Case Study
Ravi Shankar has been with Silverline Industries Ltd. (SIL) for over five years and during that time he has progressed to the current position of Senior System Analyst. He is generally pleased with the company and thoroughly enjoys the creative demands of his job.
One Saturday afternoon in the executive fitness centre, while talking to his friend Ishwar Dayal, a colleague in the networking section, Shankar discovered that his department has hired an IIT graduate as a programmer analyst. Shankar although a jovial fellow, got upset when he learned that the new recruit’s starting pay was only Rs. 3000 a month lower than his own. Shankar was bewildered. He felt that he was being treated unfairly.
The following Monday morning Shankar confronted Keith Wetson, the HRD manager and asked if what he had heard was true. Wetson apologetically admitted that it was indeed true and also attempted to explain the company’s position: “Shankar, the market for analysts is very tight and more so if we want qualified people from IITs. Without a premium salary, the company can’t draw people from IITs, competing with global majors in the field. We desperately needed another analyst and this was the way we could get one.”
Shankar asked Wetson whether his salary would be adjusted accordingly. Wetson replied: “Your package will be decided at the time of performance review after six months. We are also thinking of Employee Stock Option Plan this year for those who have put in five years of service. Long term service awards for people like you are also in the pipeline. You are doing a great job, and I am sure your immediate boss will recommend a raise. You will not have anything to complain against SIL after six months.”
After returning back to his residence, Shankar took out his CV, ornamented the same a bit, before finally sending it across to IT consultants in and around Mumbai. Before retiring he was saying to himself: “Six months is a pretty long time!”
Questions
1- Do you
One Saturday afternoon in the executive fitness centre, while talking to his friend Ishwar Dayal, a colleague in the networking section, Shankar discovered that his department has hired an IIT graduate as a programmer analyst. Shankar although a jovial fellow, got upset when he learned that the new recruit’s starting pay was only Rs. 3000 a month lower than his own. Shankar was bewildered. He felt that he was being treated unfairly.
The following Monday morning Shankar confronted Keith Wetson, the HRD manager and asked if what he had heard was true. Wetson apologetically admitted that it was indeed true and also attempted to explain the company’s position: “Shankar, the market for analysts is very tight and more so if we want qualified people from IITs. Without a premium salary, the company can’t draw people from IITs, competing with global majors in the field. We desperately needed another analyst and this was the way we could get one.”
Shankar asked Wetson whether his salary would be adjusted accordingly. Wetson replied: “Your package will be decided at the time of performance review after six months. We are also thinking of Employee Stock Option Plan this year for those who have put in five years of service. Long term service awards for people like you are also in the pipeline. You are doing a great job, and I am sure your immediate boss will recommend a raise. You will not have anything to complain against SIL after six months.”
After returning back to his residence, Shankar took out his CV, ornamented the same a bit, before finally sending it across to IT consultants in and around Mumbai. Before retiring he was saying to himself: “Six months is a pretty long time!”
Questions
1- Do you