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Ruia Group acquired Dunlop in 2005, accepting the challenge of revamping and reviving its twin plants at West Bengal and Tamil Nadu. The Group is committed to deliver a product excelling in quality and performance and has major investment plants for technology up gradation in the near future.
Plant location : Sahagunj, West Bengal & Ambattur , Tamil Nadu .
Plant area : 239 acres at West Bengal & 90 acres at Tamil Nadu.
Tyres : Truck, Bus, LCV, Agriculture, OTR & Aviation.
Product profile : Industrial products hose, nylon/steel belted conveyor belts, metalastik, industrial solution & adhesives
1898 Dunlop reaches India
1926 Dunlop is incorporated in India
1936 Sets up the first tyre plant spread over 239 acres at sahagunj near Kolkata
1958 Second plant spread over 90 acres developed at Ambattur near Chennai
1988 Dunlop operates suspended & declared sick
2005 Ruia group takes over Dunlop
2006 Major refurbishment of plant and machinery & trial production
2007 Regular production started at both the units in sahagunj & Ambattur
IDENTIFICATION OF PERFORMANCE ISSUE
As per the internal source of DUNLOP INDIA LIMITED. I come to know that sahagunj manufacturing unit having severe issue in its man power. All workers gone for strike about a week and more which is looking as unstopen and ongoing process. In past about a year workers gone for a strike atleast for 5 or 6 times or more than that, it had a bad impact for the company's future as it leads to no manufacturing in the plant. And as the company is not able to pay salary as well as bonus from last few months. The workers are now stop doing work in factory for production of tyres as they are not getting salary which is required as a basic needs to do work. So it becomes a performance issue which should be in action.
REASON OF ISSUE
As DUNLOP INDIA LIMITED is having workers problem since last few years. So, we have to take some rapid action to solve this problem otherwise the plant cannot produce tyres on time and it leads to decline in production as well as profit.
So, I acknowledge the failure on our part to address the critical issues is finance problem for workers in HR department. As they are the only base of factory to work done so we have to take care of this issue seriously and do some action as early as possible.
I undergo certain detailing from internal source (ex-employee) as well as workers of DUNLOP INDIA LIMITED and took the most common views of all to take a decision where the company is lacking behind in dealing with workers or its employees. The detailed views are as follows:
Internal source (an employee)
Internet (Amazon.com, 1996) (The Winthrop Corporation, 2000) (moneycontrol.com, 2004) (reportlinker.com, 2011)
News channel (local news channel tv9)
Articles (BusinessStandards.com, 2011) (The Business Line, 2011) (expressindia.com, 2009) (ProKerala.com, 2005)
And to convey with my CHAIRMAN as per demand from him only, I took a method of communication which is most common at all and also very effective i.e letter writing in which I gave him a clearer image of his requirement.
DEVELOPMENT OF THE COMMUNICATION METHODS
As the methods were taken above i.e. through the internal source, meeting with union leader as well as workers of the plant and news channel report. The methods were not sufficient enough to come on any conclusion which was analyzed by our chairman MR.PAWAN KUMAR RUIA after he looks all the aspects and the report prepared by me.
The chairman decided what to do as he himself suggest me the method to hired external agency which are non biased and give true picture of workers by checking internally of all through the workers company accounts and records as well as the scrap which is to be dissolved to take a final conclusion of a performance issue that should be in action. And from that also I came to a same conclusion which I mentioned before that it's a matter of workers basic need i.e they are not getting their salary from last few months they can't able to work any more as every person doing work to fulfil its needs and desire and if there basic needs that is foremost for everyone is not satisfied. They will no more doing work at all. And in vast it's a problem of H.R sector who is responsible for workers issue. So company have to take action for the procedure follows in H.R department to deal with workers.
ANALYSIS THE ISSUE THROUGH DIFFERENT FRAMEWORK
MASLOW'S HIERARCHY OF NEEDS
This is most often displayed as a pyramid. The lowest levels of the pyramid are made up of the most basic needs, while the most complex needs are located at the top of the pyramid. Needs at the bottom of the pyramid are basic physical requirements including the need for food, water, sleep, and warmth. Once these lower-level needs have been met, people can move on to the next level of needs, which are for safety and security.As people progress up the pyramid, needs become increasingly psychological and social. Soon, the need for love, friendship and intimacy become important. Further up the pyramid, the need for personal esteem and feelings of accomplishment take priority.
By this we can understand that if we can't able to satisfy our worker's basic need i.e salary which is come foremost need of any person if he is working under any. As every person wants to go to the top of hierarchy at self actualization at some point of time. So in our company if their basic needs are not satisfied, Then how can we expect that a worker can work in good and positive way and by ruining their salary we are demotivated them, Who are the key for success as we are totally depends on them.
As the above issue is not taken as granted , I believe that it's a foremost performance issue in which the company have to take a decision to take a action as there is problem in H.R department and can say a coordination problems and I took the method suggested by Chairman to gave him clearer view i.e taking help from external agency by hiring them on relevant issue as I hired them for checking internally all records of workers side by side also done deal with them to check scrap of iron available for sell. As doing some scrap selling we can lesser our problems of giving the salaries to workers after then I told companies CHAIRMAN about the values of total iron scrap in the factory premises as an alternate solution apart from taking action in H.R department by which THE CHAIRMAN can make a decision by its own to help the company for better future.
By this we can expect to strike a wage agreement with labour unions at the sahagunj facility in west Bengal. We can also agreed to enhance the compensation package for past dues of salaries and wage and pay the workers liabilities including the VRS compensation package in lump sum. And by this we can also do proposing to pay the VRS package in instalment and the company management has agreed to increase payments towards wage arrears from the initially proposed Rs.20,000 to Rs.25,000 for the sahagunj facility. And these solution turns company in better mode for becoming the company at a bright star as company can only leads to productivity and profit when its workers will satisfied and happy.
At last I conclude my words by saying as per me it's a major performance issue which should be taken seriously and I am taking this as a issue by undergoing certain methods to take out the problem which should be dissolved for the betterment of the company. And by going all view I came to know the problem is of H.R department who deals with workers and also come with an alternate solution which I also describe some what above and in letter to CHAIRMAN which shown in appendix which company have to take in its measures to dissolve it and I belief that this research will help company to take it up in its positioning.
And in this whole communication I learned lot many to know how to deal with workers and their problems and also learned from my CHAIRMAN how to take a vast research and go to its root to take a decision ,whether the problems which are accuring are really important or not and which is required some serious action or not and if it is what is the time saving measures we can apply in current condition to dissolve the problem and communicate same with CHAIRMAN as early as possible
Amazon.com, 1996. amazon.com. [Online] Available at: http://www.amazon.com/DUNLOP-INDIA-LTD-International-Competitive/dp/0597164088 [Accessed April 2011].
BusinessStandards.com, 2011. Business Standards. [Online] Available at: http://www.business-standard.com/india/news/workers-scepticalruias-revival-plan-for-sahaganj/431946/ [Accessed April 2011].
expressindia.com, 2009. expressindia. [Online] Available at: http://www.expressindia.com/latest-news/dunlop-workers-start-relay-hunger-strike-with-families/490078/ [Accessed April 2011].
moneycontrol.com, 2004. momeycontrol.com. [Online] Available at: <http://www.moneycontrol.com/news/business/dunlop-india-to-be-reopened-labour-ministry_157878.html >[Accessed April 2011].
ProKerala.com, 2005. ProKerala News. [Online] Available at: http://www.prokerala.com/news/articles/a213107.html [Accessed April 2011].
reportlinker.com, 2011. Report Linker. [Online] Available at: http://news.reportlinker.com/n06122515/Dunlop-India-weakens-below-Moving-Average-Price-MAP-50-day-MAP-trails-200-day-MAP.html [Accessed April 2011].
The Business Line, 2011. Business Line. [Online] Available at: http://www.thehindubusinessline.com/todays-paper/tp-corporate/article1722330.ece [Accessed April 2011].
The Winthrop Corporation, 2000. Corporate Information. [Online] Available at: http://www.corporateinformation.com/Company-Snapshot.aspx?cusip=C356EB780 [Accessed April 2011].