Prestige Institute of Management and Research, Indore: Assignment
Prestige Institute of Management and Research, Indore: Assignment
OF MANAGEMENT
AND RESEARCH,
INDORE
ASSIGNMENT
OF
1
Case Study -2
Summary
This case study is about the changes that affect the working of an organisation. The owner
and the manager of the company has hired us to take over the HRM functions. during the
first two weeks, we get to know that the company is greatly affected by the up economy
and predict the growth of 10 % in some in the next three years, but five out of the ten
employees will be retired in the duration of three years.
Jennifer believes they may be able to save costs by allowing employees to telecommute
one to two days per week. She has some concerns about productivity if she allows
employees to work from home. Despite these concerns, Jennifer has even considered
closing down the physical office and making her company a virtual organization. But she is
concerned about the productivity of the employees and also about the cost of health care on
the organization and how will these changes affect the organization.
Posers
1. Point out which changes are occurring in the business that affect HRM.
As we can see in the case there are many changes that Jennifer, the owner and Manager of
the company wants in the business which affects HRM. Following are the changes
occurring in the business that affect HRM are
As we saw in the case, five out of ten employees are going to retire so this would
affect HRM as there would be change in workforce, so first we need to plan the
retirement benefits and policies for existing employees and if requirement, then
recruitment of new employees also needs to be planned well in advance.
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The Next change that comes into picture is that Jennifer wants that employees to
telecommute one to two days per week to save cost but she has concerns about the
productivity to allow employees work from home which also affects the HRM.
Despite the above changes Jennifer has even thought of closing down the physical
office and making her company a virtual organization and this is a major change
that would definitely affect the HRM as the manager would not be able to have a
face-to-face conversation with the employees to guide them and motivate them as
they used to do in physical office.
Jennifer has also a thought of cutting benefits entirely, considering costs of health
care on the organization, for which, she wants her employees to work for her on a
contract basis, instead of being full-time employees. This is a change that would
greatly affect HRM because hiring a contract employee requires a far different pay
structure than bringing someone on full-time, meaning you need to embrace a unique set
of trade-offs because freelance/contract-based employees handle their own taxes,
benefits, and marketing costs – they typically charge more than full time employees.
Also, the short-term nature of their employment doesn’t create loyalty.
These were all the changes occurring in the business that would affect the HRM.
2. What are some considerations the company and HR should be aware of when
making changes related to this case study?
Company and HR should be aware of the following important points while taking any of
decision.
They should be aware of implementing the changes incrementally and not in instant
as it will directly affect the motivation of employees and would be torturous. The
less motivated employee will become less productive.
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They should be aware about the practical feasibility of the changes and should
evaluate the positivity of the changes proposed.
They should take the collective views of their employees and take into consideration
while taking decisions on changes.
They should monitor the performance of employee and provide training, if needed.
They should compare the cost of running business in physical organization with
virtual organization and take decision wisely.
3.What would the initial steps be to start planning for these changes?
4.What would your role be in implementing these changes? What would Jennifer’s
role would be?
Jennifer’s role –
To interact with employees and tell them about the changes going to be. And ensure
the safety about the changes.
To arrange fund required to telecommute employees one or two days of a week.
o 3) To take decision whether to hire employees on contract basis or full-time
basis.
Conclusion: -Diagnose the current environment of the organization is the first step after
you have decided to make some changes into your organization and decided on change
agents who will carry the change incrementally. Understanding the current motivation of
the employees is effective way to start an incremental process of change. In managing
organizational change, leaders must account for the sociocultural factors also. Effective
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change management should involve an understanding of workers’ cultures and how
cultural factors could hinder change at the individual, team, and organizational levels.