Magnus Industries Ltd. : Rs.200 Crore Consumer Durable Manufacturing Company

It employed about 900 employees and the manufacturing process involved discharge of toxic chemical effluent and water. However, due to the pressure from the surrounding community the company had to shift its plant manufacturing activities to one of the MIDC areas in the outskirts of Mumbai. It may be given that most of employees were largely unqualified and in the range between their late thirties and early fifties. In spite of providing bus transport facilities from the various town areas of Mumbai to the new plant location in MIDC 30% of the employees sought severance.

The employees have been from different parts of India hence cosmopolitan in nature. At the new location the plant had been upgraded by new technology from a foreign country and new machineries and plants had been brought to increase the productivity and improve the product quality to the world class manufacturing standard. In order to replenish the manpower the company at the new location recruited approximately 150 new young persons who were ITI trained with HSC passed background. These young people have been from the surrounding areas, talukas of the concerned district. Majority of these young men though qualified have had no industrial background they have been from agricultural and other types of rural backgrounds. Hence they have no perception about industrial organization manufacturing processes and set up, Discipline and every other aspect of the industry.

The new Employees were unruly and had no respect for the old employees. The problems faced by the organization hence, have new and old employees. On the one hand old employees were demotivated to work in a distant location having to travel 2 hours by bus. They were voicing about separation through VRS ( Voluntary Retirement Scheme ). On the other hand, though the new young employees were good at their work, they were unruly and highly demanding in every matter. Also they wanted to assert themselves by capturing executive position in the recognize trade union. Whereas the company had the challenge to integrate the new technology to upgrade production process, improve product quality, reduce cost, increase production and productivity and thereby increase market share.


  1. What are the HR challenges as a HRD manager ?
  1. What kind of training programme would you plan for the newly recruited employees to state them and change their attitudes as true manpower asset of the company ?
  1. What motivational strategies would you initiate for the old employees of the organization to continue working as well as for the new employees to build them up ?






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