Reference no: EM133498237

Case: CC Ltd., is a manufacturing concern of consumer durables. The company has gone in for diversification and has set up a new project with a huge investment. The Company had recruited a very highly qualified technocrat. The production targets are to be achieved solely with the cooperation of this technocrat. This technocrat is also one of the Directors of the Company. The first year of infancy saw some progress in its new venture of diversification. It was at that time that negotiations were going on with the Unions and the Management for payment of bonus to the workers. The Company had incurred huge loss during the previous years and therefore, it was argued by the other Directors that they cannot pay huge amounts as bonus and only minimum guaranteed bonus should be paid. This stand had the legal stamp. The company had four unions of which one had a sizeable number and one had the least number. During negotiations, the technocrat had indicated that the Union's demands were reasonable and that to ensure targeted production, to maintain good industrial relations and also to ensure that the diversification was successful, the demands of the Unions should be met. After negotiations with the Union which had the largest number of members a certain percentage of bonus was decided upon. The Union with the least membership had put up a poster that they are fighting for a higher bonus and that the members should not accept the lower percentage since that Union is supported by some Directors. The other Unions could not pressurise the workers to accept a lower percentage of bonus since this would be detrimental to them. All the workers were perplexed. There was thus a stalemate and the Management was going ahead with preparations for payment so that they can satisfy the statutory provisions of the Bonus Act by tendering payment. There was only an Industrial Relations Officer and no Personnel Officer for the Company. The Industrial Relations Officer advised the Management to go slow on the issue and the Managing Director was in favour of going slow on the issue. Festive season was nearing and both the Management and the workers were in a quandary!

Question 1: How would you solve the issue ?

Question 2: What is your opinion about the behaviour of the technocrat ?

Question 3: How will you improve the inter-personal relations in the organisation ?

Question 4: How would you avoid an industrial crisis ?