Introduction to the Organization:

XYZ Company was established 20 years ago, to manufacture gearbox components for diesel engines. It employs around 250 people, having a head office, which employs a wide range of personnel who are generally well educated and enthusiastic about their work, and a factory, which employs semi-skilled local people who are generally disinterested in the products of the company and who have an instrumental attitude to work, seeing salary as the only reward.

Brief Description of the Problem:

The performance of the company has not been good and the records revealed the following facts:

   Wastage within the factory was costing the company approximately Rs.100,000 a month.

There was wide spread differences in individual work standards.

Processes were non-standardized resulting in repeated problems.

Management made all decisions and cascaded the results down to employees.

The top management become concerned about the performance of the factory and they hired. Mr. Tanmoy Deb, an OD consultant to study the problem and suggest specific changes to relationship and tasks with the following objectives:

To review and improve communication systems.

To restructure the organization and to review teamwork and quality practices.   To review leadership issues across all levels.

Mr. Tanmoy Deb carried out discussions, interviews and surveys and made the following observation:

There’ and ‘us’ attitude was widely prevalent between head office and factory personnel.   Production personnel lacked technical skills.

Factory employees felt alienated from sharing the Company’s success.

Production systems were adhoc and defective because of frequent variation in standards set.

Mamany times raw material was found to be of inferior quality.

Rigidly defined job descriptions.

qutsion. 1.   What in your view are the central human resource issues involved in this case?

1.   What Strategy should Mr. Tanmoy Deb develop and implement for improving the present system?