Rise and fall HRM case study

1. University Business School
Submitted By:
Puneet Garg
Rajesh Grover
Ravneet Kaur
Sanchit Kaur
Sanyam Grover
MBA GENERAL A
RISE AND FALL CASE STUDY

2. Parties Included
• Jagannath (Jaggu to his friends)
• Suresh the Section Head
• Prahalad the Unit Chief
• Ravi, the EVP (Executive – Vice President)
• Ganesh, brother-in-law of Jaggu
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3. Who was Jaggu???
1. Jaggu was an over ambitious man for whom end justify means.
2. With a diploma in engineering, he joined a Bangalore-based
company as a Technical Assistant in 1977.
3. Obtained his degree from an evening college in engineering in
1982.
4. Sales Engineer in 1984.
5. After becoming Sales Engineer, he joined MBA part time
programme.
6. Sales Manager in 1986.
7. Senior Marketing manager in 1988.
8. Became a Ph.D. scholar and obtained his doctoral degree in 1989.
9. Became the Section head
10. Promoted as General Manager
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4. Events
 With a diploma in engineering, Jaggu joined, in 1977, a
Bangalore-based company as a Technical Assistant. He
obtained his degree in engineering in 1982.
 Recognizing as Engineer-Sales in 1984 Jaggu excelled himself
in the new role.
 Promoted as Senior Manger- Marketing, still Jaggu eyed on
things beyond his jurisdiction.
 He started complaining against Suresh the Section Head and
Prahalad the Unit Chief (both production) with Ravi, the EVP
(Executive – Vice President). The complaints included delay
in executing orders, poor quality and customer
rejections. Most of the complaints were cooked.
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5.  Ravi was convinced Jaggu was promoted to head the
production section so that things could be straightened up
there.
 Jaggu became the Section head and Suresh was shifted to
sales.
 Suresh, an equal in status, was now subordinated to Jaggu.
 Success had gone to Jaggu’s head. He had everything going in
his favour-position, power, money, and qualification.
 He divided workers and used them as pawns.
 He ignored Prahalad and established direct link with Ravi.
 Unable to bear the humiliation, Prahalad quit the company.
 Jaggu was promoted as General Manager.
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6. University Business School
Downfall
 There were complaints against Jaggu.
 He had inducted his brother-in-law, Ganesh,
as an engineer , who was corrupt by nature.
 He stole copper worth Rs. 5 lakh and was
suspended.
 Jaggu tried to defend Ganesh but failed in
his effort.
 Corruption charges were also leveled
against Jaggu who was reported to have
made nearly Rs. 20 lakh for himself.
 On the new-year day of 1993, Jaggu was
reverted back to his old position- sales.
 Suresh was promoted and was asked to
head production. Suresh became boss to
Jaggu.
 Unable to swallow the insult, Jaggu
resigned.

7. Whether there would be another
hump in the curve is a big question ?
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8. Business Ethics
Ethics refers to the study of good and evil, right and wrong, and
just and unjust actions of business people. Business ethics is the
same as the generally accepted norms of good or bad practices.
If dishonesty is immoral in society, then any business person
practising a dishonest act is treated as indulging in unethical
actions.
For e.g. If an employee claim to be meeting a client at the end of
the workday when instead he is leaving early to catch a ballgame
on TV or he might claim to be at a workshop for the first half of
the day when instead he is sneaking in some extra sleep. This
kind of behavior is unethical from business point of view.
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9. Employee Turnover
In human resource terms, employee turnover is a measurement
of how long your employees stay with your company and how
often you have to replace them. Any time an employee leaves
your company, for any reason, they are called a turnover
or separation.
There are two main categories of turnover: voluntary and involuntary.
Each of them has different causes.
• Voluntary turnover is when an employee quits. This can be due to
finding a better position at another company, a conflict with a
supervisor or a personal reason, such as needing to stay home with
a family member.
• Involuntary turnover is when an employee is laid off or fired,
generally due to reducing staff because of a business downturn or
change in business focus or because of an employee taking some
action that is cause for termination, such as theft.
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10. Cost of Employee Turnover ?
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11. Employee Responsibilities
Along with rights there are certain responsibilities which
employees owe to their employers. Responsibilities are ethical
limits on their behaviour and rights establish limits of the ethical
behaviour of others. Employees owe responsibilities to
themselves and their own moral integrity, to the profession, law
and society at large and they face many conflicts at their
Workplace.
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12. Was he right when ……….
I. He complained against Suresh and Prahalad with Ravi ?
II. He became the Section head and Suresh was shifted to sales?
III. He prevailed upon Ravi and got sales and quality under his
control, in addition to production ?
IV. He divided workers and used them as pawns?
V. He ignored Prahalad and established direct link with Ravi ?
VI. He had inducted his corrupt brother – in – law, Ganesh, as an
engineer and tried to defend him later on ?
VII. He started his own consultancy claiming himself as an
authority in quality management and poached on his previous
company and picked up two best brains in quality.
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13. Q1. Bring out the principles of
promotion that were employed in
promoting Jaggu.
Ans.: Jaggu was a diligent person; however he was
having an over ambitious attitude. Whatever
he achieved in his life was due to his
devotion and performance in his job.
PRINCIPLES FOLLOWED:-
1. Internal Promotion
2. Promotion On The Basis Of Merit
3. Promotion Against Non Vacancy
4. Frequent Promotion
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14. Q2. What would you do if you were
Suresh, Prahalad and Ravi?
Ans.: Suresh and Prahalad – Marketing people
commonly complain the production department. They
were belonging to production, and the complaints
against them were concocted. They should ask Ravi,
the EVP regarding the fact and be clear on their part
regarding the complaints against them. Due to their
silent backdrop , Jaggu took the chance and became the
section head for production.
Prahalad- He should not have left the job and rather
should have talked to seniors, colleagues, other
officials about being humiliated by Jaggu.
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15. University Business School
Ravi:-
• As an Executive Vice President, Ravi should investigate the
matters concerning Suresh and Prahalad, before shifting
them to sales and appointing Jaggu as the production’s
section head.
• He should locate the right person at a right position.
• He should have clearly drafted norms for all people related
functions and implement them in letter and spirit. So that ,
in order to solve a conflict a proper procedure is followed .
• After seeing Jaggu’s defending activities for his brother-in-
law and allegedly reported with corruption, Ravi should
suspend Jaggu immediately, instead of giving a chance of
revert. As corruption is a serious violation of company
norms and calls for some serious action.

16. Q3. Bring out the ethical issues
involved in Jaggu’s behaviour.
Ans.: Jaggu’s behaviour was totally unethical.
• At first he started fictional complains against the
production team;
• Humiliated his subordinates;
• Appointed his brother-in-law as an engineer who was
corrupt by nature.
• Again, he started defending his corrupt brother-in-law,
who caught while stealing 5lac Rs. worth of copper.
• And at last, he too involved in corrupting nearly Rs.
20lac.
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17. Steps for Making Ethical Decisions
• Identify the ethical issue or problem.
• List the facts that have the most bearing on the decision.
• Identify anyone who might be affected by your decision and
how.
• Explain what each affected person would want you to do
about the issue.
• List three alternative actions and identify the best and worst
case scenario for each alternative, anyone who would be
harmed by this choice (and how), any values that would be
compromised by selecting this alternative, and any automatic
reasons why this alternative should not be selected (legal
issues, rules, etc.).
• Determine a course of action.
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18. Let’s look the other way around
Several complaints were made against Jaggu which could have
been just the result of the enmity or jealousy. Jaggu might have
tried to defend brother in law because he might be knowing the
truth behind the theft allegations that Ganesh was not the
culprit but failed in his effort. After that Jaggu was reverted to
his old Position.
A proper investigation of the facts should have been done before
Taking these big decisions. Jaggu resigned because his truth and
talent was not being respected and were at stake that time. So,
he resigned in order to tap better and bigger opportunities.
He might succeed in his new job.
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19. University Business School