CASE ANALYSIS

HONDA MOTORCYCLES INDIA LIMITED

SUBMITTED TO Dr. Vaneeta aggarwal

SUBMITTED BY Shafali MBA HR Roll no- 30

INTRODUCTION HMSI- Hero Honda Motorcycle & Scooter India Ltd. Owned by Honda Company Ltd Japan. MNC in 30 countries.

SWOT ANALSIS OF HMSI:-

STRENGTHS:-

3. Believes in high quality services at reasonable price. 4. Superior technology and efficient workforce. 5. It had approximately 2000 workers and comparatively it paid better wages. 6. Subsidized Food at canteen. 7. Organizing games for employees. Eg- football, volleyball, carom etc. 8. Same uniform for managerial staff and labor. 9. Insurance facility. 10.Health facility. 11.Monitory benefits. 12.It followed the policies of Honda(japan) company. The Honda way. 13.Respect for individual differences. 14.3 joys for promotional purpose. Joy of buying Joy of selling Joy of producing

WEAKNESS:Management Fiasco in Honda Motorcycles and Scooters India Ltd. Multinationals often make judgmental errors regarding cross-cultural issues and the business environments prevailing in foreign countries. HMSI also made mistakes in handling people-management issues. 1. It wanted to pursue a non-union model but failed to devise and implement an appropriate human resource management (HRM) strategy. 2. Management was caught unaware when accumulated grievances led workers to turn hostile and form a union with the help of the trade union wing of a political party that was a partner in the ruling coalition at the federal level. The management failed to break workers' unity either by soliciting help from the state agencies or by using the legal system to their advantage. 3. The subsequent power struggle led to violent clashes between the workers and the police, who had been called in for protection by HMSI management. 4. The extensive media coverage not only tarnished the company's image, but also pressured the federal government to come to the rescue of the workers. 5. This incompetent handling of HR issues by the company led to a long strike by the workers. The strike, besides causing substantial financial losses, also led to the emergence of a very strong union 6. . In addition, production targets that were achieved on a daily basis before the union came into existence were seldom achieved after the conciliation came into effect. 7. Leadership style was autocratic one , which was not welcomed by workers 8. Top level management was not in touch with the actual happening in plant. 9. Geocentric approach was not a hit in India 10.High PDI 11.The 3 joys of HONDA were used as a means of control

OPPORTUNITIES:Management Development programmes (MDP) for: Better inter personal skills Better team building Better Conflict management. Better leadership qualities . Proper directions on people front. Management clueless in dealing with the unions. Japanese management not much efficient in dealing with the Indian unions. Hierarchy problems in the company. Better communication . Reducing Gap between the organizational working and IR . Proper delegation of power and authority.

THREATS: Recruitment of new workers Go-slow Slogans, Gherao and Violence Threat of termination Fear of managements authority Partiality in posting Cant approach Top Management Attitude of Vice-President Compulsion to achieve Production Target