A continuation of Case (A) P&IR0038(A), this case describes the changes in the industrial relations structure of the company following expansion of the production programme and the appointment of a personnel manager. It also gives an account of how pressures of technology and market, combined with managerial changes and diversification of product line, creates tensions in labour management relations within the factory. On the basis of this data, participants may project a few events which are described in Case (C) P&IR0038(C).