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Case 1

1. Relyon is an insurance company with branches all over India. All the HR activities of
the company are carried out by HR professionals based at the headquarters of the
company located in N Delhi. The hiring practice of the company is that the HR staff
at the central office recruits the personnel for the managerial cadre for all its branches
and leaves the recruitment of other cadres to the manager in charge of their respective
branches. The company recently opened a branch in Jorhat, Assam.
Amitabh, GM (HR) posted Arvind as the manager for the recently opened branch. In
conformity with the company’s hiring policy. Arvind recruited other personnel for his
branch. But within one year of its operation, the branch witness a high labour
turnover. The turnover rate was much higher than the company’s overall average of
10%. Posts like accounts officer turned over four times while computer operators
worked only for a few months and this was the case with sales people, who, on an
average, lasted only for a few months. The head office took a serious view of these
developments.
The branch manager was called to the HR department of the head office to explain
the reason for such a high labour turnover in his office. Amitabh, the HR General
Manager, asked Arvind about the hiring practices adopted by the latter for choosing
employees for his branch. Arvind explained that he made an initial assessment of the
candidates on the basis of the information provided by them in their application
forms. Those who met the minimum criteria set for the job were then called for an
unstructured interview. During the interview, the candidates were asked questions
relevant to their field to measure their knowledge, skill and proficiency in the job.
Arvind mentioned that he critically observed the candidate’s sitting posture, how he
presented himself, his initial remarks, his mannerisms and also his attire. These
factors had a decisive influence on his final assessment of the candidate. The
candidate was also quizzed about his real intention for joining the company and also
his career plans. Finally, a ranked list on the basis of the interview performance was
prepared and the job offer given to the selected candidates.
Amitabh, who listened attentively to Arvind, was neither satisfied nor dissatisfied
with Arvind’s explaination but began to think seriously about the possible role of the
selection process in contributing to the high labour turnover.

a) What is your opinion of the hiring policy followed in Relyon?


b) What is your assessment of the hiring practices adopted by Arvind?
c) State the recommendations you would make to Arvind for improving his hiring
practice.

Case 2

Modern Textiles is in the business of producing garments and has an average annual
turnover of Rs. 3 Billion. Since a large volume of its product is exported, the company has
been very conscious of its quality commitment. It provides induction training to every new
employee for two weeks and then on the job training by a supervisor for four months. This
had been proving sufficient for the workers in meeting the clients’ quality expectation even
while maintaining the high volume of production.
As part of its ambitious expansion programme, the company recently imported
ultramodern machinery to double its production capacity. After the machinery was installed,
the production volume increased as expected, but the reject rates too rose dramatically.
Consequently, the cost of production increased and the export deadlines too became very
tight. The management discussed the issue a the different levels of the organization and held
the machine operators’ inadequate knowledge and improper handling of the new machinery as
the primary reason for the unusual rejects. To remedy the situation, the HR department
hurriedly organized the necessary training prgramme for the employees’ handling this
machine and the reject rates situation started to improve.
Meanwhile, the production manager found the HR department at fault for the crisis
and blamed it for not undertaking training needs assessment among the production department
employees. However, the HR department retorted by saying that barely three months before
the arrival of the new machine, a routine training needs assessment had been made among
those employees but it had revealed no pressing training requirements. On their part, the HR
personnel held the production manager responsible for failing to inform them about the
imminent arrival of the new machine at the time of the assessment of the training necessities.
The blame game continued

a) From your perception, who is responsible for the whole incident resulting in high
reject rates and the other associated problem
b) If you were the HR manager, what would you do to avert the crises
c) What should be the long term strategy of the company in terms of the training
policy and process

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