HUMAN RESOURCE MANAGEMENT

ROSHAN KUMAR SAHOO (PGP/1244/06)

SEC: B
SUBMITTED TO : Dr. Teena Bharti

1.Discuss what were the causes of the industrial relation violence?

Maruti Udyog Limited, which started in 1983, had few issues with its labour relations. The
Japanese working culture and the advanced production methods were embraced by the local
employed workforce. With the change of ownership in 1997, Maruti came under the jurisdiction of
the government. The disputes between the United Front Government and Suzuki began from
there on. Under the leadership of the government of the Union, labour issues began. A major
industrial relations problem started in the year 2000, and the workers of Maruti Udyog went on an
indefinite strike, demanding drastic changes to their salaries, incentives, and pensions. In Oct
2000, workers reported a 'slowdown' to force a shift to their salaries and benefits. A newly
established central government led by the NDA alliance took command after the elections; the
new management proposed to sell part of its interest in MS in a public offering from a red herring
perspective in line with the disinvestment strategy.
The employees opposed this public offer proposal because the company would lose a
substantial business profit from being subsidized by the government and because the employees
are well covered under the control of the Govt. The cold war continued through 2001 between the
labour union and the management. Due to increased competition in the car manufacturing
industry, the management did not pay attention to the demands of the labour union. In 2003, the
Indian government prevailed and privatized the company. 51% of Suzuki became the largest
shareholder and 51% of the government
 Twelve percent. Labour strife began with Gujjar, a local labour leader, at the Manesar Plant in
late 2011 and early 2012, demanding the right to form an alternative labour union due to the non-
alignment of a large section of employees in the current organization. By sending off Gujjar and
twelve others with a Golden Handshake method that lacked clarity, the problem was solved in a
very sly way by the management. This left the union strife as a whole and contributed to the
event.

2.Do you think that if the HR strategy would have been aligned with the
business-strategy?
The entire scenario would not have seen the light of the day? Substantiate your
responses?

Groups of employees organized the entire incident, the Maruti Manesar plant was set on fire
on 18 July 2012, and higher management was selectively targeted and killed. The active
involvement of the Human Resources department in resolving the conflict and recognizing the
heat under the suspension of one of the contract staff handling was one thing that was missing in
the entire case. If below the pyramid staff had given importance and ears to their dilemma, the
whole event would not have occurred. The situation is a prime example of a lack of contact
between the superior authorities and the work force.
The HR should have been interested in setting the corporate plan, and the organization is
going faster than ever today. This evolving society has an immense effect on jobs. If the whole
team is buying-in, targets are more realistic while working in lockstep with the rest of the business.
The organization set a goal of beating the mass recruitment of rivals at lower salaries, creating an
effect on employee life that results in unrest. Because of this, after the company started
operations in India in 1983 and one of the most heinous industrial crime in the history of India, the
group of employees who had control over others were involved in the threat and thus triggered
this worst event for Suzuki.
3. Being the Ethics officer at Maruti-Suzuki, this issue came to you. In your
capacity, how will
you deal with the entire fiasco. What suggestions can be provided in order to
avert any such situation?

It is apparent from the reading that the whole problem is triggered by a lack of contact in the
organizational pyramid structure. I would have arranged a meeting between the parties in conflict
if I were an Ethical Officer. A democratic structure has disagreements and not conflicts, according
to the General Principle of Dispute and Conflict Resolution, which can then be settled by the
process of dispute resolution. I would have held daily meetings with the union to make them
understand the new business development and would have gone for a tradeoff in negotiating their
demand. While the company notes that the problem was not compensation and was more about
the suspended worker's reinstatement, a cross-table conversation would have helped avoid this
scenario in that case.