assignment bm701dl student id 21125373
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Human Resource Management - Case Study BM701DL
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Buckinghamshire New University
Module Title: Human Resources Management
Module Code: BM701DL
Student ID No: 21125373
Dissertation Title: Case Study of Hi-Tec International
Module Co-ordinator / Tutor: Dorothy Smith
Word Count: 2659
Submission Date: 17th September 2011
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Table of contents
Page Number
Executive Summery 3
1. Question1: How effectively Hi-Tec can move 3
In recruitment without justifying
Unnecessary spending
1.1. Issues 3
1.1.1. Recruit fresh graduates and train them 3
1.1.2. Advertisement in national newspapers 3
1.1.3. The use of head hunters 4
1.2. Solution 4
1.2.1. Fix Internal issues 61.2.2. Internet Recruitment 6
1.2.3. Employee Referrals 7
1.2.4. Make Every Employee a recruiter 8
1.2.5. Collaborate with a university 8
1.2.6. Make on the spot offers 9
2. Question 3: Improve retention of staff who 9
Leave shortly after joining
2.1. Issues 92.2. Solution 11
2.2.1. Analyse reasons for turnover 11
2.2.2. Improved Selection techniques 13
2.2.3. Increased learning and development opportunities 14
2.2.4. Revised the way staffs are rewarded so their 14
Efforts are better recognised
2.2.5. Made changes to improve work life balance 15
2.2.6. Increased pay 15
3. Conclusion 16
4. References 16
5. Bibliography 17
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Executive Summery
Hi-Tec is one of the fast growing international companies founded in the mid -1980s
in the USA. Head quoted in the UK and employees over 30000 people in 60 counties
and generating a massive $19 Billion annual turnover. I-Tec specialises in theprovision of computer hardware and software solutions to cooperate sector and
capitalize on their use of the internet. It provides both standard and bespoke
solutions to customers. The key competency of the business is its ability to innovate
in highly specialised and competitive markets it operates. Hi-Tec has got very
competitive skilful people and some leading international names in internet
technologies. The company pays top rate salaries, annual bonus, discounted stocks,
pension, health and life insurance to its employees with a very attractive working
environment. This has created the company a desirable place to work for resulting
labour turnover levels to be low as 5%.
The business has doubled in size every year. This has created an issue in finding
required skills to meet the expansion needs. Below evaluates how effectively Hi Tec
can approach to overcome this challenge.
1. Question: 1How effectively Hi-Tec can move in recruitment without
justifying unnecessary spending
1.1Issues
1.1.1Recruit fresh graduates and train them
This have not provided good results as it takes some time to learn a set of skills
by new comers , at the time they do the leaned skills have made redundant by a
new technology. Very few will make a carrier in the company out from this and
most struggle and fail.
1.1.2Advertisements in national newspapers
The targeted skilled labour group from the advertisement are mostly employed
somewhere else with good perks and not actively seeking a new job thus unlikely
to see the advertisements.
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1.1.3The Use of Head hunters
There have been some success over this but it demands higher charges and also
opens up a risk of employees recruited from this method been lured away again
after some months by the same agent.
So the above said have not worked to the level expected in fulfilling the
requirement to growth speed at Hi-Tec International
Development of new business is increasingly been held up as a result of a lack of
adequate professional personal. Below evaluates how I advice Hi Tec to try new
ways in fulfilling its recruitment.
1.2 Solution
Recruitment
According to (Dowling and Schuler, 1990) searching for and obtaining potential job
candidates in sufficient numbers and quality so that the organisation can select the
most appropriate people to fill its job needs
According to Beaumont (1993) three key issues that have increased the importance
of the selection criteria.
Changes of the labour market have led to a more diverse work force, which
have an increasing pressure of fairness in selection.
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Desire for multi skilled flexible workforce and an increased emphasis on
teamwork has meant that selection decisions are much based more with
behaviour and attitudes than with matching individuals to immediate job
requirements.
Emphasis between cooperate strategy and people management has led to
strategic selection that links selection process to outcome organisational
goals and aims match flow of people emerging.
Hi-Tec can develop short term and long term strategies for recruitment to remedy
their problem. Below graph shows contemporary approach results on recruitment
CIPD Survey (CIPD: 2009)
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In this consent Hi-Tec can look at implementing below methods,
1.2.1Fix internal issues
In this case 2.5% of employees have been subject to dismissals. This reflects
a problem inside the organisation. Efforts have to be made to solve this issue.It will help to reduce the new recruits and reduce recruitment overheads. A
contemporary approach to human resource planning would be a good
solution. According to Armstrong (2005) there are many benefits of this,
To attract and retain people with appropriate skills and expertise.
To develop well trained work force and making them adoptable to ever-
changing uncertain environment
To reduce dependence on external recruitment and formulating
retention and development strategies
To improve people utilisation and introducing more flexible systems at
work.
Business and resource strategies should be aligned towards business goals.
Then a scenario planning should be done which is forecasting on the
assumptions when you cannot predict the future.
1.2.2 Internet Recruitment (Using website and more)
With advancement of the technology this has emerged as a key stream.
According to (Searle, 2006) number of organisations using their corporate
web site as recruitment channel has been significantly increased. This is very
effective to Hi Tec as the targeted IT professionals are always in touch with
internet. In modern world this could be defined as use of cloud computing for
recruitment. Also Hi Tec can advertise vacancies on specialist internet
Recruitment sites. Alternative ways to recruitment would be
Use of professional groups websites like Linked In
Use of Social Networks like Face book, Twitter and etc
The benefit of using internet recruitment is reduction of costs and reaching
wider pool of applicants. Also it will reduce the time in recruitment cycle.
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Technology can be used to scan CVs match against the selection criteria
which will reduce paperwork.
According to (Pilbean and Corbridge 2006: Searle, 2006) it will provide
positive cooperate brand image. This provides greater flexibility to active and
passive candidates. Job vacancies news letters are distributed by mostrecruitment sites. Also Hi-Tec target international candidates by using video
streaming technologies such as skype.
In addition internet recruitment can create opportunities to use number of pre-
selection tools and tests to improve match between applicants and job
vacancies (Redman and Wilkinson, 2006)
However there are some concerns about internet recruitment. CIPD (2006)
survey findings have reviled that this method appears to generate increased
interest from unsuitable candidates (Pilbeam and Corbridge, 2006: CIPD,
2006)
Nevertheless Hi-Tec can effectively use this method for recruitment for the
targeted professionals.
1.2.3 Employee Referrals
This is where existing employees suggest potential candidates drawn from
their own networks. CIPD recruitment and retention survey findings (CIPD,
2009) have pointed this. The organisations used to recruit by using this
method has been increased significantly. This will directly reduce recruitment
costs and also lead applicants to gain more realistic and live job preview.
In addition the willingness of existing employees to recommend their
organisation to others is used as a measure of organisational commitment in
high performing workplaces (Purcell et al, 2003)
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However this method also has some concerns as there could be implications
from an equality and diversity perspective. Also this could be seen as a form
of discrimination.
Since Hi Tec have got a very smart talent pool it can use its existingemployees for the referral scheme as an immediate short term recruitment
strategy.
1.2.4 Make every employee a recruiter
This is another level of referral strategy. Hi-Tec can give the recruitment
process more bounce, more legs and develop a sense of urgency by making
all employees a recruiter.
This can be encouraged by a moderate referral bonus scheme. So employees
can get a bonus for every referral hired by Hi-Tec thus creating a
competency for talent search.
In a short period this would give better results at a minimum cost and
compared to the money paid for a recruitment agency still it will be cheaper
and provide quick results to fill shortages. Bonus will be paid to motivate and
satisfy the employees. They could be the best sales people for the company
to bring best results over recruitment issue.
1.2.5 Collaborate with a university
Hi-Tec can collaborate with a university to fulfil its gaps. This is categorised as
long term strategies and take sometime to develop.
Identify bright students at the graduations and offer them training and
jobs this will of course provide good results in quick learning and
quick join to the show. Students also have to be deployed to small
assignments and give rapid training in getting them hit the ground at
work as quickly as possible.
Develop a methodology for students to join and complete their
internships at Hi-Tec. Then the students can be indirectly promoted to
work for Hi-Tec. By that students are exposed to a pre skills learn and
will make a good opportunity for Hi Tec to offer jobs.
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Participate in education fairs and IT conferences / IT product launches
and trade fares in head hunting. These events normally get large crowd
attracted and the intended professionals can be selected with minimal
cost from this.
1.2.6 Make On-the spot Offers
This is another methodology can be useful for Hi-Tec to speed up the
recruiting process. Managers can often extend a job offer to a candidate on
the interview day.
Hi Tec recruitment officers have to understand the importance of moving
quickly on IT hires because the targeted crowd and be easily lured by other
companies while Hi-Tec decides whether or not to recruit them. Therefore Hi-
Tec has to cut through internal red tapes if theres any in delaying to make
offers.
By practicing above discussed points Hi-Tec will be able to get good results
over its recruitment challenge.
2. Question 3: Improve retention of staff who leave shortly after joining
Issue
Analysing the given case of Hi-Tec below issues can be identified,
Company have no issues in retention but a turnover of 5%
Inability to find employees with required skills and expertise
Bottleneck the expansion due to inability to fill the shortage of
vacancies
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At first place though company perceives that retention is not a problem they
have to look at the turnover.
Labour turnover is inevitable, so most employers are looking to reduce it. Loss
of knowledge and skills and their ability meeting business goals comes underthreat.
The CIPD Survey (CIPD, 2009) shows below the key reasons for employee
turnover
CIPD Survey (CIPD, 2009)
Solution
2..1 Analyse reasons for turnover
For this Hi-Tec can look at turnover issues by
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Information from staff attitude/satisfaction surveys
Conducting exit interviews and surveys
o What is the reason for dismissal
o Discussions and questionnaires
Word of mouth
Methods used to find why people leave.
CIPD Survey (CIPD, 2009)
Below reasons have found employees leaving a business and by occupation
CIPD Survey (CIPD, 2009)
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CIPD Survey (CIPD, 2009)
Manfred kets De Vries ( Cited in Williams, 2000:28) stated that todays high
performers are like frogs in a wheelbarrow: they can jump out at any time. Sohigh performing companies like Hi-Tec have to turn their attention more
towards retention of their high performing staff. Firstly labour turnover reasons
have to be carefully analysed.
Retention and turnover survey (CIPD, 2009) show the most steps taken by
organisations to improve retention as,
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CIPD Survey (CIPD, 2009)
Hi-Tec and adopt to increasing retention by taking below effective points
2..2 Improved Selection techniques
Hi tec can look in to the latest selection techniques which are given
below
Job Analysis before circuiting the nature of the job is highly
investigated, Job purpose, output required, job holder
responsibilities and how it fits to the organisation structure have
to carefully reviewed
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Creating a good job profile. by doing the job analysis a good
job profile can be created
Look at internal talent pool by promoting internal staff it will
support carrier progression, employee engagement and
supports succession planning. This will then helps to improve
retention.
Clear advertising the advertisement have to be very clear and
indicate, requirement, desirable criteria of the job applicant,
nature of the organisation, job location, reward package, tenure,
etc
2..3 Increased learning and development opportunities
Below methods can be used by Hi-Tec in order to train their staff
according to Julie Beardwell, (2007). Human Resource Management
On the job training
External conferences workshops and events
Formal education courses
Instructor-led training off the job
Coaching by line managers
Audio/video tapes and learning resources
Job rotation, secondment and shadowing
E-leaning
Internal knowledge sharing sessions
2..4 Revised the way staffs are rewarded so their efforts are better
recognised.
Hi-Tec is having a generous bonus scheme, and pension and health
and life insurance but it might not be enough to increase retention.Additionally company can look at improving rewards model according
to CIPD reward management (CIPD, 2011)
Main points can be looked at are
Bonus
o Merit pay rises
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o Individual bonuses
o Individual non monetary recognition awards
o Combination schemes
Employees offered long term incentive schemes
o Save as you earn (SAYE)
o Share incentive plan (SIP)
o Company share option plan
o Executive share option schemes
o Executive restricted/performance share plan
Employer offering contributory pension
o Defined contribution (DC)
o Defined Benefit (DB)
o Contribution to personal pension
2..5 Made changes to improve work life balance
The are many ways contemporary businesses are approaching this
concept and below are some of the most important ways to use
Reduced hours
Change working patterns
Flexi-Times
Job Sharing
Home working
Term-time only
2..6 Increased pay
Hi Tec can also look in to their way the basic pay has been structured.
Below methods can be used to do amendments to basic pay, Market rates with job evaluations
Individual performance
Competencies
Skills
Employee potential/ value and retention
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Length of service
3. Conclusion
Hi tec have a big challenge over recruitment and above have discussed the best
possible remedy to recruitment and retention practices.
Above approaches will be a definite advantage for Hi Tec to reduce its turnover
levels and towards the retention of its employees.
4. References
1. Julie Beardwell, Tim Claydon (2007). Human Resource Management. 5th
ed. England: FT Prentice Hall. 677
2. Dessler, Gary: Human Resource Management, Eighth Edition. New
Jersey, USA, 2000
3. IT majors reboot employee retention strategies. 2010. Financial Express, ,
pp. n/a.
4. Exclusive research: IT employee retention high priority. 2000. Chain Store
Age, (10870601), pp. 30-30.
5. EARLS, A.R., 1998. Retention getters: The 25 companies that excel at IT
retention. Computerworld, 32(6), pp. 82-82-83.
6. MODERI, M. and FOOTE, D., 2005. Is IT Retention Efforts Working?
Optimize, 4(12), pp. 23-23-24.
7. IT staffing: Retention is cheaper than recruiting. 1999. Health management
technology, 20(3), pp. 32-32-34.
8. RATHS, D., 2000. Get creative about IT recruiting. InfoWorld, 22(30), pp.
42-42-43.
9. The Off-Line Advantage: Survey Shows Word of Mouth, Staffing Firms
Critical IT Recruiting Tools. 2002. United States, New York: PR Newswire
Association LLC.
10. KING, J., 1997. IT recruiting options multiply. Computerworld, 31(39), pp.
1-1, 110.
11. CIPD. (2009). Annual Report -Recruitment, retention and turnover.
Available: http://www.cipd.co.uk/hr-resources/survey-reports/recruitment-
retention-turnover-2009.aspx. Last accessed 15th Sep 2011
12. ANDERSON, N and SHACKLETON, V. (1993) Successful selection
interviewing. Oxford: Blackwell.
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5. Bibliography
Available from :
http://www.deomi.org/EOEEOResources/documents/EmployeeRetent
ion-Lyons.pdf (last accessed 14th Sep 2011)
Available from :http://www.cpsc-
ccsp.ca/PDFS/CPSC%20Final%20Report%20June28%20-
%207%20case%20studies2%20oct%207%2004.pdf (last accessed 14th
Sep 2011)
Available from :
http://www.mergespeaks.com/pdfs/FMIRetentionTurnoverEnglish.pdf
(Last accessed 13th Sep 2011)