Intro_v0.1

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AN ANALYSIS ON THE AUTOMOTIVE INDUSTRY SUBMITTED BY: Peush Garg HR18 Manasvi Rao HR40 Sachi Surbhi Singh HR53 Swastika Sinha HR56 Supriya Suman HR 57 Raj Thakore HR59 Steffaine Mathews HR64

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automobile sector in india

Transcript of Intro_v0.1

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AN ANALYSIS ON THE AUTOMOTIVE INDUSTRY

SUBMITTED BY:

Peush Garg HR18

Manasvi Rao HR40

Sachi Surbhi Singh HR53

Swastika Sinha HR56

Supriya Suman HR 57

Raj Thakore HR59

Steffaine Mathews HR64

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INTRODUCTION

The automotive industry has been undergoing a period of relatively strong growth and profitability worldwide and annual sales have reached prerecession levels in some regions. Global sales are forecast to hit 73.9 million vehicles in 2015. United States and China are counted among the largest automobile markets worldwide, both in terms of production and sales. About 7.7 million passenger cars were sold in U.S in 2014, and around 4.25 million cars were produced here in the same year.1

According to the Organisation Internationale des Constructeurs d'Automobiles (OICA), Global motor vehicle sales has reached about 85 million units in 2013, an increase of 4% compared to 2012, yet considerable uncertainty about the future remains. There are certain issues that impacted the automobile industry in the past. Failure in dealing with them has affected many companies. For example a number of automobile giants BMW, Toyota, General Motors, Volkswagen, Nissan and Ford faced loss of production in South Africa as the National Union of Metalworkers of South Africa (Numsa) went on a strike. The reason behind the strike was a demand of wage increase to a tone of 14% demanded by Union but the organizations were providing a raise of 8%2.The National Association of Automobile Manufacturers of South Africa had estimated losses to be about R600m a day. Similarly The Mercedes-Benz truck unit of Germany's Daimler AG decided to cut its workforce at a plant of Sao Paulo in Brazil. This cut was due to Brazilian auto sales plummeting to 20% in 2015 because of rising inflation, unemployment and interest rates. Threatened by Diamler, a strike delayed work at a General Motors plant in Brazil with more than 4000 workers walking out of the factory and hundreds of them already received pink slips. The two week strike ended with suspending cutting 800 job cuts.3

Indian automotive industry

The Indian auto industry is one of the world’s largest with an annual production of 23.38 million vehicles in 2014-15, following a growth of approximately 8.7 per cent over the last year. The automobile industry accounts for 7.1 per cent of the country's gross domestic product (GDP). As per data provided by Society of Indian Automobile manufacturers, the Indian Auto industry produced a total 7.8 million vehicles in April-July 2015 as against 7.7 million in April-July 2014, thereby indicating a growth of 1.8 per cent year-on-year.

Trade unions in India have come a long way since the first organized trade union - the Madras Labor Union, formed in 1918. India now has more than 85k registered trade unions along with an unaccounted number of unregistered trade unions scattered across a large spectrum of industries in India. The potential for growth in trade union represented workers is huge given the fact that

1 Global Automotive Industry Overview. (2015). Retrieved from http://www.reportlinker.com/ci02294/Automotive.html

2 Allix, M., & Gernetzky, K. (2013, August 20). SA ‘will pay heavy price’ for automotive sector strike. Retrieved from http://www.bdlive.co.za/national/labour/2013/08/20/sa-will-pay-heavy-price-for-automotive-sector-strike3 Crosby, A. (Ed.). (2015, August 24). GM suspends 800 job cuts at Brazil plant, ending strike. Retrieved from

http://www.reuters.com/article/2015/08/24/us-gm-brazil-idUSKCN0QT2EQ20150824#0GU5swk2F82sD8fg.99

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India is likely to have a working population of more than 64% by the year 2021. The trade union movement in India began after the end of First World War due to the need for coordination of activities of individual unions. The movement, over a period of time, systematically spread to almost all industrial centers and became an integral part of the industrial process in India. Most of labor work force in automobile industry comprises of some or the other kind of trade unions.4

Since the horrific labor violence at Maruti’s Manesar factory in July 2012 nearly every leading OEM from M&M, Bajaj Auto to Hero Motocorp has faced disruptions. Less than a week after Toyota lifted the lockout at its manufacturing plant near Bangalore the country's leading component maker Bosch is losing production after 2,000 of its workers opted for a tools down strike. This is becoming a recurring problem for the Indian auto industry. What is further complicating the problem is a mix of contract and permanent workers where the former is increasingly demanding equal pay and rights. According to past estimates, the wage difference between contract and permanent workers in the Gurgaon-Manesar belt varies anywhere between 50 to 70 percent. Maruti Suzuki for instance is moving away with contract workers altogether and instead are opting for temporary workers hired directly from their industrial training institutes (ITIs). A news channel analysis reveals that until last year the share of contract workers for most auto giants were considerably on the higher side. Tata Motors for instance had total permanent employees of 30,334 and contractual employees stood at 43,851. This means nearly 60 percent of the total employee strength was contract-based. Hero Motocorp too had employed 13,800 workers on contract accounting for 70 percent of its total employee strength of 19,642. Maruti Suzuki at the end of FY13 had 30 percent of its total employees on contract. Bajaj Auto does well on this count, with less than 10 percent of its total employees of around 9000 being on contract. While most auto companies claim contract workers are not being used on the main production line, the high incidence of contract labor would suggest otherwise. Interestingly, Toyota's permanent workers are alleging now that while the company has lifted the lockout at the plant it is only using contract workers - who account for 30 percent of the total workforce.  The main problem lies between the wages and benefits gap a contract worker earns as compared to a permanent worker.5

The times are changing though. In Aug 2015, the National Democratic Alliance (NDA) made a move to make workers an ally in its reform agenda. It aims for a feel-good labor reform agenda which, among other things, commits to a mandatory national minimum wage. After a round of discussions among the Group of ministers (GoM) the proposal for uniform minimum wages has been put forth. Accordingly, the NDA is proposing to put in place a model where states will be split into three categories—developed (A category), developing (B Category)and underdeveloped (C Category).

4 Desai, N. (2015, October 1). Trade Unions and Collective Bargaining. Retrieved from

http://www.nishithdesai.com/fileadmin/user_upload/pdfs/Research Papers/India-Trade-Unions-and-Collective-Bargaining.pdf

5 Banerjee, R. (2014, April 4). Labor Tensions return to haunt Indian auto sector. Retrieved from http://www.moneycontrol.com/news/cnbc-tv18-

comments/labour-tensions-return-to-haunt-indian-auto-sector_1063928.html?utm_source=ref_article

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Based on these categories and varied skill sets of the workers, this reform includes the different pay scale based on different combinations. The central government needs to amend the Minimum Wages Act to implement these newly suggested wages.6

PROBLEM STATEMENT

Labour disputes are endemic in the auto industry of India and have affected other manufacturers. India has strict labour laws, but their application is routinely avoided by hiring low-wage contract workers. The incident in Manesar adds to India’s recent incidents of labour disputes escalating to violence . In 2011, at least 1000 workers at Maruti Suzuki’s Manesar plant went on a 13-day tool-down strike in June demanding a new trade union. In 2012, the plant was again hit by violence as workers at one of its auto factories attacked supervisors, engineers and other management personnel and burnt and killed a senior HR executive, injured 100 managers, including two Japanese expatriates. In 2015 Mr. Kuldeep Janghu who was the general secretary of the Maruti Udyog Kamgar Union, was suspended by management on disciplinary grounds for manhandling a worker.

However, Maruti Suzuki on its part has tried to ensure that labour unrest doesn’t occur. The company increased wages by a record 50 per cent for permanent workers at its Manesar and Gurgaon facilities. The wage pact benefited around 2,800 workers at Gurgaon and around 700 workers at Manesar. The company had previously been taking a large number of workers from contractors on a casual basis to meet cyclical demand of the car industry. These workers can be offloaded during the lean months and can be re-hired when the demand picks up because the country’s inflexible labour laws make it impossible to adjust the regular workforce in tune with the ups and downs of the market.

 The trouble in all the strikes has emanated from the contract workers, who get paid lesser than regular employees, don’t get social security benefits and depend on the whims and fancies of the manpower contractors for their livelihood. Analysts claim recent incidents like Manesar violence suggest a need for urgent reform of archaic Indian labour laws, the rigid rules on hiring and layoffs, which harm the formal sector and discourage investment in India.

In response to this problem, our study here tries to investigate the reasons for the actions and thought processes of the casual workmen at the Maruti Manesar Plant that causes them to instigate/create disruptions repeatedly. We also try to understand the various external factors that cause the aggravation of the unrest springing up in the plants as well as the methods of managing the conflicts that keep arising in the plant along with the reasons for the failure of those policies.

BACKGROUND6 Nanda, P. (2015, August 28). NDA woos workers with fresh sops. Retrieved from

http://www.livemint.com/Politics/RZ77g5MohADyJ5NUjJlGKO/NDA-woos-workers-with-fresh-sops.html

Manasvi Rao, 06/11/15,
The new trade union was demanded as the old one was considered a management farce na? can we include that reason?
Manasvi Rao, 06/11/15,
Not sure if that is what happened personally..Sorry
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It all began way back in June 2011, when a 13-day workers' strike at Maruti's Manesar plant ended 11 years of industrial peace at the company. It was on a Saturday afternoon (June 4) that 2,500 workers went on a strike. The workers primarily wanted three things: The management recognize a new union at the Manesar plant where 700-odd contract workers are paid and are given perks similar to the permanent workers; and the workers are not forced to sign the good-conduct bond. While Maruti was resisting the demands what it was most opposed to was granting recognition to the Manesar union7 8.

On 26th September, 2015 around 1,000 casual workers at the Gurgaon Plant alleged that their union leaders had reached an agreement with the top management ignoring their interests. They said their salaries were not increased despite the fact that they worked and performed like the permanent employees. Two former employees, who had were earlier been sacked for violence, were arrested for rioting, while more than 500 people were injured9. Such an incident can be considered as a cause for dysfunctional conflict between the management and the workmen.

Similarly in this that involves India’s largest car maker Maruti Suzuki India Ltd suspending a top union leader for alleged assault on a company employee10. This case can be viewed as a classic clash of power between two individuals. General Secretary of Maruti Employees Union Kuldeep Janghu was suspended after he allegedly slapped an officer, however, he denied this allegation. Janghu claimed that the officer Sharad Kumar abused a casual worker Amod Kumar. Janghu intervened in the matter and there was an altercation. Following this, the company suspended the union leader. Janghu said that he was just doing his job while it was the manager who had actually misbehaved11. From this example we can see that there existed an intergroup conflict between the workers and the management. Such an environment tends to develop an “us against them” mentality whereby each sees the other as the enemy and in turn develops hostility.

FRAMEWORK: THOMAS-KILMANN CONFLICT MODE INSTRUMENT

7 Kaushal, A. (2015, March 21). How 2011 shaped 2012 for Maruti, its workers. Business Standard. Retrieved November 2, 2015, from http://www.business-standard.com/article/companies/how-2011-shaped-2012-for-maruti-its-workers-115032100040_1.html8Maruti's Manesar plant: The problems behind labour unrest [Motion picture]. (2012). India: NDTV.9Maruti Suzuki workers clash at Manesar plant. (2015, September 26). The Statesman. Retrieved November 4, 2015, from http://www.thestatesman.com/news/latest-headlines/maruti-suzuki-workers-clash-at-manesar-plant/92864.html10 Trouble brewing? Maruti suspends union leader for slapping executive. (2015, July 7). Retrieved November 4, 2015, from http://www.firstpost.com/business/trouble-brewing-maruti-suspends-union-leader-for-slapping-executive-2330550.html11Doval, P. (2015, July 7). Maruti faces union trouble at Gurgaon. Times of India. Retrieved November 1, 2015, from http://timesofindia.indiatimes.com/business/india-business/Maruti-faces-union-trouble-at-Gurgaon/articleshow/47966641.cms

Source: Mehta, R. (2012, July 19). Chart of the day: Maruti stock's performance during labor unrest in 2011. Retrieved November 4, 2015, from http://www.moneycontrol.com/news/market-edge/chartthe-day-maruti-stocks-performance-during-labour-unrest2011_732521.html

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(1) Assertiveness, the extent to which the person attempts to satisfy his own concerns, and (2) Cooperativeness, the extent to which the person attempts to satisfy the other person's concerns.

APPLICABILITY & RECOMMENDATIONS

In all the above mentioned cases we can see that the Competing Approach was used for Conflict Management. Competing is assertiveness and uncooperative- an individual pursues his own concerns at the other person’s expense. This is power-oriented mode, in which ones uses whatever power seems appropriate to win one’s own position. Be it the Manesar strike incident where the management refused to consider the employee’s perspective or the current Gurgaon incident wherein both the parties just refused to see the other party’s perspective and only worked towards fulfilling their own personal agenda12.

The use of this model made us understand that maximum gain from endeavor can be received by using the Collaborative Approach. A trade union leader is the representative of the workmen while on the other hand, the manager is the face of the organization. In a way they both represent their respective “bodies” and thus, have an equal footing in the negotiations. Collaborating is both assertive and cooperative—the opposite of avoiding. Collaborating involves an attempt to work with the other person or group to find some solution which fully satisfies the concerns of both persons. Collaborating between two persons might take the form of exploring a disagreement to learn from each other’s insights, concluding to resolve some condition which would otherwise have them competing for resources, or confronting and trying to find a creative solution to an interpersonal problem.

To give further evidence of the benefits of using a Collaborative Approach, on October 21, 2015 Maruti announced a hike in the wages of the temporary worker by an average of 10% a month13. Investor sentiments have also been positive related to this step, considering the average increase of the stock price has been nearly 0.77%. This also assists in improving employer branding and at the same time makes the employees feel more loyal towards the organization. Had Maruti adopted this approach before itself we wouldn’t be seeing so much wastage of resources happening. Also after looking at the peaceful negotiations done by Maruti, Hero MotorCorp&

12 Thomas, K., &Kilman, R. (n.d.). THOMAS KILMAN CONFLICT MODE INSTRUMENT. 8-8. Retrieved November 1, 2015, from http://lnu.se/polopoly_fs/1.88249!thomas-kilman-conflict english original.pdf13Maruti hikes wages of temporary workers of Gurgaon, Manesar plants by 10%. (2015, October 21). Live Mint. Retrieved November 5, 2015, from http://www.livemint.com/Industry/vSi6N0y0SIO1swJUYaWqKP/Maruti-hikes-wages-of-temporary-workers-of-Gurgaon-Manesar.html

The framework is designed to measure a person's behavior in conflict situations. "Conflict situations" are those in which the concerns of two people appear to be incompatible. In such situations, we can describe an individual's behavior along the below mentioned two dimensions:

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Honda MotorCycles have also followed suit14. This not only helps the company improve its image (considering the new launch of the Baleno at the NEXA) but at the same time gives some hope to the temporary workers regarding a change in their current situation and their rights hereafter.

FRAMEWORK OF POWER

Introduction Power is the ability to influence someone’s thoughts, actions or feelings. As an exchange relationship, it is a transaction involving two parties - an agent and a target. Agent is a person who uses the power and target is the recipient of the attempt to use power.15 Power is ability, therefore, any individual can get it and learn to use it effectively. The processes of power are complex, pervasive and often disguised in society. The phenomena of power can be viewed from two points: (a) what determines the behavior of the agent who exerts power? (b) What determines reaction of the recipient of this power?

Bases of Power (Based on French and Raven Study) 9

14Saleem, S. (2015, October 23). After Maruti Suzuki; Honda Motorcycle, Hero MotoCorp negotiate wage pact. The Financial Express.

Retrieved November 5, 2015, from http://www.financialexpress.com/article/industry/companies/hmsi-hero-negotiate-wage-pact/155394/

15 Nelson, Quick, Khandelwal (2012) An Innovative Approach to Learning and Teaching Organizational Behavior: Cengage Learning

Based on the agent’s ability to cause the target to have an unpleasant experience. Strength depends on depends the magnitude of the negative valence of the threatened punishment

Coercive

Agent has the power to give type of reward to an employee Authority that lies with this position.Reward

Stems from the agent’s position Target agree that the agent has the right to influence the target. Legitimate

Elusive power that is based on interpersonal attraction. The target identifies with or wants to be like the agentCharismatic individuals are often thought to have this type of power.

Referent

When the agent has specialized knowledge or skills The knowledge involved must be relevant and useful to the target.The target’s perception of the agent as an expert is crucial. Probably mention the points in the Smart Art (in point format)

Expert

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USAGE OF POWER IN AUTOMOBILE INDUSTRY

Use of Power in Maruti Suzuki Gurgaon Case (July 2015)16

Maruti Udyog Kamgar Union (MUKU) is one of the biggest trade union in Maruti Gurgaon plant. It has influence over majority of the workmen. In this incident, Kuldeep Janghu, general secretary of MUKU exercised coercive power when he slapped the manager who was supervising workers. Mechanical engineer Sharad Kumar had an argument with his junior Amod Kumar (casual worker) over some work after which the matter was reported to the union. Since Sharad Kumar was the supervisor he was exercising legitimate power when having a discussion with the casual worker. Janghu reached the place on Monday night and allegedly slapped Sharad for not replying to questions asked by the union leader. Also when all the Maruti unions came together in retaliation they were exercising coercive power because they were professing that if matter is not resolved soon, anything could be possible.

Use of Power in Toyota Bidadi Plant lockout Case (March 2014)17

There was continuous failed negotiations going on between the management of Toyota Kirloskar Motor and workers regarding charter of demands for the year 2013-2014. Workers tried to hamper production by using coercive power. A section of the workers, instigated by the union, has resorted to deliberate stoppage of the production line, and threatened supervisors and continuously disrupted business for the past 25 days. The Bidadi facility has an annual production capacity of around 3, 10,000 vehicles and produces a wide range of models which

16 Fresh trouble at Maruti Suzuki plant in Gurgaon. (2015, July 7). Retrieved from http://www.business-standard.com/article/news-ians/fresh-trouble-at-maruti-suzuki-plant-in-gurgaon-115070701058_1.html17 Toyota agrees to lift lockout from March 24. (2014, March 21). Retrieved from http://www.moneycontrol.com/news/business/toyota-agrees-to-lift-lockoutmarch-24_1055856.htmlToyota issues lockout at its Bangalore plant. (2014, March 18). Retrieved from http://www.moneycontrol.com/news/wheels/toyota-issues-lockout-at-its-bangalore-plant_1054753.html

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include Camry, Corolla, Etios, Innova and Fortuner. Due to its position, management has the legitimate power to declare lockout anytime it feels the workers are not agreeing to them. Lockout is an action taken by management to make employees feel that they can be thrown out of job if they don’t comply with rules and regulations. Toyota management used this power when no consensus could be reached regarding charter of demands. The Karnataka government used referent power and tried asked both the workers and management to restore normalcy in operations. Toyota management here exercised the reward power as well because workmen wanted hike in wages and that was under their control so they went for lockout that if the workers were not agreeing to them there was no further point of discussion.

Use of Power in Hyundai South Korea Case (September 2015)18

The labour union was demanding the company raise workers’ monthly basic wages 7.84 per cent and pay 30 per cent of the carmaker’s 2014 net profit as bonuses — demands that Hyundai deemed excessive. Trade unions considered it as their legitimate power due to collective bargaining authority given to them. The wages talks were complicated by other issues such as the whether certain regular bonuses should be classed as base wages, and the wage peak system, under which workers aged 56 and over will receive lower pay each year in return for an extended retirement age of 60. When the management refuted union’s demand, 48,000 workers of the labour union exercised their coercive power against management and went on strike

Use of Power in Pricol Labor Unrest Case (September 2009)19

Coimbatore-based auto instruments maker, Pricol were experiencing labor unrest due to which the company was forced to dismiss 42 workers at its Kuniamuthur unit for indiscipline. The management here used reward power while the workers used coercive power by going on strike but the outcome was very deadly. The company's vice-president (human resources) Roy J George succumbed to injuries he sustained after he was allegedly assaulted by a section of agitating workers. Here we see that those 42 dismissed workers tries to punish the VP by exercising coercive power. But the effect of this power should be in control.

RECOMMENTDATIONSLabor disputes have always happened due to the lack of trust of the employee in the employer. But at times, it can also happen due to the vested interests of a few people in the trade unions. But in general, almost all the cases are reported due to the bad employee-employer relation and lack of proper communication between the management and laborers.20 Also one of the main reasons is improper use of power. We have seen that mostly coercive power comes into picture. Both the parties – management and workmen try to create difficult situation for the other party by using their power. Management also at times uses reward power when it tries to control wages, dismiss workmen, etc. Management and trade unions should focus on negotiation and

18 Song Jung-a. (2015, September 21). Hyundai’s S Korea workers to go on strike. Financial Times, Retrieved from http://www.ft.com/intl/cms/s/0/54a08398-601b-11e5-97e9-7f0bf5e7177b.html#axzz3qXZu5I8G19 M Allirajan. (2009, September 23). Workers kill company VP in Coimbatore. The Times of India, Retrieved from http://timesofindia.indiatimes.com/india/Workers-kill-company-VP-in-Coimbatore/articleshow/5044794.cmsSacked employees lynch VP to death. (2009, September 23) Retrieved from http://www.oneindia.com/2009/09/23/sacked-employees-lynch-vp-to-death.html20 Labour Unrest in Indian Automobile Industry. (2013, June 25). Retrieved from http://www.mbaskool.com/business-articles/human-resource/7671-labour-unrest-in-indian-automobile-industry.html

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collective bargaining so that disputes are settled peacefully. At times we have also seen that legitimate power comes into picture when management decides to go for lockout. Referent power plays a very important role. An inspiring, charismatic leader is very essential in such a situation of dispute. Also expert power can be effectively used in these times. But for this we need an HR who is well-versed with all the laws and who can try to pacify the dispute.Also using power ethically is very important. To judge this we should look into three aspects – 1.Does the behavior is produce a good outcome for people both inside and outside the organization? 2. Does the behavior respect the rights of all parties? 3. Does the behavior treat all parties equitably and fairly? 15 If answers to all the three questions are yes then only both management and workers should exercise their power.21

GROUP THINK

Group think is a concept in which desire for harmony or conformity in the group results in an irrational as well as dysfunctional decision-making outcome. People or the group members do not contribute towards the group decision or towards the target of the group rather, they just follow a few members of the group. This particular phenomenon makes the group less productive since the other members of the group are not able to contribute any value nor can they put new ideas into the group.

The case being studied by us is a classic example of group think where members of the trade union usually follow what the general secretary or the trade unions decide without knowing the actual facts. In this case, the general secretary of the trade union, Kuldeep Janghu was suspended for his misbehavior with the shift in-charge22 and the workers went for a strike due to the suspension of their leader. Janghu was actually found intervening between a co-worker and the shift in-charge. Another such thing happened in the Maruti's Manesar plant case which happened in 2012 where the strike turned out into a violent attack of the workers on the managers which also lead to death of one of the HR manager.

Analysis: This is a common trend experienced in trade unions which is the main symptom of group think: illusions of invulnerability, the members feel they are above criticism. Incidents like this are mostly initiated because of the group think behavior in the people and they tend to follow what one person decides to do. Here the whole union creates a kiosk regarding this issue without considering the fact that Janghu may be the person who is the real convict here. There is also a feeling of illusions of group morality where the group members think that their actions are moral.

A similar case happened in Toyota Motors in the year 2006. Toyota Kirloskar Motor Private Limited (TKM) declared a lockout at its plant in Bidadi, Karnataka23. The lockout came after two days of agitation by the plant's employees against the dismissal of three workers by the

21 Nelson, Quick, Khandelwal (2012) An Innovative Approach to Learning and Teaching Organizational Behavior: Cengage Learning

221NDTV article on July 07 retrieved from http://profit.ndtv.com/topic/kuldeep-janghu and http://www.zoominfo.com/p/Kuldeep-Janghu/1711512953Maruti faces union trouble at Gurgaon Pankaj Doval, TNN | Jul 7, 2015 : http://timesofindia.indiatimes.com/business/india-business/Maruti-faces-union-trouble-at-Gurgaon/articleshow/47966641.cms

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management. The strike was the outcome of an incident that occurred in February 2004 when the management suspended 15 employees on the grounds of disrupting work and for unruly behavior. In 2006, TKM dismissed three of these 15 employees after the proper investigation. According to the management it was proved that, the three workers, Prasanna, Sridhar Dhote, and Satish, were guilty of misconduct which included violent behavior, disruption of work, and assault on a supervisor.

Analysis: Now, in this particular case again we have a scenario of group think where the members of the union went on a strike just because they were stereotyping the enemy and considering the managers to be evil in this case. Also they were in a lot of influence of those 3 workers which were an important part of the trade union. Group think in this way stops the other people to put their mind and efforts and people tend to follow what others suggest or do. In this case also there was an illusion of group morality. The workers thought that they were doing a right thing

Now it is up to the workers to decide what exactly is right for them rather than just going with the union leaders. One example where a trade union has broken the barrier of group think is when recently in September 2015 trade unions were protesting against the government for making changes in the labor laws24.In this we are considering all the Indian workers as one group and RSS as one of the member who stood up with their own thinking and not go with the group. Now earlier strike was called by 11 trade unions having 15 crore workers in them. The whole country was supposed to be shut down by the workers in protest of this. The government appealed to call off the strike, all the Trade Unions refused to do so but RSS led Mazdoor Sangh backed out later saying that it wants to give government some time to ponder over its decision.

RECOMMENDATIONS

It has been seen that this behavior has impacted our country and its production to a great extent. Workers have gone violent which has impacted our society as well. To decide which side of the table is ethically right is very difficult to judge, but all these conflicts and arguments can be resolved without harming anything. The unions should have some critical evaluator other than the leaders to guide them about what is correct. Unions can also have a democratic structure where there are multiple deciding bodies. Unions should also bring out expert advice or appoint a devil’s advocate to evaluate the situation properly

23 Article by icmrindia retrieved from:http://www.icmrindia.org/casestudies/catalogue/Human%20Resource%20and%20Organization%20Behavior/IR%20Problems%20at%20Toyota%20Kirloskar%20Motor%20Private%20Limited.htmhttp://www.icmrindia.org/Short%20Case%20Studies/Human%20Resource%20Management/CLHR020.htm

24 Article TheHindu 28th August retrieved from: http://www.thehindubusinessline.com/economy/majority-of-unions-reject-govt-appeal-to-call-off-sept-2-strike/article7591434.ecehttp://www.ndtv.com/topic/trade-union-bandhhttp://www.oneindia.com/feature/september-2-bharat-bandh-strike-trade-union-demands-why-protest-modi-government-facts-1856355.html