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Katti Case

The document discusses the history and operations of Precision Parts Limited, a joint venture auto components manufacturer located in India. It provides details on the company's HR practices over time, including phased recruitment, an employee training school, and collective agreements negotiated every five years with union heads. Recent events showed changing dynamics as the union became less flexible during difficult business conditions, leading to reduced productivity. The effect of unionization was mixed, providing benefits to employees but also decreasing productivity and increasing opposition to new policies from HR and top management perspectives. Recommendations are made around improving communication between management and employees to regain trust and setting clear expectations regarding values and disciplinary processes.

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Jay Trivedi
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521 views8 pages

Katti Case

The document discusses the history and operations of Precision Parts Limited, a joint venture auto components manufacturer located in India. It provides details on the company's HR practices over time, including phased recruitment, an employee training school, and collective agreements negotiated every five years with union heads. Recent events showed changing dynamics as the union became less flexible during difficult business conditions, leading to reduced productivity. The effect of unionization was mixed, providing benefits to employees but also decreasing productivity and increasing opposition to new policies from HR and top management perspectives. Recommendations are made around improving communication between management and employees to regain trust and setting clear expectations regarding values and disciplinary processes.

Uploaded by

Jay Trivedi
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Managers: We are katti with you

JAYKUMAR TRIVEDI

Precision Parts Limited - Factsheet

Brief History

JV between a leading diversified Indian group and State government in 1985 Manufacture auto components Located in a less developed area Formed with a team of young highly qualified managers

HR Highlights

Phased recruitment Training School for new employees Township for employees Highest pay and highest productivity Exemplary safety, quality, HR practices Bi-annual meetings with union heads and bi-annual elections Collective agreements every 5 years

Factors for formation & functioning of trade union


Employer Factors
To encourage internal leadership instead of external political relations

Employee Factors
Unity to negotiate with employers

Single point of contact to push for new standards & policies


Regularize the revision of HR policies

Better pay and working conditions


Better benefits insurance, holidays, unpaid leave etc. Union security Union Shop Employees must join the union and pay dues

Recent Events: Changing Dynamics

2004 Charge sheet for claiming lunch allowance and subsidized lunch Inflexible negotiations during tough business conditions

2006 Retirement of HR Head and resignation of top HR personnel President not assertive, General secretary was hot tempered Training changed to profit center Showdown by the GS and show cause notices for 130 employees

Reduced productivity 180 charge sheets, 4 suspensions 1 day strike Improved performance norms, VRS rule & improved salary

Effect of Unionization
Employees Got a channel to bargain (E.g. Liberal VRS Scheme, Salary Hike) Line Managers Strong union means strong culture at workplace

HR

Top Management
Got a channel to communicate values and expectation Helped push VRS/performance norms

Average age has increased Gross decrease in productivity after failed salary negotiations Union opposing the new recruitment process Three year contract

How should have HR handled it?


Discipline without punishment
Issue
Occurrence

Communicating Termination

oral reminder

Plan the interview Get to the point: Make the employee comfortable Describe the situation Listen Review the severance package

Issue

a formal written copy a PRIVATE one a day off DECISION MAKING LEAVE

Give

Suspension

Identify the next step

Do not invade his/her privacy

Recommendation

Training should not be chargeable

Bond to prevent attrition

Have a discussion: Make the chairman give a talk to the employees


This will bring back faith in the system Employees will feel important

Need to work on following Cs: Clarity, Contribute, Confidence

Recommendation contd.

Managers need to send right signal to set the culture


Clarify expectation: Make clear the expectation with respect to values Walk the talk: Lead by example. Employees take the signals from the boss action Provide physical support: Send clear signal regarding what employees should do and should not do

Formalize the disciplinary action process

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