Reference no: EM132930603

Asian motor Ltd is an automobile spare part company which is there in the market from 6 decades. It was serving to the needs of the customers (majorly focused on 3 companies) by giving product delivery time to time and goods with good quality. To achieve the above said things Asian motors had to walk a long history. The work force is the main reason because of which Asian motors is well known for its timely delivery and good quality goods.

Most of the employees in Asian motors are associated with the organisation for more than 3 to 4 decade. It is said that the one who join the organisation as a fresher will leave the organisation as a retired person only. The turnover ratio is very low in Asian motor ltd due to the feel of satisfaction and job security provided by Asian motor ltd management.

Till last year everything was fine with Asian motors. During the last year the scenario has changed. Number of competitors enters in the market and each one of them was well equipped with all modern technologies. 2 among the major 3 customers who applied for Standards like TQM ISO started pressurising Asian motors to go for modern technology as a part of their Standards process. They want the goods that are manufactured through modern machineries.

The management is also ready to go for an organisational development by accruing new machines and adopt all required modern technologies and allocated a big amount of fund towards this plan. The management was fully aware that to sustain the business they have to go for Organisational change and development. The management hired an OD consultant who will work out a plan for the change and find out the hurdles in implementing the plan.

The OD consultant stated in his report that, the employees are the major hurdles in achieving the target of modern plant in Asian Motors. The reasons stated by him are:-

a) Very old employee who are not much comfortable in adopting the new system.

b) Chances of employees to show less interest towards Training in the new machineries as their employment period will be very less due to their age.

C) Major reason is it is not advisable and won't be fruitful to invest the training and development amount on those employees ( 40% ) who are going to retire in less than 5 years.

This started a pressure in the minds of the employees about the job security. The union leader quoted in front of management that "The place which we felt it is our own organisation which will never leave us aside or where we want to serve for our life time becomes a question mark in front of us".

The management assured him that "we will never commit such things which will put the employees in loss. There will be no question of job security here. And we all together will create a modern plant equipped with latest technology at Asian motors. Our plan is ready for that."

He presented the plan in front of all the employees after listening to which the employees felt so happy and they confirmed that it is their own organisation and they will serve for the company till their life time.

Questions

1) Discuss the state of mind of employees of Asian Motors before the paln is discussed with them.

2) Locate and discuss the external factors which are determinates of this case in detail.

3) What would be the possible plan drafted and discussed by the management to solve the issue through which both the employees and management would be benefited.

4) Discuss the pros and cons of the plan that is been framed in question no.3.