HR Issues

1. Ineffective Recruitment Process

 Workforce
The major workforce comprises of international students only. Now their main objective
is working for a limited time period and their ultimate goal is to complete their
education rather than being focused on attaining the organizational goals. Hence, they
can’t be seen as a long term dedicated employees.
 Internal Hiring
The company has relied more often on internal hiring, recruiting through word of
mouth, in-store posters rather than adopting effective external hiring strategies.

2. Irregular Performance Appraisal

 Annual Performance Appraisal
As per the current P.A. system, we can see that the employees will only be rewarded at
the end of the year.
 Authority of Appraisal
The responsibility of appraisal is bestowed to store manager only who can also be
incompetent and his/her judgement might be biased.
 Informal P.A.
Lack of dedicated approach for reviewing the employees.

3. Absence of formal policies regarding staff benefits

 Rewarding informally
Lack of written layout regarding appraisal plans.
 No staff benefits
In the case, we can see store managers occasionally distributing rewards to the staffs
randomly which they receive.

4. High level of staff turnover and low employee morale

 It is evident that due to lack of proper & formal incentive programs.
 Since Café Espresso has apparently failed to keep up with the existing market trends,
employees aren’t satisfied with the progress of the company.

5. Staff Incompetency
 Over reliance on traditional product
In the current ever changing Business Environment, Café Espresso is only relying on its
traditional product without giving an effort to create new blend of varities.
 Hospitality Management
The company is also seen to fail in terms of delivering proper hospitality to the
customers which also happen to impact its brand image and performance.
6. Division of Hierarchy
We can only see one main store manager having the ultimate authority which can lead
to biased judgement and absence of a significant check & balance system.