SCHOOL OF POST GRADUATE

MASTERS OF BUSINESS ADMINISTRATION

COURSE TITLE: HUMAN RESOURCE MANAGEMENT
GROUP ASSIGNMENT: CASE STUDY

Group Meberes ID. No

1. Getnet Telila.........................................................MGB 1429/22

2. Mekonnen Fekadu................................................MGB1156/22

3. Samrawit Addisu..................................................MGB 1027/22

4. Mekdes Chanie.....................................................MGB 1403/22

5. Bezawit Bogale.....................................................MGB 1365/22

6. Danawit Seyoum...................................................MGB 1280/22

7. Yohannes Legesse.................................................MGB 1173/22

8. Mesfin Taye...........................................................MGB 1302/22

Submitted to: Dr. Alemayhu (Ph.D.)

Submission Date: Feb 18, 2023
Table of Contents
1. INTRODUCTION.................................................................................................................................3

1.1. Definition Human Resources (HR).............................................................................................3

1.2. What is an HR department?............................................................................................................3

1.3. What does human resources do?.....................................................................................................3

1.3.1. Recruit candidates.....................................................................................................................4

1.3.2. Hire the right employees.....................................................................................................4

1.3.3. Process payroll.....................................................................................................................4

1.3.4. Conduct disciplinary actions...............................................................................................4

1.3.5. Update policies.....................................................................................................................5

1.3.6. Maintain employee records.......................................................................................................5

1.3.7. Conduct benefit analysis............................................................................................................5

1.4. How does HR support employees?.............................................................................................5

1.4.1. Providing career growth............................................................................................................5

1.4.2. Offering continuing education..................................................................................................6

1.4.3. Training and supporting managers..........................................................................................6

1.4.4. Supporting health and wellness................................................................................................6

1.5. When to contact human resources.........................................................................................6

2. THEORETICAL FOUNDATION.....................................................................................................8

2.1. TYPES OF ORGANIZATIONAL STRUCTURES...........................................................................8

2.1.1. Hierarchical org structure................................................................................................................8

2.1.2. Functional org structure...................................................................................................................8

2.1.4.1. Market-based divisional org structure..................................................................................9

2.1.4.2. Product-based divisional org structure...............................................................................10

2.1.5. Matrix org structure....................................................................................................................10

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 2.1.6. Team-based org structure...........................................................................................................11

2.7. Network org structure....................................................................................................................11

3. Answering questions..........................................................................................................................19

3.1. Case 1 something forced someone to resign............................................................................19

3.1.1. Question & Answer................................................................................................................20

3.1.2. Question & Answer................................................................................................................21

3.2. Case 2..........................................................................................................................................22

3.2.1. Question & Answer................................................................................................................23

3.2.2. Question & Answer................................................................................................................23

4. Summary and conclusion..................................................................................................................25

4.1. Summary..........................................................................................................................................25

4.2. Conclusion........................................................................................................................................25

Reference....................................................................................................................................................26

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 1. INTRODUCTION
1.1. Definition Human Resources (HR)

Human Resources (HR), the people employed by an organization and the use of their skills in
that organization is readily acknowledged as the greatest resource that any organization
possesses. Human Resource (HR), the people are the most important asset of an organization. It
is only through people that other resources of an organization are transformed into service or
product. Without Human Resource an organization cannot attain intended goals and objectives.
This is the main reason why employees are being hired in an organization; the concept of human
capital is concerned with the added value that people provide for organizations and the actual
basis for competitive advantage as well as an important element of the intangible assets of an
organization. As a result, effective human resource management is very important to retain and
utilize employees who are well trained and well experienced for organizational goal attainment
and its success in all dimensions.

Human resource management (HRM) is the process of employing people, training them,
compensating them, developing policies relating to them, and developing strategies to retain
them. In the past, HRM meant processing payroll, sending birthday gifts to employees, arranging
company outings, and making sure forms were filled out correctly in other words, more of an
administrative role rather than a strategic role crucial to the success of the organization. In the
present day Human resource management is the process of employing people, training them,
compensating them, developing policies relating to the workplace, and developing strategies to
retain employees, main responsibilities of HRM managers: staffing, setting policies,
compensation and benefits, retention, training, employment laws, and worker protection.
1.2. What is an HR department?
In simplest terms, the HR (Human Resources) department is a group who is responsible for
managing the employee life cycle (i.e., recruiting, hiring, onboarding, training, and firing
employees) and administering employee benefits.
1.3. What does human resources do?

Ask any employee what an HR department is, and you’ll get an answer that primarily deals with the
most uncomfortable aspects of work: HR violations, layoffs, and firing. But the truth is that

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human resources are there to support employees. It’s quite literally a resource for humans. Here
are some of the tasks your HR department is busy completing every day.
1.3.1. Recruit candidates
HR needs to understand the organization’s needs and make sure those needs are met when
recruiting for new positions. It’s not as simple as just throwing an ad up on Indeed: you’ll need
to analyze the market, consult stakeholders, and manage budgets.

Then, once the role is advertised, more research needs to be done to make sure that the right
candidates are being attracted and presented. Recruiting is a massive and costly undertaking; the
right candidate can revitalize an entire organization, but the wrong candidate can upend
operations.
1.3.2. Hire the right employees
Human resources are in charge of arranging interviews, coordinating hiring efforts, and
onboarding new employees. They’re also in charge of making sure all paperwork involved with
hiring someone is filled out and making sure that everything from the first day to each
subsequent day is navigated successfully.
1.3.3. Process payroll
Payroll is its own beast. Every payday must have taxes calculated and hours collected. Expenses
need to be reimbursed and raises and bonuses need to be added in as well. If you think it’s a
chore doing taxes just once a year, imagine what it must be like to be in HR and make sure
they’re properly deducted every pay period.
1.3.4. Conduct disciplinary actions
This responsibility may be why HR tends to get a bad rap. When navigated inappropriately,
disciplinary actions can lead to the loss of a valuable employee and can even result in litigation
or a poor reputation. But when handled appropriately, disciplinary action can result in the
success of an employee.

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 1.3.5. Update policies
Policies need to be updated (or at least examined) every year as the organization changes. It’s
HR’s job to make official updates to policies and to suggest changes to policies when they no
longer serve the company or the employees. Sometimes a policy should be updated as a reaction
to an occurrence. HR should always be included in and consulted with regarding these decisions.
1.3.6. Maintain employee records
Maintaining HR records is mandated by law. These records help employers identify skill gaps to
help with the hiring process and to analyze demographic data and comply with regulations. They
also contain personal details and emergency contacts for each employee.
1.3.7. Conduct benefit analysis
Staying competitive is of prime importance when trying to attract the best talent. A promising
recruit may choose a different company with lesser pay if the benefits are more attractive. HR
should routinely investigate similar companies to see if their benefits are competitive.
1.4. How does HR support employees?
Besides the seven examples above, which are mostly operational responsibilities, HR provides
less quantitative functions: It exists to help employees thrive.
After all, employees are the single biggest asset to any organization. It follows, then, that
protecting their well-being is of utmost importance. Here are four ways HR helps support the
emotional and career needs of employees:
1.4.1. Providing career growth

Stagnation is bad for business, and it’s smart to keep your best employees with the company. HR
can provide career paths to help guide each employee to a long future within the company. HR can
then check in periodically to further guide employees on their career paths.

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 1.4.2. Offering continuing education

Sometimes the career growth mentioned above requires additional training. Your organization
may provide educational assistance, and HR can help determine which classes and training
programs would be best for an employee on his or her designated career path. HR can also work
with managers to ensure that the employee’s work schedule is flexible enough to allow the
employee to attend classes.
1.4.3. Training and supporting managers

Managers aren’t born. They’re created. HR can help provide management guidance to managers,
making sure that department and teams are as healthy and functional as possible. This may
include periodically sending managers to formal trainings and retreats.
1.4.4. Supporting health and wellness

It’s important to remember that employees are people. They’ll need help weathering mental
illness, health issues, debt, pregnancies, adoption, and myriad other life occurrences. HR can
help support employees through any of these and other circumstances.
1.5. When to contact human resources

An HR department that never interacts with employees isn’t doing its job. While you’re
developing an onboarding procedure, educate new employees on when to reach out to HR and
what resources HR has to offer. The HR department should regularly schedule one-on-one
interviews with employees to check in on their career progression, comfort in their roles, and any
other issues the employee may be having.
Considering these responsibilities, employees should feel comfortable reaching out to their HR
departments in these, and similar, situations:
 When you (or a co-worker) experience harassment or discrimination from your colleagues,
including your manager

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 When you have questions about benefits, including company-provided health insurance or
rights guaranteed by law

 When your personal circumstances change (e.g. having a child, needing to reduce your hours,
needing accommodation for a disability)

 When you have questions about advancing at the company, including opportunities to shadow
other employees or participate in additional training

 When you need an objective third-party to work through a work-related issue

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2. THEORETICAL FOUNDATION
2.1. TYPES OF ORGANIZATIONAL STRUCTURES

2.1.1. Hierarchical org structure

The pyramid-shaped organizational chart we referred to earlier is known as a hierarchical org

chart. It’s the most common type of organizational structure the chain of command goes from the
top (e.g., the CEO or manager) down (e.g., entry-level and low-level employees), and each
employee has a supervisor.

Pros Cons

Better defines levels of authority and Can slow down innovation or important
responsibility changes due to increased bureaucracy

Shows who each person reports to or who to Can cause employees to act in interest of the
talk to about specific projects department instead of the company as a whole

Motivates employees with clear career paths

and chances for promotion

Gives each employee a specialty

Creates camaraderie between employees

within the same department

2.1.2. Functional org structure

Similar to a hierarchical organizational structure, a functional org structure starts with positions
with the highest levels of responsibility at the top and goes down from there. Primarily, though,
employees are organized according to their specific skills and their corresponding function in the
company. Each separate department is managed independently.

Pros Cons

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Allows employees to focus on their role Can create silos within an organization
Encourages specialization Hampers interdepartmental communication
Help teams and departments feel self- Obscures processes and strategies for
determined different markets or products in a company

Is easily scalable in any sized company

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2.1.3. Horizontal or flat org structure
A horizontal or flat organizational structure fits companies with few levels between upper
management and staff-level employees. Many start-up businesses use a horizontal org structure
before they grow large enough to build out different departments, but some organizations
maintain this structure since it encourages less supervision and more involvement from all
employees.

Pros Cons
Gives employees more responsibility Can create confusion since employees do not
Fosters more open communication have a clear supervisor to report to
Improves coordination and speed of
implementing new ideas Can produce employees with more generalized
skills and knowledge

Can be difficult to maintain once the company

grows beyond start-up status

2.1.4. Divisional org structure

In divisional organizational structures, a company’s divisions have control over their own
resources, essentially operating like their own company within the larger organization. Each
division can have its own marketing team, sales team, IT team, etc. This structure works well for
large companies as it empowers the various divisions to make decisions without everyone having
to report to just a few executives.
2.1.4.1. Market-based divisional org structure

Divisions are separated by market, industry, or customer type. A large consumer goods
company, like Target or Walmart, might separate its durable goods (clothing, electronics,
furniture, etc.) from its food or logistics divisions.

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2.1.4.2. Product-based divisional org structure
Divisions are separated by product line. For example, a tech company might have a division
dedicated to its cloud offerings, while the rest of the divisions focus on the different software
offerings e.g., Adobe and its creative suite of Illustrator, Photoshop, InDesign, etc.
2.1.4.3. Geographic divisional org structure
Divisions are separated by region, territories, or districts, offering more effective localization and
logistics. Companies might establish satellite offices across the country or the globe in order to
stay close to their customers.

Pros Cons

Helps large companies stay flexible Can easily lead to duplicate resources

Allows for a quicker response to industry Can mean muddled or insufficient

changes or customer needs communication between the headquarters and
its divisions
Promotes independence, autonomy, and a
customized approach Can result in a company competing with itself

2.1.5. Matrix org structure

A matrix organizational chart looks like a grid, and it shows cross-functional teams that form for
special projects. For example, an engineer may regularly belong to the engineering department
(led by an engineering director) but work on a temporary project (led by a project manager). The
matrix org chart accounts for both of these roles and reporting relationships.

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 Pros Cons
Allows supervisors to easily choose Presents a conflict between department
individuals by the needs of a project managers and project managers

Gives a more dynamic view of the Can change more frequently than other
organization organizational chart types

Encourages employees to use their skills in

various capacities aside from their original

2.1.6. Team-based org structure

It’ll come as no surprise that a team-based organizational structure groups employees according
to (what else?) teams think Scrum teams or tiger teams. A team organizational structure is meant
to disrupt the traditional hierarchy, focusing more on problem-solving, cooperation, and giving
employees more control.
Pros Cons

Increases productivity, performance, and Goes against many companies’ natural

transparency by breaking down silo mentality inclination of a purely hierarchical structure

Promotes a growth mindset
Changes the traditional career models by getting
people to move laterally
Values experience rather than seniority
Requires minimal management
Might make promotional paths less clear for
employees
See why forming tiger teams is a smart move
for your organization

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2.7. Network org structure

These days, few businesses have all their services under one roof, and juggling the multitudes of
vendors, subcontractors, freelancers, offsite locations, and satellite offices can get confusing. A
network organizational structure makes sense of the spread of resources. It can also describe an
internal structure that focuses more on open communication and relationships rather than
hierarchy.
Pros Cons

Visualizes the complex web of onsite and offsite Can quickly become overly complex when
relationships in companies dealing with lots of offsite processes

Allows companies to be more flexible and agile Can make it more difficult for employees to
know who has final say
Give more power to all employees to collaborate,
take initiative, and make decisions

Helps employees and stakeholders understand

workflows and processes

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2.2. CAUSES OF EMPLOYEE TURNOVER
Employee turnover is the rotation of worker around the labor market. The term turnover also
defined as: "the ratio of number or organizational members who have left during the period being
considered and the average number of people in the organization during the period". Turnover is
a behavior which describes the process of leaving or replacing employees in an organization.

Turnover can be categorized as voluntary and involuntary as well as functional or dysfunctional,

and each type of turnover can have varying effects on the organization. Voluntary organizational
turnover or a process in which an individual makes a decision to stay or leave the firm, it usually
dysfunctional and can be the most detrimental to the organization. Involuntary turnover on the
other hand, is defined as a process in which the organization assumes control over an employee’s
decision to stay or leave. Here the process typically focuses on removing underperforming
employees, so it is often labeled as functional turnover. In general employees leave their jobs
either voluntarily by their own decision or forced to leave by the decision of the employer. As a
result of excessive turnover, organizations incur additional costs and holdup their performance.

2.2.1. Demographic Factors

The demographic and personnel characteristics of an employee may be reason of leaving from
the organization. These characteristics are include; age, gender, qualification, marital status,

experience and tenure. top performing females have turnover rates that are 2.5 times those of
their male counterparts, a fact that they point out to the demands of balancing work and family
life. Moreover, it has been found that female managers are more likely to leave their
organizations when they perceive a lack of career opportunities within their organizations.
Besides, employees more qualified in their professionalism tend to leave their current
organization because they have more opportunity to gain better work than employees who have
less qualification. Marital status also has great influence on employees‟ turnover. Employees
who have married, have children, and have stabilized family life situation prefer to stay in
organization areas that they stabilized their family life. However, employees who do not married
and free to move from place to place can have more chance to exercise turnover. In addition,
employee who have more work experience can be leave the current organization since they have
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more opportunity to gain better work and working condition than employees who have less work
experience. A mature person has more confidence and patience on the work place than a younger
one, with increase in age a person has greater level of prestige and confidence.

2.2.2. Job Satisfaction

Employees of an organization may do have many attitudes about their work and their working
environment. These attitudes vary along many dimensions; include objectives, specificity,
strength, salience, and stability of the work and in this sub-topic the attitude of employees on job
satisfaction was discussed.

Defined job satisfaction as any combination of psychological, physiological and environmental

circumstances that cause a person truthfully to say I am satisfied with my job. According to this
definition even though job satisfaction is under the pressure of many external factors, it remains
something internal factors that has to do with the way how the employee feels.

That is job satisfaction presents a set of factors that cause a feeling of satisfaction. Job
satisfaction is defined as the pleasurable emotional state resulting from the appraisal of one’s job
as achieving or facilitating the achievement of one’s job values.

Job satisfaction is more about happiness on the work place. It is a pleasurable or positive
emotional state resulting from the appraisal of one’s job or job experiences and it is a widely
accepted phenomenon that job satisfaction has negative relation with voluntary employee
turnover in an

organization. Job satisfaction is the most important variable to understand employee’s intent to
leave the organization. As this explanation, dissatisfied employee has more intention to leave the
job. Employees can be dissatisfy through different factors like bad work environment,
supervisors negative behavior, less growth chances or less monetary rewards. Studies suggest
that satisfied employees are more likely to be effectively committed to their organization than
those who are dissatisfied. They observed that job satisfaction rather than organizational
commitment related to the actual turnover of employees.

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2.2.3. Compensation (Monetary Rewards)
Monetary reward has been defined in such a way like cash or equivalent that an employee
receives against his services from the employer. Here equivalent reward includes fringe benefits,
medical facilities and provident fund. Monetary rewards have negative effect on employee
turnover. This reward helps to raise job satisfaction and likewise suite for minimizing the intent
to leave the job. Compensation plays an important role to retaining employees. Researchers
believed that frustration with salary and pay strongly motivate employee turnover. The lack of
different compensation packages like fringe benefits and incentive pay certainly generate a force
on holding experienced and qualified employees. Employees demand an appropriate level of
compensation for their effort. Such compensation may be offered in monetary (direct) reward,
such as salary and bonus, or bundled with other non-monetary (indirect) reward such as medical
insurance and transportation services. Poor compensation is widely known as one of the
problems in the organization that leads to employee turnover. one of the most common reasons
given for leaving the job is the availability of higher paying jobs. This implies that employee
leaves the current organization to gain better payment from other organization.

When looking at specific vacancy characteristics, pay level is one that stands out that as being
important to most applicants. Pay is considered one of the most effective and important job
attributes in determining applicant attraction to the organization. Employees preferred
organizations with high rather than low pay, flexible rather than fixed benefits, individual rather
than team-based pay, and fixed rather than variable pay. This indicates that compensation is the
most important element in attracting, retaining and utilizing qualified workers.

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The perception of getting fairness about the level of compensation, the equality in the sharing of
pay and rewards, strongly create turnover. The conventional elimination of compensation
packages doubtlessly misjudges the outcome of discernment of fairness on decisions to exit.
According to this explanation, making discrimination during offering compensation may cause
employee turnover. Thus, the management of the organization should treat in equitable and
justice during supervision, distribution of compensation and other important remunerations to
retain well experienced and well qualified employees within the organization. Fair compensation
policy is very important for both employer and employees. Employer should compensate its
employees in equitable with the work done, and employees should ask the amount of reward
according to their work performance result. If so, it leads to reduction in employee turnover.

2.2.4. Leadership (Supervision)

Leaders are defined as senior executives, those described in academic literature as the upper
echelons or the top management team, and more formally referred to as members of the C-suite
that is president, CEO, COO, CFO, CHRO, and CIO. The coordination between managers or
supervisors with their sub-ordinates may create impact on employee turnover. It depends on the
employee’s satisfaction with their supervisors and also the communication skills of supervisors
to handle their subordinates. Employees are trusted in how they manage their own time and
outputs and they have access to parts of the business previously reserved for management such as
strategic, tactical information, and profit. Decision making is a collective and interactive exercise
that requires committed participation from both management and employees. This implies, are
interested in sharing of organizational decision making.

2.2.5. Peer Group Relationship

The employee turnover can be seriously effect due to peer-group relations. The strong relation
among the work group, integration, and satisfaction with the coworkers decreased turnover. The
well-built peer group relations are remote cause of turnover and also a source of job satisfaction.
As this explanation, good and cohesive relationship among workers of the organization can
reduce turnover.

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2.2.6. Working Environment
Working conditions play vital role to increase job satisfaction and organizational commitment in
the labor force community. The work environment includes factors or features that have all work
related conditions for employees. Employees want to stay within the organizations just have of
clean and healthy environment. The match between proportions of environment and employee
values may characterize out trustworthiness with the organization. Since employees prefer to
work in environment which suitable for their live, working environment is one of the main
causes that influence employees to decide on whether to continue or to leave the organization.
Work environment factors, including supervision, autonomy, communication, support, authority,
promotion, and input into decision-making, have also been found to be related turnover.

2.3. THEORTETICAL FRAMEWORK ABOUT EMPLOYEE TURNOVER

Employee turnover is the most studied events in the past and several theories have been
developed to explain why employees voluntarily decide to leave their current organization. These
include the Theory of Organizational Equilibrium, the Met Expectation, the Linkage, the
Unfolding Model of Turnover, and The Job Embeddedness Theory of turnover.

2.3.1. Organizational Equilibrium Theory (OET)

Employee Turnover occurs when individuals perceive that their contributions to an organization
exceed the inducements they received from that organization. An individual tries to satisfy his
needs or motives, in many cases he cannot get enough satisfaction due to many types of human
limitations. When an individual cannot get satisfaction, he will withhold or withdraw his
contributions and will separate from the organization. According to this theory, employees are
looking from the organization to provide incentive that balance their contribution. This indicates
when the incentive offered by the organization to the employees is less than their contribution,
employees become dissatisfied with the inducement and this leads to turnover.

2.3.2. Met Expectation Theory

Employees’ expectations may include fair remunerations, advancement, and good relationship
with colleagues and supervisors, suitable working environment, and appropriate work
assignment.

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The essential thought of this theory is that when an employer fails to fulfill employee’s
expectations, it will lead to employee turnover.

2.3.3. Linkage Model

Linkage model explains a series of interrelated links between job satisfaction and voluntary
employee turnover. In this model one major factor is considered by job dissatisfaction which
leads a series of withdrawal intensions like thoughts of quitting, job search intension and fringe
benefits comparison, this behavior ultimately is the cause for high voluntary employee turnover
Unfolding Model of Turnover is a retrospective, classificatory account of voluntary turnover that
treats quitting as a decision process. Unfolding model of employee turnover is specifically
focused on four psychological paths that an employee chooses when he leaves the job. Process of
turnover starts from a shock that employee’s premeditated judgment about their jobs. This shock
then directly linked with employees system of belief and images. Ultimate result of this shock
employee has to quit the job without considering emotional attachment with the organization.

2.3.4. Job Embeddedness Theory

Job embeddedness describes the factors that keep an individual from leaving the organization, in
spite of experiencing situations that might lead to thoughts of leaving. Job embeddedness can be
work related (positive relationships with supervisor and coworkers, good health benefits) or non-
work related (spouse works in the same area, parents live in the same community). These work
and non-work domains can be further divided into three types of attachment that is links (how
many people is the individual connected with), fit (does the individual feel well matched with
their work and non-work environment), and sacrifice (what does the individual have to give up in
order to leave).
2.4. Job orientation
A job orientation occurs on the first few days of a new hire's employment. It involves
introducing them to their team, showing them their workspace and administering new hire
paperwork. Employees will usually spend a portion of their job orientation reviewing onboarding
information like dress code, benefits and salary.

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 A new hire will also spend their job orientation process within the department they'll be working
in. You can spend this time explaining their daily tasks, familiarizing them with the software or
equipment they'll be using and getting them acquainted with the team members they'll be
collaborating with. The job orientation process should be comfortable and inviting for new
employees by making them feel welcome and excited to get started on their tasks.
2.4.1. Benefits of implementing a job orientation process

Giving employees the opportunity to get acclimated with the role and company through the job
orientation process can increase their comfort level and encourage them to submit quality work.
Common benefits of implementing a job orientation process include:
 Provides a clear understanding of company standards and role
responsibilities: Employees can better follow the rules of the organization or complete their
tasks more clearly if they receive detailed information regarding policies, standards and
responsibilities during the orientation process.
 Improves productivity and efficiency levels: Providing employees with a clear and detailed
job orientation process can increase their confidence in their skills and abilities to contribute
quality work that meets the organization's goals. It also helps them feel more relaxed and
confident, resulting in fewer on-the-job mistakes and higher productivity levels.
 Encourages a more collaborative environment: When you implement an orientation
process that invites and welcomes new employees onto their teams, they feel closer to
employees and more encouraged to collaborate with team members and supervisors.
2.4.3. What to include in the job orientation process

Gather the materials needed for an informed and prepared job orientation for new employees.
Elements to include in your job orientation process include:
 Background of the company, including its vision and mission statement, objectives, goals
and history
 Overview of company standards, procedures and policies

 Details on payments and benefits

 Discussion on the expectations and responsibilities of the role

 Tour of the office and the employee's work area

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 Introduction to coworkers and departments

2.4.5. The orientation process has three stages:

1. The General Orientation is usually managed by either the Training Department or the Human
Resources Department.

2. The Departmental Orientation by the Department Head or first Assistant

3. The specific Job Orientation can be carried out by an experienced and trained employee (trained
on how to train)
3. Answering questions
3.1. Case 1 something forced someone to resign
Mr. Assefa, who is currently the deputy manager of the materials department in a paper and pulp
making company is angry and disappointed and is fuming. With this state of mind, he ran to his
boss’s (Mr. Abebe, General Manager of Materials Department) office and throw his resignation
letter on his boss’s table, shouted and walked out of the room swiftly.
Mr. Assefa has a reason for his sudden outburst. He has been driven to the wall. Perhaps details
of the story will tell the reasons for Assefa’s anger and decision to resign and why he put in his
resignation papers, barely four months after he took up his assignment.
The story is that the year was 2005 when Asefa left his prestigious position at another company
(company X) in Hawassa. He was the manager for materials department in his previous company
and as a manager for materials department Assefa enjoyed the power. He could even place an
order for materials worth $ 100, 000. He needed nobody’s prior approval.
Asseffa joined the current large company/conglomerate (Company Y), which is a paper and pulp
making plant located in Addis Ababa as deputy manager for materials Department. The plant is
owned by a prestigious business enterprise in Ethiopia. Obviously bonuses, attractive salary,
rank, designation and reputation of the conglomerate lured Assefa away from his previous
organization. When he joined the pulp making company, little did Assefa realize that he needed
prior approval to place an order for materials worth $50,000. He had presumed that he had the
authority to place

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an order by himself worth half the amount of what he used to do in the previous company. He
placed the order, and the material arrived, were received, accepted and used up in the plant.

Trouble started when the bill for $ 50, 000 came from the supplier/vendor. The accounts/finance
department withheld payment for the reason that the bill was not endorsed by Mr. Abebe. Abebe
refused to sign the bill as his approval was not taken by Assefa before placing the order. Assefa
got disappointed. A brief encounter with Abebe only aggravated the problem. Assefa was curtly
told that he should have known company rules before venturing. And he decided to quit the
company.

3.1.1. Question & Answer

Question: - What do you think was the main missing HRM practice that led Mr. Assefa to
place an order worth $ 50, 000 without consulting his boss and finally quit his job? And which
description in the case above gave you a lead to identify the missing link.

Answer
In general we have seen in case study Mr Assefa previous company called company which was
located in Hawasa, he was a manager of materials department and enjoyed the power, and He
could even place an order for materials worth $ 100, 000. He has not needed nobody’s prior
approval.
Currently he works in Company Y located in Addis Ababa, he is a deputy manager of the
materials department in a paper and pulp making company but he needed a prior approval to
place an order for materials worth $50,000. Based on Bonuses, attractive salary, rank,
designation and reputation of the conglomerate lured him away from his previous organization.
But he little did he realize that he needed prior approval because of these making him angry and
disappointed, he told that he should have known company rules before venturing, finally he
resign from his job,

Therefore the missing HRM practice that led MR Assefa to the grievance and resignations is that
the proper job orientation, job description, and power of authority hasn’t been properly given to
him on his recruitment.

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Other question is to identify the missing link. As we understand on the above case the study
states “little did Assefa realize that he needed prior approval’’ in addition states “he was curtly
told that he should have known company rules before venturing’’. This implies the proper job
orientation, job description and power of authority exercise hasn’t been delved to MR Assefa
which led him to exercise above his power of authority.

3.1.2. Question & Answer

Question: -If you were the owner and the top manager of the current company, what would
you do to make sure that such a disparity would not happen? Discus your perspective in detail by
relating it to the appropriate HRM practice that you indicated as missing in question no. 1 above.
Answer

The missing HRM practice is job orientation, which should have been delivered on having of
new employee / Mr Assefa/ the process must be delvers in three stages first General Orientation
is usually managed by either the Training Department or the Human Resources Department,
Second Departmental Orientation by the Department Head or first Assistant and third Specific
Job Orientation must carried out by an experienced and trained employee.

To conclude top manager of the current company must do to make sure that such a problem
would not happen

 Prepare clear job responsibilities and authority for all jobs.

 Give a new employee proper job orientation before starting work in the organization.

 There is cost of hiring employee so if he resigns before accomplishing the expected task
it costs company for requiting and hiring a new employee I will try to resolve the
problem by negotiation if it necessary.

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3.2. Case 2
Mr. Girmay is a senior employee of ABC Software Company having its head office at Adama
and branches at all major cities in the country. The managing partner of the firm asked Mr.
Girmay to head its northern branch at Mekelle. The firm has been quite successful since its
inception in new software’s, but has witnessed high turnover among its younger staff in the last
five years. The managing partner is convinced that the problem is not salary, because a recent
survey indicated that the firm's salary structure is competitive with that of other major firms.
Driven by this incomprehension, the managing partner wants Mr. Girmay to find out the real
reasons.
Having settled in Mekelle, Mr. Girmay met the four senior managers to determine why the
branch has had such a high attrition rate among the younger staff.
Mr. Addis, age 46, states that the younger staff lacks dedication and fails to appreciate the career
opportunities provided by the firm.
Mr. Balecha, age 52, says the younger employees are always complaining about the lack of
meaningful feedback on their performance, and many have mentioned that they would like to
have a sponsor in the organization to assist with their development. Further explains that the firm
does provide performance rating to its staff and the previous manager had always maintained an
open- door policy.
Mr. Dawit aged 39. Says he has received complaints that training is not relevant and is generally
dull. He explains that various persons in the firm who worked with training from time to time
acted mainly on guidance from Bahir Dar.
Ms. Hawi aged 35, says she believes that the root of the problem is the absence of an HR
department. However she says that when the idea was mentioned to the managing partner in
Adama, it was totally rejected.

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3.2.1. Question & Answer
Question: - Do you think that the ABC Software Company needs an, HR department?

Answer: - Yes they must have HR department with in this organization.

3.2.2. Question & Answer

Question: - How would you sell the idea of the HR department to the managing partner?

Answer

In general preparing research paper that shows why the company need HR department using
concepts that describe in introduction part and theoretical foundation part in addition using
Currant problem of employees the reason turnover explained by senior managers.
For further reason we can address the currant problem (high turnover among its younger staff in
the last five years) given by the four senior managers branches of the company.
The managers have stated the turnover Problem it might be due to the following reason
 Lack of dedication and fails to appreciate the career opportunities provided by the firm.

 Lack of meaningful feedback on their performance,

 The firm does not provide performance rating to its staff and the previous manager had
always maintained an open-door policy.
 Training is not relevant and is generally dull.

 Absence of an HR department
To solve the above Problem

 Efficiently make use of the skills and abilities of each employee.

 Build and maintain a positive employee experience with feedback and motivation, so that
employees can contribute their best efforts to their work.
 Executing performance appraisal system which rewards a better performance and
provides a space for improvement.
 Make sure employees should receive the proper training based on skill or knowledge
gaps observed on their performance.

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  Effectively communicate the relevant company policies, procedures, rules and
regulations to employees.

 Over all, recent survey indicated that the firm's salary structure is competitive with that of
other major firms because of this the problem employee turnover caused by non-finical
benefit therefore there must be HR department has the responsibility of managing all
employees’ problem and give solution for the turnover problem.

Question & Answer

Question: - What type of organizational structure would you recommend?

Answer:-

ABC Software Company having its head office at Adama and branches at all major cities in the
country. Currently it seems the company use centralized organization but horizontal or flat
organizational structure preferable these kinds of organizational structure may help the company to
resolve the employee turnover problem because horizontal or flat organizational structure gives less
supervision and more involvement from all employees of the branches. For further comparison and
deep understanding deferent organizational structure are explained in above theoretical foundation.

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

4. Summary and conclusion

4.1. Summary

The two case studies discussed about employee turnover it is rotation of worker around the labor
market, The term turnover also defined as he ratio of number or organizational members who
have left during the period being considered and the average number of people in the
organization during the period, Turnover is a behavior which describes the process of leaving or
replacing employees in an organization.
The two case studies has problem in Human resource department. Case one didn’t give job
orientation and case two has not Human resource department lead to employee turnover. In
simplest terms, the HR (Human Resources) department is a group who is responsible for
managing the employee life cycle (i.e., recruiting, hiring, onboarding, training, and firing
employees) and administering employee benefits.
The two case studies seem to have problem of job satisfaction in employee’s case one due to
authority benefit and Case two due to non-finical benefit. Job satisfaction is more about
happiness on the work place. It is a pleasurable or positive emotional state resulting from the
appraisal of one’s job or job experiences and it is a widely accepted phenomenon that job
satisfaction has negative relation with voluntary employee turnover in an organization.
4.2. Conclusion
The three important key terms are Human Resource (HR) the people are the most important
asset of an organization. It is only through people that other resources of an organization are
transformed into service or product. Without Human Resource an organization cannot attain
intended goals and objectives, Human Resource Management (HRM) is the process of
employing people, training them, compensating them, developing policies relating to the
workplace, and developing strategies to retain employees and Human Resources (HR)
department is a group who is responsible for managing the employee life cycle.
To sum up all concepts, theories and case study shows how important is Human Resource it
should be managed properly and responsibly it lead to employee turnover. Therefore the
company owner or manger gives their focus to develop Human Resource by supporting Human
Resource department.

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 Reference

https://www.lucidchart.com/blog/what-does-hr-do
https://www.lucidchart.com/blog/types-of-organizational-structures
https://www.indeed.com/career-advice/starting-new-job/job-orientation-process
https://www.paychex.com/articles/human-resources/types-of-turnover

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