Read the case below attentively, then respond to the questions at the conclusion.

Role Reversal

Role Reversal

EF Ltd. was one of the affiliates of the AL Group of Firms, which had six sister companies. A general manager ran each business. The other five businesses, including EF Ltd., were providing auxiliary components to the primary company, AL Ltd. The Managing Directors of the many firms in the group got along well with one another. The Managing Director of EF Ltd. was Mr. Swami.

A recognised union affiliated with one specific state-wide governing party was present at EF Ltd. The flagship AL Ltd. and the other five businesses all have unions affiliated with different political parties. The administration, including the one that belonged to EF Ltd., and the unions typically got along well. When Mr. Swami served as the managing director of EF Ltd., the company’s output exceeded its objective by 200%.

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As a consequence, AL Ltd. likewise expanded production, with attendant advantages for the workers’ perks. The unions’ contribution to the higher output level was proportionately equal. The managing director of EF Ltd. and the managing director of AL Ltd. had a disagreement on one specific occasion at one of the coordination meetings. Being the central figure of the whole group, the Managing Director of AL Ltd. had more influence. He and the family members had a significant portion of the enterprises.

Mr. Swami, the EF Ltd.’s managing director, as well as other individuals listed on the company’s registers, were in fact compensated managing directors. Because of his outstanding management and engineering credentials as well as the expertise he had acquired through his numerous travels overseas, Mr. Swami was renowned for his integrity, forthrightness, and enormous knowledge.

However, his technical advice was not taken into consideration in one of the sessions, which led to a significant difference of opinion. The other four Managing Directors of the group backed the Managing Director of AL Ltd., and Mr. Swami was flatly informed that his technical advise would not be taken into account. Mr. Swami volunteered to resign after feeling offended.

As a result of ongoing arguments, Mr. Swami departed the company. The Executive Director was coordinating with the organisational work since no new Managing Director had been hired. Even while output remained above the desired level while Mr. Swami was in office, it significantly decreased after he departed, but the desired minimum level was maintained.

A meeting between the Union of EF Ltd. and the Management was scheduled after roughly a month. The Management, including the Managing Director, was taken aback to find Mr. Swami, the Chairman of the Union of EF Ltd., seated on the opposite bench. Mr. Swami promised the management that the relationship would be friendly. However, he gave the Management six requests.

The identical technical advise that Mr. Swami offered as Managing Director was proposed by the Union, and Mr. Swami emphasised that if the proposal was carried out, output would not suffer. The top management disagreed. When the issue of paying bonuses to the workers arose after roughly a month, the management noted that EF Ltd.’s output had decreased by 20%, which was less than the targeted production, which was down by 180% from the prior level.

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It was also said that AL Ltd., the major group, is also suffering as a result of EF Ltd.’s poor output. The Management stated that the Union’s lack of cooperation is the primary cause of the current situation. The Union emphasised that they have not changed at all and that the aim of the Managing Directors of the other organisations, as well as the Executive Director and other Directors of the AL Ltd., is what has caused the output to decrease.

The case study mentioned above raises the following questions:

(A) Do you share the Union’s position?

(a) Examine Mr. Swami’s actions both as the Union’s chairman and as its managing director.

(c) Examine the Managing Director of AL Ltd., the principal corporation, and his actions.

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