Why doesn’t this HR Department get any respect?
Prepared By: Nikhil Chandra, Section C, Roll No. 28064
Background of the case:
Luke Robinson is the Managing Partner – HR at Loft Securities. He joined the company over a year ago. He is very upset with the problems he is facing at this workplace and is discussing them with his friend Kate Ross, who is the Vice President – HR of a successful PR Firm. The new CEO had initially tried to support Robinson but now seems to not pay much attention to the role of HR in the organization. Robinson has taken a number of steps to rectify the problems he is facing but none of them seem to be working for him. He has not been able to rebuild the image of the HR Dept and is thinking of quitting his job.
Lead characters in the case:
He has been the Managing Partner – HR at Loft Securities for over one year. His previous assignment was as a Partner at the Powell Group, a well known HR Consultancy Firm. Over here he specialized in working with financial services companies. He is an expert in the Recruitment & Development operations of HR and made Powell Group a robust competitor for talent. He joined Loft Securities as it offered him a rewarding challenge of recruiting top level managers and re-build the image of the HR Dept. He was faced with many problems at Loft and he took many measures to solve them. But till now he is now satisfied with his performance and is considering quitting his job as a last option.
She is the Vice-President – HR of a successful PR Firm. She is good friend, confidant, advisor and motivator to Robinson. He trusts her judgment. Robinson seeks her help primarily to utilize her expertise and experience of Public Relations to rebuild the image of the HR Dept at his company.
He is the former CEO of Loft Securities who retired in 1995. He had personified Loft’s culture with his leadership and charisma. He single handedly handled the recruitment and retention of talented people. Two of the top five directors left shortly after him and two more left six months ago.
He is the new CEO of Loft Securities and was hired through external recruitment. He is a perfectly good top manager, highly skilled and highly motivated. He recognized the shoddy condition of HR in the company and hired a recruitment expert like Robinson to get quality recruits and retain talent. He had supported Robinson in everything that he did but has recently stopped paying attention as Robinson has not been able to show him the desired results. He does not know how to effectively use Robinson.
Problems of the case:
The image of the HR Dept at Loft Securities has been tainted at due to its lack-lusture performance in the past. The HR Dept has not been able to hire and retain talented personnel.
Reasons behind the problem:
The HR Dept.’s image in the company is just of a mere administrative function. Robinson is relatively new to the company and essentially a recruitment person. He has less expertise over other functions of HR. He is trying his best but is getting a confused response from the new CEO, Bernie Shargall. All the steps that Robinson took, his findings and recommendations, were not paid attention to by the board of directors. After the two directors who left after Washington, two more have left in the past six months. No progress so far in quality recruitments as the HR Dept. has not been able to hire and retain talented personnel. Senior management is also not involved in retaining good talent. No more vibrant culture left at Loft as people think that is is not a good place to work anymore. No one is quite sure how to perform the recruitment and retention ever since Washington left. Nobody likes the HR Dept. asking probing questions.
Inaccurate issue of the year end bonus cheques for...