CASE STUDY 2:    

Mr. Bhat, Human Resource Manager of IVS Group of companies approached the CEO

on 30th march, 2007 and apprised him of the absence of Mr.Ajay Vaidhya, Assistant

Accountant in the Corporate Finance Department, for the past one month and

requested him to approve the show-cause notice to be saved to Mr.Ajay as per the

Labour Laws in force.

The CEO told Mr.Bhat: “When Mr.Ajay has been absent for the last one month , your

duty is to go to Mr.Ajay,s  house, find out the reason and solve the problem of Mr.Ajay,

and not just to report the absence to me. Go immediately to Mr.Ajay,s house find the

reason and report it to me before 5.oo P.M. today.”

Mr. Bhat immediately left for Mr.Ajay’s house and learnt from Mr.Ajay ‘s Wife that

Mr.Ajay has been in distress as he has been trying to mobilise Rs.1,00,000 for the

surgery of his sick wife in a reputed hospital in Chennai. Mr.Bhat could meet Mr.Ajay

around 3.PM and both of them then met the CEO. Both of them apprised the CEO the

reason for the absence and distress of Mr.Ajay.

The CEO immediately contacted the hospital and informed them that the company will

pay Rs.1,00,000 tomorrow i.e., 31st March 2007 and requested the doctor to conduct

the surgery for Ajay’s wife tomorrow itself.

The CEO ordered Mr.Bhat to arrange to issue a cheque for Rs.1,00,000 in favour of the

hospital and also pay Rs.10,000 in cash to Mr.Ajay to meet incidental expenses as a

grant. Mr.Ajay as well as Mr.Bhat were surprised at the decision of the CEO Mr.Ajay

became emotional and touched the feet of the CEO.

The CEO told Mr.Bhat:”Problems of our employees are the company’s problems. We

treat the employees as human being and members of the company’s family.”

This piece of news spread in the entire company within no time and the employees felt

highly secured. The productivity level increased by 100% in the next quarter itself and

sustained over the years to come.

Questions:-

1. Why did Mr.Bhat prefer to follow a legal approach to the problem?

2. Why did the CEO provide Rs.1,10,000 as just a grant to Mr.Ajay ?

3. What would be the morale of employee’s family members after this incident?

4. Suggest a suitable title for the above said case and justify that title.

Solution

1. Why did Mr. Bhat prefer to follow a legal approach to the problem?

Solution:

Mr.Bhat preferred to follow a legal approach against Mr.Ajay for being absent from his

job, for the following reasons

• As Mentioned in the case by Mr.Bhat noticed that Mr.Ajay kept himself absent from job

without being informed the authorities which is not considered as a fair practice done by

any employee as per Labour Law.

• Mr.Ajay is working in an important department in the organisation ( corporate finance),

his absence might affect the performance of the department.

• In the other hand remaining employees in the department are loaded with extra

responsibility as they need to share the duties of Mr. Ajay which may created stress on

them.

• Above all if any legal action is not taken against Mr.Ajay this may lead to a bad

example to other employees and among some of them may take an advantage of this.

Hence by considering the above said reasons Mr.Bhat preffered to follow a legal

approach of issuing a Show cause notice to Mr.Ajay

2. Why did the CEO provide Rs.1,10,000 as just a grant to Mr.Ajay ?

Solution:

CEO Didnot approach the issue of an individual who didnot return to the job for more

than one month. He realise that there must be an valid reason behind this. So he

demand Mr.Bhat to visit Mr.Ajay’s resident and find out the reason for his absence.

When he get to know the issue he analysed it and considered it as an opportunity to

make the employees realise that they are the assets of the organisation. And being a

CEO employee’s well being and his family members well being matters for him.

He also knows that the loyalty of the all the employees will be improve and this will

ultimately increase the efficiency of the employees. Hence he granted Rs.1,10,000 to

Mr.Ajay and his family which will benefit both Ajay and his family and also create a

positive impact on the employees.

There are so many benefits behind this grant some of those benefits are increased Job

security, increased morale , strong loyalty, improve efficiency, employees family will

have faith on the organisation, increased production output etc…

Considering the above said benefits CEO granted the above said amount to Mr. Ajay.

3. What would be the morale of employee’s family members after this incident?

Solution:  

The incident spread like an fire in the organisation and through the employees to their

family also. After listening to this Ajay’s family members felt so thankful to the

organisation especially to the CEO who considered their problem and helped to solve

the issue. The concern of the CEO obvious saved a life in their family.

Along with Mr.Ajay’s Family members the family members of other employees also felt

that IVS is the safe place to work and it is safe not only to the employees but also to

their family also.

So the family members felt secured, loyal and very well satisfied about the organisation.