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Copy of People Management Fiasco in Honda Motorcycle and Scooters India Ltd (HMSI)

Author: Debi S. Saini Presentation by: Anna F. Garcia, Kurt Peterson, Elena Schwem, and Dawson Wiginton

gurpreet kour

on 16 January 2013

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Transcript of Copy of People Management Fiasco in Honda Motorcycle and Scooters India Ltd (HMSI)

People Management Fiasco
in Honda Motorcycle and Scooters Presentation by: Anna F. Garcia
Kurt Peterson
Elena Schwem
Dawson Wiginton Post-unionization Human Resources strategy. Human Resources course of action...

Restore dignity to a demoralized workforce.

Address management failures. Objective #1 - Restoring employee dignity at HMSI. HR managers will adopt an open door policy in order to increase approachability and hear any supervisor-worker grievance. This policy will hold leaders accountable for their actions and ease tension at HMSI manufacturing plants.

Objective #2 - HMSI Leadership: Hiring, Firing, and Training. By addressing past managerial failures the HR department will harmonize it's frustrated and recently disorganized workforce. Fresh managers unmarred by the July 25th Incidents will be more effective in restoring worker initiative and is in good taste considering HMSI's tarnished reputation.

Leadership training for the up and coming managers will cover improving efficiency through use of Honda corporate philosophies. Provisions of Indian Industrial Relations Law
That May Have Been Violated by HMSI Management Factories Act of 1948
Trade Union Act of 1926 Industry Disputes Act of 1947 Concerns the health, safety, and welfare of workers Worker not granted permission to use the restroom HR Fundamental beliefs:
1. Respect for the individual differences
2. “The Three Joys:
Joy of buying
Joy of selling
Joy of manufacturing
KEY FACTORS LEADING TO INDUSTRIAL RELATIONS BREAKDOWN AT HMSI *There was a strong lack of corporate intervention in poor management practices at HMSI.
*Actions taken by management were both demoralizing and disrespectful on many levels.
*No formal medium for production workers to voice concerns and complaints directly to corporate.
*Advancment opportunities were sharply limited by favoritism/partial treatment. (Corporate unaware) HRM Strategy:
Authoritarian Leadership Style

HRM Strategy:
Coercive Power

* Although management can be stressful, it is never appropriate to make physical contact with an employee in repremand or as an expression of dissaproval.
*Cultural sensitivity from expatriate managers is imperative for maintaining positive employee morale.
*Addressing grievances and complaints in a timely and efficient manner would have been a cost effective measure in curbing the formation of the union. HR Failure:
Lack of greivance panel
Lack of proper arbitration
Violation of human right: bathroom break
Absence of fair discharge procedures
Absence of severance packages
Bias appraisal system
Lack of chance on feedback
Forced overtime under HMSI's policy of overstay to meet production targets Workers denied of leave, regardless of seriousness of the circumstance (illness, serious obligations, etc.) Instance when VP of Manufacturing
Allegedly Kicked a Worker in the Leg Management Ignored Grievances from Workers Welfare of Workers Neglected Guarantees the rights to form trade unions and for collective bargaining. Management lobbies with the Haryana Government Management attempts to prevent union from successfully registering Union tries to register under
the Registrar of Trade Unions in Chandigarh Registrar denies registration of union On grounds that it was "initiated in bad taste" "Would result in disharmony of relations" "Detrimental to the growth and development of the industrial belt in and around Manesar" *The Diwali gift offered to HMSI employees
did not compare with the gift
given to a rival Indain Honda subsidiary *Movement Sheet and strict restroom break protocol percieved as micromanaging/unfair.
*Termination of employees for restroom break emergency bad for morale.
*Unacceptance of valid excuses for employee absences underminded all efforts taken by Corporate in providing family like atmosphere.
*Lobbying against the formation of the Union when tempers were already at a critical point may have been unadvisable. Problems and Solutions
*The Japanese Manager's actions *Lack of advancment mobility
* Poor local management practices HMSI Management restricted workers from entering the facility. Occurred while outcome of conciliation proceedings were pending Management dismissed employees without notice or indicated reason
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