Case Study on Change Management

About the Case Study This case study is about the Human Resources Management challenges faced by a retail organization and the appropriate HR Technology solution provided to meet out these challenges - Case Study on Change Management introduction. About the Organization in Case Study The organization in the study is one of the largest retail stores chain across the globe. They have around 100 retail stores in India in different locations and looking to expand further to more than 200 store across India. Organizational Structure Organization has a centralized Human Resource Department located in Head Office.

HR decision and process are controlled centrally. However, many HR tasks, policies and procedures are managed by retail Store Managers or regional offices. Current HR management Process The organization used excel sheets to exchange reports. Reports coming from various regional offices and stores were compiled in Head Office by a team of HR Executives and HR managers. Applicability of the Case Study: This case study is equally applicable to organizations having retail chains in Consumer Goods, Health Care, Multi Locational sales offices etc.

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Challenges Faced by the Retail Industry Their Sr. HR Manager during the pre-sales discussions revealed that there were many administrative and HR issues with the retail store sites. Due to high focus on sales, the Retail Store Managers has no focus on issues like attendance, discipline and critical HR practices. The problem areas that were identified during the discussions were: Challenge 1. Irregularities in the attendance data of the staff at retail stores and other regional offices. Sometimes many of the staff did not sign he attendance register or signed at their wish and will. During HR audits it was found that some staff signed the attendance register just at the end of the day. Some Customer Service Executives have signed the attendance register but were not present at the duty. Challenge 2. There was 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, thus causing frustration among the hard working lot.

Challenge 3. Discrepancy in HR reports: HR provided a set of Excel Sheets and paper-based forms to Store Managers to maintain data. However, many Store Managers created their unique formats of reports making it difficult to collate the reports using Excel macros. The data thus collated had to be verified again and again, yet there were errors at the end of the day. Challenge 4. Salary Discrepancies and Issues: HR and attendance data was used to generate data for payroll. As there were discrepancies in HR data, these also found their way in payroll data.

This created many salary discrepancies and caused numerous salary issues raised by the employees, thus lowering employee satisfaction rate and also effecting the employee morale. Challenge 5. Mis-management of Employees Expense during Travel etc. There were lots of travel and expense activities in the organization. The travel and expenses data that reached the head quarters was based on individual’s feedback and there was no mechanism to verify the validity or requirements of the travel. There was no policy based approval mechanism for travel and expenses.

The decisions were taken at local levels and the expenses were also disbursed locally. This was also negatively impacting the company’s budget. It was very difficult to analyze or validate a travel expense. Challenge 6. Training and Communication Issues: As company was growing at a fast pace, training employees on various HR procedures and policies was becoming increasingly difficult. Thus employees took the decisions based on their previous experience or personal logic and created unnecessary hassle for HR to intervene and resolve. A few good employees even departed from organization because of the paltry issues.

This was thus causing a harm to organization’s Employer Brand. Impact of challenges: The above challenges directly or indirectly effected critical business metrics like availability of staff at the stores, Customer Service, Professionalism, and financial issues like unnecessary expenses, lowered sales and poor customer experience. Analysis of the Problem: After identifying the challenges, a stream of discussions were conducted by the Saigun’s Team Project Managers, Analysts, & HR Consultant and the Organization’s HR Managers, HR Executives and the Operations Managers.

These discussions churned out the following as the top 5 reasons of the problem: 1. Lack of consistent HR systems across the organization. As operations managers come from different domains and industries they bring with them different practices and feel comfortable in applying the same to their current organization. 2. Lack of consistent, recorded log, and communication mechanism: There was no reliable feedback mechanism for HR to communicate policies, change in processes and training for employees and managers. Thus there were many confusions among employees about the HR issues.

Also each one tried to interpret the HR policies in their own favor. 3. Lack of Proper Tools with HR, Employees Managers and Leaders: Neither employees nor manager had appropriate and easy to use tools to follow HR practices and policies, they invested more time in creating improvements rather than using existing practices. Thus they were reluctant in partnering with HR and considered HR as an hindrance to their routine jobs. 4. Delayed reports to make Business decisions: The HR reports were often delayed or completely avoided while making business critical decisions. . Lack of Accountability: As there were no Job Descriptions, SMART Goals, mechanism or work-flows for managing human resources or for approvals, managers and employees did not feel accountable to HR. During meetings they tried to stress their own decision making as an important factor and provided excuses for declining performance like competitive market and economy etc. The leadership and top management considered above problems highly critical for business and immediately advised HR and Senior management to look for possible solutions. Solution Offered:

On the basis of previous discussions, Saigun team suggested the organization to implement ‘EmpXtrack Professional Edition’. Professional Edition is a state-of-the-art solution for managing Human Resources. It automates all significant functions of the HR Department. With Professional Edition organizations can manage employee data, extend HR services to employees and managers, and evaluate performance of employees using a web based appraisal system. As organization was completely paper based, migrating instantly to an On line system could cause anxiety among employees and also create change-management issues.

So Saigun and the Organization decided to implement the HR technology solution in two phases. First Phase: In first phase, Organization opted for on-line Employee Database and Employee Self Service. This helped them to painlessly switch from current traditional practices to a paperless global HR system. On-line Employee Database helped organization’s HR Department to slowly absorb the benefits and challenges of on-line management. While Employee Self Service with functions like on-line leave approvals, travel and expense management, personal data update slowly transformed the HR practices.

Benefits of First Phase: 1. Painless Change Management: The simplicity of the solutions did not cause much training issues and also eliminated any anxiety or confusion among employees. The simplicity of the Starter Edition’s functions smoothened the change process and could be absorbed in the organization with minimum resistance from employees. Within 3 months the usage of EmpXtrack system reached upto 90 %. 2. Accuracy of Employee Data: With Self Service mechanism, employees helped HR to change the data accurately and effectively. After three months of implementation, 99% of the data was accurate.

After three months there was almost no personal data inaccuracies. All personal data updates became incidental like employee status changing from unmarried to married etc. 3. New Employees inducted in the system Effortlessly: All new employees joining the organization were instantly added to Employee database and they used self service to provide further data. Thus organization could always have accurate & fully updated employee data with them. 4. Accuracy of Payroll data and accuracy in Employee salaries: Correct leave data was available for payroll department, thus salaries were transferred accurately. . Decrease in Travel Expenses: Most travel expenses were approved through a pre-defined process.

This resulted in higher accountability for expenses incurred during travel and other related activities. All insignificant travel and expenses were disapproved by management thereby improving the financial health of the organization. 6. Increase in Employee Availability at Stores: Due to increased accountability of managers in implementing HR Policies and procedures and improvement in Employee morale, there was a significant improvement in employee availability and hence productivity. . Better MIS reports: Instant reports were available to HR and company Leadership to help in making critical business decisions. Indeed while their competitors were laying off employees, this organization which did smart hiring in the past had no need to layoff employees; instead they hired the talent from competitors. Second Phase: The second phase is still under process. The second phase will focus on Performance Management to measure & improve employee performance and meet organizational Goals. Goal Setting Process will be initiated for all employees for a specific period.

At the end of the duration, Appraisals based on the Goal Sheets will be initiated for all employee. The impact of HR Technology Solution on the Organization The HR Technology Solution helped the organization to implement their HR policies and procedures effectively. Appropriate and accurate data became available to the management to make objective decisions. Employees felt satisfied with the HR services and did not consider them as an hindrance to their jobs. Employee Strength of Organization: 1000+ Employees across 150 Locations HR Technology Solution Used: EmpXtrack Professional Edition

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