Case Analysis

Case Analysis

H & H (BANGLADESH) LTD.

H & H (Bangladesh) Ltd. is a public limited marketing company with its head office at Chittagong, and with sales and marketing offices throughout Bangladesh. The company was nationalized after Liberation, and it became a subsidiary company of R.T. Corporation, a statutory corporation formed in 1976. Since then, the Chief Executive/General Manager has been appointed by the R.T. Corporation from among the senior executives of the company.

In 1984, the then General Manger of the company (Mr. X) died suddenly following a massive heart attack while away from his family staying at the company’s rest house. At the time of Mr. X’s death, Mr. Y, a senior executive of the R.T. Corporation, was with Mr. X at the rest house. The Corporation immediately appointed Mr. Y as the General Manager of the company. He brought with him a marketing background gained with another company and a distinguished career in this industry.

When Mr. Y went to assume his assignment as General Manager of the company, the employees, at the instigation of the union, would not let him take office. They assaulted him and removed him from the office, alleging that he was responsible for the death of Mr. X, the former popular General Manager. Further, they claimed that they would not allow any “outsider” to hold the office of General Manager; that had to come from among the company’s senior executives.

The Corporation inaugurated a three-member Department of Inquiry with one representative from H & H, one from the R.T. Corporation, and one from outside the company. They were unable to find anyone willing to testify regarding the assault on Mr. Y and had to adjourn for lack of evidence. The Corporation then instituted a criminal case against the leadership of the union who were responsible for the incident. The case was dismissed for lack of a witness willing to testify.

Questions for Discussion:

1.   Why is the Corporation facing the problem that now confronts it?

2.   What is the appropriate course of action that should now be taken by the Corporation?

Objective of the case analysis

1.      SWOT analysis of  the situation

2.      Suggest alternative ways to solve the problem

3.      Find out the appropriate solution of the problem

Causes of the Problem

1.      Mr. Y was appointed General Manager (GM) of H & H (Bangladesh) Ltd. He was outsider to H & H (Bangladesh) Ltd.

2.      R.T. Corporation did not consult, communicate or negotiate with H & H (Bangladesh) Ltd. regarding the appointment of new GM Mr. Y.

3.      Unfortunately, Mr. Y was with Mr. X at the rest house while Mr. X died by a massive heart attack.  Mr. Y was not responsible for his death. But the employees union took opportunity of the situation and raises the issue.  

4.      The senior officer of H & H (Bangladesh) Ltd. may  entice the union leader to instigate the employees not let Mr. Y to take his charge as General Manager (GM)

5.      Mr. Y did not meet with the employees union at the time of taking his charge as General Manager .

6.      In our country, generally the top executive of the attached department/subsidiary is recruited from the controlling authority/body in spite of having qualified officer of its own. Therefore, the senior officers of attached department/subsidiary become dissatisfied and aggrieved.

7.      Though the H & H (Bangladesh) Ltd. was a subsidiary company under R.T. Corporation the attitudes of the employees was not positive towards R. T. Corporation.

8.      Autocratic decision of R. T. Corporation creates this conflict between newly appointed General Manager and the employees union of H & H (Bangladesh) Ltd.

Course of Actions

1.      Arrange a meeting with the employees union of H & H (Bangladesh) Ltd. and discuss the issue in detail to resolve the prevailing situation of the company.

2.      If qualified officers are available in H & H (Bangladesh) Ltd. to be recruited as General Manager, R. T. Corporation should recruit General Manager from H & H (Bangladesh) Ltd.

3.      If there is no available qualified officers in H & H (Bangladesh) Ltd. to be recruited as General Manager, R. T. Corporation form a committee to reform the organization structure of H & H (Bangladesh) Ltd. so that qualified officers become available to be recruited as General Manager from H & H (Bangladesh) Ltd. to remove the conflict between management and employee.

4.      R. T. Corporation can introduce participatory management in H & H (Bangladesh) Ltd. Before recruiting General Manager for H & H (Bangladesh) Ltd. management of R.T. Corporation can sit with H & H (Bangladesh) Ltd. authority to finalize the recruiting decision.

5.      R. T. Corporation can introduce third party recruitment in H & H (Bangladesh) Ltd. to solve the problem. An appropriate expert from external source neither from H & H (Bangladesh) Ltd. nor from R. T. Corporation.

Conclusion

In this case analysis we can conclude as follows:

·        Appointment procedure of General Manager is autocratic

·        Problem is created for lack of negotiation

·        Indiscipline may be resolve by developing sound industrial relation of the company

·        The problem may be solved on table by arranging a fruitful meeting with the both parties