Subject: Economics, asked on 30/12/21

A union member barged in the office chamber stating that the food being severed in the canteen is absolutely not eatable. As sample he has brought some chapattis in our office, the location of the and manufacturing unit is such that there are no nearby eateries. Hence, management accept the proposal of union to provide canteen facilities to all.
ABC ltd was initially a leading producer of motor, switch gear (old circuit breaker) during 1950s and became public sector undertaking in 1972. The company was making losses since the last 22 years from 1969 to 1992.thiss loss was compensated mainly by yearly budgetary supports from the government and working capital loans. The company decide to reduce retirement years from 60 to 58 years. Union member also accepted these moves. Because they understand that it is better to save all before the entire boat capsizes. In order to survive, rampant diversification took place.
ABC ltd. Stopped to making any fresh recruitment. Due to reduction in the retirement age, majority of senior leaders were going to get their usual retirement in the coming 1-2 years. Leadership vacuum is bound to happen in the middle / higher management category. The organization has multiple union. Only recent the company has started showing profit. But in order to sustain this profitability, the organization needs to attract good candidate.
Gone are the days where employment in PSU used to be treated as a lifelong employment. Young member are demanding comparative salaries and benefits like other peer organizations provide. Informal discussion among young managers revealed that they want mobile phone laptops which are normally the entitlements for their peers in other comparative industries. Union member are demanding more salaries since majority of unionized employees are graduate.
1. Assume that your MD has assigned you the task to come up with a concrete HR plan related to the office employees workers and union members. What would be your proposal to deal the situations that the company is currently facing?
2. according to you what are the unique challenges of manpower planning in public sector undertakings as against private sectors units?

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