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Submitted To, Mrs. Homayara Latifa Ahmed Assistant Professor IBA, University of Dhaka Submitted By, Group 10, Section A
Consisting of,

Ayesha Sabrina (08) Sumit Saha (39) Syif Mohammed Bhuiyan (37) Muhtad Ahmad (30) Yia Hiya Mohammed Mussa (25)

Date of Submission, 24.04.2012

Given the Elite Small Goods modernization scenario, the problem lies in the area of designing a proper staff group for the new, mechanized plant. A turnover rate less than 10% represents high levels of commitment from the employees and this should be given consideration while planning to meet the demand for human resources in the plant. Existing taskforce maintains a hierarchy of command when it comes to decision making, which is exactly the opposite to the new requirement of self-managed work groups. Incompetent language skill and educational background of the employees also demand managements attention. What to do now and why? While keeping in mind all the constraints and requirements, the firm can provide training facility for the existing workers and the training phase should start with a short language course. In the meantime, the firm can make arrangements for hiring 4-5 new supervisors with the required technological skill to operate the new machines. These people should have the potentials for leadership and mentoring to help the existing workforce to adapt to the upcoming changes. Before taking all this steps, the firm should warn employees of the proposed changes and see which ones seek voluntary separation or would be interested in training for language development and the new equipment. This will rule out the complication that HR could face while resizing the workforce and ensure a cost-effective training for the employees. Language training is crucial to create a communicative environment a must for a self-managed, team-oriented, efficient workgroup. External recruitment of the supervisor will enable the firm to run their training facility in a 2 dimensional way. Existing labors will get the necessary training for new equipment and the newly appointed supervisors will get an orientation to the firms work environment, directly from their new colleagues. Information required The 2 phases of training will be required to yield certain information that would be helping management decisions. The 1st phase- language development will provide employee information on competency, adaptability. People failing or denying going through this training can leave the firm and create room for fresh recruitments just when they are required. This raises another information need that forces management to understand the employees respective views on the suitable compensation in case of a lay-off. This will enable to the firm to handle employee expectation management in a better way. However, if the company loses a great share of its workforce in the process then they will have to go for massive external recruitment and the cost will now be doubled with wasted training and recruiting costs. Therefore, motivational factors should be provided for the most competent ones and previous records of employee commitment may be of help to factor out the motivational guidelines. Employees perceptions on the changes are also required to use the analysis for creating a change-supportive environment within the organization. Besides, a new job structure requires job analysis, evolution to be repeated. Therefore, information regarding the tasks in a job, expected work hour, degree of delegation associated etc. are essential to decide on a smooth wage structure and a well -defined job description. Staffing actions 10 extra employees and the lack of skill in most of the 65 existing labors requires the management to consider several probable staffing actions, these are-

 Voluntary retirement: Warning provided by the firm creates room for voluntary
retirements from employees refusing going through the transformation phase.

Training: 2 phase training for the loyal employees gives them an opportunity to
develop their skills in a rewarding manner. Information from both the phases can be utilized to facilitate some changes in HR actions and policies.

Lay-off: Only after the 1st phase, failed employees can be persuaded to leave the firm
to minimize training cost and to fill the vacancies with more competent employees.

Recruitment and selection: 4-5 supervisors having the required qualification can be
sought after only to add a touch of efficiency and diversity in the existing taskforce. This section of workers can be recruited by ads in local media as relocation responsibility for this level is not a usual function for HR department. However, cognitive ability test might be a valid selection tool here because the supervisor should not only meet the mechanical requirements of the job but also they should have the capability to lead, mentor a group of existing labors and try to be one of them for the success of the training programs.

Caution During these phases, management should pay attention to proper management of diversity in the firm with the introduction of some new employees in significant job positions. The management has to make sure that an air of mutual cooperation and common objectivity is created. Employee retention has to be fair and transparent to ensure an equitable inside environment.When loyalty is being rewarded, cost minimization and creation of an adaptable, well-trained workforce should also be paid attention to. Costly training and recruitment methods emphasize the need to focus on employee retention for the fresh recruits also. And the most important of all, in order to ensure a strategic fit with the changing organizational policies, HR policies and actions are to be redesigned where necessary and the process should be in harmony with the steps suggested above. With a sound combination of several staffing actions suggested above and a careful supervision followed by immediate action by the management, Elite Small Goods is likely to avoid conflicts or huge cost for the intended transformation in the organization.