CASE STUDY

Question

Reliance Motors, an automotive manufacturing company employs over two hundred (200)
employees and has been in business for over a decade. The New Delhi, India based company has
thrived well in the market until emergence of operation disrupting hiccups in 2012 when the
company was adding another line of product to its production. Due to the competitiveness of the
automotive industry, Reliance Motors made an effort to diversify its operations by adding a new
model to its production line. The change brought about an introduction of new technology in the
work place which most of old employees were not familiar with. Due to competition pressure,
Reliance could only afford on the job training as the company could not afford to lose production
hours. The change management process was rapid without due care of whether or not all the
employees were keeping up. Results were demanded and those who couldn’t meet expected
production levels were let go without hesitations regardless of their ability or potential to be star
employees if only they were nurtured and supported towards the right directions. Noticing the
unpleasant working environment, some of the employees who couldn’t keep up resigned from the
organisation before they were sacked. Employees of Reliance Motors were expected to make target
each and every day without any feedback given to them about their performance unless if target
was not made. Management of the company believed that the highly competitive salaries and target
bonus paid to the employees were enough to motivate them in the workplace. Most of the
employees found their jobs to be monotonous and could only do enough to keep their jobs. Error
rate on finished products started to escalate and recalls of faulty cars also increased. Due to high
turnover, recruitment costs also escalated, and profit margins plummeted. Due to the specialization
nature of the automotive industry other employees also queried that the Engineering Department
employees were given special treatment due to their scarcity in the labour market and this brought
divisions among the employees. Overwhelmed with these challenges the Managing Director of
Reliance Motors, Mr Mathur Kumar Khan found it necessary to bring on-board a Human Resource
Practitioner who could identify the root causes of HR problems at Reliance Motors and probable
solutions thereto.

a) As a Human Resources Practitioner employed by Reliance Motors list and explain five (5)
HRM problems identified from the case study. (15 Marks)
b) Provide probable measures that could be taken to remedy the identified HRM problems at
Reliance Motors. (10 Marks)

Answer 1

Certainly! Based on the provided case study of Reliance Motors, here’s an analysis of HRM problems and their potential solutions:

a) HRM Problems Identified from the Case Study (15 Marks)

1. Inadequate Training and Development:

   • The company introduced new technology but only provided on-the-job training due to time constraints. This led to many employees lacking the necessary skills to operate effectively, resulting in increased error rates.

2. High Employee Turnover:

   • Reliance Motors faced a significant employee turnover, with many employees resigning out of frustration before being terminated. This creates instability within the workforce, along with increased recruitment costs.

3. Lack of Performance Feedback:

   • Employees were only informed of their performance when targets were not met. This lack of constructive feedback ultimately led to disengagement and did not foster a culture of continuous improvement.

4. Monotonous and Demotivating Work Environment:

   • The repetitive nature of the jobs, combined with pressure to meet targets without adequate motivation or engagement strategies, contributed to employee dissatisfaction and disengagement.

5. Perceived Inequity Among Employees:

   • There was a perception that employees in the Engineering Department received preferential treatment due to their scarcity in the labor market. This created divisions and lowered morale among other departments.

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b) Probable Measures to Remedy the Identified HRM Problems (10 Marks)

1. Comprehensive Training and Development Programs:

   • Solution: Implement a structured training program that includes both on-the-job training and formal learning sessions. This could help employees gain the required skills and boost their confidence in using new technology.

2. Enhancing Retention Strategies:

   • Solution: Develop a retention plan that includes improved working conditions, job enrichment, and possibly, mentorship programs to provide career growth opportunities. Additionally, conducting exit interviews can provide insights into reasons for turnover.

3. Regular Performance Feedback Mechanism:

   • Solution: Establish a continuous performance management system that includes regular feedback, goal-setting sessions, and performance reviews. This encourages open communication and supports employee development.

4. Engagement and Job Enrichment Initiatives:

   • Solution: Create diversity in job roles, implement team-building activities, and recognize and reward achievements to make work more engaging and enjoyable. Work-life balance initiatives can also contribute to employee motivation.

5. Equity and Inclusivity Programs:

   • Solution: Foster a culture of fairness and inclusivity by ensuring equal treatment across all departments. This could include transparent policies for promotions, rewards, and recognition to alleviate feelings of favoritism.

By addressing these HRM problems through strategic measures, Reliance Motors can create a healthier work environment that boosts employee morale, enhances productivity, and ultimately leads to better business outcomes.