Mr. Bhat, Human Resource Manager of IVS Group of companies approached the CEO on 30th march, 2007 and apprised him of the absence of Mr.Ajay Vaidhya, Assistant Accountant in the Corporate Finance Department, for the past one month and requested him to approve the show-cause notice to be saved to Mr.Ajay as per the Labour Laws in force.

The CEO told Mr.Bhat: “When Mr.Ajay has been absent for the last one month , your duty is to go to Mr.Ajay,s  house, find out the reason and solve the problem of Mr.Ajay, and not just to report the absence to me. Go immediately to Mr.Ajay,s house find the reason and report it to me before 5.oo P.M. today.”

Mr. Bhat immediately left for Mr.Ajay’s house and learnt from Mr.Ajay ‘s Wife that Mr.Ajay has been in distress as he has been trying to mobilise Rs.1,00,000 for the surgery of his sick wife in a reputed hospital in Chennai. Mr.Bhat could meet Mr.Ajay around 3.PM and both of them then met the CEO. Both of them apprised the CEO the reason for the absence and distress of Mr.Ajay.

The CEO immediately contacted the hospital and informed them that the company will pay Rs.1,00,000 tomorrow i.e., 31st March 2007 and requested the doctor to conduct the surgery for Ajay’s wife tomorrow itself.

The CEO ordered Mr.Bhat to arrange to issue a cheque for Rs.1,00,000 in favour of the hospital and also pay Rs.10,000 in cash to Mr.Ajay to meet incidental expenses as a grant. Mr.Ajay as well as Mr.Bhat were surprised at the decision of the CEO Mr.Ajay became emotional and touched the feet of the CEO.

The CEO told Mr.Bhat:”Problems of our employees are the company’s problems. We treat the employees as human being and members of the company’s family.”

This piece of news spread in the entire company within no time and the employees felt highly secured. The productivity level increased by 100% in the next quarter itself and sustained over the years to come.


1. Why did Mr.Bhat prefer to follow a legal approach to the problem?

2. Why did the CEO provide Rs.1,10,000 as just a grant to Mr.Ajay ?

3. What would be the morale of employee’s family members after this incident?

4. Suggest a suitable title for the above said case and justify that title