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Bata India
By: Mohammed Masood
Neha Sharma Nitish Khandelwal Pavan Puranik Prachi Nanda
ContentsHR Issues at Bata IndiaMeasures taken by Bata
Management to resolve issuesImplication of the measures taken by
BataWhy BMU was unable to resolve
issues internally?Intervention of the West Bengal
Government into the matters at Bata
Implications of Outsourcing – Pros & Cons
Why the management failed to ease out matters ?
Bata India TodayHR at Bata IndiaFinancial Details Of Bata - Now
HR Issues at Bata IndiaHigh cost structureRedundancy at all levels of operationsExcess personnel than required for
the task at handLack of a vision oriented man at the
helmNo proper appraisal systemNo rewards or recognition
contd….
Lack of HR policiesNo place for participative
managementNo transparency in operations
regarding personnel recruitment & termination
Pursuing targets aggressively – at the cost of personnel
Measures taken by Bata to resolve personnel issuesBipartite agreements to resolve
labour concernsRevamping of the management
hierarchyImplementation of performance
based pay system for personnelAsking managers and juniors to quit
without the management reasoning the move
Stopping recruitment
Implications of the measures taken by BataProfits returned but only for a brief
period of time – the company paid bonusNo respite from the high cost structure –
no steps were taken to reduce thisWeston was unable to strike a deal with
AIBSMU regarding the 1990 agreement – was disregarded
Resentment in employees at all rungsDiscontentment rose and the union
became aggressive in its demands
Why BMU was unable to resolve issues internally?Reasons:
1) No proper connect b/w the management & the workforce2) Management unaware of the actual requirements of the workforce3) Resolving to strikes which further incensed the matter4) The Union looked at its own interest and disregarded that of the management
Outcome – lack of productivity & decline in revenues
Intervention of West Bengal Government into matters at BataBata was running in losses and had
to figure out ways to deal with itIt removed incentives to workers – to
further its move in cutting costsBMU requested the then West Bengal
Government to intervene & resolve issues
Intervention resolved matters momentarily – agreements signed to get matters back on track
Implications of Outsourcing – Pros & ConsPros:
1) Freed up labour for other tasks2) Product quality improved
3) Expansion of business
Cons:1) Increase in surplus labour2) Workers were without job and that led them to protest
Why the management failed to ease out matters?Discord & mistrust b/w the
management & BMUOutsourcing – implied that Batanagar
unit was losing importanceImplied that more jobs will be lostStoppage of recruitment – lack of
fresh talent to undertake operationsManagement was not receptive to
requests made by Unions
Management drove out the incentive for labourers to work at Bata factories
Agreements reached were too little & too late
Bata India Today Bata India is the largest retailer and
leading manufacturer of footwear in India
Transformed from a loss-making to profit-making company in 2005.
In 2006, the company paid dividends after a gap of five years as well.
Re-structuring during 2004-07 helped the company achieve high levels of efficiency in its manufacturing processes while reducing costs
Global Statistics:- Serves 1 million customers per day- Employs more than 50,000 people- Operates 5000 retail stores- Manages a retail presence in over 70 countries- Runs 27 production facilities across 20
countries
Courtesy: http://www.bata.com/about-us.php
HR at Bata India"We believe that the
fundamental vitality and strength of our organization lies in our people" – Thomas J. Bata.
Now, it’s driven by principles, respect for human rights
Initiatives are in place to recruit & retain the best people
Opportunities are provided for personal development & advancement by:-Running courses for training and improving skills -Organizing several national and international courses at all
levels on a regular basis for teaching new technologies
and systems -Encouraging life long learning.-Focused Leadership Development Initiatives-Cross Functional and Cross Business Opportunities
It’s socially responsible & encourages the same amongst its workforce
Courtesy:
http://www.bata.in/webbata/faces/jsp/static.jsp?articleid=1966&orgId=0&lang=en
Financial Details of BATA - Now
Bata reported Net Profit (millions INR)of 12.49, 40.15, 47.44, 60.74 & 67.23 for the years 2005 through 2009 respectively.
Bata has slowly but surely returned to its old ways of making profits