Rk Fabricators: An Overview
Rk Fabricators is a medium-sized company engaged in the fabrication of heavy structures. The company operates across six different locations, each managed independently for engineering and administrative activities like Finance, Human Resources, and Marketing, while being centrally overseen by the head office. It employs over 5,000 people, with the Chief Executive Officer being in charge of all company activities.
In one of the plants, about 900 employees work to provide heavy fabricated structures for machine tools and automated conveyors used in large plants for manufacturing automobiles and auto components. Day-to-day management is carried out by a plant manager, assisted by engineers and supervisors. The plant has three main departments: cutting, welding, and assembly. In the cutting and welding department, work is supervised by two engineers, each assisted by three supervisors. The cutting section is directly supervised by one engineer who receives information from the planning department about material sizes to be cut as per orders. Work priorities are set by the engineer and supervisors based on urgency, with about 100 workmen in the section.
Challenges and Staffing Adjustments
In 2001, the shop began receiving heavy orders, significantly increasing the workload. The engineer and two supervisors struggled to manage. On the plant manager's recommendation, the CEO sanctioned two additional supervisor positions for the cutting section. Due to a shortage in the welding department, one supervisor was transferred there, leaving a vacancy in the cutting section.
Recommendation and Union Involvement
One fitter, Nitin Patil, who completed his NCTVT and ITL and had been with the company for six years, was recommended for the supervisor role. Educated in an English medium school, he excelled in both spoken and written English. The engineer in the cutting section, familiar with Patil, recommended him for the supervisor position. According to company norms, the minimum qualification for a supervisor is a diploma in mechanical engineering. Despite advertising, the HR department couldn't find a suitable candidate.
Nitin Patil, also the general secretary of the union, was respected for his sincerity and knowledge. The plant manager forwarded Patil's recommendation to the CEO, who initially disagreed for two reasons: Patil's union position and his lack of a diploma. These points were communicated to Patil and the engineer.
Union Negotiations and CEO's Decision
The union president and general secretary met with the CEO, discussing that supervisors could be union members and that Patil's performance could be compared with current supervisors. If he didn't match their performance, he would withdraw his candidacy. After discussions, the CEO agreed to give Patil a chance to prove himself on the job. It was agreed that Patil would receive guidance for a month and, upon passing a test by the training officer, would be promoted to supervisor.
The Union President and Patil accepted the proposal, and Patil was promoted after three months.
Questions
1. Analyze the case and identify the main points.
2. If you were the human resource manager at RK Fabricators, what advice would you give to the CEO?
3. Do you agree with the CEO's decision to promote Patil? From an HR viewpoint, what could be the future consequences of this decision?
From India, Pune
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1Rk Fabricators is a medium-sized company engaged in the fabrication of heavy structures. The company operates across six different locations, each managed independently for engineering and administrative activities like Finance, Human Resources, and Marketing, while being centrally overseen by the head office. It employs over 5,000 people, with the Chief Executive Officer being in charge of all company activities.
In one of the plants, about 900 employees work to provide heavy fabricated structures for machine tools and automated conveyors used in large plants for manufacturing automobiles and auto components. Day-to-day management is carried out by a plant manager, assisted by engineers and supervisors. The plant has three main departments: cutting, welding, and assembly. In the cutting and welding department, work is supervised by two engineers, each assisted by three supervisors. The cutting section is directly supervised by one engineer who receives information from the planning department about material sizes to be cut as per orders. Work priorities are set by the engineer and supervisors based on urgency, with about 100 workmen in the section.
Challenges and Staffing Adjustments
In 2001, the shop began receiving heavy orders, significantly increasing the workload. The engineer and two supervisors struggled to manage. On the plant manager's recommendation, the CEO sanctioned two additional supervisor positions for the cutting section. Due to a shortage in the welding department, one supervisor was transferred there, leaving a vacancy in the cutting section.
Recommendation and Union Involvement
One fitter, Nitin Patil, who completed his NCTVT and ITL and had been with the company for six years, was recommended for the supervisor role. Educated in an English medium school, he excelled in both spoken and written English. The engineer in the cutting section, familiar with Patil, recommended him for the supervisor position. According to company norms, the minimum qualification for a supervisor is a diploma in mechanical engineering. Despite advertising, the HR department couldn't find a suitable candidate.
Nitin Patil, also the general secretary of the union, was respected for his sincerity and knowledge. The plant manager forwarded Patil's recommendation to the CEO, who initially disagreed for two reasons: Patil's union position and his lack of a diploma. These points were communicated to Patil and the engineer.
Union Negotiations and CEO's Decision
The union president and general secretary met with the CEO, discussing that supervisors could be union members and that Patil's performance could be compared with current supervisors. If he didn't match their performance, he would withdraw his candidacy. After discussions, the CEO agreed to give Patil a chance to prove himself on the job. It was agreed that Patil would receive guidance for a month and, upon passing a test by the training officer, would be promoted to supervisor.
The Union President and Patil accepted the proposal, and Patil was promoted after three months.
Questions
1. Analyze the case and identify the main points.
2. If you were the human resource manager at RK Fabricators, what advice would you give to the CEO?
3. Do you agree with the CEO's decision to promote Patil? From an HR viewpoint, what could be the future consequences of this decision?
From India, Pune
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Dear Sreemoy, Your profile shows that you are a student of HRM. I've also gone through your thread created on 3-01-2018 entitled "A case on Noble Paper Union's demands." I think both the threads created by you are parts of your academic assignment on Case Study. Therefore, it would have been better had you presented them with your own findings with reference to the legal provisions applicable to the issues raised. Otherwise, whatever answers given by the members would be just spoon-feeding only, and I am afraid it may wipe out the habit of original thinking in you later. Always for a single problem, the answers may be many depending upon the mindsets of the respondents. One's profession has an overwhelming impact on one's psyche. Now, let us know your views on the following:
Is promotion of an employee an essential ingredient of the contract of employment?
Can an employee who escapes the ambit of the definition of workman under the ID Act, 1947 by becoming a Supervisor be a member or office bearer of a Trade Union as per the Trade Unions Act, 1926?
Can the view of the CEO that the employee should no more be a member of the union as a precondition for his promotion as Supervisor on the premise that he cannot work effectively as a supervisor be found fault with?
From India, Salem
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Is promotion of an employee an essential ingredient of the contract of employment?
Can an employee who escapes the ambit of the definition of workman under the ID Act, 1947 by becoming a Supervisor be a member or office bearer of a Trade Union as per the Trade Unions Act, 1926?
Can the view of the CEO that the employee should no more be a member of the union as a precondition for his promotion as Supervisor on the premise that he cannot work effectively as a supervisor be found fault with?
From India, Salem
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