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Professional Qualification in Human Resources Management Institute of Personnel Management Sri Lanka Professional Qualification in Human Resources Management Stage: One / Module 01 Session: 1.0 Management Case Study (FALL OF EMPIRE) Batch No: PQHRM/KR/02

Module 01-Fall of Empire

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Page 1: Module 01-Fall of Empire

Professional Qualification in Human Resources Management

Institute of Personnel Management Sri Lanka

Professional Qualification in Human Resources Management

Stage: One / Module 01

Session: 1.0 Management Case Study (FALL OF EMPIRE)

Batch No: PQHRM/KR/02

Student Registration No: PQHRM/KR/02/09

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TABLE OF CONTENT

1.0 Acknowledgment 03

2.0 Executive Summary 04

3.0 Discuss about the leadership approach of Rolex Mudalali and how 05-14

the company was benefitted for many years with his self-learned

management skills.

4.0 What are the short comings of the new approach by young directors 15-19

and their team in the change process?

5.0 Being the HR Manager, what is your proposal to young directors to 20-24

implement best HR practices and process in this 30 year – old

company with over 2000 employees?

6.0 List of References 25

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1.0 ACKNOWLEDGEMENT

The case study you are about to read will not be an individual effort where I would

like to get the credit. It consists of knowledge, support, encouragement, insight and

convictions given by different people and nature to enrich years I have lived and to

contribute to fill the empty bottle I refer to who I am and the Label of that bottle

which I refer to how I present myself in this competitive world. Hence what I present

to the world and the attitude towards everything I do solely depend not on me but

what I am filled within.

I thank my parents for bringing up this empty bottle to the world and starting and

continuing to fill up to now and I rely upon to be filled by them always in future to

make me the best.

I also thank my teachers, elders, friends and all who showed me the right path and the

way of life. I was privileged to have our lectures at IPM, for all their advices, support

and assistance and all staff at IPM.

…………………………..

H.G.A.M.R. Gamage

Professional Qualification in Human Resources ManagementInstitute of Personnel Management Sri Lanka

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2.0 EXECUTIVE SUMMARY

In the context of the Business Empire brought up by the hard work of Rolex mudalali

& his team of workers, we can clearly see that paper education does not matter when

it comes to real life scenarios. In this case the important spirit of success was the

attitude and practical knowledge of Rolex mudalali and his foresighted vision towards

the years to come.

We can note that his approach towards the business was all about “Look

after your people and they will look after you and your business”. Rolex mudalali

considered his people as the number one asset in the business and did the best he

could do to maintain and develop the human asset at the best state.

Rolex mudalali’s main business was nearly 20 years old and had the

market share of 70% in the biscuit industry locally and his products were reaching

over 20 countries around the world including United States of America. He had the

ability to be in diversified business categories along with the main business.

His far sighted vision is proved by his decisions towards educating his

children in IT and Fashion designing fields, since these fields have emerging business

opportunities worldwide. Also educating the children of his workers can also be

considered as a foresighted vision towards gaining loyalty of existing workers and

their families along with strengthening up the future employees of his business with

proper education since the world is highly competitive. He knew that if he educated

the children of workers properly he would have them in his business in future as loyal

employees without the trouble of selecting trustworthy people from the job market for

the future work force.

The fall of business started when Rolex mudalali thought of having his

retirement by handing over the business to his children. Business was handed over

without proper guidance about its culture and with no close monitoring for a time

period until they learnt the needful. This was the only unwise decision Rolex mudalali

took all over his business life as I feel. As per the observation this must be due to the

idea that Rolex mudalali had about having a retirement and relief since he ran the

business for around 20 years. This decision bundled up with the actions taken by his

children ended up in collapsing the Business Empire of Rolex mudalali to bankruptcy.

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3.0 Discuss about the leadership approach of Rolex Mudalali and how the

company was benefitted for many years with his self-learned management

skills.

Leadership Of Rolex Mudalali

Leadership is a process by which a person influences others to accomplish an objective and

directs the organization in a way that makes it more cohesive and coherent. Rolex mudalali

carried out this process by applying his leadership attributes, such as beliefs, values, ethics,

characters, knowledge, and skills. Although the position as an owner, gives the authority to

accomplish certain tasks and objectives in an organization, this power does not make a leader.

It simply makes the position “Boss”. Leadership differs in that case; it makes the followers

want to achieve high goals, rather than simply bossing people around.

When we consider Rolex mudalali’s character, it is clear that he was a person

who knew the pulse of his people and a person who took care of his employees, guiding them

by showing the path, blending with them to understand them; to care for them, molding them

when needed and developed them and their future as a father rather than a businessmen.

Let’s see how we can conclude Rolex mudalali’s leadership into leadership

theories. Basically we can identify that Rolex mudalali had a mix of leadership styles

according to blend with the situations, having the best interest for his followers.

Autocratic or authoritarian style

Participative or democratic style

Paternalistic style

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Leader Follower

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Autocratic Or Authoritarian Style Of Rolex Mudalali

Under the autocratic leadership style, all decision-making powers are centralized in

the leader, as with dictator leaders.

They do not entertain any suggestions or initiatives from subordinates. The autocratic

management has been successful as it provides strong motivation to the leader. It

permits quick decision-making, as only one person decides for the whole group and

keeps each decision to himself until he feels it is needed to be shared with the rest of

the group.

Let’s discuss this style in Rolex mudalali’s business considering the

decisions made and the benefits gained towards the company by autocratic approach.

Decisions Made Throughout The Business As An Autocratic Leader

Culture of not to hire professional managers to run business activities.

Appointing his twin children as directors in order to run the business as

a sudden decision.

Changing the culture of not having professional managers towards

having two directors as a sudden decision. Followed by which

professional managers were hired to run the business activities by the

directors which suddenly changed the way of activities.

Sudden retirement of Rolex mudalali from business activities.

When we consider the above decisions made, it is clearly noted that the autocratic

leadership was one main ingredient in the rise of the business while also being the

main reason for the downfall of the business empire of Rolex mudalali.

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Benefits Gained By Autocratic Approach

Quick Decisions

An autocratic style of leadership can be effective in work environments where

decisions need to be made quickly. The sole responsibility rests with the leader, and

he makes the decision without the need to consult others. Since Rolex Mudalali’s

business faces constant changes due to the competitiveness in local and foreign

markets, the autocratic style gives the ability to respond in a way that prevents the

business from falling behind the competition and keeps up with customer demand

while satisfying the work force. This is very essential to gain business growth and to

keep employees happy by giving quick solutions with regard to their matters.

Close Oversight

In an autocratic work environment, the leader typically keeps a close watch on the

activities of the workers. This eliminates the tendency for workers to "slack off" that

may occur with more lenient management styles. We noticed that Rolex Mudalali

daily walks around the production floor exchanging few words with people he meets.

This was his close monitoring method which was effective in rectifying issues and

develops relationships with employees. The result can be increased productivity and

speed, as workers who fall behind are quickly identified and corrective measures are

taken. Quality may improve, as the employees' work is monitored. Time wasting and

the need to waste resources are also reduced.

Total Control

Autocratic leadership can work well for leaders who prefer having complete control

over an operation. Because the outcome is totally in his hands, the leader does not

experience the stress of having to rely on help from outside his work area to complete

the project or task. For this type of individual, having complete authority can actually

result in reduced stress since he has complete control over his business. This is why

Rolex mudalali never hired professional managers to run the activities. Instead he

believed in himself and his work force to run the business. The work culture was built

in a way that senior most employees acted as supervisors.

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Streamlined Work Process

Because one individual has complete control over an operation, there is less of a need

for layers of management or bureaucracy. This can make for a more efficient

operation, as fewer people are involved in the decision-making process. The leader

can quickly identify areas of inefficiency or malfunction before they turn into major

problems. For example, if too much money is being allocated for the marketing aspect

of a project, the leader can spot this quickly, so a less expensive marketing technique

can be implemented.

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Participative Or Democratic Style Of Rolex Mudalali

The democratic leadership style favours decision-making by the group as shown, such

as leader gives instruction after consulting the group.

They can win the co-operation of their group and can motivate them effectively and

positively. The decisions of the democratic leader are not unilateral as with the

autocrat because they arise from consultation with the group members and

participation by them.

When we consider Rolex mudalali’s business we can see that under participative

approach of leadership, he has encouraged the trend of senior employees acting as

supervisors in order to keep operations smooth and strength up the fast decision

making process by rectifying issues and educating other employees on activities and

the business culture.

Rolex mudalali believed and practiced the Open Door Policy for his Business.

He knew that it guarantees the ability of the employees to directly seek assistance.

The purpose was to encourage open communication, feedback, and discussion about

any matter of importance to an employee.

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Benefits Gained By The Participative Or Democratic Style

Employer/Employee Relationships

Most employees want to feel like they are wanted in the workplace. They want

meaningful work and want to be a part of the decision-making process. Under

participative leadership approach by Rolex mudalali, depending on the seniority and

experience, employees are empowered to step out of their normal role as labourers

and become a part of the decision-making process as leaders in their work line. This

eases tensions between employees and employer and creates a sense of team.

Productivity will rise and the employees will be happier with the relationship.

Leadership Discovery And Opportunity To Creativity

When employees participate in the decision-making process, leader has the

opportunity to see who is stepping up to the plate and who is coming up with ideas.

This is a tool to identify employees with higher potential. Since the company is

encouraging well experienced people to be leaders, employees are more motivated to

do a good job and they follow and love the supervising leaders born among them

rather than someone from out coming to the role of controlling them. Rolex mudalali

identified that a new leader found within the company will be a valuable cornerstone

for teamwork and creativity. Hence he never tried to get professional managers to do

his business activities.

Motivation

All employees feel the need for motivation. Motivation is the key concept for change.

People are naturally resistant to change, and leadership needs to find the proper theory

to help people make the transition. Communication is the most important facet of

motivation. If employees feel out of the loop, then they are less likely to concentrate

on the main goal of the team or organization. With participative leadership of Rolex

mudalali, the employee has more information and will stay more active in the change

or decision process. He walks around the work floor each morning, sharing few words

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with people he meets since he knows that employers must initiate the communication

as a show of faith to their employees.

Team Spirit

Since employees have a position and input in the decision-making process, the sense

of involvement is not just felt individually but is felt as a team. If potential negative

circumstances are involved in the decision that is to be made, team-centered

involvement will allow Rolex mudalali to be informed more fully of the pros and the

cons. Communication is still important. Since Rolex mudalali is interacting with

people in a more meaningful way, when he finally makes a decision, the work force is

prepared for it; and with its participation, the stress and resistance to change is

diminished.

Employee Productivity

Studies have shown that there is a co-relation between participative leadership and

productivity. There is a suggestion that through communication and participative

leadership high-quality performance can be obtained. Leadership that practices the

participative model has higher ratings as managers than leaders who manipulate their

employees. Participative leadership begins a cycle of productive leadership and

productive employees. This cycle increases company profitability and allows for

internal growth. As a result company grabbed 70% of the local industry while

achieving the foreign markets too.

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Paternalistic Style Of Rolex Mudalali

This is basically the main style of leadership that Rolex mudalali follows. During his

entire business life, we can notice that he considered his employees as the best asset

that he possesses and tried to do the maximum for their welfare and their families.

Paternalistic leadership is an approach that is based, intentionally or

unintentionally, on the idea that the leader is in a better position than the followers to

know best what is good for the organization, or the followers. In a nutshell it's the

"leader as expert father figure". The strong belief that a leader "knows best" (when it

is held by the leader) can lead to catastrophic results. That said, leaders should

recognize that part of leadership is being "in front", rather than "leading by

consensus", or "leadership by poll".It's also important to be aware of the fact that

many people who would be in a "follower role", may want to be lead by someone

who they perceive "takes care of them".

Rolex mudalali identified these things from his experiences. Hence he

implemented the following to take care of his employees, having in mind that people

are the best asset he possesses in the company.

Distribution of dry ration pack worth Rs.1, 000 to all the employees.

Salaries above the market rates.

02 month bonus just before Sinhalese & Tamil New Year.

Soft loan to purchase a motor cycle for employees completing 05 years.

Selecting the employee of the year and gifting a plot of land yearly.

Educational assistance for employee’s children in way of scholarships and

providing books and accessories for the neediest children.

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Benefits Gained By The Paternalistic Style

While he concentrated on employee welfare, we can also notice that he had a far

sighted vision. Through the welfare plan he achieves the loyalty of employees while

achieving few other gains automatically. Let’s discuss on what Rolex mudalali had in

mind about the future of his business along with his people.

Employee Welfare And Loyalty

As I feel, Rolex mudalali had a mindset about satisfying the employee and their

families at the same time. The ration pack is a stimulus to win the heart of the workers

and their families. His intention was to have a healthy work force while reminding

them and their families that he takes care of them. High salaries were used as a

measure to attract employees and reduce turn over. By giving 02 month salary as a

bonus upon New Year season, he wanted his employees to have a better state when it

comes to their spending matters and happiness during a cultural time where the

expenses are high.

When it comes to the soft loan scheme and selecting the best employee of

the year and gifting a land plot is a motivational factor for the employees. This

encourages them to achieve higher targets and to retain in the company to get better

benefits.

Employees of the company love Rolex mudalali as a father and a great

leader since he looks after them and this feeling encourages the belongingness and

team work, ensuring higher productivity and the good will of the company.

Advertising And Increase Of Good Will .

Rolex mudalali expected the word of mouth to increase the Good will of the company

by adopting a Paternalistic style. This is a cost effective marketing strategy when it

comes to promoting the company as a great place to join for work and an ethical

business to buy products from.

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Foresighted Vision Towards Future Work Force

Rolex mudalali had a foresighted vision towards a successive future. This is the main

reason for promoting children of his employees to get a better education and to rely

upon him for higher education. This creates loyalty and love towards him from

employees and their children. The ultimate result is that these children will end up

working for him. So this can be considered as an investment in the future work force.

He did not intend to give any special training to his existing work force since he knew

that these people are not well educated but sufficiently experienced to carry out the

work. But he also knew that the same trend cannot be continued since the world is

more competitive day by day, demanding high educated work force in companies.

Hence he took corrective actions towards a successful future.

When we consider the detailed approaches and benefits gained by them, we can

conclude that the leadership approach of Rolex mudalali kept the company in the right

path day by day with immense growth.

Also we can identify the immense knowledge Rolex mudalali had to

run diversified businesses with the correct approaches to enhance the growth of his

Empire. Rolex mudalali sets an example to show that book knowledge does not run a

company, but the correct approaches and knowledge gained over years.

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4.0 What are the short comings of the new approach by young directors and

their team in the change process?

When we consider Rolex mudalali and his vision, we can see that he is a foresighted

person with the knowledge to achieve his targets. When he sent his twin children to

India to get professional knowledge in IT and Fashion Designing, he already had a

plan ahead in his mind. India is among the world leaders in IT and Fashion Designing

education. Since these are potential and emerging areas, it is an advantage to have

knowledge in those if you are in a diversified and changing business culture. Rolex

mudalali planned on preparing his children in those areas since he knew that IT will

play a big role in the near future in his productions and since he carries out his

business in apparel line, it is good to have his children educated in IT and Fashion

Design so that they can seek better business opportunities easily using IT and Fashion

Design knowledge. Also he identified that his children will have the opportunity to

meet people and build up important contacts which are required to get his business

empire more successful.

Having all this in mind and due to the tiresome feeling he had after running a business

for 20 years and more, he wanted a relief when his children arrived back to Sri Lanka.

Since he was planning to get his retirement from a long time, he thought of getting the

retirement right away and let his children run the business. Twin children were

appointed as Director Operations and Director Marketing while Rolex mudalali

washed off his hands from responsibilities and got his retirement. This was a sudden

move which resulted in two inexperienced people with no sufficient knowledge trying

to apply theoretical knowledge to run a business empire in a practical world.

Let’s discuss about the short comings of the approaches they adopted in order to run

the business.

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Failing To Understand The Culture

The first thing to understand is the culture of an organization when a successful

business is handed over to a leader. The business should have good values and an

effective culture to sustain for decades and it should be identified and studied. Then

leaders can decide on the areas that should be rectified. In this business, Roshan and

Roshani being highly educated people didn’t take notice of the analyzing part.

Without doing a basic analysis, they tried to implement what they learnt on books. It

was ineffective.

Unsuccessful Cost Management

Within the first week itself they spent heavily on bringing the things they wanted into

the work flow instead of what is really needed. Without seeking any guidance from

Rolex mudalali and existing senior employees, the Directors tried to do things as they

pleased. Heavy cost burdens were brought up on the company in way of unproductive

means. We can conclude those as follows.

Air conditioned rooms for Directors and six managers.

Unnecessary foreign trip of Roshani with the marketing manager.

Heavy cost on consultancy fee in order to make the vision and the

corporate plan.

Heavy cost on printed material related to vision statement.

Training measures without focus on results.

Cost burden on hiring foreign training consultants.

Time waste in unfocussed seminars and meetings, affecting production

time.

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HR Own Rights

One of the biggest problems I see is that the two directors are not competent enough

to run the business in the positions they have got entitled with. They recruit their

classmate friends as managers where they fail by not having the right person, right

place and at the right time. If they are going by theories instead of practice, they

should know that recruitment should be done in a proper procedure and as per the

requirement of the organization. Not as per the individual needs.

Hiring Unqualified "HR" Personnel

To have a proper HR practice, the person who is appointed as the HR manager should

be a good leader and rich in communication skills. This business has some good

practices over years. So it is all about polishing them and adding what is not there.

Instead of doing that the company implemented a system which was an alien to

existing workers. These sudden changes discourage workers and kills productive time

over the implementing process.

HR Misconception

This is where employee’s trust over the management starts to loosen up. Sudden

changes like putting up a vision and a mission and continuous changes in procedures

may let the employees feel that the management and the HR function is not working

properly. In clear words they will feel like these people have no idea about what they

do and would not respect management decisions and tend to be unsatisfied. It is a very

harmful situation when it comes to efficiency of the work force. HR should have a

clear plan about the things they implement and everything should be cost effective

and return oriented.

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HR Is One-Sided

HR should consist with employee concerned measures and ways since the best asset

of the company is its human asset. But it is clear that the new management is not

paying attention about the pulse of the people or respects their ideas. It is the main

reason which results in unsuccessful training programs which are of high cost nature.

Tall Structure In Reporting Lines

Previously employees were used to work under one person. Now there are new

comers to whom they should report. Employees may understand that these people are

not equipped with the right knowledge relating to the company. So they will not seek

their opinion. Also the culture of supervisory positions being available to senior

employees is not there anymore. This discourages senior employees of the work force

and the workers will not communicate properly with people whom they are not used

to. This system will also promote the feeling that people who are senior in the

company will not have a prospering future since the management tends to disregard

their involvement.

Payroll Mistake

The payroll system was a stable system before the new management took control. It

was clearly defined and people were treated equally. When implementing new

schemes, management should consider changing slowly instead of drastic changes.

Employees should get some time to understand the schemes. The result of sudden

changes will be considered as measures to cut down salaries of the work force. This is

a huge mistake when it comes to managing a business properly. Payroll system should

be fair and should be clearly defined.

Lack Of Man Power Planning

It is clearly noted that the new HR plan had no intention on man power planning and

reducing the turn over when it starts to rise. A proper plan for man power should have

been implemented and periodic reviews and corrective actions should have been

taken.

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Absence Of Clearly Defined Targets And Goals

The workers were informed that salary incentives will be based on productivity and

the bonus will depend on performance appraisals. But the said plan to be effective

there should be clear targets. Workers were not informed about the standard targets

and goals. This clearly shows that though management tried to apply the theory they

were not trying to understand where the company stands and what measures should be

taken to develop the production.

No Proper HR Administration And Counseling

In the previous system employees had the chance of communicating their matters to

the management directly. Since the new management is busy with implementing

theories to business they lost the sense of practical management. Employees did not

get any successful way of communicating their matters or to get solutions. This

creates a stressful working environment leading to inefficiency.

Work Via Personal Feelings

Throughout the managing process under the new management, it is clear that all the

decisions are not taken as per the organizational need but as per individual needs.

Bringing personal judgments into business decisions will not take the company in the

right path. On the long run it will deliver negative results towards the organization.

In a nutshell, having this type of management will surely lead the business to be

unsuccessful within a very short period of time. This blind management style

finally resulted in the downfall of a business empire of 3 decades within few

months.

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5.0 Being the HR Manager, what is your proposal to young directors to

implement best HR practices and process in this 30 year – old company

with over 2000 employees?

When we look at the business of Rolex mudalali, we can note that it has its own

values, cultures and processors. So it is a must to keep all these in mind; place

everything in order and change what is needed to achieve perfection. Before

implementing any plan it is necessary to conduct a survey on what employees expect

from the company and their attitudes. Keeping that in mind the HR practices and

process should be carried out. After analyzing the company as a whole I may suggest

the following in order to implement best HR practices and process to the company.

We have to keep in mind that HR practices have to change according to the business

and the environment where it’s being conducted. Or else we cannot arrive at the best

tailor made solution for the company. Let me suggest 12 essential points to ponder

and to further develop out of existing practices.

1. Safe, Healthy and Happy Workplace

Creating a safe, healthy and happy workplace will ensure that employees feel homely

and stay with the organization for a very long time. Capture their pulse through

employee surveys.

Suggestion - Already most of these things are in place. Employee surveys should be

carried out by appointing a person for the position “Employee Relations officer and

Counselor”. It will be cost effective rather than comprehensive surveys. Also it will

make employees comfortable and fulfill the need of communication among employer

and employee. Small matters can be counseled easily and bigger issues can be taken

up to the management quickly by this method. This will replace Rolex mudalai’s habit

of talking to employees on a daily basis and add few advance features to it.

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2. Open Book Management Style

Sharing information about contracts, sales, new clients, management objectives,

company policies, employee personal data etc. ensures that the employees are as

enthusiastic about the business as the management. Through this open book process

company can gradually create a culture of participative management and ignite the

creative endeavor of the work force. It involves making people an interested party to

strategic decisions, thus aligning them to business objectives. This is a step to take

forward Rolex mudalali’s Open Door Policy ahead. It helps in building trust and

motivates employees. Employee self service portal, Manager on-line etc. are the tools

available today to the management to practice this style.

3. Performance linked Bonuses

Paying out bonuses or having any kind of variable compensation plan can be both an

incentive and disillusionment, based on how it is administered and communicated.

Bonus must be designed in such a way that people understand that there is no payout

unless the company hits a certain level of profitability. Additional criteria could be the

team's success and the individual's performance. Never pay out bonus without

measuring performance, unless it is a statutory obligation.

Suggestion- Senior Employees of certain work lines may be announced with a

position “Team Leader” instead of them doing the supervising without a proper

recognition to it from the company. This will enhance the mutual recognition they

already have. Company’s targets and expectations can be communicated to the work

force through team leaders. This will help to have accurate communication and

suggestions of team leaders will be of high value when it comes to decision making.

This system will help out in making awareness about what the new management

expects and helps to achieve the standards in the processes. Team leaders should be

motivated to carry a positive message to others about the performance linked bonus

system instead of the fixed bonus. This attitude change is essential since this is a

change of an existing system.

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4. 360 Degree Performance Management Feedback System

This system, which solicits feedback from seniors (including the boss), peers and

subordinates, has been increasingly embraced as the best of all available methods for

collecting performance feedback. Gone are the days of working hard to impress only

one person, now the opinions of all matter, Every person in the team is responsible for

giving relevant, positive and constructive feedback. Such systems also help in

identifying leaders for higher level positions in the organization. Managers could use

this feedback for self development.

5. Fair Evaluation System for Employees

Develop an evaluation system that clearly links individual performance to corporate

business goals and priorities. Each employee should have well defined reporting

relationships. Self rating as a part of evaluation process empowers employees.

Evaluation becomes fairer if it is based on the records of periodic counseling and

achievements of the employee, tracked over the year. For higher objectivity, besides

the immediate boss, each employee should be screened by the next higher level (often

called a Reviewer). Cross - functional feedback, if obtained by the immediate boss

from another manager (for whom this employee's work is also important), will add to

the fairness of the system. Relative ratings of all subordinates reporting to the same

manager are another tool for fairness of evaluation. Normalization of evaluation is yet

another dimension of improving fairness.

6. Training And Development Programs

Training programs should be carried out to the needy employees if they cannot be

trained through the team leaders. Periodic reviews on training needs should be carried

on and team leaders should be trained accordingly. This will be a cost effective

method and the knowledge will be transferred to all the employees through team

leaders. This should be done on a Quarterly and Yearly basis as per the need of the

company and the changing environment.

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7. Knowledge Sharing

Adopt a systematic approach to ensure that knowledge management supports strategy.

Store knowledge in databases to provide greater access to information posted either

by the company or the employees on the knowledge portals of the company. When an

selected employee or a team leader returns after attending any competencies or skills

development program, sharing essential knowledge with others could be made

mandatory. Innovative ideas (implemented at the work place) are good to be posted

on these knowledge sharing platforms. However, what to store and how to maintain a

Knowledge base requires deep thinking to avoid clutter.

8. Human Resource Information System. (HRIS)

Human Resource Information System (HRIS) is a software or online solution for the

data entry, data tracking, and data information needs of the Human Resources,

payroll, management and accounting functions within a business. Normally packaged

as a data base, hundreds of companies sell some form of HRIS and every HRIS has

different capabilities. HRIS should be picked carefully for the company based on the

capabilities you need in your company.

Suggestion-The Human Resource Information Systems (HRIS) should provide,

Management of all employee information.

Reporting and analysis of employee information.

Company-related documents such as employee handbooks, emergency

evacuation procedures, and safety guidelines.

Benefits administration including enrollment, status changes, and personal

information updating.

Complete integration with payroll and other company financial software and

accounting systems.

Applicant tracking and resume management.

For the guidance needed for the implementation of the HRIS and other related

software requirements of the company may be referred to Director Operations since

he is an IT professional.

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9. Highlight Performers

Create profiles of “Monthly top performers” and make these visible though company

intranet, display boards etc. It will encourage others to put in their best, thereby

creating a competitive environment within the company. If a systems approach is

followed to shortlist high performers, you can surely avoid disgruntlements. It is

recommended to continue the “Best performer for the year” along with a suited gift

plan such as a cash incentive.

10. Open House Discussions And Feedback Mechanism

Ideas rule the world. Great organizations recognize, nurture and execute great ideas.

Employees are the biggest source of ideas. The only thing that can stop great ideas

flooding your organization is the lack of an appropriate mechanism to capture ideas.

Open house discussions, employee-management meets, suggestion boxes and ideas

capture tools such as Critical Incidents diaries are the building blocks that can help the

Managers to identify and develop talent.

11. Reward Ceremonies

Merely recognizing talent does not work, you need to couple it with ceremonies

where recognition is broadcast. Looking at the incentive is often less significant than

listening to the thunderous applause by colleagues in a public forum.

12. Delight Employees With The Unexpected

The last but not least way is to occasionally delight your employees with unexpected

things that may come in the form of a reward, a gift or a well-done certificate. Reward

not only the top performers but also a few others who are in need of motivation to

exhibit their potential.

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List Of References

Websites

http://en.wikipedia.org

http://www.nwlink.com

http://www.leadership-toolbox.com

http://smallbusiness.chron.com

http://humanresources.about.com

http://www.dirjournal.com

http://www.empxtrack.com

Reading Materials / Books

CCHRM and PQHRM notes

Changing Minds: Lewin's Leadership Styles

Leadership Toolbox: Leadership Styles: Autocratic Leadership

Free Management Library: Overview of Leadership in Organizations

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