Questions1. Why productivity had declined in Sakshi Garments Limited?2. Who was responsible for the problem in the case?3. Was the strategy adopted by the Vice President correct?4. Had you been in Ghosh's position, how would you have handled the situation?5. Has the problem been resolved in the case? Comment. CASE 6: SAKSHI GARMENTS LIMITEDSakshi Garments Limited was established in 1975 at Chennai. It was a 100% export orientedunit having a similar unit at Dehradun. The company manufactured readymade garmentsand had employed 500 workers. The garment unit consisted of measurement, cutting, stitching,finishing and packaging sections. Most of the processes had been automated in recent years.The garment unit was headed by Vice President A.K. Ghosh aged 45 years, an engineerby training, who had been with the company since its inception. He had risen fast to thisposition by virtue of his capability and hard work. His concern was to maintain theproductivity standards of the company while keeping morale of the workers high.Declining ProfitabilityIn December, 1996 the company saw a decline in the profitability which greatly concernedthe top management. A team led by Ghosh was formed to review the costs under all heads.It was found that overtime cost had increased and the performance of the workers in generalhad declined considerably against the agreed norms. It was realized that laxity in monitoringhad led to such a state. The supervisors were pulled up but no punitive action was takenagainst them. The company had entered into an agreement with the recognized unioneighteen months ago fixing performance standards of each job and deduction of proportionatewages for any shortfall in the performance standards. The norms were set realistically onthe basis of the performances achieved by the executive trainees. The shortfall was severein the stitching section where performance declined to 73%workers' performance were 60-65% of the norms. The problem required an immediateattention. The team decided to initiate the corrective measures in this section.the set norms. Most of theProductivity ImprovementIn February 1997, the team decided to deduct proportionate wages for work not done as perthe agreement. The recognized union was apprised of the situation and sounded about thedecision to deduct the wages for the month of March. Since April and May fall in marriageseason, the step was assumed to put more pressure on the workers. The stitching sectionhaving 50 workers, was chosen for implementation of this decision.The management had faced a similar problem in another unit at Dehradun inOctober 1995 wherein the workers had gone on "go slow" and management had deductedproportionate wages for the work not accomplished. The union had moved to court and thecourt had granted a verdict in the company's favour. The gradual improvement had beenwitnessed in this unit, but still it was not up to the mark.The workers of the stitching section agitated against the deduction of the wages, but themanagement stood by its decision. In addition, they sent two good performers working onsimpler machines to a comparatively complex stitching machine. The two achieved 107% ofthe set performance norms within 45 days. The two junior workers became role models toother workers of the stitching section, who also began to show improvement in theirperformance that reached 96% of the set norms in some cases.By the end of May 1997, Ghosh was feeling relaxed at the thought that the strategy hadworked.

Question

Questions1. Why productivity had declined in Sakshi Garments Limited?2. Who was responsible for the problem in the case?3. Was the strategy adopted by the Vice President correct?4. Had you been in Ghosh's position, how would you have handled the situation?5. Has the problem been resolved in the case? Comment. CASE 6: SAKSHI GARMENTS LIMITEDSakshi Garments Limited was established in 1975 at Chennai. It was a 100% export orientedunit having a similar unit at Dehradun. The company manufactured readymade garmentsand had employed 500 workers. The garment unit consisted of measurement, cutting, stitching,finishing and packaging sections. Most of the processes had been automated in recent years.The garment unit was headed by Vice President A.K. Ghosh aged 45 years, an engineerby training, who had been with the company since its inception. He had risen fast to thisposition by virtue of his capability and hard work. His concern was to maintain theproductivity standards of the company while keeping morale of the workers high.Declining ProfitabilityIn December, 1996 the company saw a decline in the profitability which greatly concernedthe top management. A team led by Ghosh was formed to review the costs under all heads.It was found that overtime cost had increased and the performance of the workers in generalhad declined considerably against the agreed norms. It was realized that laxity in monitoringhad led to such a state. The supervisors were pulled up but no punitive action was takenagainst them. The company had entered into an agreement with the recognized unioneighteen months ago fixing performance standards of each job and deduction of proportionatewages for any shortfall in the performance standards. The norms were set realistically onthe basis of the performances achieved by the executive trainees. The shortfall was severein the stitching section where performance declined to 73%workers' performance were 60-65% of the norms. The problem required an immediateattention. The team decided to initiate the corrective measures in this section.the set norms. Most of theProductivity ImprovementIn February 1997, the team decided to deduct proportionate wages for work not done as perthe agreement. The recognized union was apprised of the situation and sounded about thedecision to deduct the wages for the month of March. Since April and May fall in marriageseason, the step was assumed to put more pressure on the workers. The stitching sectionhaving 50 workers, was chosen for implementation of this decision.The management had faced a similar problem in another unit at Dehradun inOctober 1995 wherein the workers had gone on &#34;go slow&#34; and management had deductedproportionate wages for the work not accomplished. The union had moved to court and thecourt had granted a verdict in the company's favour. The gradual improvement had beenwitnessed in this unit, but still it was not up to the mark.The workers of the stitching section agitated against the deduction of the wages, but themanagement stood by its decision. In addition, they sent two good performers working onsimpler machines to a comparatively complex stitching machine. The two achieved 107% ofthe set performance norms within 45 days. The two junior workers became role models toother workers of the stitching section, who also began to show improvement in theirperformance that reached 96% of the set norms in some cases.By the end of May 1997, Ghosh was feeling relaxed at the thought that the strategy hadworked.

Accepted Answer

Human Resources

Human Resources is the division of a company that is responsible for recruiting,…

Questions 1. Why productivity had declined in Sakshi Garments Limited? 2. Who was responsible for the problem in the case? 3. Was the strategy adopted by the Vice President correct?