culture dimension model
clearly shows that the Japanese
management goals was at loggerheads
with the workers expectations in
criteria of power control, masculinity
and long-term orientation. This led to
huge worker dissatisfaction.

What solution u will offer

1. Pre incident --- Initially there should have been willingness of company Dr. Reddy’s to provide
safety measures to contract workers.

2. During incident— Some portion of contract workers can be retrained and regularized. Better
communication between company and contract workers and approach to mitigate the situation in
the starting phase. It should have been clearly communicated to unions that they should think about
betterment of workers and not adhere to their agenda at any cost.
3. After incident -??????????

Haryana sex ratio, women representation

cross cultural issue address

Enable culture for engagement

HR strategy to align with business strategy

Worker discontent

Work life balance

Passion for work develop

Competency develop HR. devised same HR wrong