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.
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.
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. 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 the 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....