CASE STUDY

On
PREMIUMSOFT: NEED FOR
STRATEGIC HUMAN
RESOURCE MANAGEMENT

SUBMITTED TO: submitted by:

Dr. ajay solkhe ashita singla
Roll no. 17
Mba (f) sec-A

University school of management, KUK

1. What are the reasons behind the Premium soft so far success in their markets?
Ans : Reasons behind the Premium Soft so far success in the markets:
 i. CREATIVE WORKFORCE: Premium soft has creative workforce to drive new
product delivery, manage product upgrade and takes customer feedback in its
products.
ii. STRATEGIC GOALS: Company sets strategic goals; identify new product and
opportunities for innovation.
iii. REDUCE COSTS: It uses biweekly review techniques and also third party
systems instead of developing all systems in house.
iv. PRODUCT ROAD MAP: Premium soft prepared internal road map for 3 to 4
years and implemented it successfully.
v. RECRUIT CULTURAL FIT: There is only 3% turnover rate of the developers for
a year i.e. 2017

2. How the HRM functions of job analysis, HR planning and recruitment, training and
development, performance appraisal, compensation and benefits were being managed in
the Premium soft. Do they need changes over a period of time?
Ans:

HRM Management of HRM functions

FUNCTION
S
Job analysis  looks for willingness to learn, cultural fit, problem solving capabilities,
logic reasoning
 good communication skills
HR planning  Recruits new graduates
and  Word of mouth practice
recruitment  No formal meet and greet session with existing employees
Training and  hires new people for each new project and hence no replacement
development  team division change
 Meetings with seniors.

Performance  Informal appraisal method

appraisal  cash bonus program
 No clear expected promotion

Career  learning on job method

development  quick promotions
 Employees are unclear about individual growth
 Compensation  Equity to senior employees
and benefits  average salary as in market
 Annual leave of 16 days, birthday leave, medical, annual physical and
tuition reimbursement
 Basketball and team lunch for team building

There is no doubt that Ken Lin manages the Hr functions and company growth efficiently but
there is need to change in these functions due to growing needs of employees and gap changes
occurring in external as well as internal environment. A systematic manner of appraisal is needed
to give promotions as well as salaries to employees to keep their morale high and giving them
value. Due to Less number of employees Stress and workload pressure originated which makes
the employees less efficient. Therefore it is a need of an hour to change the strategies in
managing HR policies and making it aligned with organizational goals.

3. Why there is a need of formal and systematic approach in managing HR strategically?

Ans: As we have seen that premium soft uses informal methods of various HRM
functions such as in recruitment as well as performance appraisal which create a sense of
uncertainty among employees. The limited recruitment creates work pressure and stress
among employees. A formal and systematic approach in HR management provides
i. A sense of direction, motivation, skilled, engaged and committed employees
which can lead to competitive advantage to any organization.
ii. Achievement of business objectives through Vertical fit approach in business and
Hr and horizontal fit in Hr activities.
iii. Development in HR policies and programmes which further fulfills business
needs of organization and individual needs.

4. Figure out the rising HR challenges for premium Soft from the companies like Alibaba
and Tencent.
Ans. After studying this case I identified these challenges:
i. The companies like Alibaba and Tencent provide silicon-valley like salaries and
benefits to attract developers.
ii. There is competitive market for talent acquisition
iii. Internal challenge of meeting needs of talent retention is gradually increasing due
to self worth consideration of employees.
iv. Less attraction of talent in Premium soft as reduction is seen in number of
resumes in some years.
v. Increment of number of offices of competitors in other cities.
 5. What kind of role Ken Lin, the founder and HR manager now need to perform keeping in
view the new challenge?
Ans. As the number of resumes has decreased, Kin Lin should adopt a systematic
approach to attract developers through increment in salary and benefits. By adopting
methods of strategic HR, Ken Lin can engage employees by giving them value. A formal
performance appraisal technique can make clear view of required strengths. Kin Lin must
perform the role of HR who have multiple responsibilities and recruit more people who
work in flexible mode.

6. Perform a SWOT analysis of Premium soft in HR Context/terms.

Ans:

Strengths Weaknesses
 Healthy and comfortable working  Limited number of employees
environment  No formal recruitment and
 Low employee turnover rate performance appraisal methods

Opportunities
 Capability to increase salary and
attract from free flow of talent
 Improvement in office infrastructure
Threats
 Competition for talent is quite
extensive in technology
 Silicon-valley like salaries given by
competitors
 Less number of offices

7. Mention the key learning you have made from this case study analysis.
Ans: After studying the case of Premium Soft, I have identified the growing need of
change in human resource management in small companies also. The traditional methods
must be replaced through new strategic ones to attract talent and retention of employees. I
have understood that
i. Culture, structure, healthy working environment and benefits plays a crucial role
in retaining the employees.
ii. There are growing challenges in human resource management which can be faced
through adopting strategic HRM.
iii. A systematic and formal way of working is necessary to keep employees
motivated and provide value to them.
iv. Flexibility provides a way for learning, innovation and creativity.