HRM Case Study 1

Harsha and Franklin both of them are post graduates in management under different
streams from same B-School. Both of them are close to each other from the college days itself
and the same friendship is continuing in the organisation too as they are placed in the same
company, Hy-tech technology solutions. Harsha placed in HR department as employee
counselor and
Franklin in finance department as key finance executive. As per the grade is concerned both
are at same level but when responsibility is concerned Franklin is holding more responsibility
being in core finance.
By nature Harsha is friendly in nature and ready to help the needy. Franklin is silent in nature
ready to help if approached personally and always a bit egoistic in nature. They
have successfully completed 4 years in the organization. And management is very much
satisfied with both of them as they are equally talented and constant performers.
Harsha felt that now a days Franklin is not like as he use to be in past. She noticed
some behavioral changes with him. During general conversations she feels that Franklin is
taunting her that she is famous among the employees in the organisation in the other hand he
is not even recognised by fellow employees.
One morning Mr. Mehta General Manager Hy-tech technology solutions shocked while
go through the mail received from Franklin about his resignation. Mr. Mehta called
Harsha immediately and discussed about the same as she is close to Franklin. By hearing the
news Harsha got stunned and said that she do not know this before she also reveled here
current experience with him. Mr. Mehta who do not want to loose both of them promised her
that he will handle this and he wont allow Franklin to resign.
In the afternoon Mr. Metha took Franklin to Canteen to make him comfortable after some
general discussion he starts on the issue. Franklin, after some hesitations opened his thinking in
front of Mr. Mehta. The problem of Franklin is 1) when he comes alone to canteen the people
from other dont even recognize him but if he accompanied by Harsha he get well treated by
others. 2) one day Both of them entered the company together the security in the gate wished
them but the next day when he came alone the same security did not do so. 3) Even in
meetings held in the office the points raised by Harsha will get more value so many a times he
keeps silent in the meeting.
It happens to Franklin that he has to face such degradation in each day of work which
totally disturbs him. Franklin also questioned that Harsha and myself have same
qualification, from same institute, passed out in the same year both with first class. We have
same number of experience in this organisation. More over the responsibilities with me are
more valuable than that of Harsha. After all this things if I am been ignored or unrecognized by
the fellow employees my ego does not allow me to continue here.
By listening this statement Mr.Metha felt that it is not going to be very difficult to stop
his resignation. Mr. Mehta explained Franklin the reasons for such partial behavior of the
employees.
After listening to Mr. Mehta Franklin said sorry for his reaction and ready to take back
his resignation. And he called Harsha and spoke with like before.
Question
Find the reason that Mr. Mehta would have given to Franklin.











PLANT LOCATION PROBLEMS
Location of a plant has direct relevance to raw materials, market, human
resources, ci vic amenitiestransportation etc. However, in some countries the problem
becomes complicated due to (i) Inter-Statecompetitions and tussles, (ii) Regional development
and (iii) Political pressures and biased decision.Around 1970 Government of India mooted
the idea of expanding steel production under public sector units to be established
at suitable locations. A committee of eminent personalities was formed to
gothrough claims of (i ) Vijaynagar Steel plant near Bellary in Karnataka, (ii) Salem
Steel in TN and (iii)Vishakapatam steel plant in A.P. Since it was under PSU the political
pressure was going on and if it wasunder private sector, there would not have been any kind of
political pressure.The most important raw materials for steel plant are iron core power and
coal. Again in iron ore the iron percentage should be preferably more than 60% and ash content
in coal should be less than 30%. Thesefactors enable production of iron and steel at competitive
price. From experts reports the following brief was available:( a) Vi z ag The I r on or e
i s r i ch wi t h 65% I r on and coal can be ar r anged f r om MP and Bi har andVizag
is well connected by broad gauge railway line to all important cities and the place has sea port
and airport. Hence this place has more natural advantage than other cities.
(b)
Salem Iron ore was having 60 to 65%. Iron content and hence be economically exploited.
Thecoal is in lignite form which is low quality coal. Hence this needs to be converted as coke for
use.The place has broad gauge line and Madras sea port and airport are nearby.
This place wasconsidered second preference.( c) Vi j aynagar Bel l ar y bel t has I r on
or e of 60% i r on but coal has t o come f r om AP ( Si ngar eni Colliery). The place
had meter gauge railway line and hence not well connected to all India network. The seaport
and airports were far away and hence this place was not found suitable.As per the expert
committee report steel plant work started Vizag and Salem and these plants came up as per the
plan and are doing well. However, to everyones surprise the them PM, Smt. Indira Gandhi,
didfoundation stone laying in 1971 at Toranagallu in Bell ary district for Vijaynagar
steel plant also. Thisultimately proved to be an election gimmi ck to please the
votes, though the PSU unit did not come
upt h e r e a t a l l . T h i s i s a c l e a r e x a m p l e h o w p o l i t i c i a n s t r y t o
f o o l g u l l i a b l e v o t e r s b y w a y o f inaugurations/foundation stone laying.Steel
plants are quite huge with township having about 50,000 to 1,00,000 people. Hence
requirements of housing, electricity, water, hospitals, education, institutions, entertainment
facilities are very essential.The investment is huge and this helps to develop the surrounding
area quite well and there is abundantscope for ancillary units, engineering services and
employment inside and outside the steel plant. BothVizag and Salem got these
advantages and production standard as per the plan and these industriescontinue to
run profitably.The expert committee had made comment on Vijaynagar proposal
that, the unit can be viable if it useslatest foreign technology. In this method oxygen is
injected to force oxidation of ores instead of natural

air. Though PSU was not started a private enterprise JInal Group took interest and applied for
license tothe Central Government. By the year 1990 they obtained license and Vijaynagar Steel
plant with foreigntechnology and decided to make only sheet products, whi ch fetch
higher prices. They al so kept bareminimum workforce and executives to make it
economical right from inception. By this time broad gaugelines were formed and nearest
seaport was Goa and hence some problems were taken care. Thi s unit became
operative in about 3 years and is also running profitably.
QUESTIONS
1.What are essential factors for locating a Steel plant and why?
2.Explain how political pressures and pulls effect decision making and delays in starting
industries.
3.Explain how it was possible to make Vijaynagar plant visible.
4.Technology, HR, natural facilities play vital role to start new enterprise. Explain
your views