ASSIGNMENT !!! Shaheen Corporation is a medium sized company dealing in surgical instruments business.

In 1985, the firm had 150 employees. At that time, the personnel department consisted of a manager and a clerk. The department was responsible for record keeping, maintaining personal files, posting advertisements in newspapers for hiring new employees, processing applicants pool, handling payroll, arranging picnic parties and managing other routine administrative tasks. Managers and line supervisors were responsible for most personnel matters, including hiring, training, promoting and firing subordinates. Today, Shaheen Corporation employs 900 people. Personnel, now called the human resources department, has an HR manager who has M.B.A degree with Specialization in HR, three specialists (also having relevant degrees and certifications) dealing with recruitment, training and performance appraisal respectively and four HR assistants. The top management believes that a strong HR department with a highly qualified staff can do a better job of handling most HR matters than line supervisors can. Over the past few weeks, several supervisors have complained to the top management that the HR department has taken away many of their management rights. The things are becoming more formal, complex and time taking day by day. Sometimes delay occurs due to long processing and paperwork, for example, during the last month there was an immediate need of new employee in production department but it took very long to fill the position. Moreover, the people hired are not able to get along with the supervisors. The Training and development programs of HR department are also increasing organizational cost and wasting employees time. Supervisors are also required to periodically review and report employee performance which is making their job more hectic. In response to these objections, the HR manager says they are not viewing the broader aspect and ignoring the best interest of the company.

Questions:

1. Do you support the vision of top management or consider HR department a burden for the organization? Answer In todays age of globalization where competition and human resources and management intellectual capital (structural+human+customer.relational) has become prime concern of every organization, In order to sustain in todays knowledge economy human resource department has become critical. Top management is struck in their already defined mental perception of doing the best available situation. They are not considering HR as the most competitive tool for survival today. If a company wants to achieve sustainable competitive advantages (SCA) over a period of time, it has to rely in its human resources as human resources cannot be imitated like machineries. Top management is thinking in traditional mechanistic model of managing things while in order to survive today HR is the key. It is because of this fact HR has been further evolved to SHRM (strategic human resources management) where HR is linked with strategy.

2. What do you suggest to the top management of Shaheen Corporation for handling the complaints raised by supervisors? Answer I. II. III. IV. V. VI. VII. Managing HR is difficult HR should be proactive and should communicate with the employee (supervisor) HR must tell them it is the requirement of change in environment Training should be offered with emphasis on change in mindset Existing supervisor must brought on board of HR so that they can understand the challenges ahead HR must define guidelines to HR department so that problems or infect concerns can be deal more effectively In hiring, selecting and training supervisors must be involved so that they can use their own ideas or frame works in dealing with new employees

In General agreement that Intellectual Capital itself is Composed of three distinct types of capital - Human Capital, Structural Capital and Relational Capital. Human Capital is the availability of skills, talent and know-how of employees that is required to Perform the everyday tasks that are required by the firms strategy. Structural Capital is the availability of information systems, knowledge applications, databases, Processes and other infrastructure required to support the firm in executing its strategy. Relational Capital is the external linkage of the Company with Suppliers and Customers that Enables it to procure and sell goods and services in an effortless manner. Summary The Intellectual Capital of a firm is the sum total of Its Human Capital, Structural Capital and Relational, Capital. These assets form a source of distinct competitive advantage and distinguish the Performance of one firm from the other. Having Control on such assets enables effective internal governance on the one hand and succinct External communications on the other. Hence it makes sense for firms to measure, monitor and Report their Intellectual Capital.