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SECOND ASSESSMENT –INDIVIDUAL CASE STUDY 1 The Case Study Putteridge Solutions plc provides a range of software services to clients, mostly in connection with internet security. Most of its work is with corporate clients, who want security assessments, infrastructure health checks, and advice and help on purchasing security packages, some of which are provided by Putteridge Solutions itself. Its main head office is in the UK, with smaller offices in several European companies. It employs over 400 staff in the UK. About 300 are skilled technical workers, frequently working in small teams on projects with corporate clients. The work is highly technical, requiring painstaking detailed application. Until the economic downturn last year, the labour market for skilled technical staff was tight. Putteridge has been able to recruit because it has a policy of paying well – its basic pay is at the upper quartile level for the sector. Staff have been able to gain team bonuses based on the work they do with clients, and in addition there has been an annual bonus for all staff based on the company’s profits. This annual bonus, which has increased in recent years, was worth £9,000 to the average employee last year. The company provides technical updating for its staff, but relies on major competitors and educational bodies to provide basic training. Employee relations has not been a priority; the main way to maintain employee engagement has been an attractive reward package. Technical staff work in semi-autonomous teams, and are kept informed of organisational developments through emails, team meetings, and occasional “town hall” meetings with the Chief Executive Officer (CEO). In the last year the company’s revenue and share price have declined markedly. This year it anticipates that the annual bonus payment will be only about a fifth of last year’s, and is forecasting no annual bonus payment for next year. Team bonuses have similarly been reduced, and the company has informed staff that there will be no cost of living pay increase this year, the first time that this has happened in the history of the organisation. At the moment there are no plans for redundancies, and the CEO is hopeful that a freeze on recruitment will ensure no job losses, though staff know that market conditions are poor. Staff turnover has not increased, though sick absence and grievances have gone up somewhat (from a low base). The CEO has attended conferences and discussions looking at the findings of the McLeod Review on Employee Engagement, commissioned by the Department for Business, and is concerned that without the financial incentives that staff are used to, employee engagement will decline, with an impact on performance. He believes that the organisation needs to broaden and improve its approach to people management, and is looking for cost-effective initiatives that will enable the organisation to retain high performing staff in a period of low returns. 2 The Task As HR manager, you have been asked by the CEO to produce a three part report of approximately 3,500 words which: 1. Uses relevant academic and practitioner literature to clarify the concept of engagement and discuss how it can be measured and improved, (approximately 40% of the report) 2. Outlines the HR strategy and related practices to improve the engagement and utilisation of employees at Putteridge Solutions plc, with explanations and justifications, (approximately 40% of the report) 3. Addresses implementation issues arising from your report, including financial and HR resource issues and arguments to persuade managers and employees to agree to the proposals. (approximately 20% of the report). Notes Your work should be in report format, stating to whom it is addressed, setting out the remit, providing a short executive summary. However, you do not need a contents page. Part One requires you to do a literature review of the concept of employee engagement. This should include academic definitions, discussions as to whether the concept is clear or ambiguous, reviewing evidence that employee engagement is important for organisations, considering how it can be measured and encouraged. Academic journal articles can be found on the Ebsco site, practitioner articles on the XpertHR site. Part Two requires a strategic overview, setting out key HR objectives, particularly in relation to employee relations and employee reward. This should lead to proposals for new HR practices, which should be clear and related to the case. Avoid long wish lists; a limited number of thought-out and considered proposals are best. In Part Three, think about how the proposals can be put into practice, whether costs will outweigh benefits, whether the necessary HR expertise is in place, what the key arguments are that can be used to persuade employees and managers to accept the proposals. The assignment must be submitted to the Assignment Office, Park Sq. by 4.00pm on Monday 21st January 2013. Pass/Fail In order to achieve a pass in this assignment you need to do all of the following: - use a wide range of appropriate academic and practitioner sources in Part One, - identify and discuss key concerns raised in the case study, - put forward considered and appropriate proposals for change, with thought given to justification, resources and implementation, - use Harvard referencing correctly. General Assessment Guidance Knowledge and Understanding Awareness of effective policies in these particular areas, awareness of complexities; understanding of appropriateness when selecting policies; ability to put ideas into practical proposals. Business Awareness Contributing to the success of the organisation through innovation and improvement; ability to put forward a coherent set of proposal;, show awareness of organisational and financial constraints; develop arguments to win support for proposals. Analysis/Evaluation Create methodologies to ensure concepts and practices are fully explored; to read widely around the subject, and use relevant research findings to support proposals. Presentation Coherently structured, business focused, logical development; good standard of written English, good academic referencing.