Transforming Detractors into Protectors: A Success Story in a Greenfield Industry
As an HR/IR Intervention Specialist with over 43 years of experience, I\'ve had the privilege of working with various organizations, including labor-intensive companies and MNCs. One of my most notable experiences was with an Indo-Korean MNC, a vendor to a leading car manufacturer, located on the outskirts of Chennai.
The Challenge
The company was a greenfield industry, and my primary focus was recruitment. The young workforce, mostly drawn from neighboring villages, required guidance and training to adapt to the industrial environment. As the Head of HR and General Affairs, my priority was to ensure a peaceful and harmonious industrial relations environment.
The Strategy
The company\'s initial challenge was to train the young workforce, who were mostly inexperienced in the industry, and ensure they met the required standards. The training duration was two years, followed by a six-month probation period. Despite initial resistance to the lengthy training period, the trainees eventually adapted and started producing high-quality spares.
However, a group of senior workmen, who had completed their probation period, started presenting a joint memorandum to the MD, seeking to review and shorten the training duration. Sensing a potential union formation with external influence, the management proactively decided to promote internal leadership by nominating workmen representatives.
The Outcome
The workmen representatives were involved in discussions on framing certified standing orders and played a positive role in resolving issues. The company achieved a breakthrough in industrial relations, and the bilateral system introduced has stood the test of time. The company has been making rapid strides with expansion and enhanced production, while maintaining harmonious industrial relations.
Dealing with Problem Employees
A few workmen with exceptional skills but problematic behavior were identified as potential threats. Instead of terminating their services, the management designed a strategic plan to engage them as subcontractors, supplying certain spares to the company. This move not only decreased the company\'s contract manpower but also created a mutually beneficial relationship.
The Benefits
The company achieved several benefits, including:
1. Outsourcing as a business strategy: Non-core jobs were removed from the main plant, ensuring a more focused approach.
2. Securing a viable and cost-effective workforce: The company lessened its reliance on contract labor and ensured a stable workforce.
3. Restraining potential threats: The workmen-turned-subcontractors became stakeholders in the company\'s success, reducing the likelihood of industrial unrest.
Conclusion
The company\'s approach to industrial relations, focusing on internal leadership and bilateral negotiations, has yielded positive results. The workmen have benefited from generous salaries and benefits, while the company has achieved sustained growth and harmonious industrial relations. This win-win situation is a testament to the effectiveness of proactive HR strategies in a greenfield industry.
P Senthilkumar
From India, Chennai
As an HR/IR Intervention Specialist with over 43 years of experience, I\'ve had the privilege of working with various organizations, including labor-intensive companies and MNCs. One of my most notable experiences was with an Indo-Korean MNC, a vendor to a leading car manufacturer, located on the outskirts of Chennai.
The Challenge
The company was a greenfield industry, and my primary focus was recruitment. The young workforce, mostly drawn from neighboring villages, required guidance and training to adapt to the industrial environment. As the Head of HR and General Affairs, my priority was to ensure a peaceful and harmonious industrial relations environment.
The Strategy
The company\'s initial challenge was to train the young workforce, who were mostly inexperienced in the industry, and ensure they met the required standards. The training duration was two years, followed by a six-month probation period. Despite initial resistance to the lengthy training period, the trainees eventually adapted and started producing high-quality spares.
However, a group of senior workmen, who had completed their probation period, started presenting a joint memorandum to the MD, seeking to review and shorten the training duration. Sensing a potential union formation with external influence, the management proactively decided to promote internal leadership by nominating workmen representatives.
The Outcome
The workmen representatives were involved in discussions on framing certified standing orders and played a positive role in resolving issues. The company achieved a breakthrough in industrial relations, and the bilateral system introduced has stood the test of time. The company has been making rapid strides with expansion and enhanced production, while maintaining harmonious industrial relations.
Dealing with Problem Employees
A few workmen with exceptional skills but problematic behavior were identified as potential threats. Instead of terminating their services, the management designed a strategic plan to engage them as subcontractors, supplying certain spares to the company. This move not only decreased the company\'s contract manpower but also created a mutually beneficial relationship.
The Benefits
The company achieved several benefits, including:
1. Outsourcing as a business strategy: Non-core jobs were removed from the main plant, ensuring a more focused approach.
2. Securing a viable and cost-effective workforce: The company lessened its reliance on contract labor and ensured a stable workforce.
3. Restraining potential threats: The workmen-turned-subcontractors became stakeholders in the company\'s success, reducing the likelihood of industrial unrest.
Conclusion
The company\'s approach to industrial relations, focusing on internal leadership and bilateral negotiations, has yielded positive results. The workmen have benefited from generous salaries and benefits, while the company has achieved sustained growth and harmonious industrial relations. This win-win situation is a testament to the effectiveness of proactive HR strategies in a greenfield industry.
P Senthilkumar
From India, Chennai
Dear P Senthilkumar,
I just read your experiences and strategies in dealing with HR and industrial relations in a greenfield industry and I must say, it's quite impressive. The comprehensive approach adopted by your company emphasizes the effectiveness of proactive measures in maintaining harmonious industrial relations and fostering sustained growth.
In response to your approach, I would like to add some insights that might enhance the already successful strategy:
Training Period and Probation
The two-year training period, although lengthy, seems instrumental in bringing the inexperienced workforce up to speed with the industry's demands. However, the concerns of senior workmen regarding the duration could be addressed by incorporating a more dynamic and flexible training program. This program could be designed to accommodate various learning curves, thereby allowing faster learners to complete their training sooner.
Promoting Internal Leadership
The decision to promote internal leadership by nominating workmen representatives is excellent in preempting potential union formation. In addition to this, it might be beneficial to implement leadership training programs to equip these representatives with the necessary skills to lead. This could further enhance their effectiveness in their roles and foster a stronger sense of ownership and commitment to the company.
Dealing with Problem Employees
Turning potential threats into stakeholders is a unique and effective strategy. This could be supplemented with a well-structured performance management system that identifies problematic behavior early and addresses it constructively. Such a system would serve as a preventative measure, reducing the likelihood of having to manage problem employees at a later stage.
Outsourcing and Workforce Management
Your company's use of outsourcing as a business strategy is commendable. To further optimize this, it would be beneficial to conduct regular supplier assessments to ensure the quality and timeliness of the subcontractors' work. This will not only maintain high standards but also strengthen the company's relationship with its subcontractors.
Conclusion
Overall, your company's proactive HR strategies seem to be paying off, as evidenced by the sustained growth and harmonious industrial relations. The points I've provided are simply enhancements to your already effective strategies, and I believe their implementation could further boost the company's performance.
Best regards,
[Your Name]
From India, Gurugram
I just read your experiences and strategies in dealing with HR and industrial relations in a greenfield industry and I must say, it's quite impressive. The comprehensive approach adopted by your company emphasizes the effectiveness of proactive measures in maintaining harmonious industrial relations and fostering sustained growth.
In response to your approach, I would like to add some insights that might enhance the already successful strategy:
Training Period and Probation
The two-year training period, although lengthy, seems instrumental in bringing the inexperienced workforce up to speed with the industry's demands. However, the concerns of senior workmen regarding the duration could be addressed by incorporating a more dynamic and flexible training program. This program could be designed to accommodate various learning curves, thereby allowing faster learners to complete their training sooner.
Promoting Internal Leadership
The decision to promote internal leadership by nominating workmen representatives is excellent in preempting potential union formation. In addition to this, it might be beneficial to implement leadership training programs to equip these representatives with the necessary skills to lead. This could further enhance their effectiveness in their roles and foster a stronger sense of ownership and commitment to the company.
Dealing with Problem Employees
Turning potential threats into stakeholders is a unique and effective strategy. This could be supplemented with a well-structured performance management system that identifies problematic behavior early and addresses it constructively. Such a system would serve as a preventative measure, reducing the likelihood of having to manage problem employees at a later stage.
Outsourcing and Workforce Management
Your company's use of outsourcing as a business strategy is commendable. To further optimize this, it would be beneficial to conduct regular supplier assessments to ensure the quality and timeliness of the subcontractors' work. This will not only maintain high standards but also strengthen the company's relationship with its subcontractors.
Conclusion
Overall, your company's proactive HR strategies seem to be paying off, as evidenced by the sustained growth and harmonious industrial relations. The points I've provided are simply enhancements to your already effective strategies, and I believe their implementation could further boost the company's performance.
Best regards,
[Your Name]
From India, Gurugram
CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.