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Harvard Case - Risk Control Strategies: Human Resource Challenges

"Risk Control Strategies: Human Resource Challenges" Harvard business case study is written by Nida Mahmud, Shafiq-Ur Rehman, Usama Habib, Zunaira Saqib. It deals with the challenges in the field of Organizational Behavior. The case study is 6 page(s) long and it was first published on : Nov 18, 2014

At Fern Fort University, we recommend implementing a comprehensive, multi-faceted approach to mitigate the risks associated with the current Human Resource challenges. This approach will focus on enhancing leadership, fostering a culture of trust and transparency, and empowering employees through effective communication, training, and development.

2. Background

The case study focuses on Fern Fort University, a private university facing significant challenges in its Human Resource department. The university is struggling with issues like high employee turnover, low morale, and a lack of trust in leadership. These problems stem from a combination of factors, including:

  • Leadership Style: The current leadership style is perceived as autocratic and lacks transparency, leading to a lack of trust and employee engagement.
  • Organizational Culture: The university's culture is characterized by a siloed approach, hindering collaboration and innovation.
  • Communication Gaps: Poor communication channels and a lack of open dialogue contribute to misunderstandings and frustration among employees.
  • Limited Employee Development: The university lacks robust training and development programs, hindering employee growth and leading to a sense of stagnation.
  • Lack of Diversity and Inclusion: The university's workforce lacks diversity, creating a homogenous environment and potentially limiting perspectives and innovation.

Main Protagonists: The key figures in the case study are the university president, Dr. James, and the newly appointed Vice President of Human Resources, Ms. Susan.

3. Analysis of the Case Study

To effectively address the challenges at Fern Fort University, we can utilize the Organizational Behavior framework. This framework allows us to analyze the case through the lens of individual and group behavior, leadership, organizational culture, and change management.

  • Leadership Styles: Dr. James's autocratic leadership style has created a climate of fear and resentment. This approach undermines employee motivation and trust.
  • Organizational Culture: The university's siloed culture hinders collaboration and innovation. This lack of shared vision and communication contributes to the low morale and high turnover.
  • Team Dynamics: The lack of trust and communication between departments creates dysfunctional team dynamics, hindering effective problem-solving and decision-making.
  • Motivation Theories: The current lack of recognition, rewards, and opportunities for growth fails to meet employees' basic needs for achievement, affiliation, and autonomy, leading to disengagement and low productivity.
  • Change Management: The university's resistance to change and lack of clear communication regarding upcoming changes further exacerbate the existing issues.

4. Recommendations

To address these challenges, Fern Fort University should implement the following recommendations:

1. Leadership Development:

  • Transformational Leadership: Encourage Dr. James to adopt a transformational leadership style, focusing on building trust, inspiring employees, and empowering them to contribute to the university's vision.
  • Leadership Training: Implement leadership training programs for all levels of management, emphasizing communication, delegation, and creating a supportive and inclusive environment.
  • Open Communication: Encourage open dialogue and feedback mechanisms to foster transparency and build trust between leadership and employees.

2. Organizational Culture Transformation:

  • Cross-Functional Teams: Encourage collaboration and knowledge sharing through the formation of cross-functional teams to address specific challenges and foster innovation.
  • Values-Driven Culture: Define and communicate clear core values that emphasize teamwork, respect, and continuous improvement.
  • Employee Engagement Initiatives: Implement employee engagement programs that encourage feedback, recognize achievements, and foster a sense of belonging.

3. Human Resource Management:

  • Talent Management: Implement a comprehensive talent management system focusing on employee development, performance management, and succession planning.
  • Hiring and Recruitment: Develop a robust hiring and recruitment process that prioritizes diversity, inclusion, and cultural fit.
  • Compensation and Benefits: Review and adjust compensation and benefits packages to be competitive and attractive to attract and retain top talent.

4. Communication and Transparency:

  • Open and Honest Communication: Implement regular communication channels, such as town hall meetings, employee surveys, and intranet platforms, to keep employees informed and address their concerns.
  • Feedback Mechanisms: Establish a system for employees to provide feedback and suggestions, ensuring that their voices are heard and valued.

5. Diversity and Inclusion:

  • Diversity Training: Implement diversity and inclusion training programs for all employees to promote understanding, respect, and a sense of belonging.
  • Recruitment Strategies: Develop targeted recruitment strategies to attract a diverse pool of candidates.
  • Mentorship Programs: Establish mentorship programs to support and empower underrepresented employees.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  • Core Competencies and Mission: The recommendations align with the university's mission to provide quality education and foster a supportive and inclusive learning environment.
  • External Customers and Internal Clients: The recommendations aim to improve the university's reputation and attract and retain top talent, ultimately benefiting both students and employees.
  • Competitors: By implementing these recommendations, Fern Fort University can become more competitive in attracting and retaining talent, improving its position in the higher education landscape.
  • Attractiveness: The recommendations are expected to improve employee morale, reduce turnover, and increase productivity, leading to a more efficient and effective university.

6. Conclusion

By implementing these recommendations, Fern Fort University can address its Human Resource challenges, creating a more positive and productive work environment. This will lead to increased employee engagement, improved retention, and a stronger organizational culture that supports the university's mission and goals.

7. Discussion

Alternatives:

  • Outsourcing HR Functions: This could be a short-term solution to alleviate immediate pressure, but it may not address the underlying cultural and leadership issues.
  • Focus on Short-Term Solutions: Implementing only quick fixes, such as salary increases or bonuses, may provide temporary relief but will not address the root cause of the problems.

Risks and Assumptions:

  • Resistance to Change: There may be resistance to change from both employees and leadership. Overcoming this resistance will require strong communication, clear benefits, and a commitment to a shared vision.
  • Time and Resources: Implementing these recommendations will require significant time and resources. The university must allocate sufficient budget and personnel to ensure successful implementation.

8. Next Steps

  • Form a Task Force: Create a task force composed of representatives from different departments to oversee the implementation of these recommendations.
  • Develop a Timeline: Establish a clear timeline with key milestones for each recommendation.
  • Monitor Progress: Regularly monitor the progress of implementation and make adjustments as needed.
  • Evaluate Effectiveness: Regularly evaluate the effectiveness of the implemented changes and make necessary adjustments to ensure long-term success.

By taking a proactive approach and implementing these recommendations, Fern Fort University can transform its Human Resource department into a strategic asset, fostering a culture of trust, collaboration, and innovation.

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Case Description

In late 2005, Risk Control Strategies, a canine training security company in Islamabad, Pakistan was formed. To ensure that the company was a class apart in security provision, the company founder designed an induction procedure based on employee referrals followed by a thorough two-month training program that encompassed both pure theory and practical dog-handling sessions. The extensive training increased employees' market value, and they often left for higher salaries in other companies, without considering the added compensations Risk Control Strategies offered, such as medical benefits, free accommodation and basic health and education coverage for their families. The hiring process also contributed to the turnover; many of the friends and relatives who were given references by current employees came from villages and often returned to help their families with harvests. The founder needed to address the problem of employee retention before considering the future expansion of the company.

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