The Case of Kitler Electric Firm: Are Organizations Keeping their Promise of Employee Engagement?
The ambulance was hurtling down the winding road in the Sahyadri mountain range. Mr. Sinha, VP (HR) of Kitler Electrical Ltd. (KEL) along with a few of his colleagues was rushing the union leader who had suffered a heart attack at the Moral Rearmament Institute while undergoing training. Mr. Sinha was heading the team comprised of employees and union leaders of INTUC (Indian Trade Union Congress). They were into their first day of course-stay when the mishap occurred in the wee hours of the dawn. Mr. Sinha was tensed and praying that medical aid was reached in time to the patient. Mr. Trivedi, the INTUC union leader, was an obstinate foe of the company and had made the life of the managers of Mr. Sinha’s team particularly hard. The ambulance swung dangerously while negotiating around the curves and reached the hospital in 20 minutes. The patient was wheeled out and the emergency team of doctors rushed him to ICCU (Intensive Critical Care Unit). Mr. Sinha fell down like a heap of sand. He was bracing up to hear the worst from the doctor. The company’s wage revision and workers’ demand for canteen facility was pending approval.
Mr. Sinha buzzed the company’s Director at 5 AM and heard a sleepy voice from the other end. A voice inside him said that things would not turn out as bad as he feared. But he gave the bad news to his boss who became concerned and assured support and urged that no stone be left unturned to save the union leader. He promised to arrange a specialist to be flown from Mumbai to Pune by afternoon. Sinha’s face went pale as he tried to absorb the train of events. He recalled how Mr. Trivedi had gheraoed the plant gate two weeks back and had roughed up some managers. Lost in his thoughts, Sinha’s thoughts were interrupted by a gentle tap on his shoulder. Dr. Kulkarni did not waste his time, “I’ve both good and bad news.” Sinha anxiously asked, “tell me, Doc.” Dr. Kulkarni replied, “We have saved him for now, but he would need a heart surgery”, before Mr. Sinha could respond, he said, “it will cost anything between 3-4 lakh. Shall we proceed?”.....................
Context: Union and Wage Revision
The company’s union was established in 1962. Between 1962-2008 period, the external union (may not be necessarily an employee of the company) controlled the workers and managed its affairs.
Not many were happy with the external union. It was realized that many scrupulous elements exploited the state-of-affairs for their personal gains and brought bad name to the workers. Such power-hungry men interfered in the smooth functioning of the company and often worked at cross-purpose..............
Exit of External Union
The replacement of external union by internal union was akin to power shift. It was not a smooth transition and was marked by politicking maneuvers and occasional violence. The period unfolded great political drama but ultimately the internal union was successfully established in 2008. The story of how the internal union came into vogue saw interplay of power and politics. Burke (1982) had observed that organization development connotes change for which power must be exercised to overcome inertia and resistance. In organizational context, inter-personal power is defined as the ability of an individual to get one’s way in a social situation (French, et al., 2006). Sinha, was an affable person who was spearheading several programmes to engage the employees...............
In the Twilight of Change
The situation offered a prime opportunity for projecting the company’s positive image and ultimately triggered the exit of the external union. The collectivity of ‘union’ and ‘clan’ saw the abrasive, immoral action of the leader as repugnant and undermining the mutuality of relationship between union and management. The workers willingly embraced changes as collaborative partners of management. The workers had been tough negotiators during the wage revision discussion as the number and frequency of these meetings indicated...............
The Decade of Struggle
The case study shows KEL culture as concentrated on internal maintenance with flexibility. The Clan culture was people-centric; like an extended family having sensitive approach to customers, and a friendly place to work in because people shared similar ideas and were open. In clan culture, leaders played the role of a mentor and facilitator and the people had a sense of belonging. The integration was facilitated by loyalty and tradition that aligned commitment to organizational vision and mission.............
The Holy Grail of Communication
“Can you tell me what communication strategy we should follow to make employees understand the changes we are embracing?” said, Sinha. Mr. Das, GM Communication, cleared his throat and said, “Overall Communication activities were emphasized to increase stability and control so as to improve company’s competitive advantage. The company was already using lean media like brochures, newsletters, to deliver its message- this was impersonal and passive. But we need to use rich media like workshops; however, this was costly and needed lead time to organize. Hence we have not tapped it so far.” Sinha thought about that for some time as he looked at Das’s face...........
The Alchemy of Culture-change
Spence-Oatey’s (2000) concept of identity face signifies how group roles and values affect sense of public worth. Communication needed to build rapport through suitable action and language that positively affected workers’ identity face. Cultural symbols like common canteen, dress code, language (Fine, 1996), and regional affinity, was used to develop communication for workers, organization and the external environment. In our analysis of the company magazine editorial, it was observed that there were shifts in tone serving ulterior purposes which represented strategic resources (Poncini, 2003)............
Conclusion
The organization stood on the cusp of radical transformation as new work practices were being institutionalized coinciding with new wage and bonus payment. There was corresponding emphasis on cost control, bureaucracy and accountability for future growth. The workers had accepted the changes, but there was covert resistance ideologically and the battle lines were drawn unless the management took preemptive steps. Organizational communication systems, access to resources, and job design also contributed to employee powerlessness............
Assignment Questions
I. What difficulties were faced by KEL in its wage revision?
II. What were the core issue confronting KEL?
III. What do you think is the impact of internal union on the organization?
IV. ............
Exhibits
Exhibit I: What Workers Say
Exhibit II: VP (HR) Editorial ‘Quote’ in Company’s Magazine and his Interview Excerpt