Abstract

This report is focused on HRM of Eches Pvt Ltd, an SME in the field of software and hardware solutions in
the Maldives Market. The report gives a brief profile of the company and evaluate the company with use of
different HR models and theories (Stories definition of HRM and personal management) to explain the current
HRM of the company and how it can improve in the future.

In conclusion an academic approach with practical proven methods has been suggested to improve the current
HR policies to provide a more flexible work environment for both Male and Female co-workers. The report
has tried to find out the best course of action that can be taken to improve the existing business of Eches Pvt
Ltd to a new level in the competitive software and hardware market of Maldives, while achieving the strategic
goals of the company and create a competitive advantage in the market.
Table of Contents
Abstract.............................................................................................................................................................. 2
Introduction........................................................................................................................................................4
Importance of HR managers in organisations.................................................................................................4
Introduction of Eches Pvt Ltd.........................................................................................................................4
1.1 Guest’s Model of HRM................................................................................................................................6
1.2 Difference between HRM & Personnel Practices.........................................................................................7
Personal Method Practices of Eches Pvt Ltd..................................................................................................8
2.1 A model of flexibility for Eches...................................................................................................................9
Flexibility (Theory)........................................................................................................................................9
Core and Periphery Workforce Model............................................................................................................9
Shamrock model at Eches...............................................................................................................................9
2.2 Types of Flexibility (Theory and application)............................................................................................11
1. Telecommuting.....................................................................................................................................11
2. Condensed Workweeks........................................................................................................................11
3. Vacation time flexibility...........................................................................................................................11
4. Flextime....................................................................................................................................................11
5. Job Sharing...............................................................................................................................................12
Flexibilities at Eches.....................................................................................................................................12
Conclusion........................................................................................................................................................13
References........................................................................................................................................................14
Figures Index....................................................................................................................................................14

Page 2 Maldives Business School HRM – at Eches Pvt Ltd

Introduction

Importance of HR managers in organisations

HR management is a strategic approach to managing employment relations which emphasizes that leveraging
people's capabilities is critical to achieving sustainable competitive advantage.

Organizations need human resources for a variety of reasons, ranging from strategic planning to company
image. HR professionals with diverse specialties in any business, provide several services to employees. The
areas in which HR maintains control can enhance an employees’ experience throughout the workforce while
bolstering business operations (Mayhew, 2019).

According to statistics by HR professionals, 53% of them believe that employee engagement increases when
the onboarding process is better (Silkroad, 2017). Furthermore, they stated that 73% of employers believe that
a healthy corporate culture gives their firm a competitive edge. And a survey conducted by SHRM, 89% of
HR leaders confirmed that ongoing peer feedback has a positive influence on the organisation (SHRM, 2018).

Introduction of Eches Pvt Ltd

Eches Pvt Ltd is a software and hardware Solution provider is Maldives. As a Sole Proprietorship under the
name Eches Consultancy” began a humble beginning in 2008 by providing POS software solution to retail
Clients. In 2011 they rebranded to “Eches Private Limited”. During the past 14 years the company has
achieved many milestones and is now one of the largest software solution companies in Maldives and they
provide the world’s best solutions to all major business industries in Maldives.

With an innovative, dynamic, and professional team of consultants, they help the clients run better by
simplifying all their accounting and operational challenges with use of best-in-class computerized solutions
(Eches, 2022).

Eches services include providing best solutions (POS Hardware, POS Software, ERP, Accounting, HR, other
software, giving consultation services, selling + developing software and add-on where necessary) to all areas
of the business from Micro business to large enterprises business. Eches is in partnership with world
renowned software vendors to provide an affordable and reliable service to the clients in Maldives. They are
the exclusive SAP Partner in Maldives. Additional vendors include Microsoft, 3CX, Intuit USA, NRC,
Huawei, Pointsoft Hong Kong & Freshworks.

They have also has earned the title of SAP Gold Partners, Microsoft Silver Partners, 3CX Silver Partner and
has also achieved SAP Partner of the Year in Emerging Markets 2021.

Figure 1 - Key partners of Eches Pvt Ltd

Page 3 Maldives Business School HRM – at Eches Pvt Ltd

Currently the company has the following departments with 20 (5 female and 15 male) employees.

 Admin & HR & Accounts Department

 Marketing and Sales
 Software Development
 Customer Solution and technical support

Organisation Chart

Figure 2 -Eches Pvt Ltd Organization chart

Page 4 Maldives Business School HRM – at Eches Pvt Ltd

1.1 Guest’s Model of HRM

Prior to investigating Guest’s model of HRM, we must know about Hard and Soft HRM.

The Hard approach is concerned with aligning human resources strategy with business strategy. A manager
employing the Hard HRM approach is strict and assumes only reason employees work is to acquire financial
benefits.

On the other hand, the Soft approach encourages commitment to the organization by focusing on workers
concerns. A manager employing the Soft HRM approach is more compassionate, trust the employees more,
and gather opinion and take it on board with the belief that workers come to work with the intention to
impress and progress (BPP Learning Media, 2010).

Guest acknowledges the difference between these two approaches and incorporates both in an ideal model and
it seeks commitment to organizational goals through strategic management of an organization.

This Model also focuses on the individual needs rather than the combined workforce which enables
organizations to develop power and flexibility.

Page 5 Maldives Business School HRM – at Eches Pvt Ltd

1.2 Difference between HRM & Personnel Practices
According to Storey’s Definition of HRM human capability and commitment is what differentiates
organizations. Moreover, HRM needs to be implemented into the organizational strategy and needs to be
integrated into the management functions because these will assist organization to achieve its goals properly
(BPP Learning Media, 2010).

Storey’s Definition of HRM identifies the following points of difference between Personnel, IR Practices &
HRM Practices:

 Personnel aim at careful allocation of written contracts whereas HRM try to go beyond the contract.
 Personnel prioritizes devising clear rules whereas HRM pursues a can-do outlook.
 Personnel guide to management action is based on procedures whereas HRM focuses on business
need.
 Corporate plan goes side by side with Personnel whereas HRM is integrated with strategy.
 Pace of decision is a bit slow with Personnel compared to HRM.
 The key concern of Personnel is just labour management while HRM focuses on customer.
 With Personnel management’s role is transactional whereas HRM focuses on transformational
leadership.
 Personnel maintain indirect communication whereas HRM follows direct communication approach.
 Selection is a separate task for Personnel whereas this is an integrated process for HRM.
 Personnel believe in fixed grade pay while HRM believes in performance related pay.
 Job design is based on division of labour with Personnel while HRM aims to promote teamwork.

Implications for Line Managers in Developing a Strategic Approach to HRM

Several benefits exist in using line managers as developers of people.

 Line managers specialize in day-to-day people management.

 They can manage operational costs effectively.
 They can apply technical expertise where necessary.
 Line managers organize work allocation and Rota.
 They monitor and evaluate work processes.
 They measure operational performance and check quality.
 Line managers deal with customers and clients directly.

Implications for Employees in Developing a Strategic Approach to HRM Employees play the most important
role in HRM since they are the key asset, and we also must remember that high-performing and innovative
employees are the foundation of productivity.

Some major implications are as followed:

 Effective leaders can set direction and execute a corporate strategy that builds commitment.
 Employees help develop performance metrics for continuous improvement.
 Support for employee innovation can dramatically increase productivity.
 Employee collaboration and best-practice sharing improves efficiency.
 Effective reward system for employees drives toward better performance. Non-monetary factors like
better status can motivate employees in addition.
 Effective communication and feedback from employees can reduce errors and frustration at work.

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Personal Method Practices of Eches Pvt Ltd

Among the three methods at Eches it is observed they use the personal practices of HRM. After an employee
is passed from the initial interview the employee is place on a 3-month probation period. If the employee is an
inter the period is 6 months. During the probation period each employee is assigned a supervisor and given a
list of training and skill development courses to be completed.

Each employee is given a written contract with all the rules and policies of the company. This mainly follows
the standard employment act of Maldives. All the HR decisions are taken by the HR manager under the
guidance of Directors and the Managing Director.

Sometimes the communication is slow as key decisions need to be approved by the MD and he is physically
available at evening. However, if it is urgent, he will respond via phone or email immediately. And to make
this even smoother the directors are given authority to take critical decision in the absence of the MD.

The jobs are designed with division of labour where each employee has their specific main task and
overlapping tasks are additional projects team related tasks such. As such Key Account Managers are assigned
in terms of Customer Solutions after a contract has been finalized by the sales team. Development team is
focused on developing new innovative solutions to support the strategic goals and efficiency of the company.

Page 7 Maldives Business School HRM – at Eches Pvt Ltd

2.1 A model of flexibility for Eches

Flexibility (Theory)

Cognitive flexibility is the human ability to adapt the cognitive processing strategies to face new and
unexpected conditions in the environment (Cañas, et al., 2003). This definition involves three important
concept characteristics. Firstly, Cognitive Flexibility is an ability which could imply a process of learning, that
is, it could be acquired with experience. Secondly, Cognitive Flexibility involves the adaptation of cognitive
processing strategies. A strategy, in the context of this definition, is a sequence of operations which search
through a problem space (Payne, et al., 1993).

Cognitive flexibility, therefore, refers to changes in complex behaviours, and not in discrete responses.
Finally, the adaptation will occur to new and unexpected environmental changes after a person has been
performing a task for some time.

Core and Periphery Workforce Model

Peripheral or flexible and core employees are the two main groups that companies may divide their personnel
into. Employees that are merely temporary or who do not contribute to the most crucial tasks the organization
must do are part of a peripheral or flexible workforce. Employees who carry out the company's essential tasks
are part of the core staff. Creating a distinct core workforce has a few benefits that managers should consider
(Thibodeaux, 2019).

Core workers are those who are indispensable to the daily operations of the company, according to definition.
Core worker positions are generally secure if they perform them properly since the company needs a specific
number of individuals to carry out crucial duties. As a result of the workforce's increased stability, managers
are better able to estimate how operations will develop and how much they will cost (Thibodeaux, 2019).

Shamrock model at Eches

The term Shamrock Organisation was coined by Irish academic and management expert Charles Handy in his
1989 book "The Age of Unreason", in reference to his understanding and interpretation of an organisation’s
structures and systems.

Rather than the hierarchical systems that governed them, Handy believed that employees were the most
crucial resource within an organization. He believed that there were three parts to an organisation
(Businessballs, 2020).

 Core workers: which consist of technicians, senior managers, and professionals.

 Contract workers: formed almost entirely of self-employed professionals and contractors on a
project-reliant basis, their pay is based on performance rather than time.
 Peripheral workers: comprise most of the workforce, contingency employees that perform routine
jobs. These are generally part-time and flexible workers, and often have little career path or scope for
development within the company. The level of requirement for these positions is derived from the
demand generated by the organisation’s products.

These three different groups of workers had different expectations and were managed and rewarded
differently.

Page 8 Maldives Business School HRM – at Eches Pvt Ltd

Page 9 Maldives Business School HRM – at Eches Pvt Ltd
At Eches if the employees are divided into Shamrock model, they would look like this.

 Core workers – Majority of the company permanent employees are core workers. These include MD,
4 Managers (HR, Customer Solution, Sales & Marketing and Software Developer). Additionally, two
senior Developers, Accountant, and 4 Key Customer Solution Executives will also fall to this
category.
 Contract workers: There is only one contract worker who is the cleaning and maintenance man who
come daily to clean, sweep, and mop the office. And finally, the company rarely our source some
project deployment such buying hardware and using their expertise to install them at the client
location. This is not very common as the company keeps a stock of most used hardware such as POS
systems on stock.
 Peripheral workers: To this category will belong interns who are contracted for 6 months and only
allowed to be permanent after careful assessment of their competency and reliability. Usually these
are Sales, Customer Solutions and Development team employees.

Page 10 Maldives Business School HRM – at Eches Pvt Ltd

2.2 Types of Flexibility (Theory and application)

As more workers now value a healthy work-life balance almost as highly as a good income and as companies
become more aware of the advantages, flexible work arrangements are becoming more and more common.
But there are many different types of flexible work, and each has advantages and disadvantages for both the
business and the employee. Here are some popular flexible working arrangements many companies now are
accustomed to even in Maldives.

1. Telecommuting
With this kind of flexible working arrangement, the location of the employee's workspace is not determined
by the company. This obviously calls for a job that can be performed from any location (often with the aid of
technology such as VPNs to access the employer's systems, video conferencing to participate in meetings, and
mobile devices for mobility). It is possible to create a remote working option either full-time or on a set
number of days per week. In any case, the employees enjoy the advantages of lower commuting expenses and
the freedom to work from wherever they may be that day (Miller, 2017).

2. Condensed Workweeks
A condensed workweek, also known as a compressed workweek, is a situation where the typical full-time
workweek is reduced to fewer days than usual while the workdays remain the same. The specific arrangement
may differ, but this will typically lead to a four-day work week as opposed to a five-day work week.
Employees might prefer this arrangement for a variety of reasons, including the opportunity for a longer three-
day weekend rather than just two days off. However, some workers may choose to take a day off during the
week in order to break up their work week or complete other activities (Viewsonic, 2021).

3. Vacation time flexibility

It is constantly being seen in business environment that they are experimenting with limitless vacation time.
This kind of agreement frequently includes certain conditions that must be satisfied before vacation may be
taken, such as getting caught up on work or having a strategy in place for carrying out ongoing tasks. The
company needs to establish a culture that recognizes and promotes good work from all workers, regardless of
the number of hours they spend at work (Miller, 2017).

4. Flextime
Flextime, commonly referred to as flexitime, is a general term for flexible working arrangements in which
employees have the freedom to choose the start and end times of their workdays as long as they complete the
agreed-upon number of hours. Most frequently, this is merely altering the precise timing of their regular
working hours.

An employee might choose to work from 11 am to 7 pm one day and from 8 am to 4 pm the next, for instance,
instead of working from 9 am to 5 pm every day. According to some agreements, employees may trade off
working more hours one day for fewer hours the next, if their weekly or monthly contracted hours are met.

Employees who may need to schedule work around other commitments, such as picking up children from
school or taking a college course, can benefit greatly from flexible scheduling. The option to change start and
finish timings can occasionally help people with their commute by facilitating access to public transportation
or avoiding rush hour traffic (Viewsonic, 2021).

Page 11 Maldives Business School HRM – at Eches Pvt Ltd

5. Job Sharing
Another flexible work option is job sharing, in which two part-time employees work together to complete
tasks that would typically be completed by a single full-time employee.

The attractiveness of job sharing for employees is comparable to the appeal of a part-time job since it gives
them more freedom to balance work with other obligations. In some cases, finding two persons willing to
work part-time hours may be simpler for businesses, and in theory, the amount of work accomplished is the
same as if a full-time employee were recruited. Additionally, it might be useful when an employee goes on
leave because the position can still be filled to some extent.

Flexibilities at Eches

All employees are required to commit to an 8-hour Woking duty from 8 am to 5pm on all weekdays and 10
tam to 4pm on Saturday. Employees are having to report sick via the internally developed HR system 30 mins
prior to the start of any working day. Late information is only considered depending on the circumstances
around the request. Additionally, all employees can go to 1 hour lunch break to go out. However, if the
employee is not going out of office for lunch company provides lunch.

If for any reason an employee needs to go out it should be recorded in the Task Sheet application (synced with
Eches HR system) and noted as personal time. These hours or minutes should be later compensated by coming
back to office and spend the same amount of time taken for break. The task sheet application plays an
important role as all staff are required to log the tasks they work on daily and if the task is not entered for the
whole day in 48 hours, the employee will not get salary for that day.

Additionally, the Developers of Eches Pvt limited are given a flexible working hour as they usually come at
12 pm and work into the night to complete 8-hour shifts.

Every Employee is entitled to 24 (Twenty-four) working days leave (excluding public holidays) upon
completion of 12 (twelve) consecutive months of work. Annual leave will be granted on a calendar year basis
accrued at the rate of 2 days a month.

Leave Entitlements are calculated as follows:

Two days will be granted at the end of each month. Annual Leave can be accumulated up to fifteen months.
The employee should notify in advance (at least one Week ahead); approvals from the HR and the department
head is compulsory.

The Company try to accommodate all reasonable requests relating to the time and duration of Annual Leaves
but reserves the right to arrange Annual Leave in a manner that gives due consideration to operational needs
and requirements.

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Conclusion
Eches has a bright future as they are involved in an industry that has great potential growth. And the increased
growth in the past years is an indication the company headed in the right direction. Although the management
has bad experience when flexible working hours and remote working conditions (mainly because the
employees misuse and take advantage of the flexibilities). a competent and honest employees can benefit in
any organisation with the flexibilities such as remote working.

However remote working and flexibilities associated with HR are still not commonly practiced as many
companies does not has the proper IT infrastructure and security measures necessary to implement them.
However slowly this trend is changing after Covid 19 globally and is now more common.

Page 13 Maldives Business School HRM – at Eches Pvt Ltd

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FIGURE 1 - KEY PARTNERS OF ECHES PVT LTD.......................................................................................................................4

FIGURE 2 -ECHES PVT LTD ORGANIZATION CHART................................................................................................................5

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