ASSIGNMENT ON PEOPLE

MANAGEMENT FIASCO IN HONDA

MOTORCYCLES AND SCOOTERS
INDIA LTD

Submitted to, Proof. Manoranjan

Dhal, IIM Kozhikode Submitted by,
Jaidev Nair EPGCHRM-06-009
1) Critically analyze the HR practices of
Honda and what changes will you
make (if any) to the HR policies.
• Human Resource policies of HMSI were in alignment with the philosophy of its parent
company, HMCL
• HMSI’s philosophy advocated two fundamental beliefs:- Respect for individual differences,
and the “ Three Joys” that it wanted to promote for all organizational members
• Respect for individual stemmed from initiative , equality and trust.
• The Management believed that the joy of creating which helped staff derive happiness from
their daily work, thrilled its employees the most
• The company also promoted association among different categories of employees throught
provision of similar uniforms and common canteen facilities for all.
• It focus among other was on covering the company’s achievement in terms of awards,
contract, recognition, quality certificate, new dealer and kaizen activity
• Employee related matters were restricted to sports competition results and annoucement of
marriage and childbirths.
• Company had institutionalize a policy of giving an ex gratia of one month’s gross pay to every
employee as incentive around diwali festival
• Company provides two set of uniform, one company cap and one pair of shoe to each
employee
• Welfare activities like subsidized canteen facilities to attractive hospitalization reimbursement
for all employee
• They also had sports club for employees use at Sukhrali Village, gurgaon which was used for
activities like table tennis, chess , carrom board, Badminton, tug of war, high jump and long
jump

I would like to more of safety policy like increasing budget on the safety and would like to give
free food also I would like to bring proper HR policy like Leave policy, Workmen’s policy and
safety policy

Would like to give education fees for two children and one picnic per year with family .

Medical insurance and life insurance should be given to employee and their family.
• Leaves must be categorized into different type like Earned Leave, Sick Leave, Casual Leave
,Restricted Leave and Maternity Leave etc. and with the clear cut guideline regarding in
number each kind of leave employee
• Constitution of workmen grievance handling committee consisting of both management
personals and workmen
• Hr personals looking after the IR and welfare aspects of employees of HMSI must be familiar
with the local language;
• Creating sustainable culture with its ethical dimension bring positive organisation culture that
enhance organisational commitment of the employees
2)Who do you hold responsible for the
entire episode
• Management is responsible for the entire episode where worker’s were not allowed to take
toilet or drink break which increased the stress level of the employee
• Manger were not allowed to meet the top management to share their grivances
• Worker’s were threatened to terminate and even the change of shift was not granted by the
employee
• They were not allowed to take leave even if their relatives were ill
• Worker’s also perceived that many managers showed partiality in matters related to job
position, Their favourites were posted in jobs outside the production line.
• They were prevented from creating union and even they sent letter to their family
• A Japanese VP he was not treating his worker properly
• They also lobbied with the Harayana Minister & Registrar to not form the Union.
• They beaten the worker with the help of the policy and try to break the union which they
created
• Management suspended 50 worker and also four union leader who were trying to go against
management
 3) If you were the HR leader of Honda,
what would be your approach in
handling the case?
• Will try to address their problems in-house instead of bringing third party and political parties
into system.
• Bring proper HR Policies in the company which will benefit the worker
• Appointment of welfare office in the production unit who have deep knowledge in welfare
aspect of employees(in the aspect of mandatory and non-mandatory) and also on local
language for communicating and building sense of attachment with the employees
• I would give atmost importance to their safety and the environment which will affect the
health of the workmen
• Jointly; we will prepared certified standing order for workmen(at least one version in local
language) and will be circulated to representative of workmen
• Will try bring local community leader on board who can understand the worker and do
negotiation in time of conflict
• Introduce benefit which will increase productivity & satisfaction to worker and employee