Initially the company thought of a policy of outsourcing many activities through agencies to cater maximum needs and keep a stable minimum numbers of employees on permanent rolls. But after joining of new Recruitment Manager Shiva Prakash from last one year, the policy was changed. On his suggestion, management agreed to increase employees' numbers slowly on Co. rolls to maintain the minimum inventory of head counts. Shiva was appointed by the corporate office with some reference of one of the independent board director.
The mail before Mr. Reddy was sent by Maintenance manager. He expressed his uneasiness about growing rate of attrition of people appointed on permanent Rolls. Maximum duration of employees was less than six months. His last line was much disturbing. He mentioned that the some boys had revealed that the same vendor providing us the manpower approached them for better opportunities and also poached them for some other organisations. The people crisis was rather becoming more and more complex. It was becoming a challenge for Mr. Reddy. Till now he left everything on Shiva Prakash. But after reading mail, he decided to get involved and go deeper to find out the reasons behind all this. He called Shiva Prakash to discuss the issue. Here is the conversation :
Shiva : Sir, it is demand and supply issue. We are at very remote location. People join us, stay for some time and then leave as soon as get other opportunity.
Reddy : But we have increased the base salary rate and other allowances also as advised by you. What more you want to do?
Reddy : Everything is not right in your process. Call that vendor. I would like to meet him.
Even after one week, placement vendor did not come to meet Mr. Reddy. This raised his eye brows. During this time, Reddy got message from one HR officer assisting Shiva in recruitment process. He wanted to meet Reddy not in plant but at his residence. It was not normal. Things were looking messed up. He responded - "Send context of meet at my personal mail Id from your personal mail. Then will meet."
Reddy Replied back. "Come 2maro morning before leaving for plant."
When Sumit met Mr. Reddy at his residence and exposed Shiva, it was like a bombing. Sumit revealed that Shiva was favouring the vendor unreasonably. He diluted the agreement terms also. Earlier, the vendor was responsible for providing free replacement if the candidate leaves within six month. Now the condition has been diluted to three months. Earlier the payment terms were of three months. Now it has been reduced to one month only. The persons who are approaching directly to Co. for possible employment opportunities are discouraged and advised to come through vendor. In many cases Shiva shared the information of direct applicants to vendor and asked him to contact them and send their CVs through him. Sumit also requested that he can further investigate and takeout more details if Reddy permits him to do so. Reddy assured him that nothing will happen and he should continue watching him and his activities.
"The Placement agency named Metaphor executive search agency address provided was of a residential flat. There is no display board. People of the area do not know about any such business activity being carried out from the flat. Neighbourers revealed that an old couple resides there. The proprietor of the placement agency is relative of Mr. Shiva. The account statement obtained from bank unofficially in confidence reveals the interesting pattern of funds flow. Whenever the payment from the company was credited in the account of the agency, It was transferred to another account in the different branch of the same bank. The ultimate beneficiary in which amounts were used to be transferred belonged to one woman, who happened to be the wife of Shiva. Rajni, the female employee working in the HR assisting in recruitment activities was spotted with Shiva in the restaurants and malls of the city far away from factory location during last fifteen days. The relationship reflected was not of a boss and a subordinate."
Next morning, Before Reddy could think of any action against Shiva after discussing with corporate office and his confident managers, Shiva came running to meeting room where Reddy was discussing some other issues with different managers in meeting room. He was perplexed. He said that that the female employee working in HR department has given a complaint of sexual harassment against Sumit and the issue was very sensitive. He tried to molest her in the office when they were alone. Shiva put the written complaint before Mr. Reddy. Shiva said that she was standing outside meeting room and wanted to see you Sir. She is insisting that she will report the matter to the police.
1. Discuss the functional style and behavioural traits of Shiva vis-a-vis of Mr. Reddy.
2. Discuss the people processes of the organisation? Were they correct or some review is required if so, what would you suggest?