Reference no: EM133597444

Problem: A well known business house started an industrial unit using new technology under the name Royal Electronics. Their system of management in general was of the old type where everything was centralised on a personal level. However, in case of new company, due to various factors like distance, time etc., the industry was allowed to develop on autonomous lines and was put in charge of a U.K. trained Engineer. Considering the various aspects, the industry was progressing well. But due to the lack of adequate attention to labour and industrial relations, a strike occurred. It generated tensions and fears among the executives, both on the production side and in other departments. Several engineers and executives left jobs including Labour Officer who felt insecured due to vacillation and interference from top management. Finally the strike was resolved. But some workers were still under chargesheets. Their cases had been conducted by the new Labour Officer who had joined at the height of strike. One day, the Factory Manager received a call from the Managing Director to dismiss the Labour Officer immediately. The Factory Manager solicited reasons at least to justify his action, but to no avail. In fact, the Managing Director came personally to meet the Labour Officer and gave him the dismissal letter. The Labour Officer was appointed by the Factory Manager and so he went to the latter who said that he could do nothing now. Analyze the factors that led to a break-down of industrial relations in the Royal Electronics. How should the cases of chargesheeted employees be dealt with? What course of action will you suggest for the Factory Manager? As Labour Officer, what would be your steps after receiving the letter of dismissal from the Managing Director?