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Ref # HRM-CH-01-Case01 (ManagementStrategies and Environment)

HRM Policies & Practices

Remedy for HR Management


HR management is contributing to the success of both large and small organizations. One smaller organization, Remedy Corporation of Mountain View, California, has seen management of human resources as contributing to its business success. Based in Californias Silicon Valley, Remedy provides internal help desks for computer networks and databases. Customers contact Remedy for assistance with network computing problems. Started in 1990 by three high technology experts, Remedy currently has almost $40 million in annual revenue. When the founders started the company, they established as one basic value that working at Remedy should be enjoyable as well as profitable. That belief has helped create a company culture today that gives Remedy competitive advantages when recruiting and retaining workers in the challenging labor market of Silicon Valley. Because recruiting of employees to handle growth at Remedy is so crucial, the HR unit has used various unique approaches. For instance, they rent mini cars at local tracks and invite promising job applicants to drive the cars. An aggressive employee referral program pays employees up to $5,000 for referring new hires that stay with the firm. In another effort, Remedy had its executives wearing animal costumes as part of a jungle recruiting campaign. All of these fun programs have a more important business purpose: to demonstrate that people are important at Remedy. The HR unit prides itself on prompt feedback to potential employees. In one recent program, managers washed the cars of their employees to indicate their appreciation for employees efforts at the company. But traditionalists would ask if all this fun pays off. Remedys answer is an unqualified yes. Over 40% of all Remedys new employees came from the employee referral program. The firms cost to hire each new employee is about $2,000 less than the industry average. Even more important, those hired stay longer with Remedy, as indicated by its retention rate of 42 months compared to the Silicon Valley average of 20 months. Also, employee turnover is about 8% annually significantly below the industry average. It is obvious that Remedys approach to HR management is paying off, both in an enjoyable company culture and in contributing to organizational success.47 Questions Question No 1. What is your view about fun at work being used as a specific part of HR management? Question No 2. Compare the approach to HR management at Remedy to that at a current or previous job you have had.