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Mr. Smith joined ABC Fertilizers Manufacturing Company in September 2001 as a Junior Operator Trainee. Within the non-executive category, the company had five levels from G1 (the lowest grade) to G5 (the highest grade). Smith joined at G2 level. After training, he was absorbed in the Ammonium Sulphate Shop as a Junior Operator. He rose up to the level of G4 in February 2005 because of his sincere and hard work. All through these years, he kept away from union activities. He never refused or avoided any job. Very often his officers used to ask him to do additional jobs which he did willingly. Gradually Smith became a handy man for all various assignments which others might have refused. Since June 2006, Smith was regularly asked to perform certain duties which were actually to be done by a G5 level operator as the post in the higher grade was vacant. However, as per the company's rules, Smith was not eligible for promotion to the higher grade at that time. Gradually, Smith started performing all the duties attached to the higher post. About this time, Smith started taking interest in union activities. On August 8, 2007 Smith was instructed by his superior to stop one agitator pump and start another one. He was also asked to normalise the operation of the sulphate drier. Later his boss alleged that he did not attend to these jobs and neglected his normal inspection duty as a result of which tar got settled in a tank which was to remain free of tar. On August 12 of the same year, Smith was instructed to attend to the breakdown of discharge feeder chain and conveyor. Later his superior alleged that he did not do this job. On both these days, Smith did not fill the section's log book which was a part of his normal duty. On August 25, 2007 a show-cause notice was served on Smith demanding explanation within 48 hours as to why disciplinary action should not be taken against him. He replied on August 29 of the same year, denying the allegations and stating that the management had fabricated the charges. As per the company's rules, he was charge-sheeted on October 18, 2007 for (a) neglect of duty, and (b) wilful insubordination and disobedience of the lawful and reasonable orders of his superiors. Smith replied on October 25, 2007 denying all the charges and requesting the management to withdraw the charges immediately. Thereafter, an Enquiry Committee consisting of an officer from the Ammonium Nitrate Department and an officer from the Personnel Department was set up to look into the charges. Smith was given an opportunity to produce evidence on his behalf and defend himself. The committee held 20 sittings and throughout the proceedings, Smith denied the allegations levelled against him and asserted that his boss was prejudiced against him because of his union activities. In April 2009, the enquiry committee brought out the following points in its findings. i) There was a provision in the company for paying acting allowance to those operators who acted in the higher grade temporarily for more than three months. It appeared that Smith had been demanding the acting allowance, but due to some procedural problems, he was not paid. ii) It could not be proved beyond doubt that the instructions were given to him and that he did not abide by the instructions given to him on August 8, 2007. iii) On August 8, 2007, Smith deliberately neglected his normal inspection duty resulting in the deposit of tar in the tank. The loss to the company was, however, insignificant. iv) Smith did not attend to the breakdown on August 12, 2007 as instructed by his boss. v) Smith did not fill the section's log book on August 8 and 12, 2007 as was expected of him. Questions: Critically explain the change in Smith's behaviour. What would you have done if you were his immediate boss? Do you feel that recurrence of such cases can be avoided by improving the motivational climate of the organisation? What steps would you initiate as Chief Executive of the company

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