Case Study

Priya.S
WATSON
PriyangaPUBLIC
Krishna LTD
Moorthy
Rajesh Kumar.K
Sajitha Farveen.S

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ABOUT WATSON PUBLIC LTD:

Watson Public Ltd Company is well known for its welfare

activities and employee oriented schemes in manufacturing
industry from more than ten decade

Consist of
 800 workers
 150 Administrative staff
 80 Management Level Employees

Top Management View all the Employee at same level

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The company have 2 different cafeterias at different places one
near the plant for workers and other near the Administration
building. Though the place is different the amenities,
infrastructure and the food provided are of same quality. In short
the company stands by the rule Employee Equality.

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The company has one registered trade union and the
relationship between the union and the management is very
cordial.

The company has not lost a single man day due to strike.

The company is not a pay master in that industry.

The compensation policy of that company, when compared to

other similar companies, is very less still the employees don’t
have many grievances due to the other benefits provided by the
company.

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CASE STARTS HERE…….

The company is Started to facing countable number of

problems in supplying the materials in recent past days.

Problems like quality issues, mismatch in packing materials

(placing material A in box of material B) incorrect labeling of
material, not dispatching the material on time etc…

The management views the case as there are loop holes in

the system of various departments and hand over the
responsibility to HR department to solve the issue.
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When the HR manager goes through the issues he realized
that the issues are not relating to system but it relates to
the employees.

CAN YOU ABLE TO GUESS WHAT MAY BE THE

REASON FOR THIS ISSUE???

REASONS ARE:
The company hired new employees for higher level post
without considering the potential internal candidates.

The newly hired employees are placed with higher

packages than that of existing employees in the same cadre.
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Justification:

Employee Equality is not the need for every hour. In the above said
case Watson Ltd had provided all facilities to employees at each
grade in equal manner. But still the employees started creating
certain issues like materials are meeting the quality supply schedule
is not met etc.. and the HR manager said that the policy of hiring
new employees for higher post without considering old potential
employees is the major problem.

“Employee recognition VS Employee equality”. As the HR

manager states that employees are not been recognized for the
potential rather company has gone for new recruitment. Because of
which the company faces problems.

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The points raised by HR manager is justifiable because “Human
beings are social Animals as popularly” said by many Human
resources Scholars. So human minds demands for social
recognition, self respect, consideration etc for their work and
performance.
In the above said case even the company provides and stands by the
concept employee equality when it fails to recognize the potential
talents of existing employee they felt dissatisfaction towards the
organization and they showed in the way of quality issues and slow
down production.

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According to HR Aspects;

Slow down Production:

The concept of slow down production is a type of strike done by
employee. The Industrial Relations sates that when the employee
wants to show their dissatisfaction to the management but don’t
want to go for strike they follow slow down strike. The impact of
which will be understood after a particular time period

Employee Recognition:
Human beings can be easily motivated by Rewards and recognition
than that of money. In this case also the employee are not satisfied
even after all facilities just because of the reason that they are not
recognized.
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Hawthrone Experiment:
In the four type of test conducted by Elton mayo the remarkable
hike in production is recognized in the stage when they consulted
the employees for the management decisions regarding them. The
same thing was missing in Watson Ltd. Before the new hires if the
management consulted the employees both management and
employees would have avoided this issue

Hygiene Factor:
Theory of hygiene factor states that there are certain factors related
to employees the presence of which will not create major impact but
the absence of such things will lead to a de motivation to the
employees. Employee Recognition is one such factor when the
management fails to do so it will Detroit the employees to a great
extent
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If I were a HR Manager…………
If I was in the post of the HR manager I will try to discuss the issue
and ask for the reason from the management for new recruiting
rather than considering available potential talents. I will personally
analyses the reasons provided by management and if acceptable i
will discuss the same with the employees. Everything is possible
when discussion is done.
So I will discuss and convince the employee that this wont happen
again in the organization. I will also initiate the collective
bargaining process for reasonable salary hike for the existing
employees.

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