Post on 18-Jan-2015
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Human Resource Management
(Industrial Relation) Presented By:-
Shruti S. Poddar - 24
What is HRM???
• Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization
• It is also a strategic and comprehensive approach to managing people and the workplace culture and environment.
Areas of Implementation of HRM
Recruitment
Selection
Employment Legislation
Discipline
Development
Training
Rewards Systems
Trade Unions
Productivity
Industrial Relation• Industrial Relation is the relation between 2
parties:-– Employer & Employee connected with industrial
activity.– Management and Employees and vice-versa.
Industrial Relations
Industrial Conflicts Industrial Peace
Industrial Relations of Maruti
• Maruti Udyog Ltd was founded in 1983. Later on it merged with Suzuki Motor’s in 1982.
• In 1997, there was a change in ownership, where it became Government controlled.
• Conflict between United Front Government & Suzuki Motors.
• From 2000 onwards, there were many strikes and lockouts which have continued till date.
Manesar Violence – 18th July,2012
What exactly happened on this
fateful day???
Incident • Workers started a fire, that killed the HR Manager and
100 injured.
• 2 Japanese officials were injured.
• The violent mob injured 9 policemen.
• The hands & legs of the HR General Manager Awanish Kumar Dev were broken, as a result he could not move, & the building was set ablaze and was charred to death.
• Factory building and many cars were burnt.
Cause of this violence - Demands not met of the
workers. Manesar Union had demanded the following:
1. A five-fold increase in basic salary2. A monthly conveyance allowance of Rs 10,0003. A laundry allowance of 3,0004. A gift with every new car launch5. A house for every worker who wants one or cheaper home
loans for those who want to build their own houses.6. 4 paid weeks of vacation be increased to 7 weeks7. Each worker have 40 days allowance of sick and casual
leave - for a total of 75 days.
Other Causes of Violence• A supervisor had abused and made discriminatory
comments to a low-caste worker.• Workers union demanded the reinstatement of a
worker who had been suspended for beating a supervisor.
• Harsh working conditions and extensive hiring of low-paid contract workers.
After Effects of the Violence• An FIR was filed with the police.• 91 employees were arrested & 55 accused were searched.• The recorded CCTV footage has been used to determine the
sequence of events and people involved.• All work at Manesar plant was suspended indefinitely.• Lockout was called & payment for 2000 employees working at the
plant.• The shut down of Manesar plant is leading to a loss of about Rs
90crore per day.• Rs 3183cr decline in market due to failing confidence of investor.• 5,50,000 No. of vehicle produced at plant every year.
Action taken by the Management
• S. Nakanishi, managing director and chief executive of Maruti Suzuki India declared a lockout saying that safety is more important than business.
• Mr. Nakanishi went to each victim apologizing for the miseries inflicted on them by fellow workers.
• He said that he will de-recognize Maruti Suzuki Workers’ Union and dismiss all workers named in connection with the incident.
• He also announced Maruti plans to continue manufacturing in Manesar.
Latest News• Maruti also made a slogan “count on us” to emphasize its reliability.
• New Swift launch delayed due to strike but now it launched.
• Manesar plant reopened on 21/8/12.
• Contract worker regularization was done in October 2012 but still re-evaluation is needed.
• According to the manufacturing plan, they plan to manufacture 850cars a day.
4 Industrial Relations insights from the Maruti Suzuki Strike
Insight 1: Contract Labour is just indicative of larger issues
Insight 2: The need to use a mature approach to Industrial Relations
Insight 3: Industrial Relations requires proactive management
Insight 4: The ability to handle and resolve a conflict is a business requirement