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Assignment

On
Rajani Boutique

Submitted To:

Mr. Riswo R. Gorkhali


Course Instructor
Ace Institute of Management

Affiliated to:
Pokhara University

Submitted By:

Hemlata Agrawal
Pankaj Chataut
Sudip Dhakal
Suraj Shrestha
Term V

In partial fulfillment of the course requirement of Business Research Methodology for the degree
of
Master in Business Administration

Kathmandu
March 2017
To be a successful Boutique owner, you must master the art of juggling.
OwningandmanagingaBoutiquemeanshavingtotakeonmultipleroles,from
accountingtomarketingtohumanresources.Unfortunately,havingtojuggle
thetasksofvariousrolesincreasesthelikelihoodofmakingmistakes.

ItseasyforBoutiqueownerstosometimesignorethehumanresourcessideof
businesswhen things are running smoothly. However, doing so can lead to
costlymistakes(thinklitigationandemployeeturnover)mistakesthatcould
haveseriousconsequencesforbusinesses.

AseeninthegivencaseofRanjanisBoutique,thefollowingHRtermscanbe
consideredasHRissuesorchallenges:

1. whofacilitatesthecompany'sHRfunctions

Asseeninthegivencase,thereisthelackingofpersonresponsiblefor
looking out HR function of the business. With the absence of HR
functionalunittherecomestheproblemtohiringarightpersonatthe
righttimefortherightplace.Alsoitleadstoabsenceofstaffmotivation
andproperutilization.

2. Thehiringprocessisoverlyhasty.

A seen in the given case, it is just a family business. The head job
responsibilitypassesthroughgenerationofafamily.WiththelackofHR
department,ownerisshowingignorancetoassignjobresponsibility.In
othertermsjobdescriptionispoorlydescribed.

3. Performancemeasurementandpersonneldevelopment:
Asseeninthegivencase,itisbeinghardtounderstandhowandwhento
measureperformanceanddevelopstaff.

4. LinemanagerassumingroleoftheHRwithlimitedHRknowledge
andtraining:

ThismeansdoublingupjobrolestocoverupHRfunction.

5. Lack of resources/time to deal with any real staff issues or put


effectivepoliciesinplace

We can also observe that HR practices are not up to


scratch, and it could be exposing them to potential issues.

6. Lacking of training and Development programs:

When it comes to HR, it is all about best utilization of your


core/ tangible resource of your company i.e. HUMAN SIDE /
employess. As seen in the given case there seems to be
lack of training and development programs of human
resource.

7. Inflexible work arrangements:

Seen in the case is the issue of inflexible work


arrangement. As there is always an issue of who stays till
late hour, it leads to improper management of HR
schedules.

8. Lackofcooperativeculture:

Also seen in the case is the issue of uncooperativeness and extreme


conflict in among staffs. This conflicts leads to downsizing the
productivityofRajanisboutique.
WiththeabovelistedHRissuesinRajanisBoutiquethefollowingcouldbethe
likelyeffectsonbusinessifthoseissuesarenotaddressed:

1. Abseentism:

With the lack of proper HR plan there comes the case of serious
absenteeism. A certain level of abseentism is always required for a
effectivegoalachievementofacompany,butwhatiftheabsenteeslead
toseriousprobleminamongthecoordination.Itstimetobeconsidered
byBoutiqueowner.

2. Turnover:

With the lack of proper working environment there result a serious


problemofemployeesturnover.

3. Productivity:

With the lack of proper coordination among the staff, it leads to


downsizingtheproductivityofacompany.

4. Lackofcompetitiveness:

TheotheroutcomeofabovelistedHRissuesinRajanisBoutiqueisthe
existence of lack of competitiveness. With the lack of flexible work
scheduleandfallonproductivity,itleadstolackofcompetitivenessin
market.RajanisBoutique,asitisfacingtheseriousproblemofraisein
threatsofnewentrant,andwiththeimproperHRstrategymayfailto
meetthecompetitiveenvironmentprovidedbymarket.

With reference to the above listed HR isuues and their outcome, the
followingarethestrategiesrecommendedtoaddressHRissuesandto
protectRBsbusinessinterest:
1. EstablishmentoffunctionalHRdepartment:

The best strategy to solve the above listed issues, the first
recommendation provided is for establishment of functional HR
department. There should be a person who looks after the employees
issues.

2. Hiringprocessshouldbewelldefined:

The other strategy that ranjani boutique owner should establish is, it
should well define the hiring process. A poor job description always
attracts less employess towards the company. Owner needs to select
workingemployessfromamongthosesmallsetofcandidates.Hencethe
other strategy suggested to owner from Rajanis Boutique is to well
define the hiring process that enables them to pool candidates from
amongthelargelist.

3. Employeeneedstobewellclassified:

Company needs to well classify its employee in terms of behavioral,


financialandrelationship.ItneedstoestablishHRteamwhichinstructs
itsrespectivestafftohandletherelationshipissueswithitsclients.

4. Establishmentofemployeeshandbook:

Withtheestablishmentofemployeehandbookitcancommunicatework
relatedpolicies.Businessesofallsizesneedtohavesomeformofan
employee handbook. Not having company policies in writing is just
askingfortrouble.Havinganemployeehandbookisntenough,however.
Thepoliciesoutlinedinthehandbookneedtobeupdatedonaregular
basisandcommunicatedoften.Whatsmore,employeesshouldsignan
acknowledgment form stating that they have read and understand
everythinginthehandbook.
5. Employeetrainingtakesabackseat:

When employers invest in their employees, theyin turninvest in the


company. This investment is most clearly demonstrated by providing
varioustrainingopportunitiesforemployees.Theseopportunitiesshould
begin with a thorough onboarding processfor new hires and continue
withprofessionaldevelopmentprogramsandeventsforcurrentstaff.

Byprovidingnewhireswiththetoolstheyneedtohitthegroundrunning
and current employees with opportunities to grow, employers can rest
assuredthatemployeesatallstagesareperformingatpeakperformance.

6. Outsourcing: An altenative solution to formation of functional HR


department:

AsRajaniBoutiqueisasmallsizedgrowingbusiness,itisrecommended
to establish a functional HR department responsible for working with
Humansideissueofthecompany.Butsinceitissmall,therealsocomes
theissueofcosttoformaseparatedepartment.Henceitneedstoconsider
theOutsourcingasanalternativesolutiontoformulationoffunctionalHR
department.

Outsourcing HR functions means Rajani Boutique hire one or more


outside entities to handle your HR matters, such as administration of
benefits,recruitingnewemployeesandprocessingpayroll.Insomecases,
theoutsourceprovidermayspendtimeonsite.OutsourcingHRfunctions
including Rajani Boutiques recruiting needs reduces its
administrativeburden.However,whenitengagesanoutsourcingfirm,it
still needs an HR staff member to monitor outsourced activities and
coordinatetheservicesofmultiplecompaniesthatprovideHRservices.
Looking the above cases of Rajani Boutique, its issues and strategic
solution,wecansaySaranisoperatingwithoutadefiniteparticularjob
functional title. It is recommended Saran to take up the following
function:

1. Oversee the role of lead Designer:

Astheleaddesignerisbasicallyengagedinsharebusinessduetowhich
he/sheisnotbeingabletofocusoncurrentjobresponsibility,Saranneeds
toinspecttheroleofleaddesignerondaytodaybasisandmotivatehis/
hertowardsgoodperformance.Ifthatisnotbeingpossibleasexpected,
Saranneedstofindotherleaddesigner.

2. Maintain a proper attendance system:

SaranbeingresponsiblefortheoverallstrategyofRanjaniBoutiqueneeds
to maintain a proper attendance system in the company. Detailed
scheduledofchekin,break,andcheckoutneedstobeestablished.Proper
system ofovertimeand payment method should be established in HR
policyandneedstobedocumented.

3. Needs to make proper growth strategy of the company:

As seen in thecaseisthe weakcompetitivestrategyofthecompany,


Saran being responsible for the overall strategy making part of the
companynowneedstofocusmoreontechnologypartofcompany.He
needs to move the company with time. He needs to have the proper
knowledgeoflowcostadvantageprovidedbyglobalization.Heneedsto
focusonsellingtheproductbeyondtheboarderratherthanbeinglimited
withinthelocalmarket.Heneedstohavemotivatedstaff.Henowneeds
to focus on customer relationship management. He can also start the
conceptofonlineorderofgoodssohecanreducetheoperationalcost.