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Group 13 - MSIL VS DR Reddy PDF
Group 13 - MSIL VS DR Reddy PDF
by GROUP 13
Ambuj Priyadarshi -064
Akanksha Patel -061
Chandana Sairam Charan -070
Timmasarthi Goutam -106
Hrishikesh Nikam -084
Synopsis
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
Manpower structure
• MSIL heavy relied on Contractual • Dr Reddy employed about 17,000
workers over permanent employees people around the world in various
• Out of its 18,911 manpower in 2011, it category.
had 8,554 workers on contract, which is • At Pdp plant, its 6th plant, 500
a staggering 45 % of total employees. contractual employees were engaged in
This led to Power shift in favour of various support function at plant.
Contractual workers. • The Management was Compassionate
• There was Different policies and huge to contractual workers.
benefit gap for contract workers.
Manpower characteristics
• The majority of workforce at Manesar • Workers age was between the range of
plant aged around 22-24. 25-60. Thus, there was an ample mix of
• There were no female workers contrary experience and youth.
to Gurgaon plant. • Pdp plant had 10% women of
• The education background of Manesar contractual worker. This reduced
unit consisted of illiterates or semi aggressive nature through gender
literatesworker. Not married not diversity.
responsible • Even though the contract worker who
• The workers had other sources of were involved in support function have
income, so were not much dependent not completed their high school, some
on job for survival. are exceptional.
• Thus, the young aggressive workforce • The workers were not having other
had no stabilisation from experience or source of incomes which is evident from
responsibility or gender diversity. the collecting 100-day food supply for the
rough and tough upbringing of Haryana strike.
culture further exacerbated the • All the Permanent employee had
problem. diploma degree or were post graduates.
Since, basic education requirement was
minimum ITI ,it helped as a restraining
factor from turning into Mob violence.
Proposed solutions
PRE-INCIDENCE:
• The employees of MSIL were disgruntled about unfair labour practices and high
handedness of the management.
Shift of worker between Gurgaon and Manesar plant would have redistributed
average income as income was age dependent, quelled dissents as less people would
have had lesser incomes owing to experience gap.
5 min extra for tea break should have been given which could be accommodated by
5 min earlier reporting and 5 min late work exit time. This would give overworked
workers time to rest and chat. They would feel that their demands are being heard.
Lunch time would have been extended as if required at a future period
Wage cut for late coming should have been on basis of hours late to total work hour
in a day, rather than arbitrary 50% cut.
Union should have been recognised and Management should have played a role in
supporting an experienced candidate whose approach could be of Buddha’s Middle
path.
• The contractual employee role was being becoming redundant in case of Dr. Reddy
due to mechanisation of process.
Management could have regularized high performers and put technical criteria on
further hiring owing to technology related progress. This was they could have
reduced regularization pressure and dealt with downsizing.
DURING INCIDENT
• Secret Payment settlement related to strike created distrust among workers at MSIL.
Instead of Theory E of management, Theory O should have been incorporated.
Employees should have been adopted. Reward system for helping in making process
back to track should have been adopted.
Employee roles should have been improved.
Management practices should be more focussed on grievances redressal.
• Some portion of contract workers can be retrained and regularized at Dr. Reddy.
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.
Also, the demand of 500 worker regularization should have been proposed to be
carried out in steps. As such if we reduce the number of dissenters the strength of
the resistance would also reduce. Then, negotiations could have been done with
having a certain advantage.
AFTER INCIDENT
For both MSIL and Dr. Reddy scenario way forward can be: