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6 . Down Size or Up Size : Compliance to Strategy or Adjust the Strategy? Subhiksha Pharma Limited was established in 1 9 8 5

6. Down Size or Up Size : Compliance to Strategy or Adjust the Strategy? Subhiksha Pharma Limited was established in 1985 and started experiencing abnormal increase in human resource cost by 2004, consequent upon its revised retention policy. The revised retention policy aimed at increase in the salaries of Pharmacists and top level managers more than those of market leaders. Mr. George, has taken over the charge as new CEO in 2005. Upon his takeover, he began to look for ways to make the organization more profitable. Throughout his investigation, he found that the company's human resource cost was too high and is a major cause for dwindling financial position of the company. Mr. George instructed the HR Manager of the company to downsize the number of employees by 30 per cent creating a saving of Rs.3 billion. The HR Manager, offered a counter proposal that it would be wise to expand the production and marketirg operations of the company by revising the corporate strategy as the market is providing opportunities for Pharmaceutical industry. The CEO, just paid a deal ear to the counter proposal of the HR manager and consequently the HR manager initiated the downsizing process. The HR manager official informed the employees the details of the downsizing programme. The booming pharmaceutical industry enabled the employees of Subhiksha Pharma to find jobs in other companies without much difficulty. However, most of the displaced employees were upset about being terminated and complained as the new positions were lower than their current ones. However, most were successfully outplaced by June 2006. The company's financial position improved slightly in 2007 and the CEO told the HR Manager that we achieved the goal. But the HR manager replied, "we achieved the goal but we lost an appropriate strategy and our competitor gained a lot by employing our trained and expert staff
discuss the role of HRP in the given context
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