Human Resource Management (HR612)-Semester II
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AMITY (Assignment) MBA Semester 2
1st Module Assessment
Question 1. ______is the art of procuring, developing and maintaining competent workforce to achieve the goals of an organization keeping in view employees’ interest in an effective and efficient manner.
Select one:
a. Human Resource Development
b. Human Resource Management
c. Human Resource Planning
d. Human Resource Outsourcing
Clear my choice
Question 2. _ is a plan of action. It is a formal statement of a principle or rule that members of an organ actinides to follow.
Select one:
a. A Rule
b. A policy
c. A Procedure
d. A Legislation
Clear my choice
Question 3. _ is related to analyze and measure the time taken for doing the various elements of a job and to standardize the operations of a job.
Select one:
a. Time study
b. Motion study
c. Fatigue Study
d. Indiscipline
Clear my choice
Question 4. _ are the tangible rewards in formation of pay and benefits
Select one:
a. Extrinsic rewards
b. Intrinsic rewards
c. Performance rewards
d. Appraising rewards
Clear my choice
Question 5. Human Resource technology is an umbrella term for software and associated platforms for automating ______in the organisations.
Select one:
a. all departments
b. HR Functions
c. Cloud computing
d. None of the options
Clear my choice
Question 6. which of the following should not be a quality of HR manager.
Select one:
a. Commitment
b. Flexibility
c. Knowledge
d. Indiscipline
Clear my choice
Question 7. _ is the process of cultivating and scaling work culture inside an organisation. It includes keeping a pulse on the performance of the organisation’s culture while measuring the collision of the culture on morale and productivity.
Select one:
a. Cultural Productivity
b. Organisation culture
c. Culture Management
d. None of the options
Clear my choice
Question 8. It stresses on development of human resources of the organisation. It helps the employees of the organisation to develop their general capabilities in relation to their present jobs and expected future role. It is known as___
Select one:
a. Human Resource Development
b. Human Resource Management
c. Human Resource Planning
d. Human Resource Outsourcing
Clear my choice
Question 9. People analytics, though comfortably used as a synonym for, ________is technically applicable to “people” in general.
Select one:
a. Capital analytics
b. HR analytics
c. Asset analytics
d. IT analytics
Clear my choice
Question 10. The firm’s corporate image or culture which attracts and retains the best employees is best known as __.
Select one:
a. Employer Branding
b. Corporate Restructuring
c. HR branding
d. brand culture
Clear my choice
Question 11. The delegation of authority in an organization follows a formal hierarchical structure with clear lines of __.
Select one:
a. positions
b. job profiles
c. accountability
d. management
Clear my choice
Question 12. Which of the following is Not correct . An effective performance management system
Select one:
a. Requires a shared responsibility between supervisor and employee
b. Measures and documents performance
c. Doesn’t Include feedback and coaching concerning job performance
d. Identifies training and professional development needs
Clear my choice
Question 13. Which of the following is true with respect to HRM in Industrial Relations.
A. The major aim of this is to maintain peace and harmony among the organisation.
B. It requires effective communication with the labor or employee unions which sensitively addresses their grievances and settles their disputes.
Select one:
a. Only A
b. Only B
c. Neither A nor B
d. Both A & B
Clear my choice
Question 14. Which of the following is not a main function of compensation management ?
Select one:
a. The Equity Function
b. Feedack function
c. The Retention Function
d. The Welfare Function
Clear my choice
Question 15. HR analytics is a methodology for creating insights on how investments in human capital assets contribute to the success of some principal outcomes. Identify from the following the correct principal outcomes.
A. generating revenue,
B. minimizing expenses,
C. mitigating risks,
D. executing strategic plans.
Select one:
a. only A& B
b. only B& C
c. only C& D
d. All A,B,C, D
Clear my choice
Question 16. Which of the following statements is true with respect to SHRM ?
A. The emergence of SHRM is influenced by global competition and the corresponding search for sources of a sustainable competitive advantage.
B. SHRM has achieved its prominence because it has provided a means by which business firms can enhance the competitiveness and promote managerial efficiency.
C. SHRM doesnot facilitate the development of human capital that can meet the requirements of a competitive business strategy, so that organizational goals and the mission of the organization will be achieved.
Select one:
a. Only A & B
b. Only A & C
c. All A ,B & C
d. Only B & C
Clear my choice
Question 17. Which of the following is a metrics that can be tracked by HR analytics:
A. Revenue per employee
B. Offer acceptance rate
C. Training expenses per employee
D. Training efficiency
Select one:
a. Only A & C
b. All A,B,C, D
c. Only A ,B & C
d. Only A & B
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AMITY (Assignment) MBA Semester 2
2nd Module Assessment
Question 1. Recruitment is widely viewed as a _ process.
Select one:
a. Positive
b. Negative
c. mixed
d. progressive
Clear my choice
Question 2. Which of the following is the first step in the Selection Process.
Select one:
a. Screening Applications
b. Medical Examination
c. Preliminary Interview
d. Checking References
Clear my choice
Question 3. __ is the process of Work arrangement (or rearrangement) aimed at reducing or overcoming job dissatisfaction and employee alienation arising from repetitive and mechanistic tasks.
Select one:
a. Job design
b. Job Rotation
c. Job reengineering
d. Job Portfolio
Clear my choice
Question 4. _ is known as the Father of Scientific Management
Select one:
a. Henry Fayol
b. Frederick Taylor
c. Rothlisberger
d. Marry Parker Follet
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Question 5. _____is an alternative to traditional workplace models that dictate when and where workers perform their work. It permits employees to choose when, where and how they work.
Select one:
a. Job Shifting
b. Job Rotation
c. Job reengineering
d. Workplace flexibility
Clear my choice
Question 6. _____means to enhance a job by adding more meaningful tasks to make the employee’s work more rewarding.
Select one:
a. Job empowerment
b. organisation culture
c. Job resdesign
d. Job rotation
Clear my choice
Question 7. The process of Job Analysis is Not related to which of the following ?
Select one:
a. Job Tasks
b. Job Duties
c. Job Responsibilities
d. Job Portfolio
Clear my choice
Question 8. ______is a major component of human resource planning which includes analyzing of its current workforce and comparing it to the future requirements to discover what gaps and surpluses exist.
Select one:
a. Supply Forecast
b. Demand Forecast
c. Workforce forecasting
d. Workforce Supply
Clear my choice
Question 9. __ is not an External Source of Recruitment
Select one:
a. Campus Selection
b. Internal Advertisement
c. Consultancy
d. Walk-in
Clear my choice
Question 10. __ is the application form to be filled by the candidate when he goes for recruitment process in the organisation.
Select one:
a. Job application
b. Formal application
c. Application blank
d. None of the options
Clear my choice
Which of the following comes after the step interview in the Selection Process ?
Select one:
a. Medical Examination
b. Reference Checking
c. Employment test
d. Final Selection
A job design is referred to as Select one:
a. The division of total task to be performed into manageable and efficient units
b. A systematic way of designing and determination of the worth of a job
c. The design involving maximum acceptable job design qualities to perform a job
d. None of the options
Question 11. In STAR method of answering , “S” stands for ?
Select one:
a. Seperate
b. Simultaneous
c. Similar
d. Situation
Clear my choice
Question 12. Which of the following is Not a common Interviewing mistake?
Select one:
a. Dressing Inappropriately
b. Reching before time for interview
c. Using your Phone during the Interview
d. Fuzzy Resume Facts
Clear my choice
Question 13. ______refers to the practice of working a second job outside normal business hours.
Select one:
a. Job rotation
b. Job Rengineering
c. Moonlighting
d. Job Design
Clear my choice
Question 14. which of the following is a factor that influence Recruitment?
Select one:
a. Size of the organization
b. Working conditions within the organization
c. Salary structure of the organization
d. All of above
Clear my choice
Question 15. Which of the following is/are the immediate product/s of Job analysis ?
A. Job Descriptions
B. Job Restructuring
C. Job Specifications
D. Job Design
Select one:
a. Only A& B
b. Only B& C
c. Only A& C
d. All A,B,C, D
Clear my choice
Question 16. Which of the following options is a “psychological state for working” under Hackman and Oldham’s job characteristics theory .
A. Meaningfulness of work
B. Responsibility
C. Accountability
D. Knowledge of outcomes
Select one:
a. Only A & C
b. Only A, B & D
c. Only A,B,C
d. All A,B,C, D
Clear my choice
Question 17. Job Design Theory addresses which of the following basic question/s.
A. What spurs individuals to work?
B. What job attributes are critical?
C. How are job design alternatives to be recognized?
D. What job design changes are to be executed?
Select one:
a. only A& B
b. only B& C
c. only C& D
d. All A,B,C, D
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AMITY (Assignment) MBA Semester 2
3rd Module Assessment
Question 1. A _ is a career development plan that allows upward mobility for employees without requiring that they be placed into supervisory or managerial positions. Select one: a. dual career ladder b. Career Anchor c. Career development d. Career growth Clear my choice Question 2. which of the following is the first step under process of training? Select one: a. Implement Programs b. Evaluate Program c. Identifying Training Needs d. Feedback Clear my choice Question 3. _ method creates a situation that is as far as possible a replica of the real situation for imparting training.
Select one:
a. The programmed learning
b. the simulation
c. the Case study
d. the Lecture
Clear my choice
Question 4. A type of employee training system where a senior person or an experienced person acts to advice, guide and counsel a junior or trainee. He provides the desired support to the trainee and gives necessary feedback. .
Select one:
a. Coaching
b. Mentoring
c. Training
d. Career development
Clear my choice
Question 5. _is a process of identifying new leaders who can take place of the old leaders when they retire or leave the company due to any reasons. Select one: a. Career development b. Succession Planning c. Career path d. Career growth Clear my choice Question 6. Anderson’s model is a three-stage cycle that helps an organisation determine_
Select one:
a. the path for training Evaluation
b. the best training strategy for the needs.
c. Training sessions for Job design
d. human Resource Development
Clear my choice
Question 7. Which of the following is not among the 4 levels of the Kirkpatrick model
Select one:
a. Rechability
b. Learning
c. Behaviour
d. Results
Clear my choice
Question 8. Which of the following is not true about training?
Select one:
a. It is a short-duration exercise
b. It is technical in nature.
c. It is primarily for managers and executives
d. It is concerned with specific job skills.
Clear my choice
Question 9. Bandura’s Social Cognitive Theory was developed by
Select one:
a. Donald Super
b. John L. Holland
c. Albert Bandura
d. None of the options
Clear my choice
Question 10. The Kirkpatrick Model was developed by ?
Select one:
a. Abraham Maslow
b. Don Kirkpatrick
c. Marry Parker Follet
d. Rothlisberger
Clear my choice
The__ is a methodology that helps an organisation understand how a training or coaching program works well, or why it is not working.
Select one:
a. Development analysis
b. training analysis
c. Perormance Analysis
d. Success Case Method
Question 11. _ is observing and analyzing the actual performance in comparison to the desired performance. Select one: a. Task analysis b. Performance analysis c. Job analysis d. Job Evaluation Clear my choice Question 12. The term “an experienced and trusted advisor” is referring to which of the following options? Select one: a. Training b. Development c. Mentoring d. Performance management Clear my choice Question 13. Laboratory training is also known by the name_
Select one:
a. sensitivity training
b. job instruction training
c. apprenticeship training
d. None of above
Clear my choice
Question 14. Which of these is an off – the – job training method?
Select one:
a. Job rotation
b. Orientation training
c. Coaching
d. None of these
Clear my choice
Question 15. Peter Warr, Michael Bird, and Neil Rackham and published their book, Evaluation of management training. Their framework for evaluating training became known as the
Select one:
a. Kirkpatrick model
b. SMART model
c. CIRO model
d. MEGA Model
Clear my choice
Question 16. This type of promotion is least preferred by the employees of a company. In this type of promotion, there is an increase in responsibilities and status, but no corresponding increase in salary and remuneration structure. This is known as _
Select one:
a. Dry Promotion
b. Vertical Promotion
c. Horizontal Promotion
d. Demotion
Clear my choice
Question 17. Which of the following goals is NOT correct for the acronym SMART framework:
S – Specific
M – Moderate
A – Achievable/Attainable
R – Results-Oriented/Realistic/Relevant
T – Time-Bound
Select one:
a. S – Specific
b. M – Moderate
c. R – Results-Oriented/Realistic/Relevant
d. T – Time-Bound
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AMITY (Assignment) MBA Semester 2
4th Module Assessment
Question 1
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Question text
A_______ is a process of evaluating an employees performance of a job in terms of its requirements
Select one:
a. Performance Management
b. Performance analysis
c. Performance Appraisal
d. None of the above
Clear my choice
Question 2. Which of the following is Not a characteristic of Industrial Relations ?
Select one:
a. Are outcome of employment relationship in an industrial enterprise.
b. Promote the skills and methods of adjustment and co-operation with each other.
c. Create complex rules and regulations to maintain cordial relations.
d. Creates an environment of distrust and conflict.
Clear my choice
Question 3. When appraisals are made by superiors, peers, subordinates and clients then it is called _ Select one: a. 360 degree feedback b. 180 degree feedback c. Self – appraisal d. None of the above Clear my choice Question 4. It is defined as the area in the field of analytics that deals with people analysis and applying analytical process to the human capital within the organization to improve employee performance and improving employee retention.It is Known as
Select one:
a. Performance Management
b. Management Information System
c. Competency mapping
d. HR Analytics
Clear my choice
Question 5. Employees join unions to fulfil their needs.
Select one:
a. social
b. esteem
c. economic
d. All of the above
Clear my choice
Question 6. Human Resource Information system is a
Select one:
a. System Hardware
b. system software
c. Operating system
d. Database System
Clear my choice
Question 7. ______is a way of assessing the strengths and weaknesses of a worker or organization. It is about identifying a person’s job skills and strengths in areas like teamwork, leadership and decision making. Select one: a. Self – appraisal b. 180 degree feedback c. Competency mapping d. Human Resource Development Clear my choice Question 8. A personnel manager acts as a connecting link between management and .
Select one:
a. People
b. staff
c. Executives and workers
d. Operational staff
Clear my choice
Question 9. A system which is designed to provide useful information while making decisions related to human resources of an Organisation is known as______
Select one:
a. Human Resource Information System
b. Decisional Information System
c. Benefit analysis System
d. Technological System
Clear my choice
Question 10. Communicating the __to the employees is necessary so that they can perform accordingly. Select one: a. Rewards b. Standards c. Awards d. Objective Clear my choice Question 11. Which of the following is a benefit of Benchmarking ? A. Competitive Analysis B. Monitor Performancen C. Continuous Improvement D. Planning and Goal Setting Select one: a. Only A & B b. Only A, B & D c. Only A,B,C d. All A,B,C, D Clear my choice Question 12. This method is an effort to enhance upon the straightforward ranking method. Under this method employees of a bunch are compared with each other at only once. Select one: a. Unstructured Method of Appraisal b. Paired Comparison Method c. Graphic Rating Scale d. None of the Options Clear my choice Question 13. Labour should be given proper pay out for the work. This builds up the industrial peace.This Principle is known as .
Select one:
a. The principle of Fair Reward
b. The Principle of Effective Communication
c. The Principle of High Morale
d. The Principle of Scientific Selection
Clear my choice
Question 14. _ is not focused on organizations at large, HR department or statistics about attracting or keeping talents but includes data management processes that apply to worker-related data such as internal mobility, part-time employees, gender ratio, etc.
Select one:
a. HR analytics
b. Workforce analytics
c. Business analytics
d. Data analytics
Clear my choice
Which of the following is a benefit of Benchmarking ?
A. Competitive Analysis
B. Monitor Performancen
C. Continuous Improvement
D. Planning and Goal Setting
Select one:
a. Only A & B
b. Only A, B & D
c. Only A,B,C
d. All A,B,C, D
Question 15. Trade union means any combination formed primarily for the purpose of regulating the relations between
Select one:
a. Workmen and employers permanently
b. Workmen and workmen permanently
c. Workmen and employers, workmen and workmen, employers and employers temporary or permanent
d. Workmen and employers, workmen and workmen, employers and employers permanently
Clear my choice
Question 16. Which of the following options is true with respect to Human Potential Management?
A. An integrative and continuous cycle of upgrading human abilities and limits
B. Leads to the association’s advantage
C. Enhances employees’ sense of responsibility towards organisations
D. Focuses more on turning employees’ potential to their own benefits
Select one:
a. Only A & B
b. Only A, B & D
c. Only A,B,C
d. All A,B,C, D
Clear my choice
Question 17. Which of the following is a Principle of Personnel Management ?:
A. The Principle of Scientific Selection
B. The Principle of High Morale
C. The Principle of Dignity of Labour
D. The Principle of Team Spirit
Select one:
a. Only A & B
b. Only A, B & D
c. Only A,B,C
d. All A,B,C, D
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AMITY (Assignment) MBA Semester 2
Case Study:
For right or wrong reasons, Bata India Limited (Bata) always made the headlines in the financial dailies and business magazines during the late 1990s. The company was headed by the 60 year old managing director William Keith Weston (Weston). He was popularly known as a “turnaround specialist” and had successfully turned around many sick companies within the Bata Shoe Organization (BSO) group.
By the end of financial year 1999, Bata managed to report rising profits for four consecutive years after incurring its first ever loss of Rs. 420 mn in 1995. However, by the third quarter ended September 30, 2000, Weston was a worried man. Bata was once again on the downward path. The company’s nine months net profits of Rs 105.5 mn in 2000 was substantially lower than the Rs. 209.8 mn recorded in 1999. Its staff costs of Rs. 1.29 bn (23% of net sales) was also higher as compared to Rs. 1.18 bn incurred in the previous year. In September 2000, Bata was heading towards a major labour dispute as Bata Mazdoor Union (BMU) had requested West Bengal government to intervene in what it considered to be a major downsizing exercise.
With net revenues of Rs. 7.26 bn and net profit of Rs. 300.46 mn for the financial year ending December 31, 1999, Bata was India’s largest manufacturer and marketer of footwear products. As on February 08, 2001, the company had a market valuation of Rs. 3.69 bn. For years, Bata’s reasonably priced, sturdy footwear had made it one of India’s best known brands. Bata sold over 60 million pairs per annum in India and also exported its products in overseas markets including the US, the UK, Europe and Middle East countries. The company was an important operation for its Toronto, Canada based parent, the BSO group run by Thomas Bata, which owned 51% equity stake.
The company provided employment to over 15,000 people in its manufacturing and sales operations throughout India. Headquartered in Calcutta, the company manufactured over 33 million pairs per year in its five plants located in Batanagar (West Bengal), Faridabad (Haryana), Bangalore (Karnataka), Patna (Bihar) and Hosur (Tamil Nadu). The company had a distribution network of over 1,500 retail stores and 27 wholesale depots. It outsourced over 23 million pairs of footwear per year from various small-scale manufacturers.
Throughout its history, Bata was plagued by labor problems with frequent strikes and lockouts at its manufacturing facilities. The company incurred huge employee expenses (22% of net sales in 1999). Competitors like Liberty Shoes were far more cost-effective with salaries of its 5,000 strong workforce comprising just 5% of its turnover.
When the company was in the red in 1995 for the first time, BSO restructured the entire board and sent in a team headed by Weston. Soon after he stepped in several changes were made in the management. Indians, who held key positions in top management, were replaced with expatriate Weston taking over as managing director. Mike Middleton was appointed as deputy managing director and R. Senonner headed the marketing division. They made several key changes, including a complete overhaul of the company’s operations and key departments. Within two months of Weston taking over, Bata decided to sell its headquarter building in Calcutta for Rs. 19.5 crores, in a bid to stem losses. The company shifted wholesale, planning & distribution, and the commercial department to Batanagar, despite opposition from the trade unions. Robin Majumdar, president, co-ordination committee, Bata Trade Union, criticised the move, saying: “Profits may return, but honor is difficult to regain.” The management team implemented a massive revamping exercise in which more than 250 managers and their juniors were asked to quit. Bata decided to stop further recruitment.
The management team implemented a massive revamping exercise in which more than 250 managers and their juniors were asked to quit. Bata decided to stop further recruitment. The management offered its staff performance based salary. In 1996, for the first time in Bata’s 62-year-old history, the company signed a long-term bipartite agreement. This agreement was signed without any disruption of work. Recalls Majumdar: “We showed the management that we could be as productive as any other union in the country.” In the six-year period 1993-99, Bata had considerably brought down the staff strength of its Batanagar factory and Calcutta offices to 6,700.
In fiscal 1996, Bata was back in the black with the company reporting net profits of Rs. 41.5 mn on revenues of Rs. 5.90 bn (Rs. 5.32 bn in 1995). In fiscal 1997, Bata further consolidated the gains with the company reporting net profits of Rs 166.9 mn on revenues of Rs. 6.70 bn. A senior HR manager at the company admitted that with an upswing in Bata’s fortunes, even its traditionally intransigent workers were motivated to do better. In 1997, Bata workers achieved 93% of their production targets. The management rewarded the workers with a 17% bonus, up from the 15% given in 1996.
By the end of 1997, Bata still faced problems of a high-cost structure and surplus labour. Infact, the turnaround had made the unions more aggressive and demanding. Weston had failed to strike a deal with the All India Bata Shop Managers Union (AIBSMU) since the third quarter of 1997. The shop managers were insisting that Bata honor the 1990 agreement, which stipulated that the management would fill up 248 vacancies in its retail outlets. It also opposed the move to sack all the cashiers in outlets with annual sales of less than Rs 5 mn, which meant elimination of 690 jobs.
In 1999, the Bata management in a bid to further cut costs announced the phasing out of several welfare measures at its Batanagar Unit. Among the proposals were near total withdrawal of management subsidies, canteen facilities, township maintenance, electricity and health care schemes for the employees’ families. Other measures were aimed at increasing productivity, reorganizing some departments and extending working days for some essential services. On January 14, 1999, the BMU submitted their charter of demands to the management. The demands mainly revolved around economic issues. In the list of non-economic issues was the demand for reinstatement of the four dismissed employees.1 The Union had also demanded the introduction of a scheme for workers participation in management. On the economic front, the Union had demanded a wage hike of around Rs. 90 per week, additional allowances as provident fund over the statutory limit by the management, increase in ‘plan bonus’ and introduction of attendance bonus for migrant workers.
In July 1999, BMU was finally able to strike a deal. It signed a three-year wage agreement that included a lumpsum payment of arrears of Rs. 4,000 per employee. The management agreed to include 10% of the 400 contract laborers at Batanagar in its staff.
Other gains included an average increase of Rs. 45.50 in the weekly pay of the 5,600 employees in Batanagar, an improved rate of DA and increase in tiffin allowance. However, canteen rates had been doubled from Rs. 0.75 for a meal to Rs. 1.50. For the 500 families staying at Batanagar, the electricity rates had been doubled to Rs. 0.48 per unit. BMU was successful in preventing the management from dismantling the public health unit in which 80 people were employed. In September 1999, the West Bengal State labour tribunal in an order justified and upheld Bata’s action of suspending and subsequent dismissing of three executive members of the BMU. The tribunal had provided no relief to the dismissed members who had been found guilty of assaulting the chief welfare officer at the Batanagar unit on November 26, 1996.
More than half of Bata’s production came from the Batanagar factory in West Bengal, a state notorious for its militant trade unions, who derived their strength from the dominant political parties, especially the left parties.
Notwithstanding the company’s grip on the shoe market in India, Bata’s equally large reputation for corruption within, created the perception that Weston would have a difficult time. When the new management team weeded out irregularities and turned the company around within a couple of years, tackling the politicized trade unions proved to be the hardest of all tasks
On July 21, 1998, Weston was severely assaulted by four workers at the company’s factory at Batanagar, while he was attending a business meeting. The incident occurred after a member of BMU, Arup Dutta, met Weston to discuss the issue of the suspended employees. Dutta reportedly got into a verbal duel with Weston, upon which the other workers began to shout slogans. When Weston tried to leave the room the workers turned violent and assaulted him. This was the second attack on an officer after Weston took charge of the company, the first one being the assault on the chief welfare officer in 1996. Soon after the incident, the management dismissed the three employees who were involved in the violence. The employees involved accepted their dismissal letters but subsequently provoked other workers to go in for a strike to protest the management’s move. Workers at Batanagar went on a strike for two days following the incident. Commenting on the strike, Majumdar said: “The issue at Bata was much wider than that of the dismissal of three employees on grounds of indiscipline. Stoppage of recruitment and continuous farming out of jobs had been causing widespread resentment among employees for a long time.”
Following the incident, BSO decided to reconsider its investment plans at Batanagar. Senior vice-president and member of the executive committee, MJZ Mowla, said2: “We had chalked out a significant investment programme at Batanagar this year which was more than what was invested last year. However, that will all be postponed.”
The incident had opened a can of worms, said the company insiders. The three men who were charge-sheeted, were members of the 41-member committee of BMU, which had strong political connections with the ruling Communist Party of India (Marxist). The trio it was alleged, had in the past a good rapport with the senior managers, who were no longer with the organization. These managers had reportedly farmed out a large chunk of the contract operations to this trio.
Company insiders said the recent violence was more a political issue rather than an industrial relations problem, since the workers had very little to do with it. Seeing the seriousness of the issue and the party’s involvement, the state government tried to solve the problem by setting up a tripartite meeting among company officials, the labor directorate and the union representatives. The workers feared a closedown as the inquiry proceeded.
For Bata, labor had always posed major problems. Strikes seemed to be a perennial problem. Much before the assault case, Bata’s chronically restive factory at Batanagar had always been plagued by labor strife. In 1992, the factory was closed for four and a half months. In 1995, Bata entered into a 3-year bipartite agreement with the workers, represented by the then 10,000 strong BMU, which also had the West Bengal government as a signatory. It was in 1998, that the company for the first time signed another long-term bipartite agreement with the unions without any disruption of work. Apprehensive about labor problems spilling over to other units, the company entered into similar long-term agreements with the unions at its manufacturing units at Bangalore and Faridabad.
In February 1999, a lockout was declared in Bata’s Faridabad Unit. Middleton commented that the closure of the unit would not have much impact on the company’s revenues as it was catering to lower-end products such as canvas and Hawaii chappals. The lock out lasted for eight months. In October 1999, the unit resumed production when Bata signed a three-year wage agreement
On March 8, 2000, a lockout was declared at Bata’s Peenya factory in Bangalore, following a strike by its employee union. The new leadership of the union had refused to abide by the wage agreement, which was to expire in August 2001. Following the failure of its negotiations with the union, the management decided to go for a lock out. Bata management was of the view that though it would have to bear the cost of maintaining an idle plant (Rs. 3 million), the effect of the closures on sales and production would be minimal as the footwear manufactured in the factory could be shifted to the company’s other factories and associate manufacturers. The factory had 300 workers on its rolls and manufactured canvas and PVC footwear.
In July 2000, Bata lifted the lockout at the Peenya factory. However, some of the workers opposed the company’s move to get an undertaking from the factory employees to resume work. The employees demanded revocation of suspension against 20 of their fellow employees. They also demanded that conditions such as maintaining normal production schedule, conforming to standing orders and the settlement in force should not be insisted upon.
In September 2000, Bata was again headed for a labour dispute when the BMU asked the West Bengal government to intervene in what it perceived to be a downsizing exercise being undertaken by the management. BMU justified this move by alleging that the management has increased outsourcing of products and also due to perceived declining importance of the Batanagar unit. The union said that Bata has started outsourcing the Power range of fully manufactured shoes from China, compared to the earlier outsourcing of only assembly and sewing line job. The company’s production of Hawai chappals at the Batanagar unit too had come down by 58% from the weekly capacity of 0.144 million pairs. These steps had resulted in lower income for the workers forcing them to approach the government for saving their interests.
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AMITY (Assignment) MBA Semester 2