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Question

CASE STUDY
Reliance Motors, an automotive manufacturing company employs over two hundred (200)
employees and has been in business for over a decade. The New Delhi, India based company has
thrived well in the market until emergence of operation disrupting hiccups in 2012 when the
company was adding another line of product to its production. Due to the competitiveness of the
automotive industry, Reliance Motors made an effort to diversify its operations by adding a new
model to its production line. The change brought about an introduction of new technology in the
work place which most of old employees were not familiar with. Due to competition pressure,
Reliance could only afford on the job training as the company could not afford to lose production
hours. The change management process was rapid without due care of whether or not all the
employees were keeping up. Results were demanded and those who couldn’t meet expected
production levels were let go without hesitations regardless of their ability or potential to be star
employees if only they were nurtured and supported towards the right directions. Noticing the
unpleasant working environment, some of the employees who couldn’t keep up resigned from the
organisation before they were sacked. Employees of Reliance Motors were expected to make target
each and every day without any feedback given to them about their performance unless if target
was not made. Management of the company believed that the highly competitive salaries and target
bonus paid to the employees were enough to motivate them in the workplace. Most of the
employees found their jobs to be monotonous and could only do enough to keep their jobs. Error
rate on finished products started to escalate and recalls of faulty cars also increased. Due to high
turnover, recruitment costs also escalated, and profit margins plummeted. Due to the specialization
nature of the automotive industry other employees also queried that the Engineering Department
employees were given special treatment due to their scarcity in the labour market and this brought
divisions among the employees. Overwhelmed with these challenges the Managing Director of
DIPLOMA Sessional Examination
January-June BSH622 – Strategic Human Resources Management
© BOU 2025 Page 3 of 7
Reliance Motors, Mr Mathur Kumar Khan found it necessary to bring on-board a Human Resource
Practitioner who could identify the root causes of HR problems at Reliance Motors and probable
solutions thereto.
a) As a Human Resources Practitioner employed by Reliance Motors list and explain five (5)
HRM problems identified from the case study. (15 Marks)

Answer 1

As a Human Resources Practitioner analyzing the case study of Reliance Motors, the following five HRM problems can be identified:

1. Inadequate Training Programs:

   • The introduction of new technology to the production line was met with insufficient training for existing employees. On-the-job training was not enough to equip employees with the necessary skills to adapt to the new technology. This lack of comprehensive training led to frustration, decreased productivity, and ultimately contributed to the high turnover rate, as employees felt ill-prepared and unsupported.

2. Poor Change Management:

   • The rapid change management process lacked careful planning and consideration for employees’ readiness to adapt to new systems. The management's focus on immediate results led to neglecting the employees' adjustment period. This oversight created an atmosphere of fear and uncertainty, with employees feeling pressured to perform without adequate preparation or support, leading to mistakes and inefficiencies.

3. Ineffective Performance Management and Feedback:

   • Reliance Motors did not have a robust performance management system in place. Employees were expected to meet daily targets without receiving ongoing feedback. The absence of constructive feedback means that underperforming employees had no clear direction on how to improve, leading to increased error rates and recalls of faulty products. Constructive performance feedback is essential for employee development and motivation.

4. Lack of Employee Engagement and Motivation:

   • Although the company believed that competitive salaries and bonuses would motivate employees, it became evident that monetary incentives alone were insufficient. The monotonous nature of the job, coupled with a lack of engagement strategies and recognition, led many employees to feel undervalued and unmotivated. Management failed to foster an environment of collaboration, creativity, and recognition, which is vital for employee satisfaction and retention.

5. Division and Inequality Among Employees:

   • There was a perceived division among employees, particularly between those in the Engineering Department and other departments. The special treatment of Engineers, viewed as rare and valuable talent, created feelings of resentment and inequality among the workforce. This division contributed to a negative workplace culture where employees felt less inclined to collaborate and support one another, ultimately impacting overall team morale and productivity.

These identified issues highlight systemic weaknesses in Reliance Motors' HR practices, which have contributed to the company's operational difficulties and declining employee morale. Addressing these problems will require a comprehensive HR strategy focused on training, performance management, employee engagement, equitable treatment, and effective change management.