Master of Business Administration (LS)

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HRM7201E Strategic Human Resource Management

By Dr. Vanisa Karupaiah

GROUP ASSIGNMENT (40%)

Students are required to read and comply with the following rules and regulations
before commencing work on the group assignment. Non-compliance with the said rules
and regulations MAY LEAD TO DEDUCTION OF MARKS OR POSSIBLY
REJECTION OF THE ASSIGNMENT PAPER.

1. Group composition:
a. This assessment is to be done on a group basis.
b. Each group will be comprised of a maximum of 5 students.
c. Answer all the questions.

2. Plagiarism/collusion:

a. Plagiarism occurs when a person copies or reproduces another person’s words and ideas
and presents them as his or her own without proper acknowledgement.

b. Students’ work submitted for assessment is accepted on the understanding that it is the
students’ own effort without falsification of any kind. Cheating or plagiarism will not be
tolerated. Any student found to plagiarize or cheat in any part of their assignment will
cause their assignment to be rejected and further be subject to appropriate punishment.

c. Students are required to send a soft copy of the assignment for checking on plagiarism at
Turnitin. Students who found the draft of assignment has more than 20% plagiarism are
required to amend accordingly before final submission. Marks will be deducted
accordingly depending on the level of plagiarism subject to discretion of the instructor.
The AI Detector analysis will be performed by the instructor if deemed necessary.

d. Students are expected to submit original work. If two or more students submit similar
answers, marks will be deducted for all involved. To avoid penalties, ensure that your
responses are independently written and reflect your own understanding.

3. Case Analysis Instructions:

a. The report for Case analysis needs to be approximately between 2000-4000 words.
b. Font: Times New Roman, Size: 12 and spacing: 1.5. Use HARVARD Referencing
c. Final submission due: End of Week 5
d. The answer will be assessed based on the rubric in Appendix 1.

HRM7201E Strategic Human Resource Management

By Dr. Vanisa Karupaiah

Case:
HS FURNITURE Co CM was astounded to learn that his company, which had once been a
leader in a local niche furniture market with a promising future, was now in danger of
insolvency. He was perplexed by the rapid deterioration of the company's financial status.
His intuition indicated that the situation was a direct consequence of "people problems" in the
Darwin office and the Adelaide manufacturing facility. CM contemplated the events of the
previous five months as he awaited his appointment with his finance manager.
Background:
The industry leader in the local niche market, HS Furniture Co., was established in
Adelaide and had been producing self-assembled, compact, and reasonably priced furniture
with innovative designs for a long time. CM attributed the company's success to its
hardworking employees, who were able to react swiftly to market trends and deliver high-
quality, reasonably priced products. The owner-manager of HS Furniture Co, CM, had been
involved in the furniture industry for his entire life and was well-versed in the necessary steps
to effectively manage a factory and satisfy his customers. The demand for HS's products
remained consistent. CM believed employees experienced a sense of security and had a
harmonious working relationship with management. CM perceived no necessity for the
establishment of a strategic plan or the implementation of formal HR policies or practices, as
they believed that these measures would render the company inflexible and unable to
capitalize on business opportunities as they emerged. CM prioritized functions such as
finance, marketing, and production. Consequently, HS lacked personnel or HR department.
CM or a small number of trusted line managers were responsible for HR activities, and CM
made all significant decisions. CM believed that this provided the company with speed and
flexibility, despite the occasional occurrence of unjust and contradictory decisions. All
operational activities, including relationships with critical consumers, were micromanaged by
CM.
Despite the absence of a formal performance appraisal or performance management
system, CM and its managers were confident in their ability to offer continuous guidance to
employees and emphasize performance expectations, particularly the importance of diligent
work. This was due to the smaller size of the business. There was no additional evidence of
employees setting goals. After a problem (e.g., subpar customer service, issues with product
design/quality, etc.) occurred, CM would typically intervene by separating the employees to
discuss the issue/s and provide remedial on-the-job training as he deemed necessary. He
regarded any additional formal training or career development as personal development, and
as such, they should be expenses that the employee should bear. However, he was
"paternalistic," treating his employees as if they were family, and placing a high value on
loyalty.
Familiar social gatherings sponsored by the company were frequent, and all employees were
expected to participate as "family members." Employee turnover was essentially nonexistent.
In 2024, CM established a sales office in Darwin, NT, to capitalize on the company's
robust local market position and to accelerate growth.

HRM7201E Strategic Human Resource Management

By Dr. Vanisa Karupaiah

Borrowing $550,000 was necessary for this. CM determined that the manager of the new
Darwin office should be chosen from the existing Adelaide staff, despite the absence of a
skills inventory or any genuine understanding of the Darwin labor market. He was convinced
that the most suitable candidate would be hired if they possessed the appropriate attitude and
personality. Jane, a sales representative from Adelaide, was overjoyed to receive the
position. Jane had resided in Darwin with her parents during her secondary school years
while in her late twenties. Jane's mobility was facilitated by her ambition, loyalty, and lack
of dependence. Jane and CM both believed that she could confidently manage sales and
marketing, HR, and accounting, despite her lack of management experience or any work
experience beyond her current role as a sales representative, as she had studied these subjects
during her business degree.
Jane's initial responsibility upon her relocation to Darwin was the recruitment and
selection of personnel for the Darwin office. CM considered written position descriptions
and person specifications to be bureaucratic nonsense, which is why HS did not have any.
Jane and CM determined that 11 employees were necessary to effectively penetrate the
competitive Darwin market, despite the absence of formal HR planning. These employees
included seven sales representatives, a personal assistant, a receptionist, an accounts clerk,
and a salesclerk. Jane also sought applicants who were enthusiastic and ambitious, and
preferably had a sales and marketing background or experience, following in the footsteps of
CM. She also evaluated applicants based on their demeanor and personality. Jane was able to
employ university and VET graduates for all positions due to the weak labor market in
Darwin, even though she had to pay them higher salaries due to their formal qualifications.
Jane was somewhat disappointed and frustrated when CM questioned the level and costs of
these personnel and insisted that payroll be administered by the head office in Adelaide. Jane
introduced new employees to one another and then instructed them to "get on with the job"
after they were recruited. Jane was assured that the Darwin office would be capable of
managing its responsibilities and that the company's intranet would facilitate effective
communication with the head office.
The Darwin office appeared to be proceeding smoothly for the initial six months. A
significant corporation with a substantial distribution network had requested that Jane
establish a joint venture to extend the business into Indonesia. Additional international
opportunities were also discussed if the initial joint venture proves successful. Jane
perceived this as an excellent opportunity to demonstrate her managerial skills to CM.
Nevertheless, the furniture styles that were popular with HS's Adelaide-based
customers in Darwin did not acquire traction, despite some initial sales success in the Darwin
market.
The recent introduction of rapid technological change has exacerbated the competitive
situation by allowing competitors to enter the market with more innovative, customized
furniture designs at substantially lower prices than those offered by HS. In particular, the
introduction of a European-based multinational corporation that was aggressive and very
large, and that possessed more enticing computer-assisted designs and production
technology. This enabled the company to produce furniture flat packs that were very similar
HRM7201E Strategic Human Resource Management

By Dr. Vanisa Karupaiah

to those of its competitors at substantially lower prices. Concurrently, the joint venture
proposal was also unsuccessful.
The introduction of Jane's unrealistic sales targets, the refusal by Adelaide-based head office
to alter designs or reduce prices, and the ongoing payroll issues caused by this role being
performed by head office all contributed to the increase in tensions among the Darwin-based
employees. Jane became more aggressive and demanding as the pressure to improve
performance increased, directing repeated and unreasonable remarks and behavior towards
workers. Employees became passive, sullen, and withdrawn.
CM began to convey his concerns to Jane in an angry manner, as the Darwin office
had a substantial cost base and few sales. A downturn in the local Northern Territory
economy, which resulted in significantly reduced customer expenditure, exacerbated the
firm's precarious financial position. Jane's confidence in her employees vanished because of
her dissatisfaction with the sales performance, and she insisted that they consistently consult
with her. Jane assumed responsibility for all decision-making, necessitating that even trivial
matters be referred to her. This resulted in the routine of jobs that had previously afforded
individuals the freedom to make decisions and use their initiative. The strain from the head
office and Jane's heavy workload resulted in her becoming exceedingly irritable. Staff
morale dropped precipitously as Jane's eruptions became more frequent. Jane's secretary and
two sales representatives resigned after she discovered the salesclerk shopping on the Internet
and fired her on the spot, causing her anger to explode. Jane asserted that an Internet policy
was unnecessary when confronted by the employee, asserting that anyone with a shred of
common sense would recognize that internet surfing and personal purchasing during work
hours were prohibited. The company received a letter from a legal firm representing the
salesclerk, who was seeking compensation for unlawful dismissal, shortly thereafter. Jane's
horror was compounded by the negative coverage of the incident in the local press.
The financial situation of HS's Darwin office was dire by the year's end. Employees
were openly discussing the company's future and their potential termination benefits, and
morale was at an all-time low. The Adelaide operation was impacted by its first-ever strike,
in addition to the issues the company was facing in Darwin. Environmentalists had
discovered that the timber used to construct furniture was extracted from protected
rainforests. They promptly aligned themselves with the trade union movement to serve as an
example to HS. The delayed delivery of orders because of the production slowdown led to
the cancellation of orders by several significant consumers. CM perceived his workers as
"family" and felt betrayed by them. Consequently, he began to marginalize those at work
who had participated in the strike. For instance, by reducing their work hours and, as a
result, their compensation.
Even though HS had successfully repaid its initial loan, the second repayment was
now past due. The company's bank was exerting pressure to ensure that all loans were repaid,
and credit for the advanced purchase of materials was withdrawn.
Franticness enveloped CM. He now recognized that the Darwin office was an error,
and that Jane lacked the necessary management experience and expertise to effectively
oversee the expansion into Darwin.
HRM7201E Strategic Human Resource Management

By Dr. Vanisa Karupaiah

The Darwin office had to be closed for the parent company to endure, a decision he made
reluctantly. Although CM's understanding of employment law was limited, he was
concerned that the Darwin office's closure could lead to substantial claims of breach of
contract against HS in relation to leasehold arrangements and employment. In particular, he
was concerned about what to do with Jane. Jane was verbally assured by CM that she could
remain in Darwin for a minimum of two years, despite the absence of a written employment
contract, to substantiate her relocation to Darwin. Although he believed that Jane had
addressed the terms and conditions of employment with candidates during the employment
interview, he was also uncertain about the terms and conditions of the other staff in Darwin.
Questions:
1. Conduct a SWOT analysis of HS Furniture Co. Identify, describe, and illustrate up to four
S, four W, four O, and four T.

2. What are the HR issues in the case? Provide specific examples to support your response.
Please be advised that the responses to question 1 and 2 may contain some degree of overlap.

3. What is the evidence that the four primary duties of a human resources manager (strategic
partner/contributor, administrative expert, employee advocate, and change agent) as
delineated in the text were applied? Provide an explanation for your response.

4. Please provide an explanation of the recruitment and selection process, orientation,

performance appraisal/management, and employment contracts at HS. Provide a detailed
account of the recruitment and selection methods, orientation, performance
appraisal/management methods, and employment contracts that were implemented. What
was the reliability and validity of their selection and performance appraisal/management
procedures? What is the efficacy of these HR practices and methods? Ensure that you
provide evidence to substantiate your responses.

5. Assume that you were employed as an HR consultant in 2024 before CM made the
decision to establish the Darwin office. What would you have done differently in your
capacity as an HR consultant? Please provide a detailed explanation of the modifications
and/or HR practices that you would implement.

HRM7201E Strategic Human Resource Management

By Dr. Vanisa Karupaiah

APPENDIX 1: EVALUATION RUBRIC
GROUP ASSIGNMENT (40%)

Criteria 2 4 6 8
Poor Acceptable Good Excellent
Responsiveness to Indicates confusion about the Addresses the topic, but may slight Clearly address the topic, Clearly addresses the topic
topic topic or neglects important some aspects of the topic but may respond to some and responds effectively to
aspects of the assignment aspects of the assignment all aspects of the assignment
more effectively than others
Communication Lacks focus, demonstrates May treat the topic Shows some depth and Explores the issues showing
of ideas confusion or simplistic simplistically or repetitively; doesn’t complexity of thought thorough comprehension of
thinking, or fails to communicate demonstrate sufficient comprehension the text; goes beyond the
ideas of the text obvious or class discussios
Organization & Is poorly organized and/or Is adequately organized and developed, Is well organized and Is coherently organized, with
Critical analysis undeveloped; lacks support from generally supporting ideas with reasons developed with appropriate ideas supported by
the text and examples reasons and examples appropriate reasons

References Poor evidence of research, Adequate evidence of research, Show some evidence of Shown evidence of extensive
reference list is not using reference list is not somewhat using extensive research, research,
Harvard Referencing method Harvard Referencing method and some reference list is using reference list is using
and in no text citation in text citation is evident Harvard Referencing Harvard Referencing method
method and in text citation and in text citation
Writing styles Does not attempt to elaborate Use a few purposeful writing strategies. Uses a variety of writing Effectively uses writing
ideas or elaborate only through Uses some details and sensory strategies. Uses specific, strategies to enhance
repetition of the initial statement. language. concrete details to make the reflection.
reflection clear to the
reader.

HRM7201E Strategic Human Resource Management

By Dr. Vanisa Karupaiah 7

-THE END-

HRM7201E Strategic Human Resource Management

By Dr. Vanisa Karupaiah 8