Reddy Bank is run by two brothers Colombus Reddy and Pema Reddy and is involved in giving loans against gold deposits. They hire college graduates from prominent colleges for their branches which exist in twenty major cities of Andhra Pradesh.
The strength of each branch is 25 employees…..10 employees work as clerks….another ten work in cash and deposits department..one person is Bank manager assisted by four Asst. Bank Managers. The basic compensation is at par with most other banks and the average age of staff at a branch is 35 years.
During the last month 20% of the employees were irregular to work and the general operation of the bank is being effected. Repeated warning notices sent by the HR manager Mr. Danda was not correcting the situation and the percentage of such employees is likely to increase. This behavior of employees could not be understood and Mr. Danda approached Mr. Reddy for some methods to solve the problem.
Answer the following Questions?
1.What could be the reason for such employee behavior?
2.What kind of Solution would you suggest for this problem?
3.What are immediate steps the company should take?
4.Should such employees be removed from service ?
5.What basic HR instruments and practices do you suggest.