Case study; Read, analyze and respond to the questions.

"Makar" a textile manufacturing unit located in the city of Jaipur with enough infrastructure and a good workforce. The organization is specialized in shirting and suiting particularly the supplies that are done in Rajasthan only. The organization is run by the CEO who is commonly known for well educated, experienced, a businessman with a humane approach. Mr. Mukund CEO "Makar" considered the employees as a competitive advantage of his organization and want to keep the workforce always updated to face the challenges from their competitors.

Mukund the people's leader.

Mr.Mukund, who heads the production himself, developed an efficient top management group which includes Mr.Prem Heading marketing, Mrs.Mrunal leading HR and T&D, Mr.Vaidya leading finance. All these department heads are always been supportive heads for the ideas of Mr.Mukund in handling the workforce. Mr. Mukund always quotes that "I believe that satisfied, educated, the dedicated workforce will be a key to success at any condition to any organization. Money spent on employees will always be an investment for my organization."

Activity of the Organization.

Training and development become a day to activity in the organization. Employees are been trained by well-versed trainers in that area. The organization also encourages the employees to do further studies as part of the career development program and they get a helping hand from the organization.

Happy Employees

The employees of Makar are very much satisfied with this kind of support from the organization and they realized that being with Makar their personal growth will be assured. Because of the above-said things Makar had many advantages like highly trained and qualified workforce, highest quality of supplies assured, less rate of attrition, dedicated workforce, meeting the targets on time, satisfied workforce, etc...

Announcement by Mr. Mukund

One day the employees of Makar were in deep Grief when the news hit the office that Mr. Mukund CEO made an announcement, " Dear employees. You all are my colleagues rather than my employees. I always feel that I am one of you with more responsibility.Now my age is not allowing me to shoulder that responsibility, I wish to give way to my younger generation. So I have decided to handover the charge to Mr. Mithun, My only son, who had completed his studies and returned to India. I know you all will be with him as a pillar and extend your support, in the same manner, you supported me. Without you people, this organization would not have reached these heights. I am Sure you all will support him.

Now it has been three months since Mr. Mithun take over the charge and from day one he started auditing in almost all the departments with a motto to reduce cost. And he got a strong statistics that the compensation is the highest cost bared by the company compared to any other cost incurred in the organization.

Mitun's decision: Shocked Mrunal

Mitun called Mrs. Mrunal the head HR and told her "Mrs. Mrinal, I need an immediate action plan to reduce the labor force by 30% by way of Lay-off" he continued, "Mrunal I hope you are getting my point and I want it to happen soon". Mrs. Mrunal got shocked by listening to this decision and said to Mr.Mithun that " Sir it is my responsibility to tell you that the workforce which we have is an excellent, well trained, loyal and self-motivated workforce. In case of lay off such the competitors will take advantage of that. We can think of other options rather than Layoff."

Mr.Mithun was not in a position to listen to her words he said that "sorry Mrs.Mrunal I am not ready to review my decision and neither wants any alternatives for this I want this work to be done within a week". Finally, with all her regrets Mr. Mrunal reduced the workforce by 30%. On the other hand, the employees who were waived from Makar joined the competitors with a better package.

One day in his office Mr.Mithun was discussing with Mrs.Mrunal that the cost of labor in the organization has been reduced to a great level which increases the net profit also. After listening to this Mrs.Mrunal said that "it is well-said sir, we have reduced the labor cost and increased the profit but it is more true that we have missed the great opportunity to grow more by losing our wealth to the competitors"

Questions on Case study

1. " Employees are the competitive of the advantage of Makar" comment on this statement relating to the approach of Mr. Mukund CEO

2. How did you judge the actions taken by Mr. Mithun to reduce the cost of labor was it really a successful one.

3. "We have gained the profit by losing our wealth" discuss the statement of Mrs.Mrunal and support her statement.

4. From the above-said case find the opportunity which was missed by Makar due to the lay off as mentioned by Mrs. Mrunal.