RDI, an NGO (non-governmental organization), which is based at New Jersey, USA, started its India operations in 1989, and had expanded substantially from then onwards. As part of its income-generating activities, RDI also undertakes projects assigned by other Indian and international governmental and non-governmental agencies. The organization uses its earning for its sustenance and also fulfilling its charitable objectives of facilitating rural development and poverty alleviation involving water supply, skill development, and women empowerment activities in rural areas. However, since 2008 in wake of global meltdown the organization has been facing financial difficulties and maintaining its existing workforce. This case relates to employees retention in the organization, and problems faced on account of reducing its staff size. This case that falls within the realm of employee relations and corporate social responsibility, and raises one fundamental issue that when RDI claims it to be a charitable organization, whether it could be as an industry under the Industrial Disputes Act, 1947. This teaching case comes out with several indicative questions given at the end of this paper on which discussants could focus themselves within the broad framework of employee relations and human resource management.
NGO, industrial dispute, employee relations
