XAT Decision Making | Shortcuts & Tricks |Rules to crack questions | Part 1 | Ram Lal & Thakur Set

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Mr. Rajiv Singhal, Chairman of the Board of Directors of Loha India Ltd., (a steel manufacturing company) had just been visited by several other directors of the company. The directors were upset with recent actions of the company president, Mr. Ganesh Thakur. They demanded that the board consider firing the president.

Mr. Thakur, recently appointed president, had undertaken to solve some of the management-employees problems by dealing directly with the individuals, as often as possible. The company did not have a history of strikes or any other form of collective action and was considered to have a good work culture. However, Mr. Thakur felt that by dealing directly with individuals, he could portray the management’s concern for the employees.

An important initiative of Mr. Thakur was to negotiate wages of the supervisors with each supervisor. In these negotiation meetings, he would not involve anyone else, including the personnel department that reported to him, so as to take unbiased decisions. After the negotiation, a wage contract would be drawn up for each supervisor. This, he felt, would recognize and reward the better performers.
Mr. Thakur successfully implemented the process for most of the supervisors, except those working in the night shift. For them, he had drawn up the contracts unilaterally benchmarking the wages of supervisors of the night with that of the supervisors of the day shift.

For several days, Ram Lal, a night shift supervisor, had been trying to seek an appointment with Mr. Thakur about his wages. He was disgruntled, not only over his failure to see the president, but also over the lack of discussions about his wage contract prior to it being affected. As a family man with six dependents, he felt his weekly wage should be higher than that granted to him.

Last Thursday afternoon, Ram Lal stopped by the president’s office and tried to see him. Mr. Thakur’s secretary refused his request on the grounds that Mr. Thakur was busy. Infuriated, Ram Lal stormed into the president’s office and confronted the startled Mr. Thakur, with his demands for a better wage. Mr. Thakur stood up and told Ram Lal to get out of his office and express his grievance through official channels. Ram Lal took a swing at the president, who in turn punched Ram Lal on the jaw and knocked him unconscious.