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Case Study Scenario:

This is a case study about Human Resources Management challenges faced by a retail organization. Each team is recommended to analyze the scenario and proposed an appropriate HRM solution(s) to meet these challenges.   About The Organization

AZ Inc is one of the largest retail store chains in the world. At present, they have about 50 retail stores in Malaysia and planning to expand to 150 stores in the next 36 months.  The chain has a centralized Human Resource Department located in its main office in Kuala Lumpur. Unfortunately, although the HR processes are managed centrally, there are many HR tasks, policies and procedures that are controlled by the retail store managers or by the regional offices in each state. Currently, the HR management processes are using Excel spreadsheet to compile reports from various regional offices and stores. This task is being performed by a team of HR executives at its main office in Kuala Lumpur.

LINCOLN UNIVERSITY COLLEGE

Human Resource Management (HRM 501)  Assignment 1                                                                       Challenges Faced By AZ Inc

As a senior HR Manager of AZ Inc, you have discovered various administrative and HR issues with the retail store sites. Due to high focus on sales revenue and stores profitability, Retail Store Managers have difficulties in managing the stores in the areas of staff attendance, discipline and critical HR practices.  A team of HR internal auditors has conducted a study and identified 3 major areas with issues that need to be addressed and take immediate actions in the next 3 months. They are:

Challenge 1:

It was reported that are irregularities in the staff attendance data both at the retail stores and regional offices. Sometimes many of the staff did not sign the attendance register or signed intermittently. During HR audits it was found that some staff signed the attendance register only at the end of the day. Further, sometimes staff signed the register and then left their post. There was also no mechanism to track the leave data of employees. Employees did not know their exact leave data. At the end of the year it was revealed that some employees have taken excess leave while some employees worked incessantly, creating frustration among staff.

Challenge 2:

The HR audit team has found discrepancy in the HR reports as there was no standardization in the reports between head office, regional offices and the retail stores. HR provided a set of excel sheets and paper-based forms to help store managers maintain data. However, many store managers used and made unique formats of reports making it difficult to collate the reports. The data thus collated had to be verified over again and again, as there was a tendency for errors to crop up.

This discrepancy has caused a bigger issue in salary discrepancy. HR and attendance data were used to generate data for payroll. As there were many discrepancies in HR data and reports, this created several salary discrepancies and caused numerous issues among the employees, thus lowering employee satisfaction rate and affecting the employee morale.

Challenge 3:

Training and communication have become a big issue at AZ Inc. As the company was growing at a fast pace, training employees on various HR procedures and policies was becoming increasingly difficult. Thus employees took decisions based on their previous experience or personal insights and created unnecessary hassles that required HR intervention

Individual Task

1. Analyze the scenario and the challenges that AZ Inc faced. What are the issues facing the firm?
2. Propose appropriate HRM solution(s) to meet these challenges to eliminate the major issues at stake.

The above challenges affected critical business metrics like availability of staff at the stores, customer service, professionalism, and financial. Use all or some of these metrics as a guideline to your proposal.

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