SAMPLE CASE STUDY

Solve the following Case Study as per the guide-lines given at its end.
It is January. You are the regional manager of a chain of stores selling computer equipment and
accessories, mainly based on out-of-town retail parks. Following promotion, a new manager has
just been appointed to the Preston store which employs 20 staff. The store is currently
experiencing a number of challenges which you wish the new manager to address.
Among the store’s problems are the following:
i. A growing absence problem among the store’s staff.
ii. Deterioration in staff morale, largely due to the unpopularity of the previous manager
who left suddenly about a month ago.
iii. Sales have been falling since a rival opened up a store on the same site. It is well known
that the rival chain’s products are not only cheaper, but much more unreliable.
iv. The lease on the current property expires in July. The company has an option on a store
of similar size on the far side of town. The rent on the alternative store would be cheaper,
but it is unlikely that all the current employees would be prepared to transfer to the new
store. You need to get your manager to investigate this issue.
v. The newly-appointed manager, although highly competent as a team manager has
admitted that financial management is not his strong point.
vi. The company has a formal appraisal process for all staff, but the previous manager is
known to have neglected this area. As regional manager you wish to address this issue.
vii. Although many of the in-store employees have long service, there is still a problem in
retaining newly-appointed staff. Labour turnover currently stands at 15% although the
norm for the retail sector is 10%.
viii. The company operates an annual employee opinion survey. In the last survey, employees
in the Preston store collectively raised concerns over lack of training. You have allocated
`10,000 for employee development for the store.
ix. The telephone bill for the store is twice that of other stores in the chain. Occasional
personal calls from the employee rest area are allowed, providing that permission has
been given by the store manager.
x. The manager of the smaller Blackpool store is currently on sick leave and you, the
regional manager, have agreed that a suitable temporary replacement will be provided
from the Preston branch.
Questions (with guidelines):

Based on the above issues, use the following steps while designing an effective Performance
Management System for the new manager at the Preston store:
a. Define this retail organization’s strategic plan. [1M]
b. Select which you think are the six most appropriate to be included in an annual
performance management plan, [1M]
c. Compile a suitable set of performance objectives for your newly appointed manager at
Preston store, complete with measures and timescales. [4M]
d. Determine how to monitor performance: What will the regional manager do finally?[2M]
e. Check the performance plan: How will the regional manager appraise the new manager at
Preston store? [2M]
 CASE STUDY SOLUTION

a.) Define this retail organization’s strategic plan.

{Assume one from points 1 to 4, and one from points 5 to 7}

Points 1-4 are
corporate level 1. To increase the sales in order to expand business further (geographic expansion)
strategy 2. To control attrition rate or reduce work-force size (consolidation)
3. To diversify (diversification)
Points 5-7 are 4. To manufacture computer equipment raw materials (vertical integration)
business level 5. To produce low-cost products to achieve low cost (cost leadership)
strategy 6. To produce high quality products (differentiation)
7. To produce niche market products with low cost and best quality (focus)

b.) Select which you think are the six most appropriate to be included in an annual
performance management plan

{Assuming point 1 and point 7 as the strategic plan, the following are the annual plans}

i. Sales have been falling since a rival opened up a store on the same site. It is well known
that the rival chain’s products are not only cheaper, but much more unreliable. [it will
help in focus strategy (pt. no. 7)]

ii. The newly-appointed manager, although highly competent as a team manager has
admitted that financial management is not his strong point. [it will help in focus strategy
(pt. no. 7)]

iii. The company has a formal appraisal process for all staff, but the previous manager is
known to have neglected this area. As regional manager you wish to address this issue. [it
will help to expand business (pt. no. 1)]

iv. The company operates an annual employee opinion survey. In the last survey, employees
in the Preston store collectively raised concerns over lack of training. You have allocated
`10,000 for employee development for the store. [it will help in focus strategy (pt. no. 7)]

v. The telephone bill for the store is twice that of other stores in the chain. Occasional
personal calls from the employee rest area are allowed, providing that permission has
been given by the store manager. [it will help in focus strategy (pt. no. 7)]

vi. The manager of the smaller Blackpool store is currently on sick leave and you, the
regional manager, have agreed that a suitable temporary replacement will be provided
from the Preston branch. [it will help to expand business (pt. no. 1)]
c.) Compile a suitable set of performance objectives for your newly appointed manager at
Preston store, complete with measures and timescales.

Sr. Performance objective Measure Timescale

No.

1. To ensure retention of the quality & Check all quality reports and Monthly
cost-effectiveness of the product ensure only upto 5% non-
under employees of this manager to compliance
be better than the rival company

2. To improve financial knowledge of Training programme reports upto Bi-

the manager 50% scores Monthly

3. To ensure formal appraisal process Check appraisal reports with Quarterly

in place of employees under this performance improvement levels
manager upto 20%

4. To improve employee engagement Regular meeting reports with Monthly

of employees under this manager improvement level upto 20%

5. To reduce personal use of telephone Check telephone bill usage Monthly

of employees under this manager reports and charge fines on excess
of 50% usage

6. To have employees under this Appointment of two senior Monthly

manager multi-task effectively to employees as manager at
improve performance & increase Blackpool store operating in
sales monthly shifts with sales
improvement upto 20%

d.) Determine how to monitor performance: What will the regional manager do finally?

The reports under measures will be collected in full by the regional manager on a
quarterly basis and feedback reports will be made on a quarterly basis and feedback will
be given to the manager at the Preston store bi-annually.

e.) Check the performance plan: How will the regional manager appraise the new manager at
Preston store?

All the elements are critical. Range of acceptable performance is clearly defined.
Standards and expectations are attainable. Standards are challenging and fair. It is easily
understandable. Fully successful standard is not surpassable.
 SAMPLE CASE STUDY SOLUTION 2

1. CASE STUDY

Based on the following job description and desired candidate profile for Learning &
Development –Management Trainee role position of a company, Natural Countrywide Region
Transport Corporation Limited (NCRTC Ltd.), a performance management system is to be
designed.

About NCRTC Ltd.:

NCRTC Ltd. is a Joint Sector company of Government of India and States of Delhi, Haryana,
Rajasthan and Uttar Pradesh is mandated for implementing the Regional Rapid Transit System
(RRTS) project across the National Capital Region, ensuring a balanced and sustainable urban
development through better connectivity and access (as of 30th November 2018).

Job description:

L&D Management Trainee should possess:

1. Minimum 0 to 2 years' work experience in developing customized training programs

within a large-structured and complex business environment.
2. Learning & Development (L&D) related functions, which include
1. Preparing and implementing the L&D calendar /
2. Monitoring the L&D calendar,
3. Developing various L&D modules and
4. Delivery of those various L&D modules to different sections of employees.

Desired candidate profile:

Should be a PGDM-HR. Exceptional Communication Skills required. Knowledge in Talent
Development & Management and Quality is desired.

1. Questions: Use the following steps while designing an effective Performance

Management System for the Learning & Development – Management Trainee, say
named, ‘A’ of the given suitable company:
1. Summarize in 4 brief points the entire case.
[4M]

1 Mark each for any of the following 4 or related points as below:

1. The job description and desired candidate profile for a Learning & Development
(L&D)– Management Trainee role position of a company, Natural Countrywide
Region Transport Corporation Limited (NCRTC Ltd.), is described.
2. Job description involves all the tasks related to L&D role duties.
3. Desired candidate profile includes qualifications, skills, language skills and ability
to be self-motivated.
4. A suitable performance management system is to be designed keeping in mind
evaluation and development objectives of performance management systems.
2. With reference to company background,
1. Define a suitable employee, say ‘A’ of your choice, associated with NCRTC Ltd.
[2M]

2 Marks for any 1 of the following or related points as below:

Company NCRTC Ltd. employs Employee ‘A’ as a ‘L&D – Management Trainee’. He

reports directly to the ‘L&D– Manager’ and has two trainee HR L&D assistants as his
direct reports.

2. Now, define any 2 objectives of the strategic plan of NCRTC Ltd.

[2M]

2 Marks for any 1 of the following or related points as below:

The following are the objectives of its strategic plan:

i) To hire the best talent and improve the workforce in the coming 5 years by 10%.

ii) To focus on customer requirements up to 30% in the next 5 years.

iii) To increase profits by 50% in the next 5 years.

iv) To expand customer base by 30% in the next 10 years.

3. State any 1 objective of the annual performance plan of this organization.

[2M]

2 Marks for any 1 of the following or related points as below:

Keeping in mind, any one objective of the strategic plan, say, ‘To hire the best talent and

improve the workforce in the coming 5 years by 10%’, the following may be the

objective of the annual performance plan of this organization:

1. To improve skills of 2% of the employees by the end of the year.

Similarly any 1 of the following objectives may be listed as below:

2. To resolve 6% of customer complaints/ queries in this 1 year.

3. To increase profits by 10% in this 1 year.

4. To expand customer base by 3% in this 1 year.

 4. Describe any 4 department goals of employee ‘A’.
[4M]

4 Marks for any 1 of the following or related points as below:

Relating to the annual performance plan, “To improve skills of 2% of the employees by

the end of the year”, the following 4 department goals may be defined for employee “A”

1. Plan the L&D process as per the performance standards by collecting reports from

various departments & deciding which L&D method could be adopted.

2. Monitor the L&D modules as per the performance standards set in the beginning

of the year.

3. Give feedback report on the L&D sessions of employees to various departments

4. Reward as per L&D method adopted, grading the L&D points and promoting/

demoting the employees.

5. Describe any 4 individual goals of that suitable employee ‘A’.

[4M]

4 Marks for any 1 of the following or related points as below:

Related to the 4 department goals, the following 4 individual goals may be described for

employee “A”:

Time Performance objective/ Individual goals

scale/
 Quart
er

1st Identify need for L&D could be adopted up to 0.125% increase in this quarter.

2nd Prepare L&D calendar and communicate it to employees, as per the

performance standards set in the beginning of the year up to 0.125% increase in
this quarter.

3rd Conduct L&D according to modules of employees to various

departments up to 0.125% increase in this quarter.

4th Take feedback on training programmes conducted, grading the L&D points
and promoting/ demoting the employees up to 0.125% increase in this
quarter.

Total Q1b. marks:

[2+2+2+4+4=14M]

3. Define performance standards for ‘A’, for each individual goal identified by c ompiling a
suitable set of performance objectives for ‘A’, complete with measures and timescales.
[8M]

2 Mark each for any of the following 4 or related points as below:

Related to the 4 individual goals, each of the goals may be identified by c ompiling the

following suitable set of performance objectives for ‘X’, complete with measures and

timescales:
Time Performance Measure:
scale objective/
/ Individual goals
Quar
ter For each of the 4 points in each block of
Timescale/ Quarter, performance
standard is measured as below:

PERFORMANCE POINTS

STANDARD
LEVELS

Unsatisfactory 0
=

Minimally 1-3
successful =

Fully successful All 4

=
 Exceeds fully 5-7
successful =

Outstanding 7+
=

1st 1) Evaluate performance of employees up to

70% QN employees nos.

2) Do a gap analysis up to 70% QN employees

nos.
Identify need for
L&D could be 3) Prepare employees to undergo L&D up to
70% QN employees nos.
adopted up to
0.125% increase in 4) Emphasize importance of L&D to employees
this quarter. nos. up to 70% QN.

2nd Prepare L&D 1) Identify number of employees to undergo

L&D up to 90% QL in T topics.
calendar and
communicate it to 2) Compare their work timings up to 90% QL in
employees, as per work related topics.
the performance
standards set in the 3) Check cost provided by company up to 90%
beginning of the QL in accuracy of including costs.
year up to 0.125% 4) Communicate L&D calendar to employees by
increase in this email up to 90% QL in coverage of topics
quarter. planned in T calendar.
3rd 1) Conduct sessions according to modules
Conduct L&D utilising upto 80% Time planned
according to
modules of 2) Evaluate performance in L&D modules upto
employees to 80% Time planned.
various
3) Check progress upto 80% Time planned.
departments up to
0.125% increase in 4) Communicate in time employee performance
this quarter. upto 80% Time planned.

4th Take feedback on

training
1) Communicate the process in details of
programmes collecting feedback on T with up to 95% QL.
conducted,
grading the L&D 2) Collect feedback by filling up of forms up to
points and 95% QL.
promoting/
demoting the 3) Check for inconsistencies in employee
feedback up to 95% QL
employees up to
0.125% increase in 4) Incorporate the changes, if needed up to 95%
this quarter. QL.
4. Determine how to monitor performance: What will the manager of ‘A’ do finally?
[2M]

1 Mark each for any of the following 2 or related points as below:

1. The reports under measures will be collected in full by the immediate

manager of employee ‘A’ on a quarterly basis and

2. The feedback reports will be made and given to the HR-Head at Company

Dattaroy Sons Pvt. Ltd. bi-annually.

5. Check the performance plan: How will the manager of ‘A’ appraise ‘A’?
[2M]

½ Mark each for any 4 of the following 6 or related points as below:

1. All the elements are critical.

2. Range of acceptable performance is clearly defined.

3. Standards and expectations are attainable.

4. Standards are challenging and fair.

5. It is easily understandable.

6. Fully successful standard is not surpassable.