Return to Previous Page

The Utilitarian Settlement – Supply Works Gets Worked Up

CASE STUDY, HUMAN RESOURCE MANAGEMENT
XLRI Case Development Centre, 14 Pages

Case Preview

The Utilitarian Settlement – Supply Works Gets Worked Up

 

October 2014 was difficult by any standards for Ravi Malhotra, the Managing Director of Supply Works, as he had to make a decision one way or another. The restructuring had to be undertaken immediately and the Company Board had asked him to act swiftly. The business model of the company would be posed with a grave challenge, if the people planning and budgets were not streamlined in line with the new MoU. As he reviewed the MoU to be tabled to the Union, he knew it would be a very hard a sell, tougher than any other client he had to handle in his career till date.

As he sat in his cabin in the sprawling corporate office, Ravi pondered over how all the accolades and successes of this small but significantly impactful business could be sustained in future. After all, he and his colleagues in the senior management even doubted the replicability of the business and its expansion at early times.

Supply Works had come a long way from those initial days of apprehension and had proved to be a model par excellence for future businesses. It was a unique model, wherein although it was the responsibility of the local government to provide basic utility, a private Institution for the past decade had indeed successfully managed civic infrastructure to the citizens.

Yet, Ravi knew that the platform on which Supply Works operated and the environment conditions were rather distinct..................

Teaching Note Preview

The Utilitarian Settlement – Supply Works Gets Worked Up

 

Synopsis

Supply Works was established in 2004 as a separate entity outside of P&A as a business model in the area of utility services. The vision of the organization was – providing best in class utility services. Initially, the firm was entrusted with the Vibhav city area for establishing its services but in due course, the Government of South-Khanij intended it to manage the requirements of two other cities – Searam and Kembu.

The portfolio service areas of Supply Works included management of water, sewer, power and solid waste. It has also forayed into integrated township management and construction of late.

Over the years Supply Works led the adoption of new technologies and improvised processes in its operations. This included practices like data acquisition systems, TPM, energy audits, leak detection systems, GIS, etc. In addition, Supply Works invested in 24/7 customer service model called ‘Serving You’ which was a huge success with the public. This proactive move by the organization ensured Supply Works to continue as one of the leaders in the industry and was pivotal in gaining accolades for the organization from both the indigenous and international certifying bodies including the various Governments...................

Case Positioning and Setting

This case is meant for teaching Post-Graduate students in Management, specifically those specializing in Human Resources. It can also be taught to students who are attending courses in General Management, Strategy and Strategic HRM.

Assignment Questions

  • I. Should the organization work with the SWU? What should be the extent of the compliance of the management towards this union?
  • II. How can the organization tackle the issue of workforce skill shortage, training and wage ordeals?
  • III.

 

...................................

$4.57
Rs 0
Product code: HRM-1-0055, HRM-1-0055A

Abstract


Supply Works was established in 2004 as a separate entity outside of P&A (Power and Automation Works) as a business model in the area of utility services. Initially, the firm was entrusted with the Vibhav city area for establishing its services but in due course, the Government of South-Khanij intended it to manage the requirements of two other cities – Searam and Kembu. The portfolio service areas of Supply Works included management of water, sewer, power and solid waste. It has also forayed into integrated township management and construction of late.

The initial team of Supply Works was formed from a transfer of workers and officers of P&A. The ‘P&A Workers Union’ (PAWU) represented the workers claims and demands during the transfer process and signed a MoU with Supply Works in 2004 regarding the terms of service. Subsequently, a faction of the workers in Supply Works formed the ‘Supply Works Union’ (SWU), which the management promptly recognized in 2009.

These events have caused the CEO of Supply Works, Mr. Ravi Malhotra and his senior management team comprising of Mr. Shyam Borah (Director – HR) and Mr. Deepak Sahani (Director – Operations) to deal with a strategic HR dilemma. The transferees from P&A had thus far enjoyed continuity in service, stable paychecks, annual increments and bonus, comprehensive healthcare facilities and benefits. However, it was increasingly difficult for Supply Works to handle inflated wage bills, productivity declines and non-trainability of employees. The business could no longer entertain the legacy workers ‘taken for granted’ attitude and lack of skills coupled with productivity issues.

Now, the dilemma faced by the senior management team was on how to stabilize the wage bill while attracting the right talent for the organization. Should they heed to the demand by the SWU or convince them of the need for a changed outlook in the best interests of the organization and the employees.



Pedagogical Objectives

  • To understand the workforce acquisition and training challenges that are inherent part of any business; how this could become a potential issue that could derail operations if not identified and worked upon/solution at the right time
  • To discuss strategic intention of the firm and its management; its vision and how the management wants to align the strategy to the vision
  • To discuss the current and future wages and benefits structure; is it a benchmarked practice and what levers can be used to maximize productivity with marginal cost/wage increments
  • To elucidate restructuring process and what key elements of the wages structure that have to be re-looked at tactically to achieve the set objectives
  • To identify long-term impact of re-structuring practices
  • To discuss role of the senior management and the CEO in ensuring that all stakeholders are listened to and an optimized solution is arrived at
  • To analyse inter-functional dilemmas and conflicts; conflict resolution and why it is important that the top management work together with an aligned sense of urgency

Case Positioning and Setting

This case is meant for teaching Post-Graduate students in Management, specifically those specializing in Human Resources. It can also be taught to students who are attending courses in General Management, Strategy and Strategic HRM.




This Case Pack Includes:
- Abstract
- Case Study
- Teaching Note (**ONLY for Academicians)
$4.57
Rs 0

Related products




Request for an Inspection Copy

(Strictly for Review Purpose, Not to be Used for Classroom Discussion/Trainings)