Conflict Management at Bpcl Essay

2791 Words Sep 12th, 2014 12 Pages
Conflict Management | Case: Bharat Petroleum Corporation Limited | The case attempts to examine a conflict that took place between the Union and Management at Bharat Petroleum Corporation Limited in 1999. We have tried to understand the conflict and analyze the ‘conflict resolution’ methodology that was adopted in this scenario. |

Background of the organization

BPCL (Bharat Petroleum Corporation Limited) was originally formed as Burma Shell Company, which was then nationalized by legislation passed by Indian Parliament in the year 1976. Since then it has grown to be one of the most successful public sector undertakings in the country and has been awarded “Navratna” status. As a result of its status, the management of
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From the workmen’s’ point of view, there was also apprehension about large scale layoffs due to privatization, and also the threat of rampant relocation.
In such a scenario, the management of BPCL under the leadership of Mr. U. Sunderarajan (Chairman and Managing Director) decided that in order to maintain the desired profitability there was an important need to expand the scale of operations as well as get into newer areas such as retail. The company also went for a large scale adoption of an Enterprise Resource Planning (SAP) for improving the Customer service, speed of decision making and inventory management. As a result of the implementation of SAP a large number of legacy clerical workers (around 300 positions) became redundant .This created a sense of insecurity among those of the clerical cadre who were handling related work. The Industrial relations of BPCL was characterized by multiple unions, some of them politically affiliated, who were taken on board by the company through a transparent process of communication at various stages. The company explained that for sustained excellence in business performance it was necessary to adapt technology driven MIS and to ensure up gradation of employees’ skill and competence and one of the options before the management was to retrench or redeploy some employees in the organization.
However, the management soon realized

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