Case Study 2 Rahul Vasan 83

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INTRODUCTION

CASE SUMMARY

Apturja Power Limited (APL) is facing a significant challenge of increasing voluntary


attrition among fresh college entrants with almost half of the employees hired in the
past two years leaving within their first year. The human resources head, Keshav
Chaubey, is concerned about this rising trend and aims to identify the underlying
issues and implement a strategic plan to reduce new-hire turnover.

PROBLEM STATEMENT

The primary issue revolves around the high turnover rate of new hires within the first
year at APL. Despite investing in quality recruitment, competitive compensation, and
extensive training, a substantial number of employees are leaving the organization.
The reasons behind this trend are unclear, and there is a need to delve into employee
feedback, performance metrics, and overall HR practices to identify root causes and
formulate a targeted strategy for improvement. The challenge is to align HR practices
more effectively with the expectations and preferences of the new generation of
employees, particularly those from elite engineering and management institutions,
and to address evolving priorities such as work-life balance and reduced monotony.
Keshav Chaubey, in collaboration with Rishabh Sharma, seeks to analyse data, draw
insights, and recommend actionable steps to mitigate the issue and strengthen APL's
human capital.

DATA ANALYSIS AND INFERENCE

1.Does APL’s HR strategy align with the company’s business strategy?

At APL, the main goal is like a well-oiled machine- keeps the power flowing
smoothly and reliably. Their HR strategy reflects this by attracting top talent (think
skilled mechanics!), paying them competitively, and investing heavily in training to
make them even better.

Well, mostly. APL is good at finding and equipping talented people, but there might
be a disconnect in expectations. The focus on pure production and cost-cutting might
not resonate with younger generations who value work-life balance and career
growth. Imagine a skilled mechanic wanting to tinker and explore, but feeling stuck in
a production line. Not ideal.
Analysing both strategies side-by-side could help identify areas where they click and
where they clash. This way, APL can build a truly integrated approach where talent
management fuels their business goals, keeping both the power and their people
flowing smoothly.

2.What are the different types of metrics? Calculate the attrition rate, cost of hire

and quality of hire.

From Exhibit 4 (2018-2019 data)

a) Attrition Rate:

Emp Avg Total


Year Left Emp Total
2018 $ $ 45.50%
455 1,000
2019 $ $ 54.50%
545 1,000

From Staffing data:


b) Cost of Hire:

Recruitment
Cost
Campus Agenc Administrative cost No. of Cost of
Visiting Cost y LinkedIn per candidate Hires Hire
$ $ $ 200 $ 20 1000 $
1,000 150 1,370
$
1.37

From Exhibit 4

c) Quality of Hire:

No of High Total No of Quality of


Year Performing Hires Hires Hire
2019 778 1000 77.8%
2019 812 1000 81.2%
2019 545 1000 54.5%

3. Analyze the dataset provided with the case. Draw insights and provide
recommendations and an action plan.
Insights
1. Attrition Increase:
• Attrition increased from 45.5% in FY 2018 to 54.5% in FY 2019, indicating
a rising concern.
2. Training Efficiency and Performance:
• Training efficiency and performance rates have improved, but this hasn't
translated into reduced attrition.
3. Cost of Hire:
• The cost of hiring increased from $1.37 million in FY 2019, suggesting the
need for costeffective recruitment strategies.
Recommendations
1. Employee Feedback and Exit Interviews:
• Conduct detailed surveys and exit interviews to understand the reasons
behind the increased attrition.
2. Performance-Attrition Correlation:
• Analyse if there is a correlation between high-performing employees and
attrition to identify any mismatch in expectations.
3. Training Program Enhancement:
• Enhance training programs based on employee feedback to ensure they
meet the practical needs and expectations of new hires.
4. Cost-Efficient Recruitment Channels:
• Review recruitment channels to identify cost-efficient methods without
compromising on quality.
Action Plan
1. Open the feedback lines:
Set up a system where everyone at APL can easily share their thoughts and
ideas - no matter their role or how long they've been here. This could be online
surveys, focus groups, or even casual chats with HR. We'll listen, analyse, and
use their insights to make things better.
2. Review and Modify Training Programs:
Training programs are great, but are they the right fit for everyone? Working
with department heads to tailor them to specific roles and needs. Think of it
like giving a mechanic the perfect wrench instead of a whole toolbox.
3. Explore Cost-Effective Recruitment Channels:
Evaluate how we find new talent and adjust our focus to more cost-effective
methods that still bring in the right people. It's like finding the best travel deals
without sacrificing the adventure.
4. Continuous Monitoring and Adaptation:
Regularly monitor how they're impacting employee satisfaction and the
overall business. Did these new tools make the toolbox more useful? Are the
feedback lines buzzing with good ideas? If not, adapt and keep improving.
5. Cross-Functional Collaboration:
This isn't just an HR thing, it's an APL thing. Encourage collaboration between
everyone - HR, department heads, and employees themselves. Create a
workplace where everyone feels heard, valued, and equipped to succeed.
By implementing these steps, we can build a stronger, happier APL where
employees feel valued and contribute their best.

Conclusion

Apturja Power Limited (APL) is facing a critical challenge of increasing voluntary


attrition among new hires, particularly fresh college entrants. Despite APL's strategic
emphasis on high-quality recruitment, competitive compensation, and
comprehensive training programs, the attrition rates have risen significantly. The
provided data indicates a gap between the organization's efforts and the evolving
expectations of the new generation of employees. The analysis reveals an increase in
attrition rates from FY 2018 to FY 2019, even though there have been improvements
in performance and training efficiency rates. The cost of hire has also increased,
prompting a closer examination of the efficiency of recruitment channels.
Furthermore, the case outlines APL's operational and financial standing, including its
profit and loss accounts, functional power plants, and organizational structure.
The alignment between APL's business strategy and HR strategy seems evident,
both emphasizing optimal production and a skilled workforce. However, the challenge
lies in adapting HR practices to address the shifting priorities and expectations of the
new generation workforce.

To address this complex issue, further exploration into employee feedback, training
effectiveness, and the correlation between performance and attrition is required. The
analysis provides a foundation for understanding the challenges faced by APL and
offers an opportunity to develop a targeted strategy that aligns with the
organization's long-term goals and the expectations of its workforce.

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