Human Resource

Management
 Summary of Session 10
• Organizational leadership development programs depend upon the
alignment between philosophy (broad vision of organization
regarding desired leaders); formal policies and informal practices
• Success of leadership development programs depend upon the
alignment between market trends, organizational values and
individual needs
• Organizational values and philosophy of leadership must be aligned
with each other
• If the organization is perceived to lack a strong system of values, it
is unlikely to show the resilience required to recover from adverse
market shocks (something that seemed to happen with GE)
Synopsis of Case: We are Katti

• Precision Parts Limited (PPL):

• Auto components manufacturer
• Set up as a JV
• Reputed as a model employer
• Employs 1,500 unionized workers; 250+ managers and
1,000 contracted workers
• Dispute regarding absorption of trainees led to
dismissal of union’s general secretary and half-day
pay cut for 130 employees
Synopsis of Case: We are Katti

• Post the disciplinary action:

• Relations between union and management have become
frosty
• Productivity per employee has declined
• Employee initiative is reduced
• Employees engaging in ‘Work to rule’
 Dilemma

• Short-term Dilemma: How to handle the frosty

relations caused by management action?
• Long-term Dilemma: How to leverage the
workforce to develop a competitive advantage?
• Decision-maker (Level 1): HR Head, PPL
• Final Decision-maker: CEO, PPL
 Employee Rights-related
Concepts
• Psychological contract
• Implied contract
• Explicit contract
• Employment-at-will relationship
• Constructive discharge
• Discharge as a result of retaliation
• Wrongful discharge
• Whistle-blowing
 Discipline

• Discipline: Tool, used to correct and mould the

practices of employees to help them perform better
so they conform to acceptable standards
• Disciplinary actions should be taken only for justifiable
reasons
• Employees should be treated fairly and consistently

Copyright: Cengage Learning

Disciplinary Model

Copyright: Cengage Learning

 Relevant Laws

• Trade Union Act 1926

• OSH Code
• CLRA Act 1970
 Relevant Laws

• An employee can only be terminated without notice

or salary in lieu of notice in cases of misconduct. To
terminate employment for misconduct it is essential
to establish the misconduct through a disciplinary
enquiry that is held for such purpose in accordance
with the principles of natural justice. (Source:
https://www.lexology.com/library/detail.aspx?g=1d0
2a20d-8c07-4f8a-9ad3-ed4c71d42c0c#:~:text=An%
20employee%20can%20only%20be,the%20principl
es%20of%20natural%20justice
)
Grievance Procedure

11

Copyright: Cengage Learning

 Options: Short Term Dilemma

• Do Nothing
• Rescind all disciplinary actions
• Continue with termination but give half-day wages
• Rescind only termination if GS apologizes and union
agrees not to picket contract workers
• Rescind both termination and pay-cut if GS
apologizes and union agrees not to picket contract
workers
 Parameters: Short Term
Dilemma
• Productivity
• Employee costs
• Organizational flexibility
• Curbing future unrest
• Legal tenability
• Projecting strength
 My Option

• Rescind only termination if GS apologizes and union

agrees not to picket contract workers
• Action would be difficult to sustain legally
• Employment of contract workers can help reduce wage bill
• Low morale can lead to turnover an workers also have
options
• Apology and agreement would project management’s
relative power and magnanimity
 Options: Long Term Dilemma

• Do Nothing
• Go for a contract-heavy workforce
• Continue with pro-worker policies and practices
 Parameters: Long Term
Dilemma
• Profitability
• Sustainability
 My Option

• Go for a contract-heavy workforce

• Empirical evidence suggests that contractual employees
can be paid less and exploited more in terms of working
hours
• The lack of bargaining power enables organizations to
enforce rules and maintain organizational peace
• The political climate in the country supports
contractualization despite laws to the contrary