1. Humantalents International
Human Resource
Development(HRD)
Case study
Abstract
The objective of this case is to present the importance of human resource
development in the economic growth of a society. To address this issue, a case study
is presented to be analyzed. The problem solving criteria need to be explained in
the context of human resource development.
Introduction
Despite its key role within economic development, human resources
remain a fundamental challenge for most countries. It is widely
accepted that human resource development is an important factor in
economic growth and for influencing changes in economic
structures. Material standards of living, the character of social and
cultural life and the well-being of societies are being widely
reorganized to be associated closely with human resource
development.
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Manpower development is the cornerstone of the development
process. Quality of the human resources is the most important
indicator of the level of development and should receive the
corresponding attention. Therefore, human resource development
can be argued to be a more realistic, reliable and pervasive indicator
of development than any other single factor since it is invariably a
necessary condition for growth of any forms.
Case study
Mala was a careful, hard-working employee in a private company. She
has been serving as a book keeper or more than seven years before
problems developed with her performance. Many employees begin as
clerks and progressively move up to lead book keeper. As such, Mala
was responsible for a large, active petty cash fund and was working
with dedication and utmost responsibility.
During a spot check by the internal audit of the company, her
immediate supervisor noticed pencil erasures on expense reports and
assumed that employees had been directed by memo to record their
expenses in ink. Mala’s immediate supervisor called Mala and
confronted her. When the supervisor called Mala, other employees
became aware of the fact that some unpleasant incident has taken
place. The situation in the department became very hostile as Mala
walked to the office of the supervisor.
Mala confessed to temporarily borrowing some money from the
petty cash fund. She explained that her child had been in and out of
the hospital for a few months, and she had exhausted the family
resources. She explained that she had to pawn her jewelry to perform
some expensive medical tests.
Mala admitted that she used the petty cash money to pay the bills of
the last medical test of her child. Mala further said that she has never
done anything of this sort before and that this was the first time she
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borrowed money intending on returning the money immediately.
Mala apologized and pleaded with her immediate supervisor stating
that this incident is one of the most extraordinary situations she has
experienced in all her life.
The immediate supervisor told Mala that he would consult the
company’s HR manager and let her know of the decision. When the
immediate supervisor consulted the company HR manager, he said
that while he did not want to sidestep his responsibility and planned
on making a final decision, he wanted to consult the HR manager
first for his opinion on this matter.
Speaking as a certified HR practitioner, the manager said that he has
a clear course of action for this kind of incident. He said any
employee who steals should be terminated. The immediate supervisor
felt very uncomfortable applying the manager’s principle to Mala’s
case and was uncertain of what decision to take.
Instructions
1 Read the pages 1- 2 of case document individually.
Please do not read the section appearing after the instructions
till your teacher directs you to do so
2 Answer the following
- What are the possible HRM issues in the above case?
-Do you think that there are training needs in this organization?
-If so, what are those needs?
-Who should be trained and in what?
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3 Form sub groups and discuss your findings with the group
members
4 Submit a written report/assignment based on your findings
Please do not read the section appearing after the instructions
until your teacher directs you to do so
Points to be considered when reviewing this case
1This kind of a situation can be analyzed as a potential conflict where
differences in management need to be addressed.
2 Goals of Mala’s immediate supervisor and that of the company HR
manager clash.
3The company HR manager believes it is the responsibility of him to
fire anyone who is dishonest. The immediate supervisor questions
whether dismissal is fair if clarifying circumstanced exist. Differences
in goals or methods between supervisors and employees in different
units can cause conflict within the company.
4One problem that arises is that professionals are not very sensitive
to the needs and hardships of the people. They are much more
sensitive to the needs of the administration. But both believe that
there is a great need for trustworthy employees, and the needs of an
effective and efficient system for handling petty cash. This case raises
many questions. Not only the relationship between the immediate
supervisor and the employees, but also the relationship between the
manager and the immediate supervisor do not appear to be
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very close.
5 If Mala had a financial crisis, she should have asked for advice from
her immediate supervisor. Restricted relationships between
employers and employees are causing organizational problems of the
company.
6In solving the problem of Mala, it is necessary to take steps to
prevent this kind of situations in the future while advising Mala about
her actions, granting her some leeway as this has happened for the
first time in her long career.
7 Mala’s case may even bring some conflict management issues due
to the disagreement of the decisions of the immediate supervisor and
the manager. The executives require an ability to select a deliberate
strategy to solve the problems with a combined understanding.
8 However, relationship building, communication and dialogue skills
need to be addressed as human resource development criteria giving
employees alternative choices in crisis situations.
9 Human resource development needs to focus extensively on work/
life and compensation agreements to create a better working
environment for employees.
10 Creating an environment that encourages open, multifaceted
communication
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11Have managers serving as role model for the characteristics and
practices expected of employees.
12These measures need to be explained thoroughly and highlighted
in company ethics.
13Companies should value employee development and give priority
to training, which will definitely strengthen the employer and
employee relationships.
14 This case highlights the fact that human resource development is a
process consisting of knowledge, skills and attitudes of all the people
in a society.
15 In economic terms, it could be described as the accumulation of
human capital and its effective investment in the development of the
economy.
In political terms, human resource development prepares people for
adult participation in the political process.
16 From the social and cultural point of view, the development of
human resources helps people lead fuller and richer lives boundless
by tradition.
**The above case proves that commanding, directing, organizing and
controlling have become factors of production.
Yet dealing with human beings requires a different approach.
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