REALIGNING HUMAN RESOURCES AND HR POLICIES TO TRANSFORM A CURRENTLY DICEY BUSINESS INTO A FUTURE MONEY SPINNER

Case Understanding

The problems identified from my side for the Human resource are as follows 1) Absence of a robust mechanism and process to track the accountability and check on check process between organization and delivery partners Currently there is no prominent system in place which can in real time track the missing deliveries and hold the delivery partner or person accountable for the error. The absence of a vigilant tracking mechanism is letting the delivery boys off the hook and promoting a callous approach towards their jobs. MANAGEMENT PRINCIPLE :CARROT AND STICK METHOD 2) Quality of the products made not getting a Wow response from the customer In a fast moving essential consumer goods oligopolistic market, it is a better quality product and better services which gets an organisation to bite into the market share.The foul smell and bad taste is putting a question mark on the Quality Assurance aspect of the organisation. MANAGEMENT PRINCIPLE : ORGANISATIONAL RESTRUCTURING is required and a Quality assurance department needs to be put in place 3) Fading Customer loyalty because of slow process orientation & Feedback in Non dense areas The non dense areas currently have low market share in a high-growth market. This can be cashed upon with a First Movers Advantage and a very easy to use simple customised app for the rural customers MANAGEMENT PRINCIPLE :BCG MATRIX: Question mark position can be cashed upon 4)Low motivation levels in the employees Currently annual losses are accounting up to 68,55,000 Rs and the overall feel of the business is not good. This is reflecting on the employee morale and the way they are going about their job.No incentives or Rewards & Recognition scheme is in place to propel or motivate employees to push themselves further and walk the extra mile MANAGEMENT PRINCIPLE :PROFIT SHARING PLAN OF INCENTIVE SCHEME can be put in place for incentivizing productive employees

BCS Solution Summary

After discussing the current situation at length with the departmental heads it was strategically decided to 1) Put in place cost reducing measures to cut bleeding expenses which were a liability 2) Restructure the organisation and put in a few Quality experts since Quality currently is the topmost priority 3) Incentivize the efforts and productivity of employees to sustain this business model in the long run

Solution

BCS SOLUTION SUMMARY

 

 After  analysing the case & considering the current scenario   the following strategies can be adopted from Human resource perspective

 

Revamping  the  hiring process to cut down costs and make up for the 68.55 lakh loss annually

(Hiring can be done from Tier -2 towns  where  delivery boys come at a cost of 4500-5000 Rs per month).

  In addition , An Incentive Based  Salary restructuring  scheme has to be brought in place  for all delivery boys to motivate them

 

Organisational restructuring

The General management team and the other departments all agreed that strategically it would be a good idea to expand beyond the three locations and enter newer avenues  and also increase the product portfolio .We have gone ahead to restructure the current  organisation and make it leaner(Please refer attachment)

To cut costs 30 delivery boys from tier 2 towns will be hired and 50 regular delivery boys will deliver in the main locations. The wages have been decided as per market research

CORPORATE EMPLOYEE DESIGNATION	NUMBER
HEAD/CEO	1
MARKETING HEAD	1
HR	1
SALES PEOPLE	3
SALES HEAD	1
IT HEAD	1
QUALITY ASSUARANCE OFFICER	1
OPERATIONS & LOGISTICS HEAD	1

 

 

Training

A mandatory 5 day induction program is recommended for all joinees at time of recruitment to bring in better service service orientation and customer friendliness( Refer details in the attachment)

The  annual training program is designed keeping attrition in mind as well

 

 

 

Conclusion

With the slew of measures adopted DND should break even in the next 2-2.5 years and can become a force to reckon with in future

Attached File Details