Group 7 Tesco


2/16

Introduction

Single #ecision aker

!onstant icroanageent o$ the workers

%istrust an# iscounication between the anageent

an# the workers

Gera acting reactively an# shutting the plant #own

No utual e$$orts being put in by the con$licting si#es

2


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3

Factors

contributing to

the breakdown

of IR in TESCO

Expectations

of each

party

Power with

different

actors in

the case

Issues that Gera

ust consider

and address

!essons

"earned

&uestions


4/16

What Factors Contributed to The Breakdon o! I" In TESCO#

$


5/16

'is strong wille# an# business in#e# personality ha# le# to an

establishent o$ a boss( subor#inate relationship as the workers

were always constantly #irecte# an# supervise# by the anager )ohit Singh, lea#er o$ the tra#e union saw his own interest as the

workers were a constant source $or hi to earn his incoe*

+here$ore, his personal an# sel$ish interests a#e hi instigate

the workers

)igi#ity o$ Gera to not coe to a negotiation with his workerswhich $urther arouse# the*

+he conciliation o$$er with the workers was bribe# by Gera in an

attept to sub#ue the* 'owever, that worsene# the scenario

$urther an# the strike by workers continue#*

!losing #own o$ the sub(assebly plant peranently leaving all

the poor workers uneploye#*

%


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What Were the E&'ectations o! Each (arty)the oner*

Trade +nion* Workers)!ro, the other 'arties#

-


7/16

+he other parties( the tra#e union an# the workers ecept a

certain aount o$ copliance $ro the anageent an# not

continue his #oinating behavior

+he tra#e union consists o$ workers an# )ohit Singh* +he

workers epect Gera to un#erstan# their #ean#s an# not be

so rigi# in their #ealings with the* )ohit, on the other han#,

has his own personal interests in #eriving constant incoe$ro the workers

+he workers are upset about the prevelant #oinance on the

part o$ the anager an# epect certain aount o$

un#erstan#ing $ro hi to atleast increase the wages by soe

aount

.


8/16

What 'oer in I" did di!!erent actors in the case ha/e* ho

did they deri/e it* and ho did they use it#

0


9/16

#anish Gera

$Chairan% #& and #a'ority Owner of Tesco(

+ype o$ -erson.

%ynaic, enthusiastic an# sel$(otivate# person

Genuinely kin# an# help$ul

'a# a penchant $or e$$iciency an# #iscipline*

-re /nion #ays

Showe# a #eep concern $or the wel$are o$ his worker 0orkers treate# hi with #ignity* 'e was bestowe# with power relate# to personnel atters an# a relationship o$ superor#ination an#

subor#ination eiste#*

1verall in pre union #ays Geras source o$ power was his strong relation with eployees an# he use# it

to ensure no con$licts arose by a people oriente# approach*

-ost /nion #ays

'e was very #eterine# not to coproise* 'e #irectly spoke with the workers but the solution #i#n2t last long*

3nitially he use# #elay tactics an# later strong(ar tactics*

4inally he #eci#e# to close the plant*


10/16

Rohit Singh

$Trade )nion !eader% #eber of the Indian *ationa" +anata Party

and a"so had c"ose "inks with soe inisters in the state go,ernent(

'is objectives.

+he labour situation at this ancillary plant o$$ere# iense scope $or hi to

carve out a $ollowing $or hisel$

5aluable capital $or hi an# assure# hi a stea#y incoe

-ost /nion #ays

0ante# to #eonstrate his utility when the wage settleent was negotiate#

between the anageent an# workers

'e woul# thus arouse a $eeling o$ unrest aong workers, which woul# also

serve his ulterior otives

Stubborn with the proposal

1


11/16

-orkers

Source o$ -ower.

-re union #ays. Goo# relation with owner-ost /nion #ays. Strong union presence

!aught in the power battle between union lea#er an# copany

owner6%

Supporte# the union uncon#itionally an# #i# not stick to their stance

8A$ter Gera #irectly approache# the an# resolve# the issue theie#iately $lip($loppe# a$ter eternal in$luence9

Governent6Legal bo#ies

%i# not eercise any power

%i# not consi#er iplication o$ $actory closing #own on workers

8/neployent9

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12/16

What issues ,ust era consider and address be!ore

'lannin4 ahead#

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13/16

'e nee#s to iprove his iage to win back the or#ers

'e nee#s to buil# up his capacity by possibly renegotiating with

eployees regar#ing a reopening o$ the plant, but with no unionactivities

'e also nee#s to ensure that such union activities #o not happen

in other ain plants

'e nee#s to have echaniss like regular eetings with workers

to #iscuss their concerns

Since he is attepting to $ollow paternal unitaris, he nee#s to

counicate ore with workers an# arket his characteristics

o$ caring towar#s the better*

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What lessons in I" do you learn !ro, this case#

1$


15/16

+he owner strongly believes in #oinating his eployees

an# at no point in tie will he negotiate with the workersto reach a cor#ial solution

+he tra#e union is le# by )ohit Singh who has his

personal interests in earning incoes constantly*

+here$ore, he has provoke# the workers $urther toaintain a constant ri$t between the anageent an# the

workers

1%


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1-

T./*0 1O)

Group 7 Tesco

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