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INTERNAL ASSIGNMENT APPLICABLE FOR SEPTEMBER 2019
EXAMINATION
Strategic HRM
1. You are brought in
as the new Director of HR for a company in the distribution industry which is
the merger between Company A and Company B. Company A began as a family
business which acquired a number of small companies over time. As a result of
all of these acquisitions, the company was less standardized and more
decentralized internally and was somewhat of a combination of cultures to begin
with.
The culture of Company
A is quite varied. Some areas of the company are focused on metrics and
quality, others are focused on job satisfaction and employee attitudes, and still
others are not focused on either. Generally, the company strives to produce a range
of high-quality products and services, but the way that this occurs is unstructured
throughout the company. Company B was a large company which was standardized
internally with a strong culture surrounding processes and procedures. Company
B has a centralized structure with clear employee policies. Company B is focused
on quality control. They stress standardized processes and procedures across all
business units. They have a clear mission and goal that emphasizes one thing: productivity.
Company B has been successful with strategy monetarily, but its employees are
often overworked and overwhelmed. Both companies have fears regarding losing
desirable aspects of their current culture.
a. Discuss the role of strategic
HR functions in Mergers and Acquisitions?
b. What strategy would
you use to resolve the culture differences between these two organizations to
create a new organization with a cohesive culture?
2. You work for a
global professional services firm, which has been seen for decades as an
employer of choice. Last month, you were promoted to the position of Vice President,
Human Resources. The promotion comes at a time the organization is experiencing
a decline in revenues, an increase in competition, high voluntary turnover in
the US and abroad, and declining market share. Anecdotal information suggests
that the cause of voluntary turnover is due to a poor employee benefits/total rewards
strategy, employee engagement and organizational culture. The Chief Executive
Officer (CEO) has requested your analysis and recommendations on improving the
total rewards strategy in an effort to improve employee engagement; reduce
voluntary turnover and enhancing the employer’s brand. a. What are specific actions
you can initially take to identify and validate how total rewards are having an
impact on the organization? Explain your rationale. b. Identify and describe
the challenges the organization faces in managing the design, delivery and
financing of a total rewards program on a local and global perspective.
3. The slump in the
South Korean economy in late 1990s was bound to have an effect on Hyundai also.
The automobile segment was among the first to be hit by the downside in the
economy. The domestic automobile sector had negative growth of almost 55% in
1998 compared to the previous year. Hyundai was responsible for almost 50% of total
automobile production in South Korea and was therefore badly hit. The domestic sales
of the company fell by 55% in the year 1998 and its exports crashed by 74% to only
15,056 units. Hyundai recorded a 200-billion-won loss in 1998. According to company
officials, Hyundai's six assembly plants with a yearly production capacity of 1.65
million vehicles, were operating at only 40 percent of their capacity. In May, 1998,
Hyundai reacted to this grim situation by announcing plans to lay off 27
percent of its 46,000 workforce in South Korea and to cut pay bonuses and
benefits in a bid to save 230 billion won. Unfortunately for the management of
the company, Hyundai had one of the most powerful and militant unions. The
decision of the company to lay off workers sparked off agitations not only in
Hyundai but in other companies too. The unions were particularly offended at
the government's approval of Hyundai's decision.
In a demonstration in
Ulsan, where Hyundai has its biggest automobile plant, 32,000 employees
participated in rallies. All across South Korea almost 1,20,000 employees from
about 125 companies participated in demonstrations against Hyundai and the government's
decision. The government had to deploy nearly 20,000 riot police to control the
demonstrators...
Labour Problems in the
Early 2000s
On September 1, 2000,
Hyundai officially cut ties with the Hyundai Group and had relocated its head
office to Yangjae-dong, Seoul, Korea - a move that was seen as symbolic of its
rebirth as an independent automotive business group. In December 2001, Hyundai
forecasted its highest profits ever - $900 million for the year. In the same
year it posted 23.4 % in unit sales and a 74.5% improvement in net income. Most
importantly, Hyundai vehicles were being accepted as a technologically advanced,
stylish and reliable in overseas markets like the US and Europe. In the United
States, the world’s largest auto market, Hyundai recorded a 42% sales increase in
2001. This was an era of growth, reorganization and new market exploration. But
the success story was marred by another strike threat in Hyundai. Workers at
the Ulsan plant went on a two-day strike in December 2001, demanding higher
wages and higher bonuses. They also demanded a 30% share in the profits that
year as a performance bonus. The management clarified, that though the company
had done well that year, it could not afford performance bonuses to the tune of
30% of profit. The reasons given were:
firstly, the increased
influx of imported cars into South Korea was bound to hurt Hyundai's market
share and margins in South Korea.
Secondly, General
Motors' purchase of Daewoo was a threat that could not be ignored or taken
lightly, and the company had to gear itself up to be able to compete with General
Motors, and lastly, the most important reason stated was that due to the appreciation
of the Korean won, Hyundai cars were becoming less competitive in international
markets and profitability consequently would be hurt.
a. Industries need to
adopt proactive policies with regard to Industrial Relations which help to
prevent any rise of conflict rather than waiting for such situations to occur
and then planning a strategy. To what extent this approach was visible in the
Hyundai’s Industrial relations policies.
b. “Since the very
beginning, employee participation, and employee involvement (together known as
participative management) define the essence of Industrial Relations”. Kindly
justify this statement in terms of this case study.
International HR Practices
1. ABC Ltd. is a
leading Electronics manufacturing company in India. They are planning to set up
their first international plant in Indonesia. In a Board Meeting the Directors
are sitting with a problem to decide which model of IHRM to follow in order to
manage people employed in Indonesia. You are an HR Manager in ABC and you were
invited in this meeting. HR Director, Mr Jain, had advised you to suggest
Matching Model of IHRM. Explain how you will convince the Board for Matching
Model.
2. ITB is a leading
FMCG Company in Mumbai and they are planning international expansion in Asia.
The company wants to know the recent trends in international staffing so that
correct steps can be taken in advance to react to changing business
environment. You are an HR Manager in the company and you are asked to make a
presentation on ‘Recent Trends in International Staffing’. Explain the recent
trends that you will discuss in the meeting.
3. PHILIX is a leading
Textiles company in India. They have set up a plant in Mexico as part of their
international expansion strategy. The plant has 100 employees. In this context,
answer the following questions.
a. Which methods of
performance you will suggest as an HR Manager?
b. Suggest a
Performance Management Cycle for the Mexico Plant.
HR Audit
1. Kavita Foods is a
family owned business, which is going in for a HR Audit. The management team
consists mainly of family members. The business has been quite profitable but
they now want to expand. Your company has been appointed as the HR audit firm.
The CEO of the company has asked you to present the various methods of
conducting the audit. Please list out the various methods of audit along with
benefits and limitations as per the context of the case.
2. Surya Enterprises is
in the business of setting up Solar Power plants. It is a part of a large
business conglomerate, who is into many varied business sectors, right from
automobiles to defense equipment manufacturing. Inspired by Japanese business
practices, the Chairman of the conglomerate decided to go in for a Business
excellence model, which would help align all the businesses along with a
similar process of structured and sustainable business growth. The CEO is keen
to include the HR department as part of this excellence journey. The CEO of
Surya Enterprises has appointed your company to help him with this. Your
company has recommended the creation of a HR scorecard. You need to share a
note to the CEO detailing out what the HR Scorecard is, as well as the inputs
that go into creating the scorecard and the steps to create the scorecard.
3. Computerz Limited is
a software company with offices across India. They have well defined HR
policies and a competent HR team. The employee performance levels have dipped
over the last 3 years and the attrition levels are also increasing. The CEO has
appointed your company to conduct the HR audit. The focus area for the audit is
Employee Motivation and Employee Engagement.
a. Describe the
employee engagement audit as well as some aspects being evaluated as part of
the audit
b. Detail out the
importance of employee motivation as well as the questions the audit seeks to
evaluate.
Employee Development & Talent
Management
1. Meenakshi is working
in Bright HR solutions. The company is into a lot of HR related work and works
with really big size companies. Meenakshi is into Talent Management department
and needs to design talent assessment system for a large pharmaceutical company.
Please help Meenakshi to design the system by listing out talent assessment tools
in detail.
2. Ayushi is a part of
Employee Development Program at Sonic Services. With over 1200 employees at
three different development centers, the program needs to be robust. The
department of Employee Development is about 15 people large and Ayushi’s group
is responsible for arranging resources for the program. Please list out the
steps followed in arrangements of employee development.
3. Vivek is a fresh
management graduate. He has joined Telson Group of companies in the Talent
management department. He is working on the project of Succession planning for
one of their plants with his Chief HR Officer. In light of this case, please
answer following questions.
a. Vivek needs to
explain the importance of succession planning to his senior managers. Enumerate
on the objectives of succession planning for him to start his presentation.
b. List out the stages
involved in succession planning, so that Vivek can start his ground work for
the process to start.
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