CASE STUDY

CASE STUDY: HRIS IN AHG Corporation/ PART A

[Copyright Dr Reynold James MBA PhD]

Al Hilal Group of Companies [AHG] is a traditional 2nd generation family business established in 1970.It’s into construction and transport services and has 2000 employees including 40 managers. Although the 70 year old Founder / Managing Director Mr Khalil is slowly handing over the control of AHG to his MBA (UK) educated daughter Kulthoom aged 35, he is still involved with all major decisions on AHG matters. Since ‘people are everything’, AHG has an HR Dep’t with 20 staff, ‘available in person’ to meet any employee who needs to see them. Mr Khalil believes that common sense and basic human intelligence is more important than using / investing in technology. However, Kulthoom (MBA-HRM) is keen on introducing newer technologies to improve and manage AHG’s operations, especially HRM. The newly hired and young F/M [Finance manager who is Kulthoom’s MBA / UK batchmate], shares Kulthoom’s views regarding the need for AHG to adopt more advanced technology.

One half of AHG’s older (and very senior) managers are ‘traditional style’, including the Co’s senior advisor to Mr Khalil. The other half are progressive (like Kulthoom) in their work practices and outlook. Unlike the recently hired younger managers, the older traditional managers have direct access to Mr Khalil if and when they wish to meet him, and prefer the evening majlis-style meetings to discuss all company and employee related matters, including whom to promote / grant study leave to etc. During these majlis meetings, most of the ‘traditionalists’ seek and receive ‘verbal approvals’ for further study and house loans etc for their own departmental employees, based on their closeness and loyalty to Mr Khalil. The younger managers (‘progressives’) don’t enjoy such closeness. Kulthoom and the progressives believe it’s time the company’s affairs [especially HR] must be managed through a modern HRIS system, unlike the simple existing one that provides very limited options (such as payroll processing and recording of employee personal details etc.). They wish to have a comprehensive HRIS software package that helps manage all the HR sub-functions, and, which as a company-wide system would work based on fixed / standardized policies and procedures, with clearly identified ‘approvers’ and ‘decision makers’ for various HR related transactions and processes. All employee requests and also managers’ decisions would be only made through the HRIS system, based on approved work-flows, and not based on ‘case-by-case’ / wasta-based requests taken to Mr Khalil for approval during the informal majlis meetings. AHG’s FM shares Kulthoom’s views on this matter. This way, power would not be in the hands of the traditionalists alone, and all HR decisions would be ‘professional and fair decisions.

On 10th October Kulthoom talks to her father -and his advisor-about the increasing competition and changing business conditions, and states ‘‘if we wish to win new high-value construction & transport contracts for the Expo 2024 , we need to quickly streamline and manage our HR more effectively than before, and must invest in a more versatile HRIS Software urgently. If we don’t, our current speed of HR work and lack of ‘real time decision making’ will lose new contracts for AHG, as we cannot make quick, accurate HR related forecasts. Besides the old and slow existing HRIS, we also lack good project management skills in the Co. Also, even if we do win contracts through your connections, our speed of work -due to poor employee management-will let us down with the Expo 2024 authorities”.

After this initial discussion, Kulthoom decides to prepare a formal business case that she would propose to her father (and his advisor) on the 25th October. She therefore asks her F/M to meet her on 11th October to work on the proposal. Following are the main points they discussed for the business case to be presented on 25th October:

i) The new package needed to be purchased within 30 days, by 25th November 2022.

ii) On 12th October, Kulthoom (MBA /HRM) would take the day off to work alone on the HRIS Needs Analysis, and identify what the new HRIS would need to be able to do for AHG, that the current package couldn’t do.

iii) On 12th / 13th October, the F/ M (MBA / Finance) would also take 2 days off to work alone and complete the Cost-Benefit Analysis (CBA) for the new / proposed package. Regarding the CBA, Kulthoom tells the F/M:

– ‘Since the time available is quite short (25th October proposed deadline), and there’s no time to search for Vendor software packages, please find someone who will create an ‘in-house’ package for us ….. I am an HR person and can myself tell them what’s needed: it’s all here in my head….. however, to save time, I will first phone the software Co. that you select, and ask them if they are unable to convert any of the work-flows that I create into software programs, so I could then redesign these work-flows to fit with what they are able to do….’

-‘Also, just let me know the cost of the new package first in AED, and I will then justify the benefits’. First focus on the costs, I will handle the benefits later. ….maybe we ask for up to AED 2 million……we can make the programmers fit this budget .So, let’s say the total cost is 2 million, and benefit at the end of 5 years is 4 million….. you’re the F/M, and for the business case must somehow ‘make the benefits to exceed the costs’ .

iv) Kulthoom decided, that the best approach with her father on the 25th would be to focus on the possibility of AHG losing new contracts from Expo 2024 due to the existing HRIS. This would convince him to quickly approve the expense of AED 2million’.The F/M however disagreed, and felt the better option to receive approval for AED 2 million was to convince (the very ‘welfare’ minded) Mr Khalil how the new HRIS would enhance the quality of employee attraction, retention, motivation, long-term engagement, offer better L&D opportunities for staff development etc, and this way, improve the long term profitability of AHG.

On the 12th/ 13th October the F/M worked from home and contacted 4 HRIS vendors (see details below) who designed customized packages for Co’s. He sent out an RFP to them as follows, and based on responses received, selects Maghreb HRM Solutions for the task.

RFP for Designing Customized HRIS Software for AHG Corporation

We are an established construction and transportation company with 2000 employees and need a very good HRIS package before the 15th Jan 2023, to replace the existing one. We will pay about 2 million AED. Please reply via email to this RFP with your proposals asap.

Some further details on the existing package:

The current package only allows the HR Dep’t to enter employee personal details, salary details, and to calculate monthly salaries. The total expenses incurred on the current HRIS package purchased 5 years ago in Jan’ 2017 included ‘UNTIL DATE’ (i) AED 20,000 vendor & software identification costs (ii) AED 80,000 inhouse software development costs (iii) AED 120,000 training costs (iv) AED 320,000 maintenance / upgrading costs and (v) AED 100,000 user licensing costs.

The total value of the benefits of this HRIS at the end of 5 years are estimated as being AED 641,000.

Further details on Vendors of Customized HRIS packages, and Market Conditions:

Hamza HRIS LLc: 20 years in the UAE, operates in 6 countries, designs / supplies HRIS to schools, hospitals and banks. Excellent references from 12 customer Co’s. Annual turnover=10 million AED each year. Has ambitious plans to increase market share within the next few years. Total 80 staff.

Arabian HRM Solutions: 4 years in UAE, operates in the UAE only. Designs / supplies HRIS only to construction Co’s. Excellent references from 4 customer Co’s. Annual turnover=6 million AED, 20 staff.

-Gulf HRM Solutions: 2 years in the UAE, operates in UAE only. Designs / supplies HRIS only to Transportation Co’s., but claims capability to handle other tasks too. Excellent references from 2 customer Co’s. Annual turnover=1 million AED; 8 staff

-Maghreb HRM Solutions: 1 year in the UAE, operates in the UAE only. Designs / supplies HRIS only to Construction & Transportation Co’s on ‘urgent’ and low-cost basis. 1 reference currently available, being a newly established company. Annual turnover=300,000 AED;3 staff.

Market conditions: Since 2018 general business conditions are low due to various global influences, and very tight since Mar’2020 due to the CORONA outbreak. Businesses are struggling to Survive.

[Copyright Dr Reynold James MBA PhD]

HRM 366 ASSIGNMENT No 1 / PART B

HR ANALYTICS (5% MARKS)

[NOTE: ANSWERS TO THIS PART MUST BE PROVIDED IN THE SPACE ON THE ANSWER SHEET, NOT HERE]

1) As an HRIS specialist, analyze the following HR data OF AHG Co. First read / analyze the data, then provide your answers in the space at the end of the table

SNo

Employee Name

Job title /

Dept

Date of Joining

Highest

Qualification / Degree

Date of Graduation

Institution

Monthly Salary

Average Performance Appraisal Rating Received:

[Poor / Good / Outstanding]

Year / Reason for leaving

1

Hessa

HR Analyst

2015

BSc HRM

2015

ZU

40,000

Outstanding

Continuing

2

Hashil

Marketing

Analyst

2015

BSc Mktg

2015

UAEU

40,000

Poor

Continuing

3

Khawla

Accounts

Officer

2015

Diploma in Acctg

2015

HCT

20,000

Poor

2017 / Terminated for poor performance

4

Khalifa

Marketing

Analyst

2015

BSc Mktg

2015

ZU

40,000

Good

Continuing

5

Sara

Accounts

Officer

2015

BSc Acct’g

2015

UAEU

40,000

Outstanding

Continuing

6

Rashed

HR Analyst

2015

Diploma in HRM

2015

HCT

20,000

Poor

2016 / Terminated for poor performance

7

Arwa

Accounts

Officer

2015

BSc Acct’g

2015

ZU

40,000

Poor

Continuing

8

Salem

HR Analyst

2015

BSc HRM

UAEU

40,000

Poor

Continuing

9

Mariam

Marketing Analyst

2015

Diploma in Mktg

2015

HCT

20,000

Outstanding

Continuing

10

Saif

HR Analyst

2015

BSc HRM

2015

ZU

40,000

Outstanding

Continuing

11

Shouq

Marketing Analyst

2015

BSc

Marketing

2015

UAEU

40,000

Poor

Continuing

12

Mohammed

Accounts Officer

2015

Diploma in Acctg

2015

HCT

20,000

Outstanding

Continuing

13

Salman

Marketing Analyst

2015

BSc

Marketing

2015

ZU

40,000

Good

Continuing

14

Alanoud

Accounts Officer

2015

BSc Acct’g

2015

UAEU

40,000

Outstanding

Continuing

15

Hisham

HR Analyst

2015

Diploma in HRM

2015

HCT

20,000

Poor

2017 / Terminated for poor performance

16

Marwa

Accounts Officer

2015

BSc Acct’g

2015

ZU

40,000

Poor

Continuing

17

Sultan

HR Analyst

2015

BSc HRM

2015

UAEU

40,000

Poor

Continuing

18

Maha

Marketing Analyst

2015

Diploma in Mktg

2015

HCT

20,000

Outstanding

Continuing

[NOTE: THIS SHEET ONLY CONTAINS ASSIGNMENT INSTRUCTIONS AND THE SPACE FOR PROVIDING ANSWERS].

ANSWER SHEET

ASSIGNMENT DETAILS AND ‘WARNING’:

THE ASSIGNMENT CONTAINS 2 PARTS:

PART A: A MINI CASE STUDY WITH 4 QUESTIONS, WORTH 80 POINTS

PART B: AN ‘HR ANALYTICS’ QUESTION [SPLIT INTO 5 ‘BITS’] WORTH 20 POINTS.

WARNING’

YOUR ANSWERS TO BOTH THESE PARTS MUST BE PROVIDED ON THIS VERY SHEET, WITHIN THE SPACES PROVIDED AT THE END. THIS SHEET MUST BE USED AS A TEMPLATE, AND NOTHING CHANGED WITHIN IT.

DO NOT SUBMIT THE ‘CASE STUDY’ OR THE ‘ANALYTICS DATA SHEET’ ON THE LINK. ONLY SUBMIT THIS ANSWER SHEET WITH YOUR ANSWERS ON IT!

SCOPE’ OF ASSIGNMENT & OWN RESEARCH

THE ASSIGNMENT COVERS THE FULL SYLLABUS [CHAPTERS 1,2,3,4,5,7,16] ON THE HRM 366 COURSE. ALL CHAPTERS HAVE EITHER BEEN COVERED IN CLASS, OR, A RECORDED LECTURE PROVIDED IN ADVANCE. YOU MUST ON YOUR OWN GO THROUGH THOSE CHAPTERS NOT YET COVERED, AND IF REQUIRED, USE OTHER MATERIAL AND ACTIVITIES PROVIDED IN CLASS, TO DO A HIGH -QUALITY SUBMISSION.

WHEN ANSWERING QUESTIONS, THE CONTENTS OF ALL ZOOM LECTURES [END-TO END] AND PRE-RECORDED LECTURES [5, 7,16] AND CHAPTER PDFs MUST BE USED.

KEY POINTS TO DO WELL:

ORIGINAL WORK WILL BE HIGHLY REGARDED.

AVOID BORROWING / SHARING YOUR WORK WITH OTHERS, AS THE ‘ORIGINALITY’ OF YOUR WORK WILL BE DILUTED, AND A ‘UNIQUE’ ANSWER MIGHT BECOME A ‘COMMON’ ONE!

READ’ THE CASE (PART ‘A’) AND THE ‘DATA ANALYTICS’ (PART ‘B’) VERY CAREFULLY, ONLY THEN ANSWER.

WISH YOU THE VERY BEST,

DR REYNOLD

ANSWER SHEET FOR HRM 366 ASSIGNMENT No 1

Full Name:

S.I.D:

SPACE FOR ANSWERS: / PART A

Q. No

Assessment Factor / Question

Answer Here

[20 POINTS PER Q]

1

Ability to link / apply concepts to situations:

– [‘Vendor Longevity & Viability’].

Q: Based on the case facts, what comes to your mind re Vendor Longevity & Viability.

2

Ability to link / apply concepts to situations:

[‘Cost Justification Strategy’]

-Re ‘Cost Justification Strategy’: [Answer in separate ‘bits’-a/b]

a) What strategy has Khulood suggested and what strategy has the F/M suggested?

b) Whom do you support and why?

a)

b)

3

Ability to link / apply concepts to situations:

[Request for Proposal’ (RFP) ]

Re RFP: What are your detailed comments on the RFP shown within the case, and how it was approached.

4

Ability to link / apply concepts to situations:

[‘Software Acquisition Strategy’]

Re ‘Software Acquisition Strategy’: [Answer in separate ‘bits’-a/b/c]

a) What strategy has Khulood suggested?

b) do you support her strategy and why?

c) If you do not, what are the main reasons?

a)

b)

c)

5

Total Score on 80 points

SPACE FOR ANSWERS: / PART B

HR ANALYTICS (20 POINTS)

PROVIDE YOUR ANSWER HERE:

a) List 5 meaningful conclusions’ you can reach based on the data in the HR ANALYTICS’ table provided. OR, stated differently:Convert the data within the table into 5 pieces of ‘meaningful information’. No ‘Knowledge’ required!

Note: You must write ‘crisp / clear, short sentences’. No stories required.

Your ‘Meaningful’ conclusions / information:

Information / Conclusion No 1:

Information / Conclusion No 2:

Information / Conclusion No 3:

Information / Conclusion No 4:

Information / Conclusion No 5:

*****