A&B Public Ltd Company is well known for its welfare activities and employee orientated schemes in manufacturing industry for more than ten decades. The company employs more than 1000workers and 225 administrative staff and 150 management level employees. The top level management views all the employee at same level .This can be clearly understood by seeing the uniform of the company which is same for all starting from MD to floor level workers. The company have two differentcafeterias at two different places one near the plant for workers and other near the administration building. Thought the place is different the amenities,infrastructureand the food provided are of same quality. Inshort the company stands by the rule employee Equality. The company has one registered trade union and the relationship between the union and the management is very cordial. The company has not lost a singleman day due to strike. The company is not a pay master in that industry. The compensation policy of that company ,when compared to other similarcompanies ,is very less still the employees don't have manygrievances due to other benefits provided by the company.But the company is facing countable number of problems in supplying the material in recent past days. Problems like quality issue ,mismatch in packing materials(placing material A in box of material B)incorrect labeling of material, not dispatching the material on time etc.. The management viewthe case as there are loop holes in the system of various departments and hand over the responsibility to HR department to solve the issue. When the Hr manger goes through the issues he realized that the issues are not relating to system but it relates to the employees.When investigated he come to know that the reason behind the casual approach by employeein work is The company hired new employee for higher level post without considering the potential internal candidates. The newly hired employees are placed with higher packages than that of existing employee in the same cadre.

Questions:

Help the organization to come out from this criticalissue. If you are in the role of HR manger what will be your immediate step to solve this case.