MISSING THE APEX ON THE LONG TERM PROFIT GOALS
HRM case study18-Jun-2015
Small Eco-friendly City Car Manufacturer
Slide 1
MISSION“Contributing to make the world a greener place to drive”
VISION“Moving Forward: Pioneering Green Motoring.”
Significant Market Share
Increased GrowthNew employees hired
Slide 2
ORGANIZATION CULTURE
“Employee Equality”
practiced since inception
All employees have the same uniform,
be it MDs or Workers
Good relations between Labour
Union and Management
Air conditioned Cafeteria for
everyone & same hygienic food
Ear Protection (ear muffs and ear plugs) are provided to all the
employees everyday
Regular safety drills and On-Spot Medical Services for all employees
Slide 3
PROBLEMS FACEDDespite achieving profit in this high-demand market, the company is suffering from
various different quality control issues in final inspection
Windshield leaks
Coolant Mismatches
Non-Functioning Airbags
Radiator Overfilling
251,568 cars recalled last year
Slide 4
INVESTIGATION FINDINGSCore issues associated with the case
Hiring of new employees for higher posts without considering internal candidates
Hiring of new employees with extra benefits compared to existing employees
Not accounting for the gap on the views of the training between the company and employees receiving the training itself
1 2 3
Management assumed existing employees may not be equipped to handle the expanding scope of the company.
New employees were expected to bring innovative ideas for growth of the company
Company assumed the training offered was adequate in mastering new equipment
Union declared the training was inadequate and hard, specially the foreign language instruction manuals
Existing employees are
dissatisfied
Labor Union-Management relationship in
near future may break down
Slide 5
ANALYSIS & SOLUTION TO PROBLEM-1Balance between new and existing employees
Succession PlanGrooming and Selecting existing employees into
higher posts
Training Plan with proper Job Definition and Job Specification
Performance must be defined so the trainees
understand it clearly
The Company and trainees must have mutual
understanding about expectations
Performance Review and Feedback from trainees to make the training effective
Closely observing existing employees to identify potential candidates
Potential candidates must be groomed so they are capable of the higher responsibilities
Slide 6
ANALYSIS & SOLUTION TO PROBLEM-2 Compensation issue
New Employees were hired because the Company assumed it would bring a fresh new perspective and bigger returns against higher pays.
• New employees were given extra benefits upon hiring• Existing employees dissatisfied over the ‘unfair’ treatment
SOLUTIONA fairer Compensation design –
1. JOB EVALUATION allows the company to have a clearer idea of the relative weightage of the jobs and how much compensation is justified for each of them
2. SAME JOB, SAME PAY must be ensured that each employee in a particular job receives the same amount of compensation, regardless of being new or old
3. FIXED BENEFIT POLICY is created for each job against the kind of work done. (e.g. health checkups for all employees, paid holidays for managerial positions etc.)
ANALYSIS & SOLUTION TO PROBLEM-3
Slide 7
REACTIONNo monitoring/testing
of employees done whether they were
ready of the job; mass-confusion was created
LEARNINGLack of exhaustive
testing of employees (to save time) led to them making poor quality products
BEHAVIOURVastly overlooked and ignored – employees couldn’t understand
foreign language manuals or how the machines worked
RESULTSIneffective training
modules didn’t eliminate initial confusion on how
to use the machines properly to their full
capacity
Kirk Patrick Model
SOLUTIONAn extensive training plan that incorporates –• Close monitoring of employees who are undergoing training• Mock factory running session to determine real-time result of the training given• Making sure the employees understand the Job of working with the machines.• Further testing to ensure high product quality and elimination of quality control
issues.
TAKEAWAYS
Slide 8
Vanguard wants to be the market leader of manufacturing small
city cars
In doing so they hired a lot of people in the
company, overlooking various issues that
can prove to be fatal in the long run
The problems were identified and plausible HR based
solutions were given
These solutions include – Succession Planning, Training Plan, Fixed Benefit Policies etc.
If implemented properly, core values like Employee Harmony and Quality Control will be re-established
Vanguard will be able to uphold it’s culture and also eliminate future possibilities of such problems
Summarizing the case
Q&A