Hmsi Case Study Which Focuses on Hr Problems

The case study focuses on the HR problems faced by Honda Motor Cycle & Scooters India (HMSI). The case discusses the various reasons which led to the dispute between the management and employees of HMSI. It elaborates the incidents, which led to the strike at the company that resulted in HMSI workers being severely beaten up by the police. Labor strife and the management's inability to deal with it effectively had resulted in huge losses for the company due to the fall in the production level at the plant. In addition to this, the company also received a lot of negative publicity as newspapers and TV channels gave wide coverage to the violence of the action.
The case highlights the growing number of instances of clashes between the employees and the management of companies in India, which is often guided by external parties such as trade unions and political parties.
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Issues:
» Understand the factors that lead to labor unrest at a factory and the impact of such incidents on the employees and the company.

» Study HR policies adopted by organizations to prevent labor unrest at the workplace.

» Examine top management's role in maintaining a peaceful working environment.

» Analyze the role of external parties such as trade unions; political parties etc., in disturbing the working environment in a company
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Introduction On July 25, 2005, the management of the Honda Motorcycle & Scooter India (Private) Limited, (HMSI), a wholly-owned subsidiary of Honda Motor Company Limited6 (HMCL), encountered violent protests from workers that disrupted production at their plant in Gurgaon7.

HMSI workers were severely beaten up by the police, and newspapers and TV channels gave wide coverage to the violence of the action. The protest followed six months of simmering labor unrest at the HMSI factory in which the workers also resorted to job slowdown8 (since