Rediff Pharma

Shiv Sharma is the C & MD of a medium size pharmaceutical company manufacturing

life saving drugs. The organization has been growing consistently though not at the rate
at which it should.

Shiv Sharma is a graduate from a reputed management institute and after working for 5
years in a multinational, branched out on his own. He is young and enthusiastic and
wants his organization to be one of the top ranking companies. He is highly ambitious
and always looking for challenges.

Shiv Sharma has young management graduates working with him, whom he recruits
personally and in the process, has developed a team of bright youngsters. Shiv runs a
"tight ship” and expects all his employees to give their 100 percent. The company does
not have a turnover problem, but it is obvious to Shiv and the key management personnel
that, these bright youngsters are only putting in eight hours a day. They are not working
anywhere close to their full potential.

Shiv is very upset with the situation, because with the competition all around the only
way that the company can prosper is to increase the productivity and efficiency of its
manpower. He called the HR Manager, Sonal Rai, and laid it on the line: “What is it with
our people? We pay them near the top in this market; our conditions are the best. Yet
these blokes are not motivated. What do they want?”

Sonal also decided to be frank and replied: “I have told you again and again that money
and conditions are not enough. Employees also need other things to motivate them.
Besides, on talking to some of them, they informed me that they were in fact discouraged
and fast loosing interest in their work.”

This came as a rude shock to Shiv and he was highly perturbed about it, he decided to
investigate this issue further he asked Sonal to have a meeting with the employees.
(contd.)


Nina Muncherji prepared this case as the basis for class discussion.
Copyright © 2000 by the Nirma Institute of Management, Ahmedabad.
Sonal organized a meeting with some of these employees and talked to each one of them
individually. After their discussion, she realized that one of the problem was that most of
the employees were of the opinion that no matter how hard they worked, they got the
same pay and opportunities for advancement as their coworkers who were just scraping
by.

Some other comment made were, “5% overtime is hardly an incentive”.

“Getting a raise is not that important to me; it just isn’t worth the effort”.

“You break your neck working for Shiv, but the chances are you won’t get anything in
return”.

“All that Shiv does is drive us like a horse and then hurl abuses”.

(contd.)
Discussion Questions for “Rediff Pharma” Case:

1. Explain the motivation problem in terms of Maslow’s and Herzberg’s Theories. What
are the “other things” that the HR Manager is referring to in speaking besides money
and conditions, that are needed to motivate employees?

2. On the basis of the discussion Sonal had with the employees, what would you guess
are some of the expectancies, valences, and inequities of the employees in this
company?

3. Do you think Shiv’s personality and behaviour is in anyway responsible for the
situation?