Case Study | Recruiting or Retaining? (Uptron Electronics)

30 Aug

 Which is more important – Recruiting or Retaining?

Uptron Electronics Limited is a pioneering and internationally reputed firm in the Electronics industry. It is one of the largest firms in the country. It attracted employees from internationally reputed institutes and industries by offering high salaries, perks, etc. It has advertised for the position of Electronic Engineer. Nearly 150 candidates applied for the job. Mr. Shashidhar an electronics Engineering graduate from Indian Institute of Technology with 5 years working experience in a medium-sized electronics firm, was selected from among the 130 candidates who took tests and interview. The interview board recommended an enhancement in his salary by Rs.5000 more than his present salary at his request. Mr. Shashidhar was very happy to achieve this and he was congratulated by a number of people including his previous employer for his brilliant interview performance and good luck.

 Mr. Shashidhar joined Uptron Electronics Ltd, on 21st January 1997, with great enthusiasm. He also found his job to be quite comfortable and a challenging one and he felt it was highly prestigious to work with this company during the formative years of his career. He founds his superiors as well as subordinates to be friendly and cooperative, But this climate did not live long. After one year of his service, he slowly learnt about a number of unpleasant stories about the company, management, the superior-subordinate relations, rate of employee turnover, especially at higher level. But he decided to stay on as he promised several things to the management in the interview. He wanted to please and change the attitude of the management through his diligent performance, firm commitment and dedication. He started maximizing his contributions and the management got the impression that Mr. Shashidhar has settled down and will remain in the company.

 After sometime, the superiors started riding over Mr. Shashidhar. He was over-loaded with multifarious jobs. His freedom in deciding and executing was cut down to size. He was ill-treated on a number of occasions before his subordinates. His colleagues also started assigning their responsibilities to Mr. Shashidhar. Consequently there were imbalances in his family life, social life and organizational life. But he seemed to be calm and contented. Management felt that Mr. Shashidhar had the potential to bear with many more organizational responsibilities.

 The General Manager was quite surprised to see the resignation letter of Mr. Shashidhar along with a cheque equivalent to a month’s salary one fine morning on 18th January 1999. The General Manager failed to convince Mr. Shashidhar to withdraw his resignation. The General Manager relieved him on 25th January 1999. The General Manager wanted to appoint a committee to go into the matter immediately, but dropped the idea later.

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Questions
1. What prevented the General Manager from appointing a committee?
2. What is wrong with the recruitment policy of the company?
3. Why did Mr. Shashidhar’s resignation surprise the General Manager?

Source: Unknown
Date: Unknown

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