Case on Shaheen Corporation

Introduction

Shaheen Corporation was established in Tongi in 2001 as the sole agent and distribution in Bangladesh for supplying electrical goods and appliances for local consumption. At beginning of the operation, the firm had only five persons to operate the whole business.

When the sales increased over a period of time, the firm started to grow in size. After three years of operation of the firm was able to set up a small factory for manufacturing electrical appliances and at that time the number of the employees was nearly 100 skilled and semiskilled. Besides importing, supplying and manufacturing for the private sector, the corporation took big government and private contact for electrical installations. The firm made steady progress in sales, employment and profits. The company was able to capture the 60 percent of the market because of no competition in the product line. Its employees increased to 200 in 2005 from 5 in 2001. The corporation was a family concern, with the father serving as chairman and his sons serving as directors and heads of the department.

Company Profile

With the increase of the employee, the company should have a personal officer to look after the personnel management activities of the company. But chairman replied “we don’t need one as I am keenly interested in the well being of the employees and so I handle personnel matters myself. Moreover, most of the employees in my organization from my own district and therefore I have no difficulties in getting the desired good activity from them” But it was totally impossible to manage all the employees with the help of a single person.

Environment Analysis

Later on the factory was organized the workers formed a trade union and elected some of the company’s employees as vice president and general secretary. The company set up another new factory in Gazipur for the assembly of another electrical product. Additional 100 skilled and non-skilled workers along with the three supervisor and two foreign technicians were employed to staff the new plant.

Problem statement

The problem of this company is raised from its management system. There is no human resource department in this company, even not a single HR manager. There is a big gap between company and its employees. When employees working in the organization don’t feel they are one part of the company, they feel that we are not getting their actual rights. Exactly, this is reason why unions are formed in an organization. The union was so powerful that a charter of demands was submitted by the union officers. Some of the demands submitted by the union were as follows:

1. A flat five percent raise in the basic wage and salaries of all the firm’s employees
2. A grant of two months salary bonuses to all the employees for the year
3. Free medical care for all the employees of the company and their families
4. Increase the present quantum of causal leave from seven to ten days
5. Tk. 75 month to be granted to all employees as transport allowance
6. All vacancies to higher positions to be filled by promotion from within
7. The union to be allowed to set up an office on the premises of the establishment and
8. The company to construct a small mosque for prayers on the company’s premises

Solution

In my own point of view, I think the problem has come from the lack of management capabilities.. The managing director of the company himself wants to solve the problem without appointing any personal officer. But this was quite impossible when the workers of the company are increasing rapidly. The director should have understood it very well that he could not manage the entire employees.

Union has an important role in a company. Union can do two types of activities in a company. One is good and one is bad. In this situation, I think the company should mange them. Otherwise, the company will not run. It is very clear that there is a lack of communication between the company and the union. Even, the union conveyed the message unanimously. So, it is very clear that the company itself has no strong relationship with the unions. This relation is a big matter here to make a good communication with the workers.

Finally, I think that the company should manage the union primarily and must appoint personal officers in the company to make a good relationship with the workers. The company should understand their problems. Otherwise, the company will run properly in near future.