Ram Narayan began his career as a management trainee in a private organization. His special interest in studying human behaviour and his background in Psychology often made him analyse the emotional reactions and behavioural patterns of people around him. It was his ambition to become a HR consultant in a reputed company. Therefore, after his graduation, he took a diploma course in HRM.
However, when he came across an opportunity to enter the insurance industry, he joined an insurance company as a junior manager. Later on, he worked in different capacities in the HR department of four other insurance companies’ before working as the HR manager for LMH Insurance Company. Within a short time, he gained considerable reputation at LMH. Some crucial decisions that he had taken related to employee compensation and rewards system in the company paid off rich dividends in due course of time. He was hence considered a key member in the organization.
As a part of the human resource policy, Narayan wanted to develop a lean structure for the organization. LMH was in an expansion mode during those days. He felt that having a lean organization structure would help the company become more flexible in adapting to change. He believed that as fast growing organization should have a limited number of personnel. But Narayan was against employee retrenchment and lay-offs. His policies worked well and he became an instant success with both the employer as well as employees in the organization.
Over the years, however, business environment changed and the organization expanded in size because of diversification. Narayan therefore, advised the top management at LMH to change thir HR policy and develop a Strategic HR plan that would take care of future needs of the organization. However, the top management ignored his advice and continued as is due to cost considerations.
The consequences did not favour the company in the last three years.. The company had to struggle to maintain its...
