Case study: People Management and Organisational Politics

Case study:

Joseph, a plant-level worker, has been working at Zeal Zink Ltd, a large-scale industrial establishment in Maharashtra, India, for almost twenty years. Being a hardworking, competent, punctual, and reliable employee, he maintained good relations with his superiors, co-workers, and the leaders of the organization. Vice versa, the management also had a positive impression of his performance and commitment. However, the management was strongly disappointed with his affiliation with one of the trade unions in the organization. They believed that the presence of trade unions in the organization often led to misleading and exploiting the workforce, affecting the organization's progress.

Considering his loyalty, commitment, and performance, the management decided to promote him to the supervisory level, a decision that exceeded his expectations. He was very happy and highly obliged to the management. Only hardworking, competent, and skilled employees usually get promoted to higher positions. The supervisory positions in the organization offer better compensation packages, power, and authority in relation to responsibilities. Joseph was highly inspired to work for the organization.

He quickly gained acceptance and recognition in the supervisory position from his superiors and coworkers within a short span. He performed his duties in accordance with the management's expectations.

Meeting with Mr. Kiran:

One day, following official communication, Joseph was asked to meet one of the senior-level officials, Mr. Kiran, in his cabin. Kiran detailed new responsibilities and tentative targets to Joseph, sharing management expectations. After formal discussions, Kiran started an informal discussion with Joseph, inquiring about employee welfare, satisfaction levels, and various other topics. He even asked about Joseph's family members. During the conversation, Kiran also inquired about Joseph's trade union activities and his strong affiliation. He informed Joseph that the top management was unhappy about his trade union affiliation, considering his managerial role in the organization. Kiran demanded a 'gradual separation' from the trade union for better career prospects, asking Joseph to 'think about it' and make a wise decision. Reserving his comment on Kiran's demand, Joseph returned to his workstation.

Joseph's Dilemma:

Kiran's demand for Joseph to quit the trade union membership was disappointing to Joseph. He had always believed that the trade union was there to protect his rights and privileges. Many questions arose in his mind: Should he quit or stay in the trade union? Is it fair to quit when they had supported him in many situations? Can he trust the management's promises? Is he just a worker or also a manager? Many conflicting thoughts made it difficult for Joseph to make a decision. Despite being aware of potential punitive measures from the management, he ultimately decided in favor of the management, considering his career prospects. Gradually, he distanced himself from many trade union meetings and activities in the organization. The trade union leadership noticed the changes in Joseph's behavior and demanded clarification. Joseph explained his reduced involvement by citing personal reasons and increased work activities. Finally, he informed the management of his decision to quit the trade union membership, which was welcomed and supported.

New Role and Challenges:

To ensure a peaceful mind, as a managerial supervisor, Joseph began his newly allocated role in the organization. The task required teamwork, involving members from different departments who had to follow timely instructions from senior managers. Although the members had to work as a team, they had limited freedom and autonomy to make production decisions. Despite this, they tried their best to follow the senior's instructions and achieve the target.

The annual production statistics were published, revealing low performance in the department where Joseph worked. Inspectors identified issues related to testing and quality levels. The top management blamed junior managers and supervisors in charge of the department for the low performance. Middle-level managers redirected these allegations to the supervisors and members in the department, citing negligence and lack of commitment. This upset the supervisory members, especially Joseph, who had worked hard. They decided to meet top management to present the real facts. They drafted a memorandum outlining the actual situations and handed it to top management officials to explain the poor outcomes.

Management's Response:

After two days, top management asked Joseph to meet Kiran, the Senior Manager, for further discussion on the performance issue. Kiran expressed total dissatisfaction with the supervisory members' performance and informed Joseph of the decision to transfer some members to other departments and sister concerns to address the situation and maintain production quality. Joseph's name was on the transfer list as Kiran indicated that more training and attention were required for handling new responsibilities that he would receive in other departments. The management also decided to withdraw extra incentives given to supervisors since the transfers were part of a training and development program.

Joseph was shocked and depressed by the management's decision. He felt the management was biased, showing favoritism towards middle-level managers and trying to protect senior management members. The decision to transfer him and his fellow supervisory members was seen as marginalizing and victimizing them. Joseph couldn't justify the management's decision and believed they failed to understand the problem impartially, preferring to safeguard their members. He concluded that the management's attitude would always be that of 'big bosses' and would not change.

Joseph became more assertive in his stance, deciding to continue his trade union membership. The trade union welcomed him back, and Joseph lodged a complaint with the union outlining the issues for justice.

Questions:

"Business World indulges in Organizational Politics by showing carrots of Career Planning." Comment.

Does this case reflect Joseph's decision-making ability?

How are the 'theory of equity' and 'theory of expectancy' related to this case study?

How do you evaluate the people management strategy of senior managers in the organization?

Is the management's attitude towards the trade union well-justified?

Hi, Comment on "Business World indulges in Organizational Politics by showing carrots of Career Planning":

In the case study, Joseph's promotion and subsequent demand from senior management to separate from the trade union could be seen as a strategic move influenced by organizational politics. The management's attempt to influence Joseph's decisions by linking his career prospects to leaving the trade union suggests a use of power dynamics and strategic decisions that align with organizational interests. This tactic could be interpreted as a form of organizational politics where career planning is used as a carrot to mold employees' affiliations and actions in line with the organization's preferences.

Does this case reflect Joseph's decision-making ability?

Joseph's decision-making ability is reflected throughout the case. Initially, he decides to comply with the management's request to leave the trade union for the sake of his career. However, when faced with unfavorable circumstances such as the blame for low departmental performance and subsequent transfers, he becomes more critical of the management's decisions. Joseph's decision to rejoin the trade union and file a complaint indicates his ability to reassess situations and make decisions aligned with his principles, even if they go against the management's wishes.

How are the 'theory of equity' and 'theory of expectancy' related to this case study?

Theory of Equity

This theory suggests that individuals strive for fairness in social exchanges, comparing their inputs and outcomes with those of others. In this case, Joseph might perceive an inequity in the treatment of supervisory members regarding blame for low performance and subsequent transfers. The perceived injustice could lead to dissatisfaction and resistance.

Theory of Expectancy

This theory posits that individuals are motivated to act in a certain way if they expect their efforts will lead to performance and that performance will be rewarded. Initially, Joseph believes that complying with the management's request to leave the trade union will enhance his career. However, when faced with transfers and withdrawal of incentives, the expectancy of a positive outcome diminishes, and this influences his subsequent decisions.

How do you evaluate the people management strategy of senior managers in the organization?

The people management strategy of senior managers seems to involve a mix of positive and negative aspects:

Positive Aspects

They recognize and promote Joseph based on his competence and commitment. They communicate expectations clearly during the informal meeting with Joseph, showing transparency in their intentions.

Negative Aspects

Senior managers resort to influencing Joseph's trade union affiliation to align with organizational preferences. The blame for low performance is attributed to the supervisory members without a comprehensive analysis, leading to transfers and withdrawal of incentives. This approach appears biased and fails to consider the equity and fairness principles in people management.

Does the management's attitude towards the trade union is well justified?

The management's attitude towards the trade union appears to be influenced by a perception that union activities may hinder organizational progress. However, the demand for Joseph to quit the trade union as a condition for career advancement raises ethical concerns. Management's emphasis on separating from the trade union may be seen as an infringement on employees' rights to association. The subsequent punitive measures and transfers, coupled with the withdrawal of incentives, may indicate a lack of fair and justifiable management practices regarding trade union affiliation. Overall, the management's attitude towards the trade union raises questions about ethical and employee rights considerations.

Thanks

Dear members, almost a week has passed since the case study was uploaded. A few questions are asked in the case study. I was expecting veritable replies to the questions. But not even one reply has come. Anyway, I have given replies to the questions. Before going through the replies, I request the members to go through the case study once again. Read my replies if you have sufficient time, undivided attention, and a studious mind. By reading perfunctorily, one may not understand the essence of the replies.

Thanks,

Dinesh Divekar

Q1. "Business World indulges in Organisational Politics by showing carrots of Career Planning". Comment.

Reply: The business world could be indulging in organizational politics by showing the carrots of career planning. However, in the case at hand, neither the management played the politics nor did they do career planning.

If they were to indulge in politics, taking advantage of Joseph’s active participation in the trade union activities, the management of the company would have used him to weaken the hold of the trade union. However, they did not do this; rather, he was told to dissociate from the trade union gradually. It was a straightforward approach. There was no element of shrewdness in it.

There is no reference to a career plan for Joseph. Neither did he make a career plan on his own nor did HR professionals make it nor did his HOD.

Q2. Does this case reflect Joseph’s decision-making ability?

Reply: The case does not show anything about the decision-making abilities of Joseph. He was given a promotion because of his functional expertise and not because of his decision-making ability. Secondly, when one of the senior management professionals, Mr. Kiran met him and told him to separate himself from the trade union activities gradually, various thoughts crowded the head of Joseph. While making a choice, there is no information on whether Joseph used the Rational Decision-Making Model or any other model to make the decision.

Q3. How is the 'theory of equity' and 'theory of expectancy' related to this case study?

Reply: Both the theories of motivation, the 'theory of equity' and the 'theory of expectancy' can be related to the case study. A brief about each theory and an explanation for each is given below.

The Expectancy Theory: The expectancy theory concentrates on the following three relationships:

a) Effort-performance relationship: What is the likelihood that the individual's effort be recognized in his performance appraisal? b) Performance-reward relationship: It talks about the extent to which the employee believes that getting a good performance appraisal leads to organizational rewards. c) Rewards-personal goals relationship: It is all about the attractiveness or appeal of the potential reward to the individual.

Explanation: Of the three relationships above, the relationship (a) and (b) are easily related to the case study. By promoting Joseph, the company's management sent a signal to one and all that whoever performs well, his/her performance will be recognized and properly rewarded. But when the performance of Joseph’s department declined, the management awarded him negatively by transferring him. Whether the negative award was appropriate or not is a different matter.

The Theory of Equity: The core of the equity theory is the principle of balance or equity. As per this motivation theory, an individual's motivation level is correlated to his perception of equity, fairness, and justice practiced by the management. The four comparisons an employee can make have been termed as “referents”. The referent chosen is a significant variable in equity theory. These referents are as follows:

a) Self-inside: An employee's experience in a different position inside his present organization. b) Self-outside: An employee's experience in a situation outside the present organization. c) Other-inside: Another employee or group of employees inside the employee's present organization. d) Other-outside: Another employee or employees outside the employee's present organization.

Explanation: Of the above four, the referent (a) is applicable in this case. Joseph had two types of experiences within the organization. The first one was good when his performance was recognized and he was rewarded with the promotion. The second one was an unpleasant one when for the declining production, he was blamed unfairly and was transferred too.

Q4. How do you evaluate the people management strategy of senior managers in the organization?

Reply: The case study does not give any information about the people management strategy of the senior management. Their actions were unplanned and ad hoc. The explanation is as below:

a) The company did not launch an age-old HR intervention, “Career Planning” for the employees. Neither a formal career plan was made for Joseph nor was he informally told what would be the competencies for his future supervisory role. There is no reference to how Joseph was groomed for the future position.

b) Worst still, when the production standards were declined, the supervisors were blamed squarely. Not only were they blamed but they were made scapegoats too. The lower the designation, the higher the blame. This phenomenon goes the world over, and Joseph’s company was no exception.

c) If the production declined, then the tools of Operations Management like why-why analysis or Root Cause Analysis (RCA) could have been used. However, there is no reference to the usage of these tools. If the scientific tools of problem-solving are not used, how will the staff get hands-on practice with them? People management demands engaging the people in the exercises of the profession.

d) When Joseph was promoted, he could have been told clearly about the requirement of his gradual dissociation from the trade union. However, the management allowed Joseph to work as a Supervisor and continue to be a member of the trade union. This is in contrast to the general practice as members of the trade union are from the worker level. The management allowed this exception. When Joseph was settling into the new role, out of the blue, he was told to discontinue membership in the trade union. The method of passing the message about dissociation lacked sophistication. Why Mr. Kiran, the senior management professional, did not involve the reporting manager or the HOD of Joseph in the meeting is not known. In professional companies, the position of the managers or HODs is respected by their seniors and they are not bypassed.

e) Any strategy whether for people or otherwise is for preventing the problems. Instead of preventing it, the management of Joseph’s company invited the problem by transferring the supervisors. On receiving the notice of transfer, Joseph felt betrayed and is planning to rejoin the trade union. If he and other supervisors join the trade union, it may embolden the union officials and they could take up the supervisors’ cause vehemently. They may not settle for anything lesser than the annulment of the transfer order. If the management declines to revoke the transfer order, it could lead to a bigger face-off. Whether after a small resistance or after a full-fledged confrontation, if the management withdraws the transfer order, the trade union may emerge victorious, and it could send a very wrong signal to the employees that more than the management, the trade union serves their interests better. If such a thought solidifies in the minds of the workers, for the sake of continuing the membership of the trade union, what if the workers start declining the promotion in the future? It could be a big talent loss to the company!

Q5. Is the management's attitude towards the trade union well justified?

Reply: Whether the relations between the management and the trade union were frosty or normal is not mentioned in the case study. However, it can be inferred from the case study that management had a typical view that all trade unions are bad and must be kept at bay. But then this is a generalization, and the management of Joseph’s company was a victim of this bias. In the course of running the administration of the company, many times, unwittingly the management takes a decision that may go against the interests of the workers. Against this backdrop, the labor unions step in and bring to the attention the flawed decisions of the management. By pointing out the flaws, the labor unions serve the interests not just of the workers but of the organization as well. If the interests of the workers are served well, they remain motivated and their motivation, in turn, helps maintain their productivity. However, how the management of Joseph’s company views the trade union is not mentioned clearly.

The management of the companies where the trade unions are active is expected to be circumspect and take decisions with due diligence. The case study shows how their unthinking actions give fodder to the labor unions!

If Joseph and other supervisors rejoin the trade union and if the union pitches in on their behalf, whatever the outcome of their intervention may be, it could create an estrangement between the supervisors and the management. Bridging the mental gap caused due to estrangement will take a longer time. The fallout of estrangement could be the mental disengagement of the employees from the organization itself.

General Comments for the Other Members: This post was published a week ago, and I was expecting better replies. One learned member has given a reply, but it is AI-assisted. I invested my time and energy in giving the replies to the questions so that the replies generated by human and artificial intelligence (AI) can be compared. Let the readers compare both and decide which feels authentic and has a personal touch.

The case study is poorly worded, and grammar is given short shrift. Despite these deficiencies, the value of the case study does not diminish. To solve the case study, one is required to put on a thinking cap.

Case studies like this are a boon to the members of this forum. To analyze the case study one is required to go through the theories learnt during the management courses. Referring to management theories helps us brush up on our knowledge. Solving the case studies helps in expanding our mental