We all know today’s management education is focusing more on case studies as they help you a clear understanding of concepts. Hence this HRM Case study on T&D with solution will help you understand various concepts in HRM like T&D, SHRM, Employee satisfaction, Career planning, and also general management concepts like Decision making, expanding strategies, etc. This case study on T&D with solution will help you in SHRM also.
About the Case:
This case study will help you in analyzing the situation properly so that you won’t miss some golden opportunities. Many times we just see the short term profits and we miss seeing long term losses we could bear to achieve a short term profit. This case also assures that before taking any decision one should think in all possible ways rather than focusing on one direction. I hope this case study is a life term lesson for all of us
Case Study on T&D with Solution
Title: “MAKAR” Gained profit by missed opportunity & lost wealth.
“Makar” a textile manufacturing unit located in the city of Jaipur with enough infrastructure and a good workforce. The organization is specialized in shirting and suiting particularly the supplies that are done in Rajasthan only. The organization is run by the CEO who is commonly known for well educated, experienced, a businessman with a humane approach. Mr. Mukund CEO “Makar” considered the employees as a competitive advantage of his organization and want to keep the workforce always updated to face the challenges from their competitors.
Mukund the people’s leader
Mr.Mukund, who heads the production himself, developed an efficient top management group which includes Mr.Prem Heading marketing, Mrs.Mrunal leading HR and T&D, Mr.Vaidya leading finance. All these department heads are always been supportive heads for the ideas of Mr.Mukund in handling the workforce. Mr. Mukund always quotes that “I believe that satisfied, educated, the dedicated workforce will be a key to success at any condition to any organization. Money spent on employees will always be an investment for my organization.”
Activity of the Organization
Training and development become a day to activity in the organization. Employees are been trained by well-versed trainers in that area. The organization also encourages the employees to do further studies as part of the career development program and they get a helping hand from the organization.
The employees of Makar are very much satisfied with this kind of support from the organization and they realized that being with Makar their personal growth will be assured. Because of the above-said things Makar had many advantages like highly trained and qualified workforce, highest quality of supplies assured, less rate of attrition, dedicated workforce, meeting the targets on time, satisfied workforce, etc…
Announcement by Mr. Mukund
One day the employees of Makar were in deep Grief when the news hit the office that Mr. Mukund CEO made an announcement, ” Dear employees. You all are my colleagues rather than my employees. I always feel that I am one of you with more responsibility. Now my age is not allowing me to shoulder that responsibility, I wish to give way to my younger generation. So I have decided to handover the charge to Mr. Mithun, My only son, who had completed his studies and returned to India. I know you all will be with him as a pillar and extend your support, in the same manner, you supported me. Without you people, this organization would not have reached these heights. I am Sure you all will support him.
Now it has been three months since Mr. Mithun take over the charge and from day one he started auditing in almost all the departments with a motto to reduce cost. And he got a strong statistics that the compensation is the highest cost bared by the company compared to any other cost incurred in the organization.
Mitun’s decision: Shocked Mrunal
Mitun called Mrs. Mrunal the head HR and told her “Mrs. Mrinal, I need an immediate action plan to reduce the labor force by 30% by way of Lay-off” he continued, “Mrunal I hope you are getting my point and I want it to happen soon”. Mrs. Mrunal got shocked by listening to this decision and said to Mr.Mithun that “ Sir it is my responsibility to tell you that the workforce which we have is an excellent, well trained, loyal and self-motivated workforce. In case of lay off such the competitors will take advantage of that. We can think of other options rather than Layoff.”
Mr.Mithun was not in a position to listen to her words he said that “sorry Mrs.Mrunal I am not ready to review my decision and neither wants any alternatives for this I want this work to be done within a week”. Finally, with all her regrets Mr. Mrunal reduced the workforce by 30%. On the other hand, the employees who were waived from Makar joined the competitors with a better package.
One day in his office Mr.Mithun was discussing with Mrs.Mrunal that the cost of labor in the organization has been reduced to a great level which increases the net profit also. After listening to this Mrs.Mrunal said that “it is well-said sir, we have reduced the labor cost and increased the profit but it is more true that we have missed the great opportunity to grow more by losing our wealth to the competitors”
Questions on Case study on T&D with solution
1. “ Employees are the competitive of the advantage of Makar” comment on this statement relating to the approach of Mr. Mukund CEO
2. How did you judge the actions taken by Mr. Mithun to reduce the cost of labor was it really a successful one.
3. “We have gained the profit by losing our wealth” discuss the statement of Mrs.Mrunal and support her statement.
4. From the above-said case find the opportunity which was missed by Makar due to the lay off as mentioned by Mrs. Mrunal.
Solution: Solution for Case study on T&D
The solutions discussed here are just key points out of my observation and perception. You may come out with better solutions. It is purely based on how you perceive the case and how you analyze it. Hope the answers will help you. If you get better solutions please post it in the comment box it may help others.
1. “Employees are the competitive advantage of Makar” comment on this statement relating to the approach of Mr. Mukund CEO
Competitive Advantage means the point where you specialized when compared to that of your competitors. That is an edge over your competitors. In the said case Mr. Mukund and his team enabled employees to get well trained and also encouraged to precede their further studies. Hence they become skilled, educated, well trained, and qualified employees.
When the employees are been considered as the competitive advantage of any organization then it becomes a greater strength of that organization. Because when the employees are the competitive advantage that means that they are well trained and they are much satisfied with the organization the same way a well trained and satisfied employee will produce products which are rich in quality.
To comment on the statement said by Mr.Mukund it is true that employees are the competitive advantage of Makar. The reasons why employees are considered so is a) they are well trained up to date b) they are educated c) skilled d) Habituated to cope up with the change in technology e) producing high-quality f) time-bound etc.
2. How did you judge the actions taken by Mr. Mithun to reduce the cost of labor was it really a successful one?
As soon as Mithun took over the charge he wants to reduce the cost of production or you can say the overall expenses of the company in all means. When he noticed that the cost of labor is very high he didn’t analyze in the way why it is high and what the company is getting because of spending on it.
According to me decision taken by Mr. Mithun is not a wise or successful Idea because:- a) Mr.Mukund has spent years together and invested lots of money to mold the employees in such a way. Mr.Mithun’s decision will not allow him to encash the investment done by his father he
b) Mr.Mithun fire the employees from the organization on whom they have invested because of which the competitors will get a chance to utilize the benefit of money that Makar had to spend on the employees.
c) this decision may also reduce the level of motivation and morale of the remaining employees as the job security becomes a question mark in Makar.
3.“We have gained the profit by losing our wealth” discuss the statement of Mrs.Mrunal and support her statement.
Mrs.Mrunal HR head of Makar was opposing the decision of Mr.Mithun from starting itself. Because being an HR Mrunal was clear that the amount spent on employees for training is not an expense but it is an investment. But Mithun didn’t listen to her words. And being an employee she has been forced to separate some of the employees from MAKAR. And Mrunal did it. But she is not happy about what she had done. So she said this statement. This statement is very well suitable for Makar. Let us separate this statement in two parts and discuss “We have gained the profit + by + losing our wealth”
In this statement “We have gained the profit” means by reducing the workforce Makar has reduced the expenses which resulted in an increase in the profit “losing our wealth” means Makar has invested a lot of money on employees by way of training and made them a strong workforce which is also a competitive advantage to Makar. By separating them from Makar it is can be said that Makar lost its wealth and wealth here denotes the highly skilled employees.
4. From the above-said case find the opportunity which was missed by Makar due to the lay off as mentioned by Mrs.Mrunal.
Mrs.Mrunal said that “Makar has missed a good opportunity by means of Layoff”. The opportunity mentioned here is:-
When we go through the case carefully it was mentioned that “Makar has a good infrastructure and workforce”, but it is serving the need of Rajasthan only. And it is also mentioned that Makar has gained a good value among the customers as they don’t have any negative points to say about Makar.
In this situation when it is noticed that Makar has an excess workforce that is well trained the CEO should consider the option of extending the business to nearby states. This will develop the business and increase profit.
Expansion of Business is the Opportunity which was Mentioned by Mrs. Mrunal in the case.
I hope you find the HRM case study on T&D with solution is helpful. You can find more case study on HRM by clicking here