Vanguard Motors (Hypothetical HRM Case)

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