Assignment

On
Rajani Boutique

Submitted To:

Mr. Riswo R. Gorkhali

Course Instructor
Ace Institute of Management

Affiliated to:
Pokhara University

Submitted By:

Hemlata Agrawal
Pankaj Chataut
Sudip Dhakal
Suraj Shrestha
Term V

In partial fulfillment of the course requirement of Business Research Methodology for the degree
of
Master in Business Administration

Kathmandu
March 2017
To be a successful Boutique owner, you must master the art of juggling.
Owning and managing a Boutique means having to take on multiple roles, from
accounting to marketing to human resources. Unfortunately, having to juggle
the tasks of various roles increases the likelihood of making mistakes.

It’s easy for Boutique owners to sometimes ignore the human resources side of
business when things are running smoothly. However, doing so can lead to
costly mistakes (think litigation and employee turnover) -- mistakes that could
have serious consequences for businesses.

A seen in the given case of Ranjani’s Boutique, the following HR terms can be
considered as HR issues or challenges:

1. who facilitates the company's HR functions

As seen in the given case, there is the lacking of person responsible for
looking out HR function of the business. With the absence of HR
functional unit there comes the problem to hiring a right person at the
right time for the right place. Also it leads to absence of staff motivation
and proper utilization.

2. The hiring process is overly hasty.

A seen in the given case, it is just a family business. The head job
responsibility passes through generation of a family. With the lack of HR
department, owner is showing ignorance to assign job responsibility. In
other terms job description is poorly described.

3. Performance measurement and personnel development:

As seen in the given case, it is being hard to understand how and when to
measure performance and develop staff.

4. Line manager assuming role of the HR with limited HR knowledge

and training:
 This means ‘doubling up’ job roles to cover up HR function.

5. Lack of resources/time to deal with any real staff issues or put

effective policies in place

We can also observe that HR practices are not up to scratch, and it could
be exposing them to potential issues.

6. Lacking of training and Development programs:

When it comes to HR, it is all about best utilization of your core/ tangible
resource of your company i.e. HUMAN SIDE / employess. As seen in the
given case there seems to be lack of training and development programs
of human resource.

7. Inflexible work arrangements:

Seen in the case is the issue of inflexible work arrangement. As there is

always an issue of who stays till late hour, it leads to improper
management of HR schedules.

8. Lack of cooperative culture:

Also seen in the case is the issue of uncooperativeness and extreme

conflict in among staffs. This conflicts leads to downsizing the
productivity of Rajani’s boutique.

With the above listed HR issues in Rajani’s Boutique the following could be the
likely effects on business if those issues are not addressed:

1. Abseentism:

With the lack of proper HR plan there comes the case of serious
absenteeism. A certain level of abseentism is always required for a
effective goal achievement of a company, but what if the absentees lead to
serious problem in among the coordination. It’s time to be considered by
Boutique owner.
2. Turnover:

With the lack of proper working environment there result a serious

problem of employees turnover.

3. Productivity:

With the lack of proper coordination among the staff, it leads to

downsizing the productivity of a company.

4. Lack of competitiveness:

The other outcome of above listed HR issues in Rajani’s Boutique is the

existence of lack of competitiveness. With the lack of flexible work
schedule and fall on productivity, it leads to lack of competitiveness in
market. Rajani’s Boutique, as it is facing the serious problem of raise in
threats of new entrant, and with the improper HR strategy may fail to
meet the competitive environment provided by market.

With reference to the above listed HR isuues and their outcome, the
following are the strategies recommended to address HR issues and to
protect RB’s business interest:

1. Establishment of functional HR department :

The best strategy to solve the above listed issues, the first
recommendation provided is for establishment of functional HR
department. There should be a person who looks after the employees
issues.

2. Hiring process should be well defined:

The other strategy that ranjani boutique owner should establish is, it
should well define the hiring process. A poor job description always
attracts less employess towards the company. Owner needs to select
working employess from among those small set of candidates. Hence the
other strategy suggested to owner from Rajani’s Boutique is to well
define the hiring process that enables them to pool candidates from
among the large list.
3. Employee needs to be well classified:

Company needs to well classify its employee in terms of behavioral,

financial and relationship. It needs to establish HR team which instructs
its respective staff to handle the relationship issues with its clients.

4. Establishment of employees handbook:

With the establishment of employee handbook it can communicate work

related policies. Businesses of all sizes need to have some form of an
employee handbook. Not having company policies in writing is just
asking for trouble. Having an employee handbook isn’t enough, however.
The policies outlined in the handbook need to be updated on a regular
basis and communicated often. What’s more, employees should sign an
acknowledgment form stating that they have read and understand
everything in the handbook.

5. Employee training takes a backseat:

When employers invest in their employees, they in turn invest in the

company. This investment is most clearly demonstrated by providing
various training opportunities for employees. These opportunities should
begin with a thorough onboarding process for new hires and continue
with professional development programs and events for current staff.

By providing new hires with the tools they need to hit the ground running
and current employees with opportunities to grow, employers can rest
assured that employees at all stages are performing at peak performance.

6. Outsourcing: An altenative solution to formation of functional HR department:

As Rajani Boutique is a small sized growing business, it is recommended

to establish a functional HR department responsible for working with
Human side issue of the company. But since it is small, there also comes
the issue of cost to form a separate department. Hence it needs to consider
the Outsourcing as an alternative solution to formulation of functional HR
department.
 Outsourcing HR functions means Rajani Boutique hire one or more
outside entities to handle your HR matters, such as administration of
benefits, recruiting new employees and processing payroll. In some cases,
the outsource provider may spend time on site. Outsourcing HR functions
-- including Rajani Boutique’s recruiting needs -- reduces its
administrative burden. However, when it engages an outsourcing firm, it
still needs an HR staff member to monitor outsourced activities and
coordinate the services of multiple companies that provide HR services.

Looking the above cases of Rajani Boutique, its issues and strategic
solution, we can say Saran is operating without a definite particular job
functional title. It is recommended Saran to take up the following
function:

1. Oversee the role of lead Designer:

As the lead designer is basically engaged in share business due to which

he/she is not being able to focus on current job responsibility, Saran needs
to inspect the role of lead designer on day to day basis and motivate his/
her towards good performance. If that is not being possible as expected,
Saran needs to find other lead designer.

2. Maintain a proper attendance system:

Saran being responsible for the overall strategy of Ranjani Boutique needs
to maintain a proper attendance system in the company. Detailed
scheduled of chek-in, break, and checkout needs to be established. Proper
system of overtime and payment method should be established in HR
policy and needs to be documented.

3. Needs to make proper growth strategy of the company:

As seen in the case is the weak competitive strategy of the company,
Saran being responsible for the overall strategy making part of the
company now needs to focus more on technology part of company. He
needs to move the company with time. He needs to have the proper
knowledge of low cost advantage provided by globalization. He needs to
focus on selling the product beyond the boarder rather than being limited
within the local market. He needs to have motivated staff. He now needs
to focus on customer relationship management. He can also start the
concept of online order of goods so he can reduce the operational cost.