HRM at Affluent Advertising (Pvt.) Ltd

Abstract

Affluent Advertising establishes a Human Resource (HR) department in response to increasing external competition and internal turnover. The department's prerogative, however, is primarily limited to the espousal of administrative discipline and communication of top managements' decisions to employees, after anchoring them in rhetoric of management knowledge and organizational efficiency. An early and unexpected failure of this department raises several questions regarding its need and significance as well as its future in the organization. At a more broad level, the case highlights the use or abuse of HR department as a tool for reinforcing systems of dominance and legitimizing the self-interested decisions of top management and firm owners. In doing so, it not only challenges the unitarist theories of management that treat workplace as an integrated and harmonious entity, wherein employees and employers share common interests, but also contests the self-alleged neutrality, objectivity and impartiality of mainstream management practices by bringing to light its dark, biased and (value and) power-laden aspects. It thus sheds light on the real agenda behind the HRM development, and elucidates how the recommendations (structural, strategic, cultural and procedural) forwarded by so-called impartial HR departments are actually embedded with patterns of organizational power distribution. Lastly, the case also elaborates how various structural arrangements, traditionally known for their effectiveness (that is, Matrix and Product Team configurations), can adversely impact work environment, if employed without need, for bureaucratic purposes solely.

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

Resources

Exhibit 1: Resignation Letter from Head, HR Department

4th August, 2007

Zaheer Ahmad

Head HR Department

Affluent Advertising (Pvt.) Ltd

Karachi

Intisar Arshad

Chief Executive Officer

Affluent Advertising (Pvt.) Ltd

Karachi

Dear Mr Intisar Arshad,

This is to provide a formal notification of my resignation from the position of Head HR Department at Affluent, effective immediately.

My journey at Affluent started with the challenging task of establishing a cutting edge HR department. However, fifteen months of untiring but unappreciative struggle, render it a more appropriate career move to uproot for better opportunities.

Affluent, in my experience, is not yet ready for the commitment required by a thriving and delivering HR department. It will be some time before the cultural barriers hindering this change are overcome, the much needed support by top management team is elicited, and a shared and institutionalized vision is developed in the company. Since these prerequisites primarily ensue and get reinforced directly from the chief executive office, I find my role passive and rather limited.

For these reasons I have accepted a position elsewhere. My joining is from next week and till then I am available for any assistance towards this transition. I wish Affluent good fortune and sincere team.

Best Regards,

Zaheer Ahmad

Source: Company documents.

Exhibit 2: Original Structural Configuration at Affluent Advertising (Pvt.) Ltd

Source: Company documents.

Figure

Exhibit 3: List of Major Clients of Affluent Advertising (Pvt.) Ltd

  • Pakistan Tourism Development Corporation
  • Ministry of Information & Media Development
  • Pakistan Post Office (Airex, UMS, LPS, Datapost and Other Services)
  • Central Directorate of National Saving
  • Central Board of Revenue
  • Board of Investment
  • Ministry of Health
  • National Aids Control Programme (NACP)
  • National Reconstruction Bureau
  • Export Promotion Bureau
  • Pakistan Ordinance Factories
  • Privatization Commission
  • Election Commission of Pakistan
  • Securities and Exchange Commission of Pakistan (SECP)
  • Pakistan Telecommunication Company Limited
  • Oil and Gas Development Company Limited (OGDCL)
  • Pakistan State Oil (PSO)
  • Water and Power Development
  • Authority (WAPDA)
  • Pakistan International Airlines (PIA)
  • State Life Insurance
  • National Database and Registration Authority (NADRA)
  • National Highway Authority
  • Lahore Development Authority
  • Malir Development Authority
  • Capital Development Authority
  • National Highways and Motorway Police
  • Eden Developers
  • Bahria Town
  • Park View Housing Society
  • Gwadar Golden Palms
  • D.G. Cement
  • Askari Leasing
  • Comsats Institute of Information Technology (CIIT)
  • University of Punjab
  • The Bank of Punjab
  • Zarai Taraqiati Bank (ZTB) Ltd
  • First Women Bank Ltd
  • Muslim Commercial Bank (MCB) Ltd
  • Shezan International Ltd
  • Mecca Cola Beverages Pvt. Ltd
  • Haleeb Ltd
  • National Engineering Services Pakistan (Pvt.) Limited (NESPAK)

Source: Company documents.

Exhibit 4: Suggested Policy Statement for Loan Grant, Absenteeism and Mobile Usage

To: Chief Executive Officer

Subject: Suggested New Loan Policy

Dear Mr Intisar,

Based on our earlier exchange of ideas, I hereby propose that the following conditions be included in the new loan policy being introduced at Affluent:

  • The loan amount requested must be in accordance to the salary structure of the employee and recoverable within 6 months, through deduction from salaries.
  • No loan amount greater than the sum of two months' salary will be approved.
  • The employees have to present documented evidences of the genuineness of their request.
  • A second loan cannot be applied for if any previous loan is unsettled.
  • No more than two loans can be applied for, per year.
  • The loan amount does NOT ensure job security. If an employee resigns/quits or gets terminated after taking a loan, the remaining sum will have to be returned within a period of one month, failing which he will be subjugated to legal action.

In addition, our department also suggests the following stances to appropriately manage the soaring rate of absenteeism and leave at Affluent:

  • No absenteeism should be allowed without salary deduction.
  • A 45-minute delay, beyond official arrival time of 8:30 a.m. should be counted as an absenteeism deserving of salary deduction.
  • No more than two leaves should be granted, per employee, per month.
  • Any unavailed leave should be compensated monetarily equal to one day's salary, at year's end.
  • The leave application must be submitted 24 hrs beforehand, for being eligible of grant.

Finally, it is also suggested that a fixed sum of money be allotted to individuals, on account of mobile usage based on departmental needs. Thus, a sum of Rs 500 seems sufficient for the CS department, while Rs 200 should suffice for members of all other departments.

Zaheer Ahmad, Director HRM

Source: Company documents.

Exhibit 5: Structural Changes at Affluent

Source: Company documents.

Figure

Exhibit 6: Individual Evaluation Form

Part A: Personality Traits (15%)
Instructions

Please use the below mentioned rating scale to evaluate the individual's behavioral traits. All traits are from organizational perspective, especially trustworthiness.

Rating Scale

0

Poor

1

Bare minimum level

2

Above average

3

Good

4

Excellent

Performance Competencies

Weightage (W %)

Rating (R)

Net Result (W%*R)

1. Professional Integrity and Honesty

2

2. Commitment and Loyalty

5

3. Resourceful/Helpful/Cooperative

3

4. Charisma/Personal Aura/Source of Inspiration and Motivation

3

5. Neatness/Hygiene/Workplace Condition

2

Part B: Goal Attainment Evaluation Form (35%)
Instructions

Rate the evaluatee's performance based on the actual achievement of goals assigned. Multiply this rating with the weightage and calculate the weighted score for each goal.

Rating Scale

0

Poor

1

Bare minimum level

2

Above average

3

Good

4

Excellent

Key Goals

Weightage %

Target

Actual Achievement

Rating

Weighted Rating

Applicable for CSD

Increase revenue from existing customers

15

Decrease cost of service

5

Number of visits to clients.

5

Recovery targets for accounts receivable

10

Applicable for Creative

Increase revenue from existing customers

15

Decrease cost of service

5

Numbers of ads approved

10

Applicable for Media

• Decrease cost of service

20

• Number of jobs handled

10

• Credit period from creditors

5

Applicable for Admin & Finance

• Decrease cost of service

15

• Time taken to generate reports

10

• Time taken to update records for accuracy

10

Part C: Performance Behaviors (50%)

Performance Competencies

Weightage (W%)

Rating

Net Results (W% *R)

1- Communication and Presentation Skills

• Oral and written comprehension

• Language structuring and vocabulary

• Convincing power to sell an idea through articulate, sell and defend concepts

• 'You Attitude'

15%

• Adapting presentation style according to requirements

• Level of being respectful/considerate/ mannerly/enduring

• Restrains emotional impulses

• Responds calmly

• Listening actively and responding sensibly

• Effective use of empathy

• Effectively planning, prioritizing and sequencing events to meet deadlines

2- Relationship Building and Networking

• Client insight and intuition; the ability to intuit/anticipate the clients needs, read between the lines and design/create value added solutions and relationships

15%

• Research-based knowledge of own and client business

• Clearly narrating requirements to (internal/ external) individuals

• Keeping status checks and maintaining coordination till projects assigned are completed

3- Personal and Corporate Effectiveness

• Professional confidence

• Result orientation

• Commitment to learning

• Organizational awareness

10%

• Knowledge of skills relevant to job

• Active participation in brainstorming sessions

4- Punctuality/Observance of Work Hours

10%

Source: Company documents.

Figure

Exhibit 7: New Loan Policy

To: All Organizational Members

From: Chief Executive Officer

Subject: New Loan Policy

Dear all!

This is to inform you that a new loan policy has been devised by The Company and states as under:

  • The loan amount requested must be in accordance to the salary structure of the employee and recoverable within 6 months through deduction from salaries.
  • No loan amount greater than the sum of two months' salary will be approved.
  • The employees have to present documented evidences of the genuineness of their request.
  • The employees must sign a contract stating the promised period of return.
  • A second loan cannot be applied for if any previous loan is unsettled.
  • No more than two loans can be applied for, per year.
  • The loan amount does NOT ensure job security.
  • If an employee resigns/quits or gets terminated after taking a loan, the remaining sum will have to be returned within a period of one month, failing which he will be subjugated to legal action.

Source: Company documents.

Exhibit 8: New Mobile Usage Policy

To: All Organizational Members

From: Chief Executive Officer

Subject: Revised mobile usage policy

Dear all!

This is to inform you that company has restructured the cell-phone packages and allowed and assigned certain free minutes to each organizational member, according to their anticipated mobile usage. According to the new policy:

  • The company will only pay for the line rent and tax charges for each employee's mobile usage cost.
  • Within the free minutes allocated to each employee, he/she will NOT be charged additionally and NO deductions will be made from salaries.
  • If an employee exceeds his/her mobile usage limit, s(he) will be responsible for the payment of additional charges, failing to do so will result in disciplinary action.

PS: Mr Shabbir of Accounts Department has a list of free minutes allocated to members of different departments.

Source: Company documents.

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

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