In which ways the company

WORKSHO Sunbeam Generators resolve

the problem of union trade
P strikes due to unsatisfied
salary?
MSc in International Management Human Resource
Academic Year 2010/2011 Management

Authors:
GROUP A: Patricia Cárdenas Medina
Ewa Dankowska
Elena García Iglesias
Shanmugapriya Sivakumar
Company: Sunbeam Generators Pvt. Ltd.

Problem Statement: In which ways the company Sunbeam Generators resolve the
problem of union strikes due to unsatisfied salary?

Table of content:
1. Introduction........................................................................................................................................2
2. Brief introduction to the company....................................................................................................3
3. Research Methodology.......................................................................................................................4
4. SWOT Analysis..................................................................................................................................5
a. Strength...........................................................................................................................................5
b. Weaknesses.....................................................................................................................................6
c. Opportunities..................................................................................................................................6
d. Threats............................................................................................................................................7
5. Solution for the problem, “Company’s Perspective”.......................................................................7
6. Solution for the problem, “Our own Perspective”...........................................................................8
7. Conclusion...........................................................................................................................................9
8. References.........................................................................................................................................10
9. Appendix...........................................................................................................................................10

1. Introduction

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 The general base and aim of people’s work is to obtain an emolument. Compensation underlie
the motivation of our jobs. On the other hand, for employers, there is a strong link between
compensation and productivity. Providing the appropriate remuneration system is the function of
Human Resource department in enterprises, unless some problem could come immediately. The
one example considered in that Workshop is a strike, a union trade strike.

A trade union is an organization of workers that have banded together to achieve common
goals such as better working conditions [1]. The trade union, through its leadership, make
agreements with the employers to defend worker´s interests and negotiates labor contracts
(collective bargaining) as well.
The following functions are specific for trade unions:
 To achieve higher and fair wages and better working condition for the members and
employees in general.
 To protect workers against unfair treatment and injustice by employers.
 To generate self confidence among the workers.
 To encourage sincerity and discipline among workers.
 To provide for educational, cultural facilities.
 To take up welfare measures for improving the morale of the workers .
 To cooperate and facilitate technological advancement.

Sometimes, in extreme situations trade unions are compeled to organize strikes to

vindicate worker’s rights or constrain the changes. A strike usually takes place in response to
employee grievances. Increasing the salary is one of the most common demand.
That issue can be related to the company of our concern. The functional trade union called
All India Trade Union Congress (AITUC), which is the oldest in India. Utill 1945 it was the
central trade union organization in India. The main aims and activities taken up by participants of
that association, related to Sunbeam company are:
 negotiation on wages;
 aattempts to obtain the extra benefits for employees (i. e. better conditions of
insurances, paid holiday, leisure time activities);
 monitoring of compliance with workers' rights.

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 Last negotiation related to salary increase took place 3 months ago, and last strike
(workers either occupied their workplace and stop working or left the workplace) – 1 year ago,
while the employees strive for additional bonuses to their base salaries.

2. Brief introduction to the company

“We firmly believe in rightfully paying back to society what it deserves by our unstinting
efforts in delivering a socio-commercial brand rendered with a technological face, embodying
top-notch products that sustain and nurture the industry and the home.” SunBeam Generators,
2010 [2].
SunBeam Generators is a company located in India that has been providing quality
products and services in Diesel Generators and it has been set all over the world for three decades
of intensely experience in providing generator sets for prime, standby and rental power. The
product portfolio is wide: diesel- and gas-powered units from as small as 7.5 kVA that are ideal
for domestic and small retail properties up to sets as large as 625 kVA that can provide power for
a large building with several offices. A generator works in order to protect the possibility of loss
of mains power, something that can cause economic loss, lighting loss, production loss and loss
of important data storage.
SunBeam has earned a praiseworthy recognition in the global market as manufacturer and
exporter of diesel genset, diesel generators, alternators, diesel engines & other DG sets powered
with Kirloskar, Deutz, Perkins, Cummins, Caterpillar and IVOCO make engines. With its
remarkable assortment of trustworthy generators and allied products, and capable following sales
service backup, Sunbeam has a remarkable position in the Indian market. The company offers a
range of models very large and the production range is close to 2,000 units per year. Sunbeam’s
countrywide dealer network ensures that products are backed by a reliable, local service and
spare parts system.
Sunbeam is constituted by a manufacturing plant and several administrative departments
all around India.
The portfolio of clients that the company handles to provide generators is based on
several market sections. Sunbeam provides generators to the corporate industry, financial
services, healthcare services, retail services, telecoms industries, engineering industries,

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exporting sector, IT&IT enabled services, realty section and so on. Strong and important part of
the audience is a public sector.
The services of the company includes electrical power assessment and customer
assistance in the appropriate selection of Diesel Generator Sets.
The hierarchy of the company is presented below:

3. Research Methodology
There are many ways for an investigator to capture information of a company, case or
social situation. In our case, our methodology was based on the qualitative methodology. That
method investigates the ‘why’ and ‘how’ of decision making, not just ‘what’, ‘where’, ‘when’.
Hence, smaller but focused samples are more often needed, rather than large.
The qualitative method as itself involves a large division of different methods, but the
most commons can relay in between open surveys, unstructured interviews, participant
observation, case studies and so on [3]. Big part of the methodology for this analysis task was
developed with surveys research. A survey research has two mayor ways; questionnaires and
interviews.

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 Our mayor research modus operandi was structured with survey research, specifically
questionnaires. The outline of it was based on closed questions (yes/no questions) and opened
ones to receive a short description on manners of the problem of the company and points of view.
We handled unstructured-telephone interview with the head manager of Sunbeam
Generators, in order to access for company’s information that were not as much specified in the
surveys. Our surveys even do were open kind, letting the workers talk about they’re point of view
due to the possible ways to solve the mayor company issue.
One of the reasons for the research to be in qualitative methods is because of the lack of
use for statistics in this analysis. We are converting our data into responses of the company and
possible solutions. There is no measure in numbers for this data.
Is important to participate in this assignment the sample size with we are working on. We
have chosen a very small sample size constricted by five (5) members of the company, each of
them in different work position so it can be reflected the point of view of different departments of
the company.

Sample characterization:

Job position Seniority [years] Age [years] Sex

HR manager 7 43 M
HR manager assistant 1 38 F
Employee in HR department 0,5 28 F
Foreman in factory 12 46 M
Manufacture worker 6 34 M

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 4. SWOT Analysis
a. Strengths:
 Clearly declared mission to create new lasting solutions with the highest quality and keep
the level above competitors.
 Obeying the highest, global quality standards, their sets go through rigorous tests and
working conditions before reaching to clients. That provide low rate of complaints.
 Sunbeam generators are designed to provide maximum noise control.
 Offering a terrific range of models and build close to 2,000 units per year, prime power,
standby power and rental power, diesel- and gas-powered units from 7.5 kVA to as 625
kVA, started either manually or automatically and can be provided either as integral sets
or cap-on sets – attempt of satisfying all needs and wants in the market.
 Market leader in the class Canopied Diesel Generator sets.
 There is no problem with contact the company in case of purchase as well as repair.
Sunbeam’s countrywide dealer network ensures that products are backed by a reliable,
local service and spare parts system. Value-added dealers identify specific needs in their
individual countries and are therefore able to offer a personal service on a one-to-one
basis.
 3-decades’ experience in providing the prime and standby power, broad knowledge about
the market.
 Good marketing orientated approach, strong online presence of the company.

b. Weaknesses:
 Ineffective communication and cooperation with workers, no taking care about them,
what makes the work environment unfavorable. People dislike their job place, they are not
well motivated, they do not do their utmost, low rate of retention inside the company.
What results in low productivity, efficiency and effectiveness. Employees do not achieve
the targets.
 No drawing conclusion from past situations. Lack of precautions and future aims based on
improving last problems.
 Lack of strategic, long – term plans for the future. Only current acting, short – term plans.

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 c. Opportunities:
 The main audience is the public sector, which is more sure, safe, less sensitive to changes
in demand than individual customers. They buy larger quantitative, they can pay more
because of some subsidies from the government.
 The overall electrification rate in India is 64.5% while 35.5% of the population still live
without access to electricity. In urban areas in India, the access to electricity is 93.1% in
2008 and only 52.5% in rural households [4]. Due to this data there is potential market for
the company.

d. Threats:
 Lack of control the trade unions, high likelihood for next strikes due to rather bad
relationship between administration (management) and trade unions.
 Using only fossil fuels (oil, gas) which are going to run out and no taking into account
alternative sources of energy.
 The world tend to be ecofriendly, without following this trend there is a threat of loss part
of market share.
 Low tend to be more ‘eco’, so in nearby future some rules, which will require innovations
in technology are likely. Ecological solutions should be launched as soon as possible,
because they need much financial outlays. Sudden and fast changes entail huge costs.
 Growing power of cheap, low-cost suppliers i.e. from China to set the price.
 Heavy decline in automobile industry
 Globalization and outsourcing – some foreign companies would be interested in
expanding their market share in India.

5. Solution for the problem, “Company’s Perspective”

The Sunbeam company started negotiation after 3 months from the beginning of the
strike. HR Manager was a mediator. The company judge the process of negotiation as rather hard.
The follow steps in negotiation process were took up:
1) The mediator explained that due to low productivity they can not propose any bonuses for
employees. It was not accepted by union trade. The workers’ answer was: “We do not mind

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 about general profit of the company”. As we can see, there is no awareness of company’s
welfare as a whole, only individual compensation.
2) The mediator explained that there is no possibility to enhance general company’s costs by
increasing salary, because of heavy decline in automobile industry. It was again not accepted,
in employees opinion they do their utmost and achieve targets, so they should be rewarded.
3) The company did not confirm achieving the targets, the situation from its point of view is
opposite, the efficiency is low. It was rejected, argued by the current production to capacity,
which can not be higher.
4) The final solution proposed to the union trade was: consent for the bonuses, but only under
condition of overcoming the required level of productivity and reducing absence at work. The
employees will receive the bonus proportionally to the productivity achieved.

6. Solution for the problem, “Our own Perspective”

The strikes of the Union Trades are pressuring SunBeam Company day by day because of
the dissatisfaction in the salaries of their workers, but not only. The problem is that employees
find the work environment as unfavorable. The company has been searching for a solution that
lead them to an increase in the productivity, but they are not taking advantage of the workers
position.
In our opinion, it is good to encourage workers to increase productivity but we think that
the method that the company uses is not the correct one to stop trade unions strikes. From our
point of view, productivity could increase, but the strikes would not stop. The point is that
relationships between employer and employee in that company are incorrect and should be
improved.
As one of the solutions we propose: all the employees that increase the boundaries of
manufacture will have an annual compensation in reward to their effort. In that way we will be
able to reduce the strikes and would motivate the workers to be more efficient.
What we are talking about in this aspect is of a financial incentive. According to Dressler
[5] a financial incentive is a financial reward paid to the workers when they exceed the
predetermined production standard. As we know, increasing too much the salary won’t yield to
the elucidation of this significant problem because the company would not be planning in the
answer of the Union Trade later on; they will ask for an increase in the future and the company as

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itself will have lost money due to the increase and perhaps the workers. What we can apply here
is a financial incentive; it will consent the company to provide the workers an opportunity to
increase their salaries in the same way they are developing goodies to the company, budding the
total production and manufacturing.
We suggest also take into consideration the popular way of salary system in Japan, which
is the system of seniority-based pay. The key determinant of salary is the length of service with
the company [6]. We would organize every 5 – years ceremony for employees as a recognize of
loyalty and propose them a bonus added to the base salary for their seniority.
As well as improvement in commission system, the motivation one should be considered
and launched. Certainly not only material and tangible aspects are necessary for motivation.
Employers should create such environment and work conditions, that employees appreciate and
respect their work place, where they come every day and reside with pleasure. Workers prefer
job’s position with possibility of self-development, skills enhancing, and likelihood for
promotion. They dislike monotony and boredom at workplace.
As a final solution we suggest workshops of efficient communication in between the
leaders of the company, or department, and their workers. An effective communication will
reveal the needs of the workers – subscribed to the union trades or not, in order to retrieve the
satisfaction level of each department and improve their performance in case there is a failure or a
uncomfortable situation. Is not rejected the presence of a coach in the company, who will
educate, instruct and train the subordinates according the vision and mission of the company [5].

7. Conclusion
Many companies in the world have to struggle with strikes, often trade unions strakes. On
the other hand there are some enterprises, well managed, where that problem does not exist. What
is the reason?
From our point of view regardless of salaries and financial conditions, the problem is in
different worker’s approaches to their work. The company success is based on well-motivated,
loyal, efficient employees. The level of worker’s efficiency and effectiveness can determine the
profit of the whole company, taking it into consideration the motivation is one of the most
important factor conducting to the success. However we should realize that they are not primarily
motivated by economic factors but by management styles and informal work organization [7].

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Due to this statement, we will react not only to economic motivation. Is important to give the
workers the special recognition that they need, create a better environment and maintain good
relationships between workers and their superiors.
Therefore in our opinion the role of Human Resource department in each firm is
significant due to that issue. The way in which they conduct commission and motivation policy
can create respected and appreciated by employees work environment, which let the company
avoid problems like for example mentioned strikes.

8. References
[1] Business Dictionary: http://www.businessdictionary.com/definition/trade-union.html
[2] The page of Sunbeam company: http://www.sunbeampower.com/clientele.htm#
[3] Research method knowledge base: http://www.socialresearchmethods.net/kb/qualmeth.php
[4] Ministry of Statistics and Programme Implementation of India, press note on housing
condition in India: Household amenities and other characteristics:
http://www.mospi.nic.in/nss_58round_press_note_6june05.htm
[5] Dressler G, Human Resource Management, Twelfth and GLOBAL Edition. Prentice Hall:
New Jersey
[6] Brewster C, Tyson S, International comparisons in Human Resource Management, Pitman
Publishing, London, 1991, p38-39
[7] Marshall G, "Hawthorne studies." A Dictionary of Sociology. 1998. Retrieved October 21,
2010 from Encyclopedia.com:http://www.encyclopedia.com/doc/1O88-Hawthornestudies.html

9. Appendix

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 Questionnaire
Dear Sir or Madam,

We are the Master of Science’s students form Télécom École the Management, Évry, France. We are
very grateful to you for your time to fill up this questionnaire. It takes you about 10 minutes. Please read
the questions, and answer most precisely if the question are open. The responses are only for
non-commercial, educational use. Any information will not be broadcasted or publicized.

The questions 10 and 11 are only for HR department.

Yours faithfully

Ewa Dankowska
Elena García Iglesias
Shanmugapriya Sivakumar

1. What kind of trade unions function among workers in your company?

………………………………………………………………………………………………………………………………………………………………..
…………………………………………………………………………………………………………………………………………………………………
…..

2. Judge the relationship between administration (management) and trade unions in your
company
1 – very bad 4 – rather good
2 – rather bad 5 – very good
3 – neutral

1 2 3 4 5

3. Judge the frequency of various activities of trade unions:

1 – never 4 – quite often (few times a month)
2 – seldom (once, twice a year) 5 – often (few times a week)
3 – sometimes (few times a year)

Meetings with workers 1 2 3 4 5

Active participation in national trade unions 1 2 3 4 5
Action to obtain the benefits for employees (better conditions of
1 2 3 4 5
insurances, paid holiday, leisure time activities)
Monitoring of compliance with workers' rights 1 2 3 4 5

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 Negotiation on wages 1 2 3 4 5

4. How often in the last year have the union trades negotiated a salary increase? Cross the
suitable answer:

Did not come out

Once a year
Few times in year
Once a month
More often

5. How long ago did the last negotiation take place? ………….. ……….……
month year

6. Did this negotiation finish:

Case still pending

No change and end of negotiation
No change and worker’s strike
Salary increase
Others………………………………………………

7. Did the last trade union’s strike relate to (if any):

Increasing salary
More benefits for workers
Better work condition
Insurances
Others……………………………………………..

8. How long ago did the last union trade’s strike related to salary take place (if any)?
………….. ……….……
month year

9. What kind of strike was it?

sit-down strike
work-in
work-to-rule
hunger strike
Others……………………………………………..

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 10. Did you hire an external negotiator? Ye
No
s
If no, who was the
mediator?...........................................................................................

11. How long did you wait before taken action?

………………………………………………………………………………………………………………………………………………………

12. What was the process of negotiation?

Conditions proposed to workers Acceptance Reason – (if not accepted)

1st Yes No

2nd Yes No

3rd Yes No

4th Yes No

13. How do you judge difficulty of negotiation?

1 – very hard 4 – rather easy
2 – rather hard 5 – very easy
3 – neutral

1 2 3 4 5

14. Which of the negative aspects of this strike mentioned below are related to your case?

Length of the strike

Money loss
Employees loss due to unsatisfied conditions
Health accident
Deterioration of company’s reputation
Media’s attack
Others…………………………………………………………………………………………………….

15. What would you change in case of a repeat?

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 ………………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………………

16. What are the precautions for the future?

………………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………………

17. Please mark if any statement is related to your company:

There is a professional prepared, clear, broadly known among workers compensation

system.
There is a clear path for promotion for all of work position.
The administration organize regular meetings with employees to inform them about
any plans and changes.
Do you have any information board or any other ways of communication between
administration and workers?
Employees have clear agreement with earnings, benefits, payment condition
specified.
Payrolls are always realized monthly on time.
There are regular established increase in salary for all the employees. (i.e. addition of
some percentage of the salary after each year for a new one)
Employees are satisfied with work conditions.
Employees are well motivated to work.
The staff in the company stay long in service.

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