International Human Resource Management

International Human Resource Management Case Studies Case study (20 Marks) Kaniksha Ispat is an established medium size company manufacturing steel strips. The company has employed over 800 workers. The products of the company have established a good reputation and company was doing very well for last 15 years. The market is slowly changing its nature. The competition is growing and the recessionary trends are now clearly visible. The company is not visualizing a bright, growing market and most of the products, as per present marketing conditions are overpriced. In an effort to save the organization, the company president Mr. Vasant invited all the employees for a joint meeting.

At the meeting he tried to explain what problems company is presently facing and what the means to save the company are. The employees after understanding the graveness of the situation, agreed to have a10% cut, effective from the next month in their salaries immediate increase in salary is not possible. Mr. Vasant was highly impressed at the cooperative and positive approach of the employees. The company also tried to maintain a strict austerity measures in order to cut costs. Three months later, the company installed many new devices to improve quality and cut costs. Anagram Finance and Leasing came foreword to offer a hand of help to improve its financial position. The loan agreement amounted to Rs. 1 crore. First installment was received by the company Rs. 30 lacs and reconstructive work started at a rapid speed. The techno economic survey was made by the expert of Anagram Finance and they submitted a report that, future cut in administrative cost by reducing 200 employees is the essential step that Kaniksha should take immediately. If this is not acceptable to the company then the next installment should not be released. Since the fixed assets of the company had been used by the company to support the loan agreement, it had a little scope for denial. Mr. Vasant decided to invite union leader and discuss the issue

Answer the following question. Q1. What is the fundamental management problem Q2. List out alternative courses of action Q3. Identify the position of both Mr. Vasant and Union Leader