The supervisory training at BK Steel

Foundation Course in Human Resource Management

December, 2014

Prepared By
M.M. Faslan
FC/14/SU/11/32

INSTITUTE OF PERSONNEL MANAGEMENT SRI LANKA

43, Vijaya Kumaranathunga Mawatha,
Colombo 5.

Contents
Page No
1. Case Study

2. Question No.1

3. Question No.2

4. Question No.3

11

5. Question No.4

14

6. Question No.5

18

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Case Study
The supervisory training at BK Steel
The BK Steel is a single owner company engaged in aluminum and steel productions and designs for
office and house hold constructions. Its a medium scale establishment having its main factory in
Colombo and five other branches operated in Negambo, Gampaha, Kadawatha, Baththaramulla, and
Panadura.
In the main office there is a Personnel and Administration Department headed by a Personnel and
Administration Manager supported by three clerks for the personnel and salary administration,
record keeping, general administration and even book keeping etc.
There are nearly twenty workers employed in each branch and all the production department of these
branches are headed by a Chief Technician and under the Chief Technician one Senior Supervisor
and a Junior Supervisor are there to look after the production and design work.
From recent past the owner or the Managing Director of the BK Steel noticed that no of workers
including the very loyal seniors are moving out of the company for other jobs. The BK Steel is well
doing in the market and thus they are paying something above the industry levels to its workers even
without much pressure on jobs. Therefore the MD was really worried and surprised to see this labor
turnover.
The MD who was keen in knowing the secret, contacted the workers who left even without finding
another job and came to know the junior supervisors were used to shout at the workers even for a
small omissions and insulted them and made them embarrassed in front of all, where even the senior
supervisor and the Technician did not care of that much.
The MD having a good HR background decided himself to send all five junior supervisors from
respective branches to a supervisory skills training workshop on the very next Friday and instructed
the Personnel Manager to arrange the same immediately.
The Personnel Manager after the instruction of the MD initially got the formal consent from the
junior supervisors and arranged everything for the workshop including the payments and officially
informed the junior supervisors to attend the workshop including the Date/Time and Place of the
workshop.

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The very next Monday MD walked in to Personnel Managers (PM) room furiously
shouting!!
MD - Have our supervisors gone to the workshop?
PM - (Knowing something wrong) When I asked them they told me the workshop was so good, sir
MD - You know! They have gone to see the match at Khettarama! Instead of workshop, since I
watched it in TV I noticed! Get them all and have the inquiry and let me know the status! Soon!

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Question No.1
As a HR student how do you see the problem? What would have been the role of the Personnel
Department, including the Personnel Manager in preventing the loss of loyal and senior
workers? Explain your answer in detail giving examples and the theories you learnt in the class
room.
As a HR student how do I see the problem?
I think main and the first problem is Personnel and Administration Department and the
Personnel and Administration Manager. Personnel Management is an administrative function of an
organization that exists to provide the personnel needed for organizational activities and to manage
the general employee-employer relationship.
Personnel Management can be done by any manager. Most managers can perform Personnel
Management. A manager with basic managerial skills could handle it. But its not good enough to
handle the employees need a special knowledge if not it will go wrong. The Personnel and
Administration Manager who works in BK Steel Company doesnt have enough knowledge in HR.
Thats why MD want to interfere. But the MD had a good HR background that was why he decided
to arrange a supervisory skills training workshop.
There is another problem made by the Personnel and Administration Department but it is not
visible to see in the case but if we deeply investigate the problem then only we can find it. It is the
bad selection. Selection can be defined as the process of choosing amongst those who do apply.
Right/good selection is very important to an organization. If it is go wrong it will effects the whole
organization. In the case of BK Steel Company they wouldnt made the right selection. When they
will do the selection they will never look for the communication skills, behaviors, attitudes, and the
interpersonal skills of the candidates. That was why Junior Supervisors were used to shout at the
workers even for a small omissions and insulted them and made them embarrassed in front of all.
In Personnel Management they manages people by hire and fire. They will never consider
people as a resource that can be developed. If we look the case of BK Steel Company they will not
arranged a single development/training/motivation program before the problem occurred.

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Second problem is the Carelessness of Chief Technician and the Senior Supervisor. Chief
Technician, one Senior Supervisor are there to look after the production, design work, and the Junior
Supervisors. But they will not look after, monitor, and control the Junior Supervisors works,
attitudes, behaviors, and the mistakes of them. Junior Supervisors were used to shout at the workers
even for a small omissions and insulted them and made them embarrassed in front of all, where even
the Senior Supervisors and the Technician didnt care of that much.
Third problem is no of workers including the very loyal seniors are moving out of the
Company for other job. A Company cant get very loyal senior and experienced employees very
easily. If we want to do that we want to spend lots of time, money, wants to conduct development
and training programs, maintain good employee and industrial relations. If we lose this kind of
employees that will effects Companies output, production cost, quality of product, productivity,
income, and profit of the Company.
Fourth problem is Personnel Manager wants to make sure that the Junior Supervisors are
attend the workshop or not but he didnt look for that. The Personnel Manager after the instruction
of the MD initially got the formal consent from the Junior Supervisors and arranged everything for
the workshop including the payments and officially informed the Junior Supervisors to attend the
workshop including the Date/Time and place of the workshop. But he didnt complete the work if he
organize a workshop then he will have the responsibility to see whether the Junior Supervisors are
gone or not, and he also want to go there and see how the workshop was done, how our supervisors
participate in the workshop, what they will study at the workshop, what about its effectiveness and
what is the feedback of the workshop. He will officially informed them but he will never looks for
these things thats why Personnel Manager doesnt know anything when the MD came and told
about this problem.
What would have been the role of the Personnel Department, including the Personnel Manager in
preventing the loss of loyal and senior workers?
If the Personnel Manager has a wide/enough/special knowledge and skills in how to handle the
employees, how to keep a good employee relations, if he can understand employees behaviors and
attitudes, if he taught strategically and if he know good labor practices than Personnel Manager
could prevent the loss of loyal and senior workers. If the Personnel Department has good policies,
systems, and procedures it also help to prevent the loss of loyal and senior workers.

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When the Personnel Department do the recruitment they can mention the special skills that needs
from the candidates and that will help to recruit skilled persons. If they do the selection process
rightly by hiring the right person to the right job they will never shout at the workers even for a small
omissions and insulted them and made them embarrassed in front of all and that will help to prevent
the loss of loyal and senior workers. If the Personnel Department arrange communication and
interpersonal skills training programs and other development and motivation programs that will help
to prevent the loss of loyal and senior workers.
Personnel Department can make performance appraisal forms and give that to the Chief Technician
and Senior Supervisors to evaluate the performance of the Junior Supervisors. In addition to that
Personnel Manager can ask about the Junior Supervisors and their works, their strengths and
weaknesses regularly. Then Chief Technician and Senior Supervisor think Personnel Manager
always asking about Junior Supervisors so we want to monitor them. Then Junior Supervisors made
a small mistake Chief Technician and Senior Supervisors take care of that too much. It will help to
prevent the loss of loyal and senior workers.
Personnel Manager can do another work to prevent this loss. If a worker going to resign the job
Personnel Manager can talk to the above worker and he can ask the reason for the resignation. And
he can find the reasons. Then he can give alternatives and solutions for above reasons. Personnel
Manager want to perform as psychologist to do counselling to the resigning worker and change his
resigning idea. Then it may help to prevent the loss of loyal and senior workers.

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Question No.2
If there was a well qualified and experienced Human Resources Manager instead of a
Personnel Manager, how he (the HRM) would have behaved / acted to prevent labor turnover,
before the interference of MD. Explain your answer in detail.
Definition of Human Resource Management

HRM is the efficient and effective utilization of Human Resources to achieve goals of an
organization.

HRM refers to the policies, practices and systems that influence employee behavior, attitudes
and performance.

The philosophy, policies, procedures, and practices related to the management of people
within an organization.

HRM is an organized function of planning for Human Resource needs, Recruitment and
Selection, Development, and Compensation and Evaluation of performance to fill those
needs.

A method of maximizing economic returns from labor resources by integrating HRM into
business strategy.
If there was a well-qualified and experienced HR Manager instead of a Personnel
Manager first of all he would create a sound HR corporate policies and procedures to do all
those activities in a system and whatever he do it would be strategic.
After that HR Manager would concentrate on Job Analysis because if we want to
prevent this kind of loss Company need good employees. If we want to hire good employees
then we need good job analysis. So he would include some Special Human behaviors,
attitudes, and Human requirements in Job Analysis.
When he do recruitment he would see what are the vacant positions, sources of
recruitment, advantages and disadvantages of each source, different methods in each source
and decide on best recruitment method and implement and evaluate recruitment then only
company can attract lots of skillful employees to apply for jobs in the Company and skillful
employees/supervisors easily can prevent this kind of labor turnover.

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If there was a well-qualified and experienced HR Manager instead of a Personnel

Manager next he would focus on selection procedures because Termination of employment
act says no employer can terminate an employee for reasons other than disciplinary, if the
employee has worked not less than 180 days in a year. So he would hire right person to the
right job, by screening of applications and short-listing, conducting the initial/preliminary
interview, conducting second/final interview, if necessary finding for medical reports.
If they intake new employees HR Manager would do proper induction programs to
familiarize/habilitate into the changed surroundings, practices, policies, and purposes of the
organization in a small timing period. He would conduct general and departmental
orientation. He would encouraged or urged to maintain self-discipline by
informing/educating all employees on rules, regulations, and standards of the organization.
HR Manager would identifies employee potential areas for improvement, strengths
and weaknesses, develop a training policy, identify training needs, plan and carry out training
and evaluate it. Especially he would focus on interpersonal, technical, and communication
skills in training sessions. If there is any managerial level employees he would organize
development programs and give them career advancement opportunities. He would motivate
employees to do their best and obtain the contribution willingly.
HR Manager would communicate top to bottom and bottom up. It might help to get
suggestions and ideas from them so we can find the problems through this kind of two way
communication. Then HR Manager can give solutions and it might help to prevent labor
turnover. He would do performance management very frequently to evaluate their employees
and he always looks for improvements.
HR Manager would maintain good employee relations by focus on key result areas,
facilitate and coordinate between the management and employees, motivate employees to
participate in Company activities, offering sharing schemes and incentives.
If there was a well-qualified and experienced HR Manager instead of a Personnel
Manager he would schedule weekly/monthly discussion between Chief Technician, Senior
and Junior Supervisor then they will discuss about the production, design work, problems,
mistakes, strengths and weaknesses of each other. It would help them to improve their self
individually and help to prevent the labor loss.

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He would monitor Chief Technician, Senior and Junior Supervisor individually and in
groups. He would always ask about Junior Supervisors with their Chief Technician and
Senior Supervisor. Then they would think we have the duty and responsibility to look for our
Junior Supervisors. So if a Junior Supervisor did a small mistake Chief Technician and
Senior Supervisor take care about that very much. So when Junior Supervisors were used to
shout at the workers even for a small omissions and insulted them and made them
embarrassed in front of all Chief Technician and Senior Supervisor would control, instruct
and advice the Juniors.
If an employee going to resign the job HR Manager would like to know the reasons
for the resignation by conducting personal interviews and getting a letter/filling a form.
When he would identifies the reasons and take action to solve that reasons/problems. Finally
he would do counselling and change the employees resigning idea.

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Question No.3
By avoiding the training these five junior supervisors have done misconduct! Explain
what you mean by the term Misconduct and explain the impact of these Supervisors
Misconduct to the business.
Misconduct
This can be considered as:

Violating rules and regulations of the organization.

Behavior inconsistent or contrary or in breach of Expressed terms or Implied terms of the

contract of employment.

Act or omission inside the work place or outside the work place that has material bearing on
the smooth functioning of the work place.
Employee Misconduct can be defined as An act or omission that is in breach of
expressed or implied terms and conditions of the employment which has an adverse bearing
on the smooth functioning of the work place.
Types of Misconduct

Minor Misconduct
(Act of misconduct that do not warrant severe disciplinary actions)
o Late attendance or tardiness
o Absenteeism
o Negligence or carelessness
o Not wearing uniforms or safety devices
o Refusal to work reasonable amount of overtime
o Sleeping while on duty (Not very important role)
o Smoking or chewing betel in prohibited areas
o Drunkenness while in duty (minor employees)
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Major Misconduct or Gross Misconduct

(Misconducts that warrant severe disciplinary actions not excluding termination)
o Insubordination
o False allegation against superiors
o Theft or Misappropriation
o Assaulting or threatening
o Abusive Language
o Drunkenness of responsible officers
o Sabotage
o Removing or breaking safety measures willfully
o Sleeping while on duty (handling very important role)
o Chronic absenteeism
Impacts of these Supervisors Misconduct to the business.
Personnel Manager spend his most valuable time to arrange everything for the
workshop but finally his time was wasted. Workshop was organized on Friday. It was a
working day but Company sent them to the workshop but they didnt go there. If there were
not going to the workshop they can come to the work and do their daily job but they didnt
do that so Company would lost many human working hours. It may be reason to the
breakdown of work and production loss. Payments were paid so it would make a cost, loss of
revenue and financial loss for the organization. Junior Supervisors didnt get supervisory
skills training. So once again they were used to shout at the workers even for a small
omissions and insulted them and made them embarrassed in front of all due to lack of skills.
When Personnel Manager asked the Junior Supervisors they told utter lie but
Personnel Manager believed whatever said by them but now Personnel Manager knows it
was a lie. So after that whenever Junior Supervisors tell the truth Personnel Manager doesnt
believe quickly so it will effects the mutual understanding and believes of each other.

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MD asked to have the inquiry. If we do an inquiry it would have lots of rules and
regulations, procedures and it would take lots of time. If we spend much more time to inquiry
it will effects the organizations output. Personnel Manager officially informed the Junior
Supervisors to attend the workshop by time those who are going to do the workshop would
expect the Junior Supervisors of BK Steel Company but Junior Supervisors didnt go there so
those who do workshop get a bad picture about the Company and their employees. It would
effects the Companies goodwill.
Another impact of these Supervisors Misconduct to the business is other employees
also try to violate self-discipline and it may cause to discriminatory actions and unfair labor
practices and make conflict situation in the organization.

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Question No.4
If you are the Personnel Manager / HR Manager in BK Steel what are the steps you
follow in order to punish these supervisors.

Disciplinary Procedure

Preliminary investigation

Show cause letter / Charge sheet

Receiving Explanation
with pleading not guilty

Not accepting

Receiving Explanation
with accepting guilt

the explanation

Not accepting the

explanation

Accepting the explanation

End of the disciplinary

procedure

Management Decision

Proper Inquiry (Domestic

Inquiry)

Inquiry Report
(Findings)

Management Decision

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Disciplinary Procedure:
Having considered the gravity of the offence, a disciplinary inquiry could be held. For
minor misconduct verbal warning and written warning would do. But for major misconduct
the proper inquiry procedure has to be followed. Basically, there are six steps involved in the
disciplinary procedure.
1.

Preliminary Investigation
Preliminary investigation is exploratory. Its purpose is to ascertain whether there is in
fact a breach of discipline (prima-facie case against any employee) on an alleged act of
misconduct and in respect of which offence and to what extent. It may be noted that
there is no accused at this stage, but there may be suspects.
In fact, this is a fact finding investigation which enables the employer to decide
whether there is sufficient material or evidence on which disciplinary proceedings could
be initiated.
The management should appoint a reasonable officer to conduct the preliminary
investigations. The procedure for proper inquiry is, questioning the suspects individually
and record statements by obtaining the signature on all such papers.

2.

Charge Sheet / Show Cause Notice

If existing facts are not conclusive or sufficient evidence is not available, the
management can issue a charge sheet/show cause notice to the accused. Should specify
the charges made against the employee and it should contain sufficient particulars. This
will contain a brief description of the following.

Brief description of the charge, date, time, place, incident etc.

Specify time limit to reply

The employee to show cause in writing

Opportunity to examine documents if any

Proposed action if no reply is received within specified period.

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3.

Letter of Explanation
When the letter of explanation is received from the employee, the employer should
decide whether to accept it or not. If it is acceptable no further disciplinary proceedings
are necessary. If the employee pleads guilty to charges, there is no need to hold a formal
inquiry.

4.

Domestic Inquiry
Domestic Inquiry procedure must always be conducted bearing in mind the rational
for holding of domestic disciplinary inquiries. The purpose is to ascertain as to whether
or not an employee is guilty of an alleged act of misconduct and to decide on the basis of
the findings of such inquiry, the punishment if any, that is to be imposed on the
employee concerned.
The inquiring officer should read out the charges and inquiry whether the employee is
guilty or not guilty. The employee, if he pleads guilty should be asked whether he/she
has any statement to make in order to mitigate the punishment.
If an employee pleads not guilty the inquiry should proceed by:
Allowing the prosecution officer (Company) to start proceedings; calling
witnesses
The accused should be given an opportunity to cross examine the witnesses
Then allow the prosecution to re-examine the witnesses
At the end of the prosecution case, the accused employee should be asked to
give evidence. He should also be crossed examined by the prosecuting Officer.
The accused could call over other witnesses to support his case
All recorded evidence must be signed by the witnesses as correct, after allowing such
witness an opportunity of reading over the recorded evidence. If the witness refuses to
sign, then the Inquiring officer should sign the statement to say that he was satisfied that
the inquiry was conducted in a fair and reasonable manner.

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5.

Findings/Inquiry report
The inquiring officer should at the earliest available opportunity once the inquiry is
over submit a report to the HR Manager giving reasons for the conclusions against each
charge the findings must be based on the evidence led at the inquiry. It is desirable to
give written reasons for the findings. The findings should specifically state whether an
employee is guilty or not guilty of each of the charges. Recommending punishments is
not the Inquiring Officer.

6.

Management Decision/Imposing of Punishments

If found guilty, the employee needs to be punished and have to take a decision on the
type of punishment. The type of punishment should be commensurate with the severity
of the omission or misconduct.

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Question No.5
Draft a sample Show Cause Notice or Charge Sheet to be given to these Junior
Supervisors and explain the types of punishments you recommend for such misconduct.
A sample Show Cause Notice

Date: - 11.03.2015,
Mr. ABC (Employee No.123),
Operation Department,
BK Steel.
Dear Mr. ABC,
Request for Explanation.
Personnel Manager initially got the formal consent from you and arranged everything
for the workshop including the payments and officially informed you to attend the workshop
but got a complaint/framed charges against you that you went to see the match at Khettarama
instead of supervisory skills training workshop.
So now youre requested to give explanation/answers to the complaints/charges
against you within a week. If not Company will get you have violate the discipline of the
organization and go for the disciplinary action against you.
Thank You,
Yours faithfully,
..
HR Manager,
BK Steel.

Page No | 18

Type of punishment I recommend for such misconduct.

1. Last warning
A last statement telling somebody that something bad/unpleasant may happen
in the future so that they can try to avoid it. If not punishment must be very critical. In
the case of BK Steel Can give a last warning for these Junior Supervisors because
they were in the training period.
2. Fines
A sum of money that must be paid as punishment for breaking a law/rule. To
make somebody pay money as an official punishment. Subject to provisions in the
labor regulations (e.g. up to 5% from the salary and deductions to be credited to an
employees welfare fund). BK Steel Company can make deductions from salary as
fine.
3. Suspending (Without pay for a definite period)

This should be clearly distinguished from interdiction where the period is not
exact which may be till end of the inquiry. Payment during the interdiction is up to
the management. Some organizations pay around 50% and others do not pay anything
at all. Interdiction is not considered as a punishment but only a temporary measure.
4. Transfer
This is shifting an employee to a different job at the same level. It can be
across functions, or to different locations. One of the most suitable punishment is
Transfer them because they were Junior Supervisors so there is a problem in
demoting them because there is no more position in the organization. If we demote
them they will be workers. If we Transfer them to difficult branches/other branches
they would feel for their misconduct.

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5. Deferment of increments or promotion

It also better type of punishment for these Junior Supervisors because they
were new employees so they always looks for increments/promotions. If we stop
these; they will go from the company. If we defer these increments and promotions
they will not go from the company and they will feel for their misconduct and they
will try to become better.
Selection of Appropriate Punishment
When selecting the appropriate punishment, the management should consider the following:
1. Gravity of the offence.
2. Past record of the employee.
3. Company policy so far practiced.
4. Length of service.
5. How courts will interfere - Out of proportion
-

Employee acted in other interest.

6. Whether this punishment will lead to unrest in the work place.

Page No | 20

List of References
Books

Self-Study Text of Foundation Course in Human Resource Management.

Study Pack of Certificate Course in Human Resource Management.

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