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