Title Case Study solution.pdf ✅

Case Study No. 1 (Solved Case) Case Study: Gurans Engineering Company Miss Rita Lama was appointed as the manager of human resource department of Gurans Engineering Company. Within a year after taking her assignment, she had to sign a wage agreement based on collective bargaining with the labour union. At that time, the union was dominated by non-technical staff. It favored the interests of non-technical staff in collective bargaining. The new wage agreement increased the pay of non-technical staff by 10 percent compared to 5 percent for technical staff. Consequently, the pay of lower level grades on non-technical staff became higher than the pay of lower level grades of technical staff. The wage agreement was signed and communicated to all the employees. This created commotion among the technical staff. They walked out of the official union and formed their separate technical staff union. They stopped working and started marching with play cards. The play cards read, "this is the company where gardeners get more pay than welders". The operations of the company have come to a standstill. Management is worried about the labour problem. Q. 1. What is the main problem in the above case and what are its reasons? Ans: The main problem in Gurans Engineering Company is partiality in the increment of salary. The salary of non-technical manpower is higher than technical manpower. There is no any discussion about salary increment with other members. There is lack of agreement between technical staff and management with non-technical staff. Non-technical staff continuously knocking to the manager and decision is broadcasted without proper planning regarding salary and wage payment. Q.2 What principles of compensation have been violated in the wage agreement? Ans: Always in any organization technical manpower should have the high-level payment than non- technical staff. Manager should make equal basic salary and compensation or any other merit payment, promotion system. Good performance respect is not given to the employee. There is no any respect of the employee performance or no performance appraisal result is analyzed. Q.3. If you were the human resource manager, how would you solve the problems? Ans: - If I were the human resource manager I would solve the above problem by the following ways: 1. First of all, I will stay in discussion with all levels of employees. 2. Discussion about the appropriate salary based on proper performance appraisal. 3. Providing proper compensation and Incentives program to motivate employee to meet objectives. 4. Taking feedback of implementation of salary from all levels of employees. 5. Managing Board with proper management strategy.