You are on page 1of 2


School of Distance Learning

Essentials of HRM

Programme: BM Semester: II Marks: 30

Notes :
You are encouraged to substantiate your response with examples, to the extent possible
Each question carries 10 marks.

Case Study

Raj Enterprises is a 6 year old India based organization and specializes in manufacture of
paper products – stationery, note books, letter pads, handmade paper products. Its financial
results and employee data for the last 5 years is as follows :

Turnover (Rs in Employee

Year Crores per annum) strength
2006 2 10
2007 14 40
2008 20 75
2009 44 100
2010 100 (estimated) 150

Raj Enterprises presently has 2 manufacturing plants based at Pune and Nashik. The Head
Office is located at Mumbai. An HR Department has just been set in the year 2009. Prior to
the year 2009, most of its people processes were handled in an ad-hoc manner by Senior
Managers or the Admin In-charge and the payroll function was outsourced.

The HR Department consists of a Senior Manager (Amar Pradhan) and an HR Executive.

The company has no induction process and HR planning is almost non-existent. New
employees join a department and are guided either by the departing employee or by a junior
executive, whenever he has the time to spare. On most occasions, a new employee has to
learn by ‘observing’ his colleagues at work.

In case of a vacancy, candidates are shortlisted based on CVs submitted by existing

employees. Often getting a right candidate is a challenge and sometimes positions lie vacant
for over a quarter. Job descriptions are absent for majority of the positions in the

Over the last few years the company has particularly encountered difficulty in filling its
middle management positions. The company hired a consultant to aid its efforts. The
average tenure of these employees recruited through a consultant was less than one year. The
interview process is ad-hoc with the Business Unit Head alone taking the decision on hiring a
candidate with limited or no role played by Amar Pradhan. In fact HR was reduced to
playing a co-ordination role in the entire recruitment and selection exercise.

Some employees due for retirement are given an extension as the company is finding it
difficult to get their appropriate replacements.
On occasions, the company tired promoting employees from within the organization though
soon realised that these employees did not have the necessary skill-sets for the promoted

Training at Raj Enterprises is limited and considered a privilege of very select few
employees. Performance of employees is assessed by the immediate superior with little or
no opportunity to place grievances before a neutral authority. HR is involved in distribution
and collection of Appraisal Forms and in computation of payout to employees. Reward and
recognition does not exist at Neeta Enterprises.

Employee attrition is high and the general impression in the market is that this organization is
a good training ground for freshers.

Questions : (Each question carries 10 marks)

1) Discuss the solutions to the recruitment problems facing Raj Enterprises

2) Detail an induction process that will aid Raj Enterprises.

3) Design unique reward and recognition strategies for Raj Enterprises