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Evidence based management(problem statement is demotivation of staff in the workplace - Book Report/Review Example

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evidence based management (problem statement is demotivation of staff in the workplace) Contents Contents 2 Problem statement 3 Literature Review 4 Recommended Plan of Action 6 References 9 Problem statement The violent eruption of the industrial conflict in Maruti Suzuki India Limited’s Manesar plant had stemmed out of the internal issues between the management and the workers…
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There was much discontent among the workers when Jiya Lal was suspended from work and the supervisor who had made the derogatory remark was merely sent home on leave for a few days. Agitation rose among the workers due to the feeling that the management has been unfair in their decision. The workers’ discontent rose to such an extent that a riot in which the Human Resource manager was killed and over 100 people were injured of whom there were two expatriates from Japan following which more than 140 workers were arrested and arrest warrants were issued for more workers who were on the run.

The violent eruption was the result of many underlying problems existing between the managers and the workers through a long time. There was a lot of tension as the pay of the management was being increased but that of the workers were kept low. More hiring was made in the management but the workers were not always hired permanently and also were poorly paid by the company (The Economic Times, 2012, p. 2). Another reason of tension was that the company did not allow the temporary workers to form a union and also did not make any move to make them permanent workers in the plant.

This was intentional on the management part as the permanent workers were paid around Rs.17000 per month whereas the temporary labours got Rs.7000 for the same amount of work. Literature Review The main reasons triggering the eruption were formed during the last three years of the operation of the plant when enough agitation had stirred within the workers of the plant. Since 2007, some critical changes have taken place in the management of Maruti. The company changed hands from Jagdish Kattar to Shinzo Nakanishi, the current Managing Director of Maruti Suzuki.

Secondly as Maruti and the Indian market became more critical in the contribution to the profits of Suzuki, the tendency of Suzuki to control the operations in India increased hugely. Due to the upper management decisions are taken predominantly by the Japanese senior managers, the cultural difference is more highlighted in the day to day operations of the company thus delving in a gap between the management and the lower level. A loss of Indian connection is felt by the workers in terms of discipline; punctuality as well as employee connects.

There are several challenges in running a manufacturing plant. In the Manesar factory, 60% workers are permanent whereas 40% are on contract basis and the salary differs hugely between the two though they perform the same work. Contract labourers are hired to increase productivity while cutting down on costs (Usmani, 2010, p. 59). For improving productivity and increasing margins, the company has to put a lot of working pressure on the workers. In Manesar, the worker expectations have grown higher due to the change in the business scenario in the area, the workers are aggressive in their expectations and not tolerant in their attitude.

Therefore, low pay and high inflation stirred more agitation among the workers. Though a large number of workers in the Indian industry are contract labourers yet the trade unions have slowly declined in India. So, they got directly involved in the Manesar agitation as an effort to increase their base. The gap between the rich and the poor has been increasing and the government and management policies adopted in the recent times increased the anger among the workers

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