410-091-1

Itsnotthewayyouthinkit!HRdoesMatter
ACaseofXpertEngineeringServicesPvt.Ltd.

This case has been written by SAJJAD HUSSAIN, an MS (HRM) Scholar at Riphah
International University PAKISTAN, with intention to conceptualize the importance of HR in
organization for successful accomplishment of the desired objectives of the organization. The
case can be used for class discussion elaborating multi-dimensional significance of Human
SAJJAD HUSSAIN
Sajjadhussain1985@gmail.com
Riphah International University
Resource in achieving organizational objectives.

July, 2010; Sajjad Hussain, Riphah International University, Islamabad, Pakistan

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410-091-1

Itsnotthewayyouthink!HRdoesMatter
ACaseofXpertEngineeringServicesPvt.Ltd

Everyone was pretty curious after listening to the first address of Dr. Rehan Bashir, the newly
appointed CEO of Xpert Engineering Services. As Dr. Rehan intended to lead the company
through his vision of restructurization, cost minimization, qualified recruitment, training the
managers, and strict control mechanisms. The first impression of the newly appointed CEO let
everyone to think about the future of organization in the leadership of Dr. Rehan. Different kinds
of views were coming out of the crowd.
As some people were ambitious due to the initial signals given by the newcomer about the
training opportunities, somehow, other employees were very much tensed about cost
minimization and control mechanisms which could lead towards layoffs and stagnant careers.
Internal power distribution can also be wavered due to power restructurization. This could have
a serious concern of internal bureaucracy. In this chaos everyone was unsure about the
upcoming future of the employees as well as the organization itself.
Recently a biggest ever project of advanced computerized solution was undertaken by the
company. To accomplish the project successfully high cohesiveness among top leadership and
employees was required. In align with high technological machinery; the employees were needed
to be trained with high skills and knowledge. So everyone was looking towards their newly
appointed CEO. This was a major test of the leadership to lead organization in align with the
requirements of the external environment.
Background
Xpert Engineering Services Pvt. Ltd is a private sector organization which provides with
advanced computerized solutions to other private sector companies as well as Governmental
organizations. The company was established in 1995 with the aim to provide services to the local
companies with latest computerized solutions. At the time of beginning company comprised of
its offices in three main cities of Pakistan i.e. Karachi, Lahore, and Rawalpindi with near about
1000 employees. In the initial stages company acquired different employees who had a vast
experience of other organization, though in the later periods company focused itself on young,
enthusiastic and educated induction. The company had extended itself in the 12 major cities of
the country with strength of 4000 employees. Due to fewer firms providing IT solutions in the
country, the company finds itself a major competitive position holder.
In the start of 2008, Dr. Rehan Bashir took the charge after superannuation of Dr. Jamshed Riaz
and announced his intentions towards major changes in the organization for the achievement of
competitive edge in the market. The employees of the organization were using the latest
technology provided by the firm and was operating in a highly bureaucratic and tall structure.
Employees were working in overtime after duty hours. Dr. Rehan also noticed that employees
were not fully utilizing latest technologies as they were not properly trained, educated and
controlled by their managers. Some of the employees were educated enough to innovate new

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ideas for the well being of the organization. Dr. Rehan felt that he must take drastic measures for
leading his organization to a success story.
The Decision
Dr. Rehan Bashir took aggressive decisions for restructurization of the organization and
dissolved many major units of the organization and converted the tall structure of the
organization into a very flat structure keeping large span of control. He eliminated the HR
department partially by giving controls to the technical operational managers for the training
their employees, recruiting their lacking employees. Special powers were given to the functional
managers regarding assessment of their subordinates. For the employees who were unskilled or
less skilled special training courses were arranged in foreign countries. Also, for the employees
who were involved in the research work, PhD scholarships were given to the top managers.
Furthermore, Dr. Rehan Bashir directed his team managers to recruit highly qualified staff from
the market by creating image through highly fascinated ads. Overtime was eliminated from the
organization to minimize cost and employees were directed to complete their work under strict
supervision of their functional managers.
Dr. Rehan Bashir took these steps to overcome the predicted difficulties in the future project.
The homework was completed for the successful accomplishment of the upcoming project
signed by the organization. To reduce cost lay off threats, overtime elimination, and removal of
excessive hierarchies were the steps taken by the team of Dr. Rehan Bashir.
The Problem
In January, 2010 when the newly undertaken project was going to start, functional managers
come to know that recently recruited staff has turned off from the organization as they felt that
they were better of to serve somewhere better than the organization as they were highly qualified
and remuneration in accordance with their work was much less.
Power dilution lead many conspiracies among the top leadership and many power stakeholders
started creating hurdles in the smooth run of the company. Many of the top leadership refrained
to perform according to their capabilities. Special powers given to the functional managers
resulted in major layoffs arguing the shirk work and lack of skill and qualification of employees.
Overtime elimination and piecework removal finished the purchasing power of the employees so
they started on finding better job alternatives. Furthermore, the employees could not manage the
work assigned to them in their normal working hours as the load of work was highly hectic.
Layoffs created gap and work of those employees were also distributed to the existing employees
creating hardships for them.
The trained employees for the latest CNC machines were qualified enough to serve the
organization, but better competitor offer took them off from the organization at better
compensation package. Far more than that the PhD fellows who were supposed to come back in
the March 2010 after having their degrees, denied to come back in the organization as they found
a bright future in the countries they had studied. So this gave a serious shock to the companys
strategic plans.

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The layoff of employees resulted in a heavy law suits from the employees and company was
engaged in defending their cases in the court rather than it could pay its attention towards the
well being of the organization.
So consequently, there was heavy latest machinery but not enough human resource to operate the
machinery. There were abundant financial and physical resources but utilized in over-training
employees and giving overqualified scholarships went in vain. In the end all the financial
resources gone away in training, overqualified recruitment, education and purchasing of latest
technological machines and tactics of removal of hierarchies, layoff, strict control mechanisms,
and diminishing of over time for the sake of cost minimization resulted in exceed expenditures.
In the final stage there was a chaos all around. What can be done now? This was a major
question mark?

Discussion Questions
1. How do you analyze Dr. Rehan Bashirs decision of recruitment through functional managers?
Why highly qualified recruited employee could not help the organization?
2. Do you think training the employees is not a good thing? If no then what happened in this
situation?
3. Why did the latest CNC machines could not provide competitive advantage to the Xpert
Engineering Services?
4. What are the real reasons of problems faced by functional managers?
5. What could have been done differently to overcome the increasing expenses?