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Q5.Read the following case and answer the questions:
Mr. Rehman inherited a business from his parents in 2003, which was
relatively bigger compared to other factories in the neighborhood. His father,
Sayeed, had started making brassware at Moradabad, a medium-sized town in the
state of Uttar Pradesh in 1974.Sayeed’s brassware fabrication unit grew steadily
and in five years, the workshop had five more workers besides him. The number of
additional worker’s grew to 15 within ten years. A sales outlet was also started
in 1986 supervised by Syeed’s wife-Bano. Rehman started going to the factory at a
very young age. Rehman is an MBA now having specialization in HRD. After resuming
work in his factory he realized that his father had little interest in management
and had given this task to his cousin Shaikh while he himself was the owner. There
occurred a big slowdown when Sayeed and Bano left for Haj pilgrimage. Meanwhile as
Shaikh tried to cripple the industry by walking out of the industry as he
expected to head the Business while the owners were away and therefore started
his own business taking away all good employees of the factory. Rehman, who has
just returned from his B- School took over and decided to revamp the organization
so the first task he did was to compile an inventory of human resources available
in the company. He was surprised to find that Moradabad Brass Industries was much
bigger then he had visualized. The human resource inventory was something like
this
Supervisors Workers

1.Engineering (2 diploma holders and one 3 __

engineering graduate )
2.Production supervisors 7 __
3.Production craftsmen with various skills __ 64
4.Purchase, stores and other materials
management functions 2 11
5. Accounts, finance, etc. 1 3
6. Miscellaneous, administration, personnel 1 4
7.Security staff 1 12
8.Marketing staff at the sales outlet 4 + permanently
located salesmen one each at Lucknow, Delhi, __ 8
Mumbai and Bangalore
9.Total 15 102
Age-wise distribution of manpower
1.More than 60 years old Nil 10
2. Between 55 and 60 years old 1 15
3. Between 45 and 55 years old 7 30
4. Less than 45 years old 7 47
5. Total 15 102
Personnel who had registered due to instigation2 102
by Shaikh and were likely to join the unit
rumored to being opened by Shaikh.

*These 13 craftsmen were especially suitable for manufacturing

decorative brassware. Five of these are in the age group of more than 60 years and
eight are between 55 and 60 years.

Rehman realized that his first task would be to prepare a manpower plan. He
must make up the deficiency created by the personnel who had left, recently. This
had to be done as an immediate task. Rehman was also keen to modernize the
production facilities. Sayeed had carried on basically with manual manufacturing
process for the brassware. Rehman realized that technology had advanced in the
five decades since the setting up of the production facilities by Sayeed.
Fortunately the company had the adequate funds and real estate resources for
purchasing and installing modern plant and machinery. Rehman immediately needed a
good mechanical engineer to plan modernization. He estimated that the
modernization task will be over in 8-10 months after the mechanical engineer
joined the company. At least seven workers, who could operate the new machines,
would be required in about six months after the modernization got started. These
workers would have to be trained for three to four months before they could become
fully competent. These workers would do the job of approximately 20 manual
workers. However, there was adequate demand for his products in the market and he
need not retrench workers because of mechanization of the manufacturing process.
Rehman who visualized that there was a need to make his workforce younger so that
they were able to appreciate the importance of modern technology. He did not
wanted any worker to be of more than 60 years of age. Older workers drew higher
wages, achieved lower productivity and were usually difficult to convince about
changes.
Rehman set out to prepare his Manpower Plan for Moradabad Brass Industries. He
divided his plan into two parts. A short term plan that he wanted to introduce
immediately, say in a maximum of six to eight months. The second plan was to be a
medium-term plan and was to be implemented in two to three years. Rehman sought
the help of the faculty in HR department . Thus a professor from IIM, Lucknow, was
given the task of preparing Manpower Plan for Moradabad Brass Industries. The plan
was to indicate the source of recruitment for each type of employee.
The professor visited Moradabad Brass Industries and held discussion with
Rehman. A fact that struck the professor was the emotional attachment shown by the
older craftsmen towards Rehman. Many had seen him growing from a child to this
position. Rehman also bowed with respect to many of them. The professor inquired
from Rehman whether he would be able to relieve many of them as they were over 60
years. It was also necessary to consider the effect of retiring such workers on
the loyalty of the workforce. It was therefore, decided to develop innovative
ideas for introducing the concepts of retirement. The professor was given the
responsibility.

Questions

a) Identify the core issues and analyse the case.

2M
b) What sources of recruitment may be used for filling the vacancies. Give
merits and demerits of the proposed answer.
2M
c) Imagine yourself to be the Professor and prepare a Human Resource Plan for
Modernization of Moradabad Brass Industries. (Suggesting various alternatives
their merits and demerits).

4M

d) What innovative ideas would you suggest for retrenching employees of older
age group so that it does not impact the loyalty of the workforce?
2M