Read the case given and answer the questions: Mike INC.is well known for its welfare activities and employee-oriented schemes in the manufacturing industry for more than ten decades. The company employs more than 1000 workers and 200administrative staff and 90 management-level employees. The Top-level management views all the employees at the same level. This can be clearly understood by seeing the uniform of the company which is the Same for all starting from MD to floor level workers. The company has 2 different cafeterias at different places one near the plant for workers and others near the Administration building. Though the place is different the amenities infrastructure and the food provided are of the same quality. The company has one registered trade union and the relationship between the union and the management is very cordial. The company has not lost a single man day due to strike. The company is not a paymaster in that industry. The compensation policy of that company when compared to other similar companies is very less still the employees don’t have many grievances due to the other benefits provided by the company. But the company is facing a countable number of problems in supplying the materials in the recent past days. Problems like quality issues mismatch in packing materials (placing material A in the box of material B) incorrect labelling of material not dispatching the material on time etc… The management views the case as there are loopholes in the system of various departments and hand over the responsibility to the HR department to solve the issue. When the HR manager goes through the issues he realized that the issues are not relating to the system but it relates to the employees. When investigated he come to know that the reason behind the casual approach by employees in work is The company hired new employees for a higher-level post without considering the potential internal candidates. The newly hired employees are placed with higher packages than that of existing employees in the same cadre.
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