IIBMS DMS CASE STUDY SOLUTIONS – Public Relation Management – What according to you was the outcome of the solution taken by PR of BSNL
IIBMS DMS CASE STUDY SOLUTIONS – Public Relation Management – What according to you was the outcome of the solution taken by PR of BSNL
Public Relation Management
Note: Both the sections are Compulsory
SECTION 1: Solve both the case studies
CASE – 1 MEDIA RELATIONS
Indefinite Strike by Employees—Role of PR: The VSNL Experience
VSNIL—the erstwhile Overseas Communication Service (OCS), and Navratna Central Public Enterprise—had always had a very cordial employee-employer relationship. The problem started when the Government of India decided to allot PSU employees shares of the company they worked in. while other Navratna companies allotted shares to their employees, VSNL did not do so. The reason for the delay VSNL was going for a GDR (global depository receipt) issue at that time, and the ministry of communications wanted to complete the issue before allotting the shares to the employees.
But after the GDR issue, a technical problem about the price at which the shares were to be issued to employees arose. The VSNL employees demanded a share price that was in accordance with the first disinvestments to the institutional investors in 1992—Rs 216 per share or Rs 10 each. But the ministry maintained that since the shares were not allotted to employees at that time for whatever reason, they could be allotted now only according to market rates, with a 15 per cent discount as per finance ministry rules.
The market value of the shares at that time was in the range of Rs 1,000 and Rs 1,100. For the employees, buying their quota of shares at those prices was a very costly proposition. They demanded that they should not be penalized for the government’s inability to issue the shares to them at the time of the first disinvestments. This was not acceptable to the government. Hence the employees decided to go on indefinite strike to compel the government to allot shares to them at Rs 216 each, instead of market rates with a 15 per cent discount as suggested by the government.
Stakeholders and the public
Obviously, the prime target group, in this situation was the employees and their leaders. However, at the same time there were other target groups who had to be reached and communicated with, and who would directly or indirectly help in resolving the problem, and maintaining the good image of the company, internally and externally. These other target groups were:
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Non-striking employees who did not participate in the strike call.
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Government and legal/labour authorities.
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Trade, customers and suppliers.
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Media, especially the national and international press.
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Industry leaders and industry associates.
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Last but not the least, subscribers of the corporation’s services.
Communication
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The company’s objectives for this industrial relations and image problem were to instill discipline, and achieve the required productivity level.
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To put across the issue in its right perspective to the various target publics.
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To help in resolving the issue by communicating to the employees the management’s stand, and its fairness to both parties.
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To keep the morale of other employees high, and gain support through appropriate communications to them via various internal media.
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The company, in the true spirit of its past harmonious relationship with employees, took a fair and just stand in all respects. Despite determined efforts by union activitists to paralyse the working of the corporation, the management of the corporation on many occasions met union representatives to break the deadlock. But the union was adamant as it considered its demand legitimate.
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The PR department organised press relations meetings and briefings, supported by information and facts on the situation at different times.
Eventually the government decided to accept the employees’ demand as a very special consideration, keeping in view the importance of the international telecommunications facility to customers. Besides, VSNL was going in for a second GDR issue, and the government did not want to give a wrong impression to international investors about the unhealthy industrial relations in VSNL. However, the government decided on a three-year lock-in period during which employees could not sell the allotted shares. This was to ensure that employees, being shareholders, took all possible steps to ensure the progress and achievements of VSNL, especially its high profit-earning position.
Question:
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What measures would you take if you were the PR of BSNL
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What according to you was the outcome of the solution taken by PR of BSNL?
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