Assignment BM701DL Student ID 21125373

8/2/2019 Assignment BM701DL Student ID 21125373

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Human Resource Management - Case Study BM701DL

Sanjeewa Kodikara 21125373 Page 1

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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Sanjeewa Kodikara 21125373 Page10

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.


Below reasons have found employees leaving a business and by occupation



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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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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)

Assignment BM701DL Student ID 21125373

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