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
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.

the below are problems identified from the case study:
Inadequate training programs:
The introduction of new technology to the production line was met with insufficient training for existing employees. On-the-job training as not enough to equip employees with the necessary skills to adapt to the new technology. This then led to frustration, decreased productivity and contributed to high turnover rate as employees felt they were not supported.
The second problem is poor change management:
The rapid change management process lacked planning and consideration for employees’ readiness to adapt to new systems. This led to neglecting the employees’ adjustment period. As results, this created an atmosphere of fear and uncertainty, employees feeling pressured to perform without adequate preparation or support, leading to mistakes and inefficiencies.
Third problem identified is ineffective performance management and feedback:
Reliance Motors did not have an absolute performance management system in place. Employees were expected to meet daily targets without receiving ongoing feedback. This absence of feedback means that underperforming employees had no clear direction on how to improve, leading to them making errors and mistakes and recalls of faulty products. Constructive performance feedback is crucial for employee development and motivation.
Adding to the above problems, the other on is, lack of employee engagement and motivation:
Even though the company believed that competitive salaries and bonuses would motivate employees, it had shown that monetary incentives alone were insufficient. Doing same job every day, coupled with a lack of engagement strategies and recognition, lead employees to feel undervalued and unmotivated. Management failed to foster and environment of collaboration, creativity and recognition, which is essential for employee satisfaction and retention.
Lastly, there was division and inequality among employees:
There was a perceived division among the Engineering Department and other departments. This special treatment of Engineers, viewed as rare and valuable talent, created feelings of resentment and inequality among the workforce. This impacted the overall team morale and productivity as the division contributed to a negative workplace culture where employees felt less inclined to collaborate and support one another.

Provide probable measures that could be taken to remedy the identified HRM problems at
Reliance Motors.

1 answer

To address the HRM problems identified at Reliance Motors, a comprehensive and strategic approach is necessary to improve employee engagement, enhance training and performance management systems, and cultivate a more inclusive workplace culture. Here are several measures that could be implemented:

1. Enhance Training Programs

Structured Training Sessions: Develop a structured training program tailored to the new technology. This could include mentorship programs where experienced employees support those struggling to adapt to the new systems.
Blended Learning Approach: Implement a mix of on-the-job training, e-learning, and classroom training. This can help cater to different learning styles and provide a more thorough understanding of the new technology.
Continuous Learning Opportunities: Create a culture of lifelong learning by offering continuous development workshops and training refreshers for all employees, not just new hires.

2. Improve Change Management Processes

Change Management Framework: Adopt a change management framework that includes assessing employees' readiness for change, clear communication about the changes, timeline, and support mechanisms.
Engagement in Change: Involve employees in the change process; seek their input and feedback before implementing changes to help them feel included and valued.
Support Systems: Establish support groups for employees to share their struggles and successes during transitional phases, fostering a community of growth and collaboration.

3. Implement Effective Performance Management and Feedback Systems

Regular Feedback Mechanism: Implement a continuous feedback loop where employees receive regular performance updates, not just at deadline intervals. This can help employees understand their strengths and areas for improvement.
Performance Review Process: Introduce a formal performance appraisal process that includes goal-setting, performance metrics, and regular one-on-one discussions. Ensure these reviews promote constructive dialogue and encourage development.
Recognition Programs: Develop systems to recognize and reward employees for their achievements and contributions, not just for meeting targets. Celebrate both individual and team successes.

4. Foster Employee Engagement and Motivation

Engagement Surveys: Conduct regular employee engagement surveys to understand employee satisfaction and concerns. Use feedback to implement changes that address employee needs and expectations.
Team Building Activities: Organize team-building events and social gatherings to enhance interpersonal relationships among employees and build a collaborative culture.
Career Development Opportunities: Establish clear career paths and opportunities for promotions or skill development, showing employees that the company is invested in their growth.

5. Promote Equity and Inclusivity Among Employees

Address Perceived Inequalities: Evaluate and address any perceived inequalities in how different departments are treated. This may involve assessing pay structures, benefits, and opportunities for all departments.
Cross-Departmental Collaboration: Encourage collaboration between departments, such as joint projects or team meetings, to help build understanding and appreciation for the different contributions each department makes.
Conflict Resolution Mechanisms: Implement clear channels for employees to voice their concerns regarding perceived inequalities and ensure that these issues are reviewed and addressed promptly.

6. Develop an Inclusive Workplace Culture

Diversity and Inclusion Training: Provide training to management and staff on the importance of diversity, equity, and inclusion to foster a more supportive work environment.
Open-Door Policy: Encourage an open-door policy where employees can freely communicate with management about their concerns, suggestions, or feedback regarding workplace conditions.
Leadership Development: Train leaders to be inclusive, empathetic, and responsive to employee needs, reinforcing a positive organizational culture.

Conclusion

By implementing these measures, Reliance Motors can create a more supportive, engaging, and productive work environment, ultimately leading to higher employee satisfaction, reduced turnover, improved product quality, and better overall performance for the company.