Honda Case
Case Analysis
People Management Fiasco In Honda Motorcycles and Scooters India Ltd.
Submitted To :
Dr. Madhumita Chatterji
Submitted by:
Swagatika Sarangi
People Management Fiasco In HMSI
INTRODUCTION: HMSI was established on October 20th 1999 with an aim to produce world class scooters and motorcycles in India. The state of the art HMSI factory, located in Gurgaon, was spread over 52 acres. The initial installed capacity was 100000 scooters per year, which was scheduled to reach 600000 scooters by the end of 2005.
A number of issues were confronting Honda Motorcycles and Scooters India Ltd. (HMSI), following the July 2005 altercations with its workers. Honda Motorcycles and Scooters India Ltd. (HMSI), a wholly owned subsidiary of Honda Motor Company Limited, Japan, established its plant in India in 1999 and made mistakes in handling people-management issues. Neither the president of HMSI, nor perhaps any of the members in his organization could have imagined that worker’s grievances would turn into a war-like situation, as they did in July 2005.
LOSS OF PRODUCTION : The company had suffered a production decline resulting in a loss of Rs. 1.3 billion as a consequence of the strike and go-slow tactics by the workers, especially during the months of May and June 2005. But there was much more at stake than just the monetary loss.
HMSI WORKFORCE : HMSI operated on the principles that were followed by all Honda companies worldwide. HMSI had about 3000 employees in all: of these 2000 were in the worker category, 1300 were confirmed workers while 700 were contract workers. The other 1000 employees belonged to the supervisory and managerial staff. In addition, 700 persons were working as trainees and 300 were apprentices under the Apprentices Act 1960. All trainees, after successful completion of their training, normally got absorbed into the regular workforce, whereas only about 5% of the apprentices were able to get a job with the company
People Management Fiasco In Honda Motorcycles and Scooters India Ltd.
Submitted To :
Dr. Madhumita Chatterji
Submitted by:
Swagatika Sarangi
People Management Fiasco In HMSI
INTRODUCTION: HMSI was established on October 20th 1999 with an aim to produce world class scooters and motorcycles in India. The state of the art HMSI factory, located in Gurgaon, was spread over 52 acres. The initial installed capacity was 100000 scooters per year, which was scheduled to reach 600000 scooters by the end of 2005.
A number of issues were confronting Honda Motorcycles and Scooters India Ltd. (HMSI), following the July 2005 altercations with its workers. Honda Motorcycles and Scooters India Ltd. (HMSI), a wholly owned subsidiary of Honda Motor Company Limited, Japan, established its plant in India in 1999 and made mistakes in handling people-management issues. Neither the president of HMSI, nor perhaps any of the members in his organization could have imagined that worker’s grievances would turn into a war-like situation, as they did in July 2005.
LOSS OF PRODUCTION : The company had suffered a production decline resulting in a loss of Rs. 1.3 billion as a consequence of the strike and go-slow tactics by the workers, especially during the months of May and June 2005. But there was much more at stake than just the monetary loss.
HMSI WORKFORCE : HMSI operated on the principles that were followed by all Honda companies worldwide. HMSI had about 3000 employees in all: of these 2000 were in the worker category, 1300 were confirmed workers while 700 were contract workers. The other 1000 employees belonged to the supervisory and managerial staff. In addition, 700 persons were working as trainees and 300 were apprentices under the Apprentices Act 1960. All trainees, after successful completion of their training, normally got absorbed into the regular workforce, whereas only about 5% of the apprentices were able to get a job with the company