Rise and fall HRM case study

University Business School

Submitted By:Puneet GargRajesh GroverRavneet KaurSanchit KaurSanyam GroverMBA GENERAL A

RISE AND FALL CASE STUDY

Parties Included

• Jagannath (Jaggu to his friends)

• Suresh the Section Head

• Prahalad the Unit Chief

• Ravi, the EVP (Executive – Vice President)

• Ganesh, brother-in-law of Jaggu


Who was Jaggu???

1. Jaggu was an over ambitious man for whom end justify means.

2. With a diploma in engineering, he joined a Bangalore-based company as a Technical Assistant in 1977.

3. Obtained his degree from an evening college in engineering in 1982.

4. Sales Engineer in 1984.

5. After becoming Sales Engineer, he joined MBA part time programme.

6. Sales Manager in 1986.

7. Senior Marketing manager in 1988.

8. Became a Ph.D. scholar and obtained his doctoral degree in 1989.

9. Became the Section head

10. Promoted as General Manager


Events

With a diploma in engineering, Jaggu joined, in 1977, a

Bangalore-based company as a Technical Assistant. He

obtained his degree in engineering in 1982.

Recognizing as Engineer-Sales in 1984 Jaggu excelled himself

in the new role.

Promoted as Senior Manger- Marketing, still Jaggu eyed on

things beyond his jurisdiction.

He started complaining against Suresh the Section Head and

Prahalad the Unit Chief (both production) with Ravi, the EVP

(Executive – Vice President). The complaints included delay

in executing orders, poor quality and customer

rejections. Most of the complaints were cooked.


Ravi was convinced Jaggu was promoted to head the

production section so that things could be straightened up

there.

Jaggu became the Section head and Suresh was shifted to

sales.

Suresh, an equal in status, was now subordinated to Jaggu.

Success had gone to Jaggu’s head. He had everything going in

his favour-position, power, money, and qualification.

He divided workers and used them as pawns.

He ignored Prahalad and established direct link with Ravi.

Unable to bear the humiliation, Prahalad quit the company.

Jaggu was promoted as General Manager.



Downfall There were complaints against Jaggu.

He had inducted his brother-in-law, Ganesh,as an engineer , who was corrupt by nature.

He stole copper worth Rs. 5 lakh and wassuspended.

Jaggu tried to defend Ganesh but failed inhis effort.

Corruption charges were also leveledagainst Jaggu who was reported to havemade nearly Rs. 20 lakh for himself.

On the new-year day of 1993, Jaggu wasreverted back to his old position- sales.

Suresh was promoted and was asked tohead production. Suresh became boss toJaggu.

Unable to swallow the insult, Jagguresigned.

Whether there would be another

hump in the curve is a big question ?


Business Ethics

Ethics refers to the study of good and evil, right and wrong, and

just and unjust actions of business people. Business ethics is the

same as the generally accepted norms of good or bad practices.

If dishonesty is immoral in society, then any business person

practising a dishonest act is treated as indulging in unethical

actions.

For e.g. If an employee claim to be meeting a client at the end of

the workday when instead he is leaving early to catch a ballgame

on TV or he might claim to be at a workshop for the first half of

the day when instead he is sneaking in some extra sleep. This

kind of behavior is unethical from business point of view.


Employee Turnover

In human resource terms, employee turnover is a measurement of how long your employees stay with your company and how often you have to replace them. Any time an employee leaves your company, for any reason, they are called a turnover or separation. There are two main categories of turnover: voluntary and involuntary. Each of them has different causes.• Voluntary turnover is when an employee quits. This can be due to

finding a better position at another company, a conflict with a supervisor or a personal reason, such as needing to stay home with a family member.

• Involuntary turnover is when an employee is laid off or fired, generally due to reducing staff because of a business downturn or change in business focus or because of an employee taking some action that is cause for termination, such as theft.


Cost of Employee Turnover ?


Employee Responsibilities

Along with rights there are certain responsibilities which

employees owe to their employers. Responsibilities are ethical

limits on their behaviour and rights establish limits of the ethical

behaviour of others. Employees owe responsibilities to

themselves and their own moral integrity, to the profession, law

and society at large and they face many conflicts at their

Workplace.


Was he right when ……….

I. He complained against Suresh and Prahalad with Ravi ?

II. He became the Section head and Suresh was shifted to sales?

III. He prevailed upon Ravi and got sales and quality under his control, in addition to production ?

IV. He divided workers and used them as pawns?

V. He ignored Prahalad and established direct link with Ravi ?

VI. He had inducted his corrupt brother – in – law, Ganesh, as an engineer and tried to defend him later on ?

VII. He started his own consultancy claiming himself as an authority in quality management and poached on his previous company and picked up two best brains in quality.


Q1. Bring out the principles of promotion that were employed in

promoting Jaggu.Ans.: Jaggu was a diligent person; however he was

having an over ambitious attitude. Whateverhe achieved in his life was due to hisdevotion and performance in his job.

PRINCIPLES FOLLOWED:-

1. Internal Promotion

2. Promotion On The Basis Of Merit

3. Promotion Against Non Vacancy

4. Frequent Promotion


Q2. What would you do if you were Suresh, Prahalad and Ravi?

Ans.: Suresh and Prahalad – Marketing peoplecommonly complain the production department. Theywere belonging to production, and the complaintsagainst them were concocted. They should ask Ravi,the EVP regarding the fact and be clear on their partregarding the complaints against them. Due to theirsilent backdrop , Jaggu took the chance and became thesection head for production.

Prahalad- He should not have left the job and rathershould have talked to seniors, colleagues, otherofficials about being humiliated by Jaggu.



Ravi:-

• As an Executive Vice President, Ravi should investigate the

matters concerning Suresh and Prahalad, before shiftingthem to sales and appointing Jaggu as the production’ssection head.

• He should locate the right person at a right position.

• He should have clearly drafted norms for all people relatedfunctions and implement them in letter and spirit. So that ,in order to solve a conflict a proper procedure is followed .

• After seeing Jaggu’s defending activities for his brother-in-law and allegedly reported with corruption, Ravi shouldsuspend Jaggu immediately, instead of giving a chance ofrevert. As corruption is a serious violation of companynorms and calls for some serious action.

Q3. Bring out the ethical issues involved in Jaggu’s behaviour.

Ans.: Jaggu’s behaviour was totally unethical.

• At first he started fictional complains against theproduction team;

• Humiliated his subordinates;

• Appointed his brother-in-law as an engineer who wascorrupt by nature.

• Again, he started defending his corrupt brother-in-law,who caught while stealing 5lac Rs. worth of copper.

• And at last, he too involved in corrupting nearly Rs.20lac.


Steps for Making Ethical Decisions• Identify the ethical issue or problem.

• List the facts that have the most bearing on the decision.

• Identify anyone who might be affected by your decision and how.

• Explain what each affected person would want you to do about the issue.

• List three alternative actions and identify the best and worst case scenario for each alternative, anyone who would be harmed by this choice (and how), any values that would be compromised by selecting this alternative, and any automatic reasons why this alternative should not be selected (legal issues, rules, etc.).

• Determine a course of action.


Let’s look the other way around

Several complaints were made against Jaggu which could have

been just the result of the enmity or jealousy. Jaggu might have

tried to defend brother in law because he might be knowing the

truth behind the theft allegations that Ganesh was not the

culprit but failed in his effort. After that Jaggu was reverted to

his old Position.

A proper investigation of the facts should have been done before

Taking these big decisions. Jaggu resigned because his truth and

talent was not being respected and were at stake that time. So,

he resigned in order to tap better and bigger opportunities.

He might succeed in his new job.


Rise and fall HRM case study

Recruiting & HR

Transcript of Rise and fall HRM case study