DPHRM - Case Study 01 [Professional Credibility [DPHRM-S11, DPHRM-S12]]

Chartered Institute of Personnel Management Sri Lanka (Inc.)

Chartered Qualification in Human Resource Management

Competency Batch Level

Professional Credibility DP-23-ON-E-216 DPHRM

DPHRM/S11 - Strategic Relevance of Employee Relations

Subject
DPHRM/S12 - Industrial Relations

Assessment mode Case Study 01

Handing over date 29th April 2023
Submission Date 27th August 2023 (Before 05.00pm)
Word Count 1500 words

Raifusutairu Enterprises (SL) Ltd- (Raifu)

The Business

Raifu is a reputed Asian construction giant headquartered in Japan. Over the last 28 years, it
has expanded its building construction business in the South East Asian region and Australia.
In the last four years, it has entered Malaysia, India and Sri Lanka. The organization operates
in different business types as fully owned subsidiary, equal partnership ventures, minority
partners, and technical advisors and consultants. In Sri Lanka, it operates a fully owned
subsidiary of the parent company.
Raifu currently involved in three condominium projects in Sri Lanka, one is a beachfront
project in Galle and the other two in Colombo 5 & 7. Another two projects are being in the
blueprint stage, but the land acquisition for one of the projects have already been completed in
Negambo, and another in Nuwara Eliya being negotiated.
As the industry is very labour intensive, the organization has a large workforce. Generally,
70% of the labour force is recruited mainly from the villages and towns closer to the worksite

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DPHRM - Case Study 01 [Professional Credibility [DPHRM-S11, DPHRM-S12]]

and paid on a daily basis. But the balance 30% is from the Eastern, Uva and Sabaragamuwa
provinces and were provided lodging and transport facilities. The supervisory level employees
are sometimes moved from place to place based on work need. Beyond the supervisors' level
are the civil and mechanical engineers, site managers who manage finance and inventory.
Administration and HR work is under the finance division, and the finance division of Raifu
operates from Colombo.

Challenges

Sourcing and retention of labour, conflict among labour groups are significant challenges. Also,
absenteeism is another major area of concern. These issues delay the projects considerably and
bring in financial losses as some contracts are bound by performance bonds.

There were work stoppages in two worksites based on payments, facilities provided at worksite
and working hours. Engineers got themselves involved in negotiations and found some
solutions.
The retention rate of engineers also not healthy as it is 22% more than the industry. It is evident
that mutual understanding between the management and the employees are poor and consistent
in providing necessary facilities and employee engagement in work completion.
There were conflicts reported during working hours and off working hours among the
employees based on inequality of facilities and remuneration. These conflicts have led to
heated arguments to fisticuffs. Four major fights were reported to local police, and few legal
cases are pending in this regard, where the organization is also standing as an accused. These
issues were a nuisance for most workers in every level as it disturbs their work environment
and income.
One of the issues identified by the management for the high attrition of Engineers is
professional respect remuneration and participation in management decision making. The
issues were not thoroughly understood and discussed as the organizational structure;
centralization of decision making, poor communication and professional management of
labour force is clearly seen as lacking.
The management understood there are moves to form a trade union in all sites to represent the
labour.

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DPHRM - Case Study 01 [Professional Credibility [DPHRM-S11, DPHRM-S12]]

The Future

The construction industry is growing, and most of the contracts obtained are through
competitive bidding. The competitive bidding process will pressurize the markups, on-time
completion and quality of delivery. While foreign construction businesses are operating in Sri
Lanka, the chances of Chinese Construction Companies can be a challenge for other players in
the industry. Import of labour is also possible from India and China for the projects managed
by them.
Labour outflow also accelerates as the world is coming out of the pandemic, and life is slowly
getting back to normal. This global and local scenario will bring tremendous challenges for any
labour-intensive industry. Non-availability of labour, retention motivation and costs are an
inevitable part of the industry

Strategic Focus

While looking at the challenges at hand and the future landscape of the construction industry,
the management of Raifu decided to form an HR Division for the organization.
The HR division will be headed by an HR Director who will report to the Managing Director.

Question 1
Assuming the role of new HR Director, explain the importance and develop a framework for
"Employee Relations" at Raifu.
(25 marks)
Question 2
Develop a written document for all the line managers and supervisors on their responsibilities
on "Employee Relations".
(25 marks)
Question 3
As the HR Director of Raifu prepare a presentation to be delivered to the management and
supervisory staff on educating them on "Work Place Conflicts."
(25 marks)
Question 4.
Develop a strategy for Raifu to benefit from a "Unionized" environment, including hostility
avoidance.
(25 marks)

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Grading form

Question 1-Assuming the role of new HR Director, explain the importance and develop a framework for "Employee Relations" at Raifu
Explain the approaches to be F 0-9-Poor explanation and P 10-15- Displayed fair M 16-19-Explained internal D 20 + Demonstrated a very good
adopted by Raifu to establish only one approach of understanding of ER in context with case examples and understanding of internal context with
employee relations in an employee relations internal context and identified more than five organization issues and connected the
internal context discussed explained more than two approaches of ER in the internal ER approaches well
ER approaches. context

Question 2- Develop a written document for all the line managers and supervisors on their responsibilities on "Employee Relations".
The importance of line F 0-9-Poor explanation andP 10-15- Explained the M 16-19-Clearly explained the D 20+- Displayed a good
managers role in ER and the only one of the practices by
need for line managers more than five ways of a line understanding of a line manager's role,
describe the ways of practicing a line manager explained. involvement in ER, and managers involvement in ER in its importance with organizational
ER the explanation covered the organizational context and examples and support discussion.
a minimum of three explained
ways of establishing it.
Question 3- As the HR Director of Raifu prepare a presentation to be delivered to the management and supervisory staff on educating them on "Work Place
Conflicts."
Explain the causes of F 0-9-Basic explanation of P 10-15- Use a M 16-19- Use a minimum of four D 20+- Explained with a good
workplace conflicts with their workplace conflicts with two minimum of four causes causes of WPC with an understanding of the causes of WPC
negative impact on the work causes in general and of WPC with an explanation of the impact of WPC and its impact on organizational
environment and productivity organizational examples explanation with on the organizational activities activities in general and with
with evidence from the case. organizational examples. organizational examples

Question 4- Develop a strategy for Raifu to benefit from a "Unionized" environment, including hostility avoidance
Explain what is a unionized F 0-9-The explanation P 10-15- Display the M 16-19- Use a minimum of four D 20+- Explain the key points with a
environment and avoiding should cover at least a key understanding of a key points in dealing with a general explanation of a unionized
hostility, and benefit from the point in handling a unionized environment unionized environment and its environment and how it can be used
environment unionized environment with at least two key benefits, with case examples of for organizational benefit with case
points with an hostility examples in handling and avoiding a
explanation of avoiding hostile environment.
hostility

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