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STRATEGIC HUMAN RESOURCES

MANAGEMENT

A Case Study Presented to


PROF. JOANNAH ROSE B. ROSALES, Ph.D
of the
Philippine Christian University

In Partial Fulfillment of the Course Requirements in


MANAGEMENT (MASTER 612)

Submitted by:

GROUP 5
FETIZANAN, CATHERINE, S.
MARIANO, ALVIN KEVIN, S.
TANOG, SHARIEFADA A.
VICENTE, ROSNALIN, D.

September 2023
STRATEGIC HUMAN RESOURCES MANAGEMENT: A CASE STUDY

I. INTRODUCTION

STRATEGIC HUMAN RESOURCES MANAGEMENT (SHRM) AND ITS PURPOSE

In today's rapidly changing business landscape, the role of Strategic Human Resource
Management (SHRM) is crucial. SHRM ensures that employees understand and are
empowered to execute an organization's strategy. Human capital is a vital component of
competitive advantage and an integral part of the planning-organizing-leading-controlling (P-
O-L-C) framework. SHRM involves attracting the right talent, setting performance metrics,
and appropriately rewarding employees to keep them engaged and motivated. In the
knowledge economy, HR plays a strategic role by identifying necessary skills, providing
training, and aligning HR functions with the company's strategy to hire the right employees
and reward them effectively, contributing to the company's goals. By creating a high-
performance work system, organizations can improve their overall performance and unlock
the potential of their workforce.

The shortage of workers makes it imperative for managers to find, hire, retain, and develop
their employees. Managers first need to define the skills that the company will need in
attaining its goals, by creating a precise job description. They can either “make or buy”—that
is, train or hire—employees with the required skills. Effective selection and placement mean
finding and hiring the right employees for your organization and putting them into the jobs
best suited for them. One important consideration is whether the candidate’s character is a
good fit for the company’s culture. To assess how the candidate will handle work related
issues, experience-based situational interviews and future-oriented situational interviews
would be the best tool. On top of these, managers also need to decide between hiring
expatriates or locals when staffing international locations in a global economy. Good talent
management practices translate to improved financial performance for the company as a
whole.

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Compensation plans reward employees for contributing to company goals. Pay levels should
reflect the value of each type of job to the company’s overall success. For some companies,
technical jobs are the most vital, whereas, for others, frontline customer service positions
determine the success of the company against its competitors. Pay-for-performance plans tie
an individual’s pay directly to his or her ability to meet performance targets. These plans can
reward individual performance or team performance or a combination of the two.

A high-performance work system (HPWS) unites the social and technical systems (people
and technology) and aligns them with the company’s strategy. The primary goal of HPWS is
to create a sustainable competitive advantage in the industry. It ensures that all the
interrelated parts of HR are aligned with one another and with the company’s strategic goals.
In summary, HPWS is all about determining what jobs a company needs to be done,
designing the jobs, identifying and attracting the type of employee needed to fill the job, and
then evaluating employees’ performance and compensating them appropriately so that they

stay with the company.

II. BACKGROUND OF THE CASE

Trojan Construction Group, established in 2009, is a major construction services provider in


the GCC (Gulf Cooperation Council) region with the head office situated in Abu Dhabi,
UAE. The group specializes in delivering turnkey projects across various sectors of the
construction industry. With a team of over 12,800 experts and laborers, the company’s main
objectives are to provide supreme quality works for in-house design and construction,
customer satisfaction, timely delivery within the budget and continuous improvement.

The group is comprised of seven (7) various multidisciplinary companies that operate within
the construction sector. First is Trojan General Contracting LLC specializes in high-quality
construction solutions across various sectors. National Projects & Construction LLC initially
started as a managing contractor but expanded into buildings, infrastructure, and mechanical
and electrical services. Reem Emirates Aluminium focuses on sustainable façade solutions,
particularly custom-made curtain wall panels. Royal Advance Electromechanical Works LLC

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is the MEP arm, specializing in electrical, HVAC, fire-fighting systems, and more. Hitech
Concrete Products LLC leads in precast concrete products and masonry blocks. Al Maha
Modular Industries LLC excels in industrial construction and steel structures. Lastly, Phoenix
Timber Factory LLC specializes in custom wood manufacturing for construction, including
kitchen cabinets and doors.

Overall, Trojan Construction Group and its associated companies have established a strong
presence in the construction industry within the GCC region, delivering a diverse range of
projects and services while emphasizing quality, innovation, and customer satisfaction.

When one hears the name Trojan Construction Group, also known for their brand name
“Trojan”, the first thought that pops into mind would be a construction scene with towers
and buildings, villas, concrete, cement, heavy construction machineries and equipment and of
course, people in different color vests wearing construction hardhats. These people could be
considered as the faces of Trojan; however, they are in fact, only part of an even bigger and
deeper organization. That being said, all the human resources within Trojan are managed to
work together on one mission which is – “To strive in bringing growth to our community,
helping to maintain existing companies, and assist our clients in making their dreams
become a reality” and a vision – “To build long-term relationships based on integrity
performance, value, and client satisfaction, while continuing to meet the changing needs of
clients through quality services and people.”

Trojan believes that the company’s initial and continued success over the years can be
attributed to the company’s most prized resource – the team. Their competence and ability
led the fielding workers to their actual capability, enhancing potential, optimizing human
resources, resulting in a team with excellence as a core value. Trojan believes that their
human capital deserves the best work environment – one that offers prosperity and learning at
every stage and seeks to enhance and hone their skill set.

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III. SWOT ANALYSIS ON THE CASE STUDY

STRENGTHS (S):

· Best Construction Company: Since its creation in 2009, Trojan has grown to


become one of the top five construction groups in the region, with a firm commitment
to quality work and timely delivery. A multidisciplinary construction group of
companies based in Abu Dhabi, UAE with in-house capabilities to deliver turnkey
projects. It has a significant and growing presence locally and in regional interests. It
has created a cohesive construction entity with a solid financial standing and
competitive edge.
· Ensuring timely salary payments: Trojan guarantees the timely and monthly
distribution of employee salaries in accordance with the regulations set forth by the
UAE Ministry of Human Resources and Emiratisation (MoHRE).
· Bonuses and Salary Increments: While the UAE's Employment Law does not
mandate bonuses, Trojan acknowledges exceptional employee performance, promotes
team collaboration, and expresses gratitude for excellent work through the distribution
of bonuses and salary increments.
· Centralized HR Functions: Trojan has a centralized HR function, like payroll
processing and benefits administration which leads to consistency and efficiency
across the group while ensuring compliance with regulations. Using a centralized
human resources department saves money on organizational costs and transaction
costs for HR department organization.
· Talent Development: Trojan recruits employees for specific roles through strategic
recruitment procedures involving the whole business in mind which makes sure that
they hire the right people for the job -- possessing the right skills and knowledge to
meet the job objectives. Trojan emphasizes employee training and development,
fostering a skilled workforce that can contribute to innovation and improved
performance.
· Employee Engagement: Since Trojan is a group company, employees work with
different entities, enhancing their career growth, gaining more experiences and

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providing the organization with a flexible and adaptable workforce. Trojan’s
strategies led to increased employee engagement, job satisfaction, and a positive work
culture, resulting in higher productivity.

WEAKNESSES (W):

· Delay in Requests and Approval Process: Operating as a conglomerate with


multiple entities within a group structure, Trojan often encounters a unique challenge:
the necessity to collaborate and seek approvals from various levels, ranging from
lower-level employees to top management, across its different subsidiaries. This
collaborative approach is crucial for ensuring that projects and initiatives are aligned
with the overall goals and strategies of the group. However, it also introduces delays
into the decision-making process, which, in turn, disrupts the execution of cross-
company projects and initiatives. These delays have a cascading effect on the
efficiency of the organization as a whole.
· Employee Overload: As Trojan operates as a group of companies, it is observed that
a significant portion of its employees collaborate across multiple subsidiaries. Many
employees engage in various project assignments and unaligned roles often resulting
in difficulty meeting deadlines and managing priorities. This phenomenon impacts
employees at all levels and across various work arrangements, including full-time or
part-time, on-site or remote positions. It affects individuals, teams, and entire
departments, and has become a persistent issue established in the company culture.
· Regulatory Compliance: With its central office situated in the UAE and branches
spanning diverse international areas, shifts in labor legislation and varying
employment regulations influence HR methodologies, necessitating ongoing
adaptations to strategic approaches. It is the requirement of the UAE government that
30% of the total employees should comprise of local or UAE citizens. In view of this,
some local employees are not doing their job well; having a mindset that they are
needed in the company whether they contribute to the company’s goals or not.
· Differing Cultures and Needs: Each group company has its own distinct culture and
HR needs. Implementing uniform HR strategies across diverse entities is challenging.
In Trojan, having its main office located in the UAE and branches spread across

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various global regions, it attracts and hires individuals, locals and expatriates from
diverse national backgrounds with different cultures and needs.
· Staff Management: Competing interests among the group companies sometimes
arise, particularly in cases where resource allocation or talent distribution becomes
controversial.

OPPORTUNITIES (O):

· Career Advancement and Skill Development: Working for one of the best
construction companies in the UAE like Trojan offers numerous opportunities for
career growth, professional development, and job satisfaction. Employees can gain
valuable skills and experience in construction, project management, and related fields,
enhancing their expertise and making themselves more competitive in the industry.
Employees can also build a strong professional network by collaborating with
experienced professionals, clients, suppliers, and subcontractors, which can open
doors to future opportunities.
· Competitive Compensation: Trojan offers competitive salary and benefits packages,
including performance bonuses, healthcare, and retirement plans.
· Company Reputation and Job Security: Joining Trojan as a reputable construction
company enhances employee professional reputation and can make them more
attractive candidates for future job opportunities. Since Trojan is an established
construction firm, employees have stable work and financial security, reducing
concerns about job stability.
· Global Workforce Management: In Trojan, the global presence leverages their
diverse workforce across different geographical locations as a strategic advantage.
This is an opportunity to effectively manage employees from various cultures,
backgrounds, and regions to create a dynamic and innovative workforce that aligns
with the organization's global business objectives.

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THREATS (T):

· Economic Uncertainty: Economic uncertainty poses several significant threats not


only to Trojan but to almost all companies across various industries. These threats
impact financial stability, strategic planning, and overall business operations. The
ongoing COVID-19 pandemic has brought forth notable challenges that Trojan has
had to confront, resulting in a decrease in revenue, supply chain disruptions, and the
need for increased operational costs and complexities to comply with health and
safety measures. Additionally, Trojan has faced the tough decision of implementing
workforce reductions or reduced working hours as a cost-management strategy, which
may have adverse effects on employee morale and retention.
· Talent Competition due Emiratization: Emiratization is a government initiative in
the UAE aimed at promoting meaningful and efficient employment of its citizens in
both the public and private sectors. While it has shown success in the public sector,
the private sector still has a low representation of Emirati workers, accounting for
only 0.34% of the workforce. Emiratis often receive preferential treatment in the
workplace compared to expatriates due to government social security benefits, leading
some to avoid menial jobs. However, despite the continuing efforts by the UAE
government to encourage the Emiratization program, there still exists a fear among
nationals while thinking about pursuing their careers in the private sector. The
influence of the imbalance of employee-employer power in the UAE private sector
with reports of unpaid and delayed payment of wages, leave denials, cases of
passport withholdings, contract substitution, unpaid overtime and many other
employee rights breaches do not motivate nationals to look up to private sector for
employment.

IV. STATEMENT OF THE PROBLEM

In the context of modern business environments, organizations are facing a critical challenge
in effectively aligning their human resources practices with strategic goals to drive
sustainable success. The problem revolves around the integration and implementation of
SHRM practices within the organization, such as Trojan.

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It's important to note that Trojan, being a group of companies, has advantages and
disadvantages in SHRM. It varies based on factors like the specific industry, the level of
centralization, the cultural diversity within the group, and the degree of collaboration between
entities. Balancing these pros and cons requires careful planning and consideration of the
group's unique dynamics.

This paper is a case study on Trojan Construction Group – a well-known business that
executes a diverse and far-reaching portfolio of major construction projects in all sectors of
real estate and infrastructure which originated in the UAE – employing nearly 12,800 people
along with visionary senior management, experienced project managers, engineers, and
proven labors from different parts of the world.

Despite having been able to manage the organization for the last ten (10) years and during the
pandemic, there are SHRM concerns to be addressed to continue to strive in the industry.
Through SWOT analysis, it was identified that there are delays in the requests and approval
process which could affect the mission of the company to deliver the projects on time. This
can also cause the organization to miss significant business and economic opportunities.
Another identified concern in the organization is employee overload at all levels and across
various work arrangements. These two (2) identified the most unwanted conditions that can
affect the quality and delivery of the projects. This paper aims to offer alternative courses of
action, recommendations, and insights on how the organization can leverage its strengths, and
capitalize on the opportunities to address these organizational concerns.

V. ALTERNATIVE COURSE OF ACTION (ACA) FOR TROJAN

After conducting a thorough SWOT analysis, it becomes evident that Trojan, like many
organizations, faces specific challenges that demand strategic intervention. Two of the most
critical issues identified are the "Delay in Requests and Approval Process" and "Employee
Overload." To address these challenges effectively, a well-structured alternative course of
action was proposed by the writers as follows:

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A. ACA for Delay in Requests and Approval Process

This issue can significantly impact the efficiency and effectiveness of operations
within Trojan. Delays in approvals can result in missed opportunities, operational
bottlenecks, and increased frustration among employees and stakeholders. To mitigate
this challenge, the writers proposed the following alternative course of action:

1. Implement digital approval platforms and workflow management systems that


streamline the approval process, automate routine tasks, and provide
transparency. These platforms should include features for tracking requests,
sending automated reminders, and facilitating electronic signatures.

Advantages:
 Digital approval platforms automate routine tasks, reducing the time and effort
required for approvals.
 By automating approval processes, organizations can reduce manual paperwork,
printing, and administrative overhead. This can result in significant cost savings
over time.
 Automation reduces the risk of human errors associated with manual approval
processes. This leads to greater accuracy and fewer mistakes in the approval
workflow.
 Digital platforms provide real-time visibility into the approval process. All
stakeholders can track the status of requests, know who is responsible for
approvals, and access historical data, enhancing transparency.

Disadvantages:
 Implementing digital approval platforms and workflow management systems
often requires a significant upfront investment in software, hardware, and
training. Smaller organizations may find this cost prohibitive.

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 Integrating digital approval platforms with existing IT systems, databases, and
legacy software can be challenging. Compatibility issues may arise, leading to
disruptions in existing workflows.
 Employees and stakeholders may resist adopting new technology and changing
established manual approval processes. Resistance can lead to slower adoption
rates and decreased system effectiveness.

Benefit to the Company:

Implementing digital approval platforms and workflow management systems can


revolutionize the way organizations handle approvals, making processes faster, more
accurate, and more adaptable to changing business needs. The advantages are
especially valuable in today's fast-paced and technology-driven business environment.

2. Delegate approval authority to frontline managers or team leaders for routine


requests within their areas of responsibility. This reduces the dependency on
higher-level management for every approval.

Advantages:
 Delegating approval authority enables quicker decision-making, as frontline
managers can approve routine requests without the need for higher-level
management involvement. This results in reduced approval cycles and faster
response times, which can be crucial for time-sensitive tasks.
 Delegating approval authority empowers frontline managers and team leaders,
fostering a sense of ownership and responsibility for their areas of operation.
This can lead to increased job satisfaction and motivation.
 By reducing the number of approval stages involving higher-level managers,
organizations can save on managerial time and effort. This can translate into
cost savings over time.

Disadvantages:

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 Different frontline managers may have varying interpretations of approval
criteria, leading to inconsistent decision-making. This can result in unequal
treatment of similar requests and confusion among employees.
 Delegating authority may lead to a lack of oversight from higher-level
management. While this can reduce bottlenecks, it may also result in less
strategic control and insight into routine processes.
 Frontline managers may not always communicate effectively with higher-level
management about the approvals they grant. This can lead to a lack of visibility
into routine processes at the organizational level.

Benefit to the Company:

Delegating approval authority to frontline managers or team leaders streamlines


operations, empowers managers and employees, and contributes to more efficient and
responsive organizational processes. This approach can be especially beneficial for
organizations to foster a culture of accountability, agility, and efficiency.

B. ACA for Employee Overload

Employee overload can lead to burnout, decreased productivity, and a negative impact
on the overall work environment. To address this challenge, the writers proposed the
following alternative course of action:

1. Implement automation and process optimization techniques to reduce manual


and time-consuming tasks, freeing up employees to focus on higher-value
activities.

Advantages:
 Automation reduces the time required to complete repetitive and manual tasks,
allowing employees to allocate their time to more strategic and creative
activities.

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 Automation can lead to significant cost savings by reducing the need for manual
labor and minimizing operational inefficiencies.
 Automation speeds up task completion, allowing organizations to respond more
quickly to customer needs and market demands.

Disadvantages:
 The upfront cost of implementing automation and optimization solutions,
including software, hardware, and training, can be substantial, making it a
barrier for some organizations, especially smaller ones.
 Employees may resist adopting automation and process changes due to fear of
job displacement, lack of familiarity with new tools, or concerns about their
roles evolving.
 Tailoring automation solutions to meet specific organizational needs may
require additional time, resources, and expertise. Off-the-shelf solutions may not
address all unique requirements.

Benefit to the Company:

By embracing automation and process optimization, organizations can unlock these


advantages to streamline operations, improve employee satisfaction, and drive growth
and innovation in today's dynamic business environment.

2. Ensure that job roles and responsibilities are clearly defined and set realistic
expectations for employee workloads. Avoid overloading individuals with
excessive tasks.

Advantages:
 Clear job roles and responsibilities eliminate confusion about who is
responsible for what tasks, reducing misunderstandings and conflicts among
team members.

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 When employees understand their roles and responsibilities, they can work
more efficiently, focusing on their designated tasks without wasting time on
unproductive activities.
 Clearly defined roles can prevent conflicts related to overlapping
responsibilities, as employees are less likely to step on each other's toes when
their roles are well-distinguished.

Disadvantages:
 Overly detailed job descriptions and rigid role definitions may limit
employees' flexibility to adapt to evolving business needs and take on new
responsibilities.
 Overemphasis on role clarity may discourage employees from collaborating
across departments or taking on tasks beyond their designated roles,
potentially hindering cross-functional teamwork.
 In some cases, overly detailed role definitions can lead to redundancy, where
multiple employees perform similar tasks independently, increasing costs and
inefficiency.

Benefit to the Company:

Clearly defining job roles and setting realistic expectations for employee workloads is
essential for promoting organizational effectiveness, employee engagement, and
overall success. It provides a foundation for efficient operations, collaboration, and
growth while ensuring that employees can perform their duties effectively and with a
sense of purpose.

VI. RECOMMENDED ALTERNATIVE AND COURSE OF ACTION PLAN

The writers have put forth the following Action Plan, derived from the proposed Alternative
Course of Action, to comprehensively address the identified problems in the organization

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which are the delays in requests and approvals and employee overload. After a thorough
evaluation, it was concluded that these two (2) problems can be addressed immediately. The
cost is very minimal compared to the benefits to the overall success of the organization. The
advantages of this action plan have been provided in detail in the ACA presentation but in
summary, it aims to create a high-performance work system so all members of the
organizations work towards achieving the company’s strategic goals. The action plan below
outlines a series of specific steps and strategies that can be implemented to tackle the
identified shortcomings effectively.

RECOMMENDED ACTION PLAN

PERSON-IN BUDGET
SN ACTIVITIES TIMEFRAME
CHARGE (AED)
A DELAY IN REQUESTS AND APPROVAL PROCESS
Implement digital approval
HR Dept., IT Dept.
1 platforms and workflow 3 months 50,000.00
Dept Heads
management systems.
Delegate approval authority to
frontline managers or team leaders Managing Director,
2 2 weeks None
for routine requests within their Department Heads
areas of responsibility.
B EMPLOYEE OVERLOAD
Implement automation and process HR Dept., IT Dept.
1 3 months 50,000.00
optimization techniques. Department Heads
Ensure that job roles and
responsibilities are clearly defined HR Dept.,
2 4 weeks None
and set realistic expectations for Department Heads
employee workloads.

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