CQHRM - Case Study 01 [Business Acumen [CQHRM S5]]

Chartered Institute of Personnel Management Sri Lanka (Inc.)

Chartered Qualification in Human Resource Management

Competency Batch Level

Business Acumen CF-22-ON-E-201 CQHRM

CF 7 - Investigating a Business Issue from an HR Perspective &

Subject
Business Process Outsourcing - CQHRM S5
Assessment mode Case Study 01
Handing over date 07th January 2023
Submission Date 29th March 2023
Word Count 1500 words

New Line Retail Pvt Ltd

The Business
New Line Retail Pvt Limited (NLR) is a 12-year-old business establishment in organized retail
business in Sri Lanka. Having its head office based in Colombo, the Company expanded its
branch network to 272 outlets on the island. NLR employs 8032 employees in all levels, in its
vast operational network. The operations include sourcing, logistics, retailing, promotional,
finance, HR and maintenance activities. The business is managed internally by a hierarchical
divisional structure with divisional heads, executives and operational staff.
Sourcing is centralized for all the products, and the products are stored at the organizations
owned central warehouse facility outside Colombo and delivered to retail stores on a planned
basis.

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CQHRM - Case Study 01 [Business Acumen [CQHRM S5]]

Business Environment
A challenging year with the Easter Sunday terror attack in April 2019, weather conditions
ended the calendar year of 2019 with economic growth of 2.3 per cent of Sri Lankan economy.
Despite the challenging macroeconomic environment, New Line Retail grew while
maintaining its leadership position in the market. The 12% growth in turnover and 10 % on
profitability greatly attributed to the expansion of outlets, sourcing efficiency and internal
controls.
While organizational performance has been reduced to a certain extent due to Covid-19, the
organization looks at the future with a positive mind and an aggressive plan.

Strategic Focus
NLR developed and implemented its five-year strategic plan (2019- 2024). The strategy
focuses on three primary areas. Growth, Cost & People

1. Growth- Business Expansion

2. Cost- Cost Management
3. People – Skills & Engagement

The strategic focus is to take the organization to be No2 in the organized retail sector in Sri
Lanka with a revenue projection of 38%. In turn, the strategic focus will have an impact on the
following areas of resources and activities.

Growth- No of outlets, the cost in inventory, logistics, no of people, technology

Cost- No of suppliers, technology, storage, logistics, no of people
People- Recruitment, selection, training, personal management function, motivational
activities

Key Achievements in 2019

2019 is an important year in NLR history as it implemented its five-year strategic plan and
achieved some of its first-year goals. The first-year goals included,

 No of new stores
 Expansion of storage & logistics
 Introduce house brands
 Improved employee retention
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CQHRM - Case Study 01 [Business Acumen [CQHRM S5]]

Challenges for Future

NLR faces and foresees a multitude of challenges in macro and microenvironments. These
challenges are identified through changes in packaging, price-based competition, aggressive
competitor activities, and people motivation and management. Managing internal resources
and activities such as knowledge, business processes, information availability, and related
technology are also critical areas of focus. These challenges dictate the organization to think
through its critical, repetitive and vital functions and bring in sound and appropriate plans to
allocate appropriately and maximize utilization of its energy, efforts and resources to the best
use. The organization should focus on and develop an action plan for the following immediate
challenges. They are,

 Price competition
 Cost management
 Logistics management
 Information – Real-time availability
 Recruitment & retention
 Skills & competencies

With the expansion, the spread of retail stores, connectivity and information gathering for
management decision making become a critical and a business need. Introduction and
improvement of technology to make accurate and real-time information availability will be a
clear advantage. Availability and development of analytical skills and knowledge, technology-
driven competencies become key factors and competitive advantage.

HR & the Organization

NLR recognizes people as its primary assets in its journey of sustainability and growth. The
organization identifies the importance of all people-related activities from recruitment to
retirement and all in between activities are strategized, planned and achieved through its
people.
The organization's entire HR is managed through the HR division for its day-to-day activities,
payroll, performance, leave, legal and conflict issues.

The strategies are developed and driven by talented and motivated employees who are
passionate about the organization. The ability to attract, motivate, and retain the best talent has
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CQHRM - Case Study 01 [Business Acumen [CQHRM S5]]

been one of the Company's key success factors. Also, continuous investment on people through
training and development, and providing opportunities to grow professionally and personally
may be a way of retaining talent.

Looking Ahead
The growth envisaged will have a greater impact on people requirement and people-related
activities of the Company. Activities such as recruitment, training and personal management
activities will take a larger time and space of HRD.

The organization's size in terms of people in numbers and its growth of activities with
expansion plan based on its strategic plan will be around 10,200 at the end of 5 years. In this
scenario, HR will play an even more crucial role in the organizational day-day activity.
Increased activities in various divisions will also bring new and diversified employee groups
and special talents enlarging the training & development, motivational plans and activities.
Critical understanding and evaluation of HR planning and HR management and its current
recruiting, selecting, onboarding performance management and other activities should be re-
looked to support the organization.

Questions

01. Discuss the business issues from an HR perspective in the organization.

(25 marks)

02. Identify and develop an intervention plan based on the strategic focus and its
implication on the people of the organization
(25 marks)

03. Identify from a Business Process Management perspective the areas to be outsourced
with sound justification
(25 marks)

04. Critically analyze at least four HR functions to be outsourced for the better use of
resources on key activities
(25 marks)

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CQHRM - Case Study 01 [Business Acumen [CQHRM S5]]

Grading form Competency- Business Acuman

Policies/Isuues/Programs
Introduction (10%) Discussion (30%) Proposal/Actions (20%) Presentation 10%)
(30%)
Discuss about the
business isuues from Competencies, performance, HR policies in relation to
Application of the stated Candidates interpretations Cohesiveness of discussion
Q1 HR perspective in the training & develepment , H organization (NLRPL) to
procedres and policies and and ideas to establish the with logical arrangement of
organization & S, Welbeing etc should be cover C& B, R & R,
ts implications in the discussed solutions in components and cohesive
(25 Marks) discussed in current and C&S,T & D,R
organization to be discussed asummary/conclusionform flow
future of the organization &S,ER/IR,EW/H & S

Identify and develop an HR plan and policies in HR to get invloved in

Intervention plan based future and challenges of the business need of the
A summary of activities, Cohesiveness of discussion
on the Strategic focus Human captital, learning organization organizationn understand,
conclusion and with logical arrangement of
Q2 and its implication on organizations HR role (NLRPL)selection of areas coordinate, research to
recommendations with a components and cohesive
the people of the iimportnace in HR activities (C& B, R & realise availabiity, sources
logical order flow
oragnization R, C&S,T & D,R and process of talent
(25 Marks) &S,ER/IR,EW/H & S) identification and action

Identify from a Identify the activities which

Steps to be taken to
Business Process Explain- BPM and can be outsourced and
Justify the selection by core- implemet outsourcing Cohesiveness of discussion
Management outsourcing, Idnetify identification of functions in
non-core (BPO,KPO & activity and process- with logical arrangement of
Q3 perspective the areas organizational activities and (NLRPL)selection. types of
ITES and how it helps Identifying, screening, components and cohesive
to be outsourced with likety activities -BPO, KPO, work in the organization (R
process management selection, training, inegration flow
sound justification ITES (Core & non- core) & S, advertising,
etc
(25 Marks) maintenance, logistics, etc)

Critically analyse at
Controls steps to be taken to
least four HR functions Business impact of In the organizational
implemet outsourcing Cohesiveness of discussion
to be outsourced for outsourcing HR functions (NLRPL) whar HR function Justification of selcted reas
activity and process- with logical arrangement of
Q4 the better use of and the benefits to type of can be finalized in a futuristic and the impact and benefit
Identifying, screening, components and cohesive
resources on key organizations (Big & small) sence (R & S, training, for the organization
selection, training, inegration flow
activities organizations) payroll, legal support etc)
etc
(25 Marks)

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CQHRM - Case Study 01 [Business Acumen [CQHRM S5]]

Guidelines for the Case study /assignment

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