hrm case study on job analysis

Case Study on Job Analysis in SHRM

• Post author: myspeakhr
• Post category: Case Study
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We all know that Job analysis is one of the important task of Strategic Human resource management. Hence here I am sharing a case study on job analysis in HRM with solutions. It is firm that all those who are related to HRM be a student or a professional must be aware of the concept of Job Analysis. This case study on Job Analysis in SHRM will let you understand the concept of job analysis in SHRM clearly and also states its importance. Moreover this case study on Job analysis in SHRM is given with Solutions for Better understanding.

Case Study on Job Analysis in SHRM 

AMS Fertilizers is a 11-year-old fertilizer manufacturing company in Punjab, decided to expand their business in 3 other states namely Karnataka, Tamilnadu and Assam where the product is having good demand. They planned to approach farmers directly to understand their demands and also the dealers in the said state to establish the products.

Mr. Aditya who is looking after the HR department of AMS was been called by Mr. AM Singh. He informed Aditya that, “Aditya today I am excited as we are expanding our business in other parts also. So, I want you to identify best candidates for our marketing department who can establish our products in the new market”. He continued, Aditya I want 3 best marketing candidates in place within a week. Don’t wait for any further order complete the task in a best possible way.” Mr. Aditya also started his work with immediate effect.

He finalized 3 best candidates namely Mr. Kushwa, Mr. Dev and Mr. Bowmick. All the three candidates were having good experience and excellent track record in top fertilizer companies. After Recruitment Mr. Aditya introduced them to Mr. AM Singh thereafter Mr. Singh assigned with their duties.

Challenge to MR. Aditya

After a month Mr. AM Singh called Mr. Aditya and started a heated argument as follows, “Aditya I believed you and asked you to recruit 3 best candidates, Once you finalized I didn’t had a second thought, I placed them for the task and you blasted all my dreams”. Confused Aditya asked in a polite voice “But sir I brought best candidates, I am not able to understand the issue sir. I didn’t even get the opportunity to meet them after I left them in your cabin”

Mr. Singh said “OK, let me explain you clearly. Except Mr. Bowmick who is placed in Assam, both of your other 2 candidates could not bring any business, they failed and are in verge to give up themselves. So Mr. Aditya tell me what should I do now. Why should I pay you if you are unable to do even a basic HR job.”

Questions on Case Study on Job Analysis in SHRM

• What went wrong in the case.
• Who is at fault Mr. Singh or Aditya or the 2 failed candidates
• How the fertilizer company can come out of this issue.
• What are the HR concepts that you can correlate with this case.

Solution for Case Study on Job Analysis in SHRM

Two candidates who have been placed in Karnataka and Tamilnadu might be facing Language problem as Hindi is not a local language there . Moreover they were suppose to interact with Farmers who won’t prefer interacting in English. If Mr. Singh would have informed the purpose of recruitment in advance to Mr. Aditya or Mr. Aditya inquired about this to Mr. Singh before starting recruitment.

2. Who is at fault Mr. Singh or Aditya or the 2 failed candidates

The fault is actually with the system present in the organisation. SHRM is not practiced because of which new strategy was not informed to Mr. Aditya.  Proper recruitment practice is also not practiced. Overall the top authority Mr. singh is at fault for not implementing a proper practice and Mr. Aditya for not have taken steps to prepare JA

3. How the fertilizer company can come out of this issue.

By establishing a proper system and giving desired importance to the HR department.  

4. What are the HR concepts that you can correlate with this case.

We can correlate  Job analysis, Recruitment, Strategic Human Resource Management, HRM Policy etc.

Also read other case studies in HRM here

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• Google (Alphabet) HRM: HR Planning, Job Analysis & Design

Google’s (Alphabet’s) human resource management involves different strategies to address the workforce needs of its diversified business organization. This diversification imposes significant challenges to human resource managers of the company. Nonetheless, there are certain HRM approaches that are generally applied to different areas of the information technology business organization. For instance, in human resource planning, Google’s HR managers focus on the effective use of forecast information to minimize the surplus or shortage of employees, and to establish a balance between the supply and demand for qualified employees. In terms of job analysis and design approaches, Google’s (Alphabet’s) operations management approaches are also varied because of the different types of jobs in the different businesses of the company.

This article is part of a series on Google’s (Alphabet’s) Human Resource Management:

• Google (Alphabet) HRM: Recruitment, Selection, Retention
• Google (Alphabet) HRM: Training, Performance Management
• Google (Alphabet) HRM: Compensation, Career Development

Google’s (Alphabet’s) Human Resource Planning

Forecasting . Human resource managers at Google use trend analysis and scenario analysis for forecasting. Trend analysis is a quantitative technique that allows the company to predict possible HR demand based on current conditions and changes in the business. Scenario analysis is Google’s qualitative technique for forecasting HR demand. Scenario analysis involves analyzing different combinations of variables to predict HR demand for each resulting scenario. In this way, Google uses a combination of quantitative and qualitative techniques for forecasting HR demand.

Surplus & Shortage of Employees . Concerns about surplus or shortage of employees at Google are mostly in the production processes, such as the manufacture of Chromecast and the provision of the Google Fiber Internet and IPTV service. In developing and providing web-based and software products, human resource surplus and shortage are not a significant concern. For production processes, Google’s human resource management identifies possible surpluses and shortages through forecasting techniques. Thus, the company’s human resource planning includes forecasted surpluses and shortages of human resources. Such information is used for recruitment and scheduling.

Balancing Supply and Demand . Google’s human resource management faces minimal problems when it comes to balancing HR supply and demand. Even if demand for web-based/software products and online advertising services increase, Google does not need to commensurately increase its human resources in these business areas because of the digital nature of these products. Still, the company needs to address HR supply and demand in other areas, such as the production and distribution of consumer electronics, like Pixel and Chromecast. For these areas, Google uses a flexible strategy where new employees are hired based on forecasts of human resource needs.

The combination of Google’s HR management approaches for forecasting, identifying issues with surplus and shortage of employees, and balancing of human resource supply and demand effectively supports the human resource needs of the firm. Alphabet uses conventional methods and techniques together with advanced information systems to analyze human resource data to support human resource management decisions.

Job Analysis and Design at Google (Alphabet)

Organizational Design . The company’s organizational design enables flexible approaches to addressing human resource needs. The interconnections in the organizational structure or company structure of Google (Alphabet) allow human resource managers to easily identify cross-linkages among different parts of the organization and use this information for the processes of job analysis and design. Thus, Alphabet’s organizational design facilitates and optimizes human resource management activities, particularly in job analysis and design.

Methods of Job Analysis . Google uses a combination of worker-oriented job analysis methods and work-oriented job analysis methods. However, the company emphasizes the use of work-oriented job analysis methods for research and development and for product design and manufacturing. Google emphasizes the worker-oriented job analysis methods for jobs that require significant interpersonal skills, such as human resource management positions.

Job Description & Specification . Because of the large size of the organization, Google has highly varied job descriptions and specifications. The job descriptions and specifications for positions in product development, for instance, significantly differ from the job descriptions and specifications for positions in human resource management. Nonetheless, Google’s (Alphabet’s) organizational culture or work culture emphasizes certain characteristics in all employees, such as smartness and drive for excellence in all job positions throughout the organization.

• Alphabet Inc. – Form 10-K .
• Alphabet Inc. – Google Careers – Teams .
• Murillo-Ramos, L., Huertas-Valdivia, I., & García-Muiña, F. E. (2023). Exploring the cornerstones of green, sustainable and socially responsible human resource management. International Journal of Manpower, 44 (3), 524-542.
• Priyashantha, K. G. (2023). Disruptive technologies for human resource management: A conceptual framework development and research agenda. Journal of Work-Applied Management, 15 (1), 21-36.
• Skýpalová, R., Stojanová, H., Troger, H., & Caha, Z. (2023). Human resource management across generations within the context of World of Work 4.0. Emerging Science Journal, 7 (3), 843-853.
• U.S. Department of Commerce – International Trade Administration – Software and Information Technology Industry .
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Cases in Human Resource Management

• David Kimball - Elms College
• Description

Cases in Human Resource Management provides students with insights into common challenges, dilemmas, and issues human resource managers face in the workplace. Using a wide variety of well-known companies and organizations, author David Kimball engages students with original, real-world cases that illustrate HRM topics and functions in action. Each case is designed to encourage students to find new solutions to human resource issues and to stimulate class discussion. Case questions challenge students to think critically, apply concepts, and develop their HRM skills. The contents are organized using the same topical coverage and structure as most HRM textbooks, making Kimball the ideal companion for any introductory HRM course.

See what’s new to this edition by selecting the Features tab on this page. Should you need additional information or have questions regarding the HEOA information provided for this title, including what is new to this edition, please email [email protected] . Please include your name, contact information, and the name of the title for which you would like more information. For information on the HEOA, please go to http://ed.gov/policy/highered/leg/hea08/index.html .

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Supplements

May adopt as a supplementary Text in the future.

KEY FEATURES

• Original case studies bring concepts to life through a number of well-known organizations, including Apple, Amazon, Google, LinkedIn, and Zappos.
• Case questions require students to think critically about HR issues and apply HR concepts to each case.
• An emphasis on important issues and current trends in HRM brings up key topics in the field such as state and federal minimum wage, succession planning, executive compensation, mindfulness, cyber attacks, CSR, and managing a multigenerational workforce.
• A chapter on international HRM topics examines important issues like that of helping expatriates succeed.

Sample Materials & Chapters

Chapter 7: Training, Leading, Talent Management and Development

Chapter 16: Global Issues for Human Resource Managers

For instructors

Select a purchasing option.

This title is also available on SAGE Knowledge , the ultimate social sciences online library. If your library doesn’t have access, ask your librarian to start a trial .

HR Training Resources

A Guide to Human Resources Management Case Studies

Human Resource Management case studies provide valuable insights into the challenges faced by HR professionals in diverse workplaces. In this comprehensive guide, we will explore real-life examples of HRM in action, showcasing the strategies and solutions implemented to tackle various HR challenges.

Key Takeaways:

• Human Resources Management Case Studies offer practical insights for HR professionals.
• Real-life examples highlight strategies and solutions for overcoming HR challenges.
• Case studies showcase the importance of effective HR strategies in organizational success.
• Diverse scenarios demonstrate the application of HRM practices in different workplaces.
• Continuous learning and adaptation are crucial for HR professionals to stay effective.

The Changing Landscape of HRM

In the rapidly evolving global business environment, Human Resources Management (HRM) is constantly adapting to new trends and challenges. From the emergence of emerging markets to the digitalization of workplaces, HR professionals have had to navigate through various obstacles to effectively manage their workforce. One of the most significant challenges in recent times has been the global COVID-19 pandemic, which has necessitated swift and innovative HR strategies.

To gain a deeper understanding of how organizations have successfully managed these changes and optimized their HR practices, we will delve into a range of case studies. These case studies provide valuable real-world examples that HR professionals can analyze and apply in their own organizations. By studying these HR case studies , professionals can learn from the experiences of others, gaining insights into successful strategies and approaches.

Utilizing HR case studies for analysis allows us to discover how organizations have leveraged HRM to overcome obstacles and adapt to new circumstances. These real-life examples showcase the diverse ways in which organizations have effectively managed HR challenges, providing valuable lessons and strategies for HR professionals across industries.

Company XYZ, a multinational technology firm, faced challenges in attracting and retaining top talent due to the fast-paced nature of the industry. To address this, they implemented a strategic HR initiative that focused on creating a flexible work environment, providing opportunities for professional development, and offering competitive compensation packages. As a result, the company experienced a significant reduction in employee turnover and an increase in employee satisfaction and productivity.

This case study highlights how HR professionals at Company XYZ were able to adapt to the changing landscape of HRM by implementing innovative strategies. By analyzing such success stories, HR professionals can gain valuable insights into the strategies and practices that drive organizational success.

• HRM is constantly evolving to respond to new trends and challenges in the business world.
• Case studies provide real-world examples of effective HR practices in managing change.
• Successful organizations leverage HRM strategies to optimize their workforce and drive organizational success.

The Importance of Effective HR Strategies

Effective HR strategies are crucial for organizations to attract, retain, and develop top talent. By implementing strategic HR practices, companies can create a positive work environment that fosters employee engagement, productivity, and overall organizational success. In this section, we will explore case studies that highlight successful HR strategies implemented by companies across different industries, providing valuable insights for research and inspiration.

Case Studies: Success Stories in HR Management

Case Study 1: Company X

“Our HR strategy of prioritizing employee well-being and work-life balance has had a significant impact on our organizational culture. Through flexible work arrangements, wellness programs, and regular communication channels, we have seen a remarkable increase in employee satisfaction and productivity.”

Case Study 2: Company Y

“By investing in employee development and career progression, we have been able to attract top talent and retain key employees. The implementation of mentorship programs, training initiatives, and performance feedback systems has led to higher employee engagement and a stronger talent pipeline.”

Case Study 3: Company Z

“Our HR strategy focuses on promoting a diverse and inclusive workforce. Through targeted recruitment efforts, diversity training programs, and inclusive policies, we have successfully created a culture that celebrates and values diversity, leading to improved employee satisfaction and innovation.”

The Impact of Strategic HR Practices

These success stories demonstrate the tangible benefits of strategic HR practices. Organizations that prioritize effective HR strategies are better equipped to attract and retain top talent, foster employee engagement and satisfaction, and drive overall organizational success. By studying these case studies, researchers and HR professionals can gain valuable insights and inspiration to enhance their own HR practices and achieve similar levels of success.

By examining these HRM case studies for research and guidance, organizations can adopt successful strategies and adapt them to their unique contexts. The implementation of effective HR strategies is key to creating a thriving workplace culture that empowers employees, maximizes productivity, and ultimately drives the success of the organization.

Fundamental Concepts of HR Management

Before diving into Human Resources Management Case Studies , it is essential to have a solid understanding of the fundamental concepts that underpin HR management. This section will explore key definitions and concepts to provide a strong foundation for in-depth analysis of the case studies.

Definitions and Clarifications

Let’s start by clarifying some key terms:

• Management : Refers to the process of coordinating and overseeing organizational resources to achieve specific goals and objectives.
• Resources : In the context of HR, resources refer to the individuals who contribute to the organization’s success, including employees, contractors, and other stakeholders.
• Role of a Manager : A manager is responsible for planning, organizing, directing, and controlling resources to achieve organizational goals and objectives. In the HR context, managers focus on effectively managing human resources.
• Difference between Management and Administration : While the terms management and administration are sometimes used interchangeably, it is important to note the subtle distinctions. Management is concerned with the implementation of strategies and the coordination of resources, whereas administration involves the overarching policies, procedures, and regulations that govern the organization.

By understanding these fundamental concepts, we can delve deeper into the case studies and gain valuable insights into the challenges and solutions faced by HR professionals.

Inspiring Quote

“Management is doing things right; leadership is doing the right things.” – Peter Drucker

Key Definitions

Management Functions and Responsibilities

Effective management is essential for HR professionals in their role of overseeing an organization’s human capital. Understanding the four basic functions of management – planning, organizing, directing, and controlling – is critical for HRM success. Each function contributes to the efficient and effective management of human resources, ensuring organizational goals are met.

In addition to these management functions, HR managers have specific responsibilities that contribute to the overall success of the organization. These responsibilities include:

• Recruitment and selection of qualified candidates
• Employee onboarding, training, and development
• Creating and enforcing HR policies and procedures
• Ensuring legal compliance in all HR practices
• Managing employee relations and resolving conflicts
• Designing and administering compensation and benefits programs
• Developing and implementing employee engagement initiatives
• Overseeing performance management and evaluation processes

Furthermore, HR plays a vital role in the administrative cycle of an organization. HR professionals are responsible for managing and maintaining accurate HR records, handling payroll and benefits administration, and ensuring compliance with employment laws and regulations.

By effectively executing their management functions and fulfilling their responsibilities, HR professionals contribute to the development and success of an organization’s human resources, driving overall organizational performance and productivity.

Skills and Competencies in HR Management

The success of an HR manager relies on a combination of technical skills and personal qualities. Understanding and mastering these essential skills and competencies is crucial for effectively managing human resources in any organization. Here, we will explore the key characteristics that distinguish an effective HR manager and how they contribute to success in HR management.

1. Integrity

Integrity is the foundation of trust in any HR department. HR managers must demonstrate honesty, transparency, and ethical behavior in all aspects of their work. By upholding high ethical standards, HR managers cultivate a culture of integrity, ensuring fair and unbiased treatment of employees and fostering a positive work environment.

2. Flexibility

Flexibility is essential in an ever-changing business landscape. HR managers must adapt to evolving workplace dynamics, industry trends, and technological advancements. This includes being open to new ideas, embracing change, and continuously updating HR strategies to align with organizational goals and employee needs.

3. Resilience

HR managers often face challenging situations that require resilience and the ability to navigate complex issues. They must stay composed in difficult times, effectively manage conflicts, and find creative solutions to address HR challenges. Resilient HR managers are invaluable assets to organizations, as they can lead teams through change and uncertainty, ensuring continuity and stability.

4. Proactivity

Successful HR managers are proactive in identifying potential issues before they escalate. They anticipate future needs and create proactive strategies to address them. By staying ahead of the curve, HR managers can plan and implement initiatives that support employees’ growth, well-being, and overall job satisfaction.

“Proactive HR managers take a proactive approach to identify potential pitfalls early on, allowing organizations to prevent problems rather than just managing them when they arise.”

In addition to these personal qualities, HR managers must possess a range of technical skills to effectively manage human resources. Some of these skills include:

• Recruitment and selection
• Training and development
• Performance management
• Employee relations
• Compensation and benefits
• HR data analysis

To exemplify these skills and competencies, let’s take a look at a real-life HR case study:

By analyzing such HR case studies , aspiring HR professionals and organizations can gain valuable insights into the practical application of skills and competencies in HR management.

Now that we have explored the essential skills and competencies in HR management, it is clear that successful HR managers possess a unique blend of personal qualities and technical skills. These individuals play a vital role in driving organizational success by effectively managing human resources and fostering a positive work environment.

Employee Motivation and Engagement

Motivated and engaged employees are essential for organizational success. In this section, we will explore the crucial role of HR in motivating employees and fostering a culture of engagement. By examining real-life case studies, we will identify effective strategies and initiatives implemented by organizations to boost employee motivation and engagement.

Motivation through Recognition

Employee recognition is a powerful tool for motivating and engaging employees. Organizations that prioritize recognition programs create a culture of appreciation and reinforce desired behaviors. Case studies highlight the impact of tailored recognition programs on employee satisfaction, morale, and performance.

Professional Development and Growth

Providing opportunities for professional development and growth is another key driver of employee motivation and engagement. Organizations that invest in training, mentorship programs, and career advancement opportunities empower employees to enhance their skills and fulfill their potential. Real-life examples demonstrate how these initiatives contribute to higher employee satisfaction and loyalty.

Well-being Initiatives

Employee well-being initiatives play a vital role in nurturing a positive work environment and enhancing motivation. By offering wellness programs, flexible work arrangements, and promoting work-life balance, organizations prioritize the holistic well-being of their employees. Case studies highlight the positive impact of these initiatives on employee engagement, productivity, and overall satisfaction.

Effective Communication

Open and transparent communication is integral to fostering motivation and engagement among employees. Organizations that prioritize effective communication channels, including regular feedback, town hall meetings, and collaborative platforms, create an environment of trust and inclusion. Real-life examples demonstrate how improved communication positively influences employee engagement and overall organizational performance.

“Effective employee motivation and engagement are the cornerstones of a thriving organization. By examining real-life case studies, HR professionals and organizations can gain valuable insights into successful strategies and initiatives that fuel motivation and foster meaningful employee engagement.”

The case studies above demonstrate how organizations have successfully implemented strategies to motivate and engage their employees. By leveraging recognition, professional development, well-being initiatives, and effective communication, these organizations have created a positive work environment that drives employee satisfaction, productivity, and loyalty.

Strategies for Effective HR Management

HR professionals play a critical role in developing and implementing effective HR strategies. By analyzing real-life case studies, we can gain valuable insights into HR best practices. These case studies highlight successful strategies in key areas such as:

Recruitment and Selection

Training and development, performance management, compensation and benefits, labor relations.

Let’s explore how organizations have utilized these strategies to optimize their HR practices and achieve their business objectives.

“The key to effective HR management lies in understanding the unique needs and challenges of your organization. By analyzing case studies, we can gain valuable insights and tailor our strategies to drive employee engagement, productivity, and organizational success.”

Effective recruitment and selection processes are crucial for attracting and hiring top talent. Case studies in this area often showcase innovative methods used to identify and attract qualified candidates. From leveraging technology platforms for applicant screening to implementing targeted recruitment campaigns, organizations have successfully optimized their hiring processes.

Investing in employee training and development is essential for enhancing skills and fostering long-term growth. By examining case studies in this domain, we can learn from organizations that have successfully implemented comprehensive training programs, mentorship initiatives, and continuous learning platforms. These strategies contribute to a skilled and motivated workforce.

Effective performance management systems align individual and team goals with organizational objectives. Case studies in this area often highlight organizations that have implemented performance measurement frameworks, regular feedback systems, and performance-based incentives. This data-driven approach ensures transparency, fairness, and continuous improvement.

Strategic compensation and benefits programs attract, retain, and motivate talented employees. Case studies demonstrate how organizations have designed competitive salary structures, employee recognition programs, and comprehensive benefits packages. These initiatives contribute to higher employee satisfaction, engagement, and overall organizational performance.

Managing labor relations requires effective communication, negotiation, and conflict resolution skills. Case studies in this area offer insights into organizations that have successfully fostered positive relationships with unions, implemented fair labor practices, and resolved labor disputes amicably. These examples highlight the importance of proactive labor management strategies.

By learning from these case studies and applying the demonstrated strategies, HR professionals can optimize their HR management practices and create a positive impact on organizational success.

These case studies showcase the application of effective HR management strategies in different organizations. They provide practical examples of how organizations have achieved success by implementing various strategies tailored to their unique needs and challenges.

Leveraging HR Technology

HR technology has revolutionized HRM processes, enabling organizations to streamline operations and enhance efficiency. By leveraging the power of technology, HR professionals can optimize their strategic decision-making and ensure a seamless employee experience.

Let’s examine some insightful case studies that illustrate the successful implementation and utilization of HR technology. These examples demonstrate how organizations have harnessed the potential of HRIS (Human Resource Information System), talent management software, and data analytics tools to drive meaningful outcomes and achieve their HR objectives.

Case Study 1: Enhancing Recruitment with HRIS

In this case study, Company ABC implemented an HRIS software to streamline their recruitment process. The software automated job posting, applicant tracking, and resume screening, significantly reducing the time and effort spent on manual tasks. With the implementation of HRIS, the HR team at Company ABC experienced a 40% reduction in time-to-hire and an improvement in the quality of hires.

“The HRIS software has transformed our recruitment process, allowing us to focus on strategic talent acquisition. The automation and advanced analytics capabilities have enabled us to make data-driven decisions and hire top talent efficiently.” – Sarah Thompson, HR Manager, Company ABC

Case Study 2: Optimizing Performance Management with Talent Management Software

In this case study, Company XYZ adopted a talent management software platform to streamline their performance management process. The software offered features such as goal setting, continuous feedback, and performance analysis, empowering managers and employees to take a more proactive approach to performance improvement. As a result, Company XYZ experienced a significant increase in employee engagement and aligned performance goals across the organization.

“The talent management software has revolutionized our performance management process. It has fostered a culture of continuous feedback and empowered our employees to take ownership of their professional growth. The transparent performance analytics have enabled us to identify and reward top performers effectively.” – John Davis, HR Director, Company XYZ

Case Study 3: Leveraging Data Analytics for Strategic Decision-Making

In this case study, Company DEF implemented advanced data analytics tools to gain insights into their HR processes. By analyzing data related to employee engagement, turnover rates, and performance metrics, the HR team at Company DEF could identify trends, patterns, and areas for improvement. This strategic use of data analytics enabled Company DEF to make informed decisions and implement targeted HR interventions, resulting in improved retention rates and increased productivity.

“Data analytics has been a game-changer for our HR department. By leveraging actionable insights from our HR data, we have been able to proactively address employee concerns, enhance our talent acquisition strategies, and design targeted training programs. Our data-driven approach has significantly contributed to our overall organizational success.” – Lisa Johnson, HR Manager, Company DEF

These case studies demonstrate how organizations can harness the potential of HR technology to drive efficiency, improve decision-making, and enhance the employee experience. By leveraging the right combination of HRIS, talent management software, and data analytics tools, HR professionals can transform their HR practices and contribute to the strategic objectives of the organization.

Leveraging HR technology is essential in today’s digital era, where technology continues to shape the future of work. By staying informed about the latest HR technology trends and exploring case studies, HR professionals can identify opportunities for innovation and drive impactful HR initiatives.

Now, let’s explore another critical aspect of HR management – diversity and inclusion.

Diversity and Inclusion in HR Management

In today’s diverse workforce, creating an inclusive environment is essential for effective human resources management. Organizations that prioritize diversity and inclusion benefit from improved employee satisfaction, increased productivity, and enhanced innovation. Let’s explore some real-life examples of HRM case studies that highlight the successful efforts of organizations to foster diversity and inclusion within their workforce.

Case Study 1: XYZ Company

XYZ Company, a global technology firm, recognized the value of diversity and inclusion in driving organizational success. They implemented a comprehensive diversity program that focused on recruiting and retaining employees from diverse backgrounds. By promoting a culture of inclusion through training, mentorship, and employee resource groups, XYZ Company witnessed a significant increase in employee engagement and creativity. This case study demonstrates the positive impact of diversity and inclusion initiatives on overall organizational performance.

Case Study 2: ABC Corporation

ABC Corporation, a leading retail company, recognized the importance of diversity and inclusion in meeting the needs of their diverse customer base. They implemented unconscious bias training for their hiring managers and implemented policies to ensure equal opportunities for all employees. As a result, ABC Corporation experienced improved employee satisfaction, reduced turnover rates, and a boost in customer loyalty. This case study exemplifies the positive outcomes that can be achieved through a commitment to diversity and inclusion in HR management.

By analyzing these HRM case studies , organizations can gain valuable insights into successful diversity and inclusion initiatives. Implementing similar strategies, such as targeted recruitment efforts, inclusive policies, and diversity training programs, can help companies create a more inclusive and diverse workforce, fostering a culture of innovation and success.

Incorporating diversity and inclusion into HR management practices is not only a legal and moral imperative, but it also leads to tangible business benefits. Organizations that embrace diversity and create an inclusive workplace are better equipped to attract top talent, retain employees, and drive innovation. By learning from these HRM case studies , organizations can develop effective strategies to foster diversity and inclusion, ultimately contributing to their long-term success.

Adapting HR Practices in Times of Crisis

In times of crisis, such as economic downturns or natural disasters, HR professionals face unique challenges that require them to adapt their practices quickly and effectively. By analyzing HRM case studies that showcase organizations’ responses to crises, we can gain valuable insights into the strategies and approaches they employed to navigate through turbulent times and emerge stronger.

The Importance of Flexibility

One key lesson we can learn from HR case studies in times of crisis is the importance of flexibility. Organizations need to be agile and responsive to rapidly changing circumstances. HR professionals play a vital role in proactively adjusting HR practices, policies, and procedures to meet the immediate needs of employees and the organization as a whole.

“During the global financial crisis of 2008, XYZ Corporation faced severe economic challenges that threatened its survival. The HR team swiftly implemented cost-cutting measures, including a freeze on hiring and salary reductions, while carefully balancing employee morale and engagement. Through open communication and transparent decision-making, XYZ Corporation managed to weather the storm and emerge with a more resilient workforce.”

By adopting a flexible approach, HR professionals can help organizations navigate through turbulent times, mitigate the impact on employees, and position the company for recovery and future growth.

The Power of Resilience

Resilience is another critical factor in adapting HR practices during a crisis. HR professionals need to demonstrate resilience in the face of uncertainty and guide employees through challenging times. By instilling confidence, providing support systems, and fostering a sense of unity, HR managers can help organizations withstand the pressures of a crisis and emerge stronger.

Resilience can be seen in action through the implementation of employee assistance programs, mental health initiatives, and crisis communication plans. These measures help employees navigate the emotional and psychological challenges brought on by the crisis, ensuring their well-being and enabling them to contribute effectively to the organization’s recovery efforts.

Proactive Planning for Future Crises

The best HR case studies in times of crisis highlight the importance of proactive planning. While crises may be unexpected, organizations can anticipate potential challenges and develop contingency plans to address them swiftly and efficiently. By anticipating various scenarios and regularly reviewing and updating crisis response strategies, HR professionals can position their organizations for success even in the face of uncertainty.

In addition to crisis preparedness, proactive planning involves identifying key skills and competencies that will be crucial in future crises. By integrating training programs, succession planning, and talent management initiatives into their HR practices, organizations can ensure they have the capabilities necessary to navigate through any crisis that may arise.

Table: Strategies for Adapting HR Practices in Times of Crisis

Adapting HR practices in times of crisis requires a combination of flexibility, resilience, and proactive planning to ensure the well-being of employees, maintain productivity, and secure the organization’s long-term success.

Human Resources Management Case Studies provide HR professionals with valuable insights into real-world challenges and innovative solutions. By analyzing these examples, organizations can learn from best practices and optimize their own HR strategies. The showcased case studies highlight the diverse scenarios that HR professionals face and the creative approaches they employ to overcome obstacles.

Continuous learning from these experiences enables HR professionals to enhance their skills and contribute to the overall success of their organizations. These case studies serve as a source of inspiration, demonstrating the importance of adaptability, strategic thinking, and effective HR management.

By embracing the lessons learned from Human Resources Management Case Studies, HR professionals can strengthen their expertise, foster employee engagement, and drive organizational growth. These real-life examples reaffirm the significance of HRM for businesses in today’s dynamic and ever-evolving corporate landscape.

Source Links

• https://www.shrm.org/credentials/certification/educators/teaching-resources
• https://www.e-elgar.com/shop/usd/case-studies-in-work-employment-and-human-resource-management-9781788975582.html
• https://gfoundry.com/everything-you-need-to-know-about-human-resources-a-manual-for-managers-and-professionals/

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15 HR Analytics Case Studies with Business Impact

15 HR Analytics Case Studies

1. saving money by predicting who will quit.

2. Relating engagement with store income

3. turnover at experian.

4. Flight risk at IBM

5. keeping key talent at nielsen, 6. reducing road traffic accidents.

7. Achieving an optimum staffing level

8. A/B Testing Employee Training

9. sick days at e.on, 10. engagement at clarks, 11. engagement at shell, 12. hr driving store performance.

• Customer count
• Customer satisfaction
• Employee retention
• Linked employee outcomes to their real business outcomes
• Prioritize on the factors that had the largest impact on business outcomes
• Show the business impact of improvements of these factors
• Focus front-line managers on the factors that showed the largest impact

• a 16 % increase in customer satisfaction,
• 18,000 more customers a year
• 10% less staff turnover

13. Compensation and benefits at Clarks

14. opening a new office by cisco, 15. unilever: automated listening during a hostile takeover, bonus: hr analytics at a small company, weekly update.

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The Missing Link of Job Analysis: A Case Study

• First Online: 23 April 2021

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• Shikha Kapoor 7  

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Any organization, in any industry, is able to perform efficiently when the objectives of the organization and the resulting objectives of the roles in the organization are unambiguous, structured, and well communicated and understood. In the event of lack of such clarity, the organization often faces various complex inter-related problems, such as wasted employee expertise, unrealistic performance standards, lack of human resource planning, incorrect talent hiring, talent gaps, low employee motivation, and so on. This case study, therefore, tries to elaborate upon the important link of job analysis that serves as a strong foundation in an organization to prevent many human-resource-related problems.

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Mathur, P., Kapoor, S. (2021). The Missing Link of Job Analysis: A Case Study. In: Kapur, P.K., Singh, G., Panwar, S. (eds) Advances in Interdisciplinary Research in Engineering and Business Management. Asset Analytics. Springer, Singapore. https://doi.org/10.1007/978-981-16-0037-1_11

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Hennes & Mauritz (H&M), AN HRM CASE STUDY

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: The importance of human resources management (HRM) has received much attention in recent years. The aim of this study was to identify the effect of HRM practices on the performance of small scale business enterprises in Akaki sub city administration. Accordingly, the approach that was used to conduct this research was explanatory research design. In this study four factors have identified and they are recruitment and selection, training and development, compensation/incentives, and performance appraisal. The population of the study consists of all employees of selected small scale business enterprises in Akaki sub city administration, Addis Ababa directly related to the study. A total of 194 small scale enterprises are found at wereda 7 and 8. Out of 194 enterprises, considering the similarity nature of operation among small scale businesses, six small businesses were selected from the area through lottery method. Furthermore, the required data were collected from sample employees and managers taken from the selected six enterprises. The researchers employed a convenient sampling technique to draw

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The aim of this study is to discuss “human resource” focus in total quality management awards (TQM Awards). TQM Awards are Malcolm Baldrige National Quality Award, European Quality Award (EFQM), Deming Prize of Japan, and ISO9000 Series. The Baldrige emphasizes performance excellence. Deming Prize aims to achieve organizational quality. ISO9000 is to set up quality management system in organizations, and EFQM targets to obtain business excellence for organizations. TQM Awards have human resource focus due to employee involvement and process management in TQM. Firstly, human resources implement in organizational processes such as production, supply, marketing, and after-sale. Secondly, employees participate to solve quality problems in organizations through TQM practices. This is employee involvement. Employee involvement is that employees join to decision-making process, and they participate to solve quality problems to obtain quality assurance, i.e., employee involvement is that human resources participate to TQM practices in organizations such as brainstorming, quality circle, quality function deployment, Poke-Yoke, managerial boards to improve quality; therefore, TQM awards contain “human resource” variation in prize nomination.

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This study has been developed to endeavor the relationship between seven Human Resource Practices (job analysis, recruitment & selection, adequate job training facilities, opportunities for career development, compensation & benefit, managerial relationship with employees and degree of employee participation in decision making) and their tentative impact on employee retention and firms’ performance. The research was carried out with a sample size of 200 non-managers and 50 top level managers of 25 public and private corporate firms in Bangladesh. Data have been collected through a detailed structured questionnaire from the respondents. Judgment sampling method has been used to recruit the respondents. Results after careful statistical analysis revealed a very interesting and unusual conclusion. It indicated that there is a positive but insignificant relationship between job analysis, management-employee relationship and participation in decision making with employee retention. The other four independent variables, recruitment & selection, job training facilities, career development and compensation & benefit have negative relationship with employee retention. Among them, job training and compensation & benefit has strong negative relationship with employee retention. On the other hand, job analysis, management-employee relationship and participation in decision making have positive relationship with firm performance. Among them, management-employee relationship has significant and participation in decision making process insignificant positive effects on firm performance.

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Organizations are all different but the overall mission and goal is to recruit and retain professional employees. Organizations implement innovative strategies to retain talented and professional employees. The aim of this study is to develop an understanding of factors associated with recruitment and retention of employees in organizations through a thematic-synthesis from published research studies found in the literature. A systematic search of articles published between 2001 and 2013 was conducted; articles specifically focused on recruitment and retention strategies in organizations. Thematic syntheses were conducted and the selected articles were critically reviewed. Key themes were identified to explore innovative recruitment and retention strategies in organizations. More than 100 articles were reviewed and 14 research studies met the criteria. This thematic-synthesis demonstrated how strategic and innovative recruitment and retention strategies are in practice. Findings provide employers and corporate planners with information necessary to make decisions regarding recruitment and retention to enhance employability at workplaces.

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2.16 Case Study: The Power of HR Analytics for ACME Inc.

Case study: the power of hr analytics for acme inc..

ACME Inc. has a problem, a big problem. It is losing employees at a rate of 18% per year. Benchmarks in their industry are at 9%. For the past few years, new government regulations have been making the industry more competitive and profits are on a steady decline. The CEO has identified curbing the high turnover rate as a primary objective for the HR department.

The VP of Human Resources has hired a team of data analysts to look at the issue. The team performed advanced analysis on the anonymous corporate employee data integrated from several HR information systems. The dataset contains common and specific HR-oriented features for approximately 1,560 individual employees.  Topics include demographics, satisfaction with the job and the company, absences, salary, and even travelling schedule. For each individual record, there is also information determining whether the corresponding employee left the company at the end of analyzed period. This information is used to identify key features connected to attrition. By identifying data patterns that can predict current employee behaviour in terms  of attrition, the company can develop strategies to address the issue(s).

For the purpose of the case-study, the dataset was inspected and using the logistic regression method, two different questions were answered:

• Which specific factors increase or decrease the probability of attrition?
• Which individual employees across different jobs are at high risk of attrition?

Regarding the first question, advanced modelling techniques like neural networks were able to identify “drivers” that influence the target variable: risk of attrition. See the article: What Drives Employee Turnover? Part 2 for a list of the drivers of employee turnover. This kind of information provides seemingly straightforward insight. However, to deliver more thorough and usable conclusions, it is necessary to go a little deeper. One possible way to do that is to perform a separate analysis for different job types and roles. The next figure (2.13.1) shows the importance of various factors for three different job categories: technician, scientist and salesman. 

In order to answer the second question -who are the employees most at risk of leaving, a prediction model was developed and applied. For validation purposes, one-third of the dataset was separated to test the model accuracy. The rest was used to train the model and perform previous analysis. The newly-developed model is able to predict 88.9% of employees with “left-the-company” flags.

Now equipped with this information, the VP of Human Resources is working at addressing the issues with a concrete and aggressive plan of action to curb turnover.

• What are the factors that made this advanced analysis successful?
• Research prediction model and discuss what makes is a successful model to predict risk of employees leaving.  Why was this step important to ACME Inc.
• Following the data analysis, what are the first action steps (name 5 steps) that the VP of Human Resources can take to address the issues in a concrete manner?

“ 2.13 Case Study: The Power of HR Analytics for ACME Inc. ” from Human Resources Management – 3rd Edition by Debra Patterson is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License , except where otherwise noted.

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12 Case Studies of Companies that Revised How They Compensate Employees

S HRM has partnered with ChiefExecutive.net to bring you relevant articles on key HR topics and strategies.

Higher compensation is part of the ransom for dealing with the pandemic for most American companies and industries. So salaries, wages, benefits and perks will cost them more—perhaps a lot more—in the year ahead.

The way CEOs and CHROs can make sure the Great Raise works to their companies' advantage is to be proactive, creative and equitable about it. Yet they also must weigh strategically the demands of the moment with their long-term compensation strategy.

"This is a time for real balance when it comes to how you deal with retention and attraction," said Paul Knopp, chair and CEO of KPMG US. "We all have to make sure we meet the market when it comes to base compensation, but the market has changed in a way that you also have to look at those benefits that are most attractive to employees for their careers."

While median full-time earnings of $1,001 per week in the third quarter of 2021 were nearly 9% higher than two years earlier, according to the Labor Department, expectations for 2022 remain frothy given the tight market for talent, the free-agent ethos encouraged by remote work, the geographic reshuffling of workers and decades-high inflation. U.S. wages will increase by 3.9 percent in 2022, according to the Conference Board, the highest rate since 2008.

The compensation surge is occurring at the high end, at a low end that's getting higher and everywhere in between. Goldman Sachs, for example, is offering paid leave for pregnancy loss and expanding the amount of time employees can take for bereavement leave while also boosting its retirement-fund matching contributions for U.S. employees to 6% of total compensation, or 8% for those making $125,000 a year or less.

Meanwhile, at Tyson Foods' chicken-processing plant in New Holland, Pa., the company has started offering a three-day workweek, plus pay for a fourth day that retains employees' status as full-time workers. Just for good measure, Tyson has created a $3,000 sign-on bonus for new hires.

"We're in a bidding war for talent that will go on for a long time," said Alan Beaulieu, president of ITR Economics.

For CEOs and CHROs, several new factors demand their attention along with the overall spike in compensation. They include:

• The end of retention. The "idea of a long-term commitment to one employer has been dead for a while, but it's really dead now," said Dave Roberson, CEO of the RoseRyan financial consulting firm. "You must have a stream of people. Assume you're going to be replacing people. So how do you keep the people you have, if you can, but also bring the next group in?"
• High-balling. A deal to recruit someone may not really be a deal these days. "You've made an offer and you think you've got a hire, and then they're asking for $5,000 or $10,000 more," said David Lewis, CEO of OperationsInc, an HR consulting firm. "Now you have to ask yourself what makes more sense strategically: say no and hold the line and lose the candidate and restart the process, not knowing how that will work out? Blow up your compensation structure? Or as a Band-Aid, give that person a sign-on bonus in hopes that the package will get them in the door?"
• Need for equalization. Recruiting with higher compensation also requires boosting pay and benefits for retention. "You need to be mindful of what you're paying others in the organization and understand the detrimental impact it will have when you bring someone in alongside a tenured employee," Lewis said. "Operate on the idea that everyone's salary is basically posted on the pantry door in your office."
• A focus on mental health. The pandemic, anti-contagion measures and the takeover of remote work has left many Americans isolated, confused, lonely—or at least disjointed. And they expect their employers to help them cope and adjust.

"Mental health is a real thing, regardless of how [a previous generation of leaders] feel and what we did," said Jeffrey Immelt, former CEO of General Electric. "Particularly post-Covid, it's something worth your time to try to understand."

Many Fortune 500 companies already offered mental-health benefits, but by now "mental health is just a place setter: You've got to have it in place to be competitive in the market today, across the board," said Richard Chaifetz, founder and CEO of ComPsych, a large provider of employee-assistance programs. "Companies understand the importance of keeping their people functioning at the highest level."

Codility, for example, has begun supplying all employees with 27 days of paid time off per year plus four mental-health days, which don't have to be approved. "We're offering these days in addition to personal-time-off days to recognize and bring to light the importance of mental health," said Natalia Panowicz, CEO of the platform that evaluates the skills of software engineers, with its U.S. hub in San Francisco.

CHRO360.com asked a dozen CEOs, CHROs and other top executives about their compensation strategies and practices for 2022. Here are some of their ideas:

Let Them Name Their Salary

Chris kovalik, ceo, rushdown revolt, a video-game maker in new york city.

We started as 12 part-timers, mostly people who were giving me their moonlight hours. That's not a lot different from now, except now we have 75 people. The magic of what we do is that we don't recruit anybody. We're just a magnet. We let people come to us.

When it comes to compensation, some say they wanted to volunteer, that they weren't expecting compensation. But we never, ever allow people to volunteer their time for us. So we say our company minimum wage is $15 an hour, and if you insist, we can pay you that per hour.

But generally people come to us with an expectation of compensation because they see that we're making money. When compensation came up, we'd say, "I don't know what your skill set is. I've never hired you before. How much do you think you're worth, and how much do you need?"

If every hour we're compensating them for the amount of money they want and need, if someone is part-time and only giving me 10 hours a week, I'd argue that they're giving me their best 10 hours. Because they're getting paid what they want and doing things that they want to be attached to and be part of.

There's no pattern to the compensation requests. If their number is too low, we'll say, "Are you sure? Are you just giving me a low-ball number I'll say yes to?" If it's high, I don't talk them down, but I ask them to justify it, and if the justification isn't adequate, what I say is, "How long do you think you'll need to prove that justification? Two to three weeks? Then let's pay you two-third to three-quarters of what you asked, and if you prove it, we'll go up to whatever you said."

Tailor Package for Youth Appeal

Ronald hall jr., ceo, bridgewater interiors, an auto-seat maker in detroit.

We enjoyed very low turnover pre-Covid, but during the last two years we have had to replace probably one-third of our workforce at our largest facility, about the same number from termination as voluntary. So we've had to work harder than ever to recruit.

Our most-tenured employees, who are the most highly trained, have had to pick up the slack, working record amounts of overtime and less-predictable production schedules.

In our upcoming negotiations with the United Auto Workers, we're trying to emphasize short-term bonuses rather than wage increases that get baked into our costs. But we have continued health insurance through the pandemic as well as our tuition-reimbursement program, and many employees have thanked me for that.

What I am hearing from new employees is that they're not as interested in benefits but rather in higher cash wages. We've long touted benefits like our generous 401(k) matching and better medical coverage versus our peers, but we're finding that doesn't resonate as readily now as it did a decade ago. So I've asked my team: Should we be looking at some kind of hybrid model of offering higher wages to people who want those and move those dollars from the benefits side to the wages side?

We've also looked at providing childcare in a partnering arrangement where there could be a center developed near our facilities, and we would arrange for some sort of company subsidy or guarantee some level of attendance. The challenge with that is the auto industry runs around the clock, and you'd need a daycare provider who'd be committed to opening around the clock and provide legal, regulated, benchmark-standard levels of care to all those children in the off hours.

Equalize as You Acquire

Diane dooley, chro, world insurance, a business and personal insurer in tinton falls, n.j..

We onboarded about 800 employees in 2021 through acquisitions of small agencies and organic growth, but there had been no compensation modeling. Now we're building out our compensation philosophy with commission plans, incentives and bonuses, centralizing components and ensuring we have the right framework.

When we do an acquisition, we might retain their compensation model for a year or two years then slowly migrate, but make sure employees aren't taking a cut in pay. We are also capitalizing commissions into base compensation—identifying what commissions would have been and what they will be, and recognizing roles that are moving away from a commission base.

Some agencies we acquire are smaller and may be below-market for total compensation. Now we're addressing those concerns. They need to be more front and center. We must do everything to retain our employee population. If they're woefully underpaid, or not at market, we risk losing people, and we don't want to do that.

Educating the owners of some of the agencies [we acquire] is a piece of this. As we partner with them, we are evaluating them and asking, "Did you give people an increase this year?" We're not telling them what to do but providing guidance about what to do.

We're also modifying and increasing our benefits, such as giving employees pet insurance. And making counteroffers is a critical piece today, usually for high-end employees. They work better than they used to because not a lot of people really want to make a move in this environment.

Innovate for the New World

Jason medley, chief people officer, codility, a provider of skill-evaluation software in london.

We really have to step back and be innovative and force ourselves to change. The companies that are going to win are going to be more progressive early and not fighting what's happening.

One thing we've done is change our outdated compensation models that give higher pay to employees living in tech hubs like San Francisco and New York and lower compensation for areas inside the coasts. Now, we've created a United States-wide salary band, so no matter where you live, the compensation is based on the role, not the location. You can go live and work wherever you want to.

We decided to approach compensation through a very human lens. People have seasonality in life, and maybe they are caregivers at different moments and want to live in different places. We want to be as flexible as possible, and this country band gives us that flexibility.

We are starting to see the same thing in Europe, where we have our headquarters in London and offices in Berlin and Warsaw, and employees all over, especially in Poland. People are wanting to live in the countryside of Spain but demanding a London salary. So we are transitioning to one European Union band and saying, "Here is your rate—live where you want to."

We are also seeing that with global warming, it's harder to get work done for people on the west coast of the U.S. and in Europe, because they didn't build homes with air conditioning. If you're sitting in a house at 90 degrees with no air conditioning, there's no way your performance is the same as someone with AC. Supplementing air conditioning isn't something we thought about before, but now we're very much having to look at those things.

Stay Ahead of Expectations

Traci tapani, ceo, wyoming machine, a sheet-metal fabricator in stacy, minn..

Our wages have gone up by about 20% for the typical worker. When I found people I could hire, I knew they were being brought in at an hourly rate that was too high for what I was paying my incumbent workers.

My strategy has been to be proactive about that and not wait for [existing] employees to say something about it or give them a reason to look for another job. We're proactively making wage adjustments to make sure our incumbent workers are in line.

Employees will leave for more money, so they're very appreciative of it. But in my shop, I also know that people like working here, and I know they don't want to leave. I don't want to give them a reason. If they can get an increase in pay that's substantial, I know that I can cut them off at the pass. Retaining my workforce is my No. 1 strategy. They're already here, and I'm going to do everything I can to keep them.

For that reason, we've also been more generous as time has gone on with paid time off, offering it sooner than we once would have, especially for new workers. We recognize that it's healthy for people to be away from work and also, in the pandemic, people need to be away from work. Knowing they have some paid time off makes it easier for them.

Leverage Benefits for DE&I

Mark newman, ceo, chemours, a chemical manufacturer in wilmington, del..

In general our company hasn't seen the Great Resignation. And in fact, we continue to believe our focus on being a great place to work is serving us well, along with appropriate benchmarking on compensation issues.

Chemours  is  a great place to work. We survey our employees every year, to improve our working environment from a compensation and benefits perspective. Also, from the [diversity, equity and inclusion] perspective, we're trying to make sure we tap into the full breadth of talent in our industry.

That means, for instance, we are helping people more with college loans. We are offering same-sex [marriage] benefits. We are providing more family leave for people who have kids. There is clearly an aspect of our benefits package that is evolving to be consistent with our strategy of making Chemours a great place to work.

Overall, we view compensation as something where we want to be either in the median or upper quartile. It's something we're very focused on from both a wage as well as benefit level. From Covid, there's been no fundamental change as it relates to us wanting to be in the median to top quartile.

We've had to make some local adjustments where the labor market is more super-charged. For example, we see a lot of that in the Gulf Coast region, especially with oil prices coming back, and petrochemicals and refining. But it's very much a regional factor. So if industries are moving to a certain region, like the South, you have to make sure you stay current with local benchmarks.

Offer Skin in the Game

Cesar herrera, ceo, yuvo health, a healthcare administrator in new york city.

We're a year-old company that provides tech-enabled administrative solutions for community health centers across the U.S. that are specifically focused on providing primary-care services for low-income individuals. We have a team of about 10 people right now, and we have a number of open roles and positions where we're likely going to be tripling the size of our team in 2022.

Google can compensate well above the market rate. We don't have that since we're an early-stage organization. What we do have as levers aren't up-front financial compensation but equity, support in your role and a relatively flat organization where you can have significant autonomy.

A lot of individuals are going to be driven by the mission; that's the case with the entire founding team. We've made sacrifices to create this organization. So you can come in at a meaningful position with a lot of decision-making.

But one of the biggest carrots we can give is, if you accept the lower pay and the risk that comes with an early-stage organization, you can have meaningful equity in the company. We have an options pool which is not to exceed 10% ownership of the organization, and as we grow and scale, we increase that options pool. For senior-level leaders, we do expect to be able to distribute up to 10% of the company to them.

Pay Extra for Continuity

Corey stowell, vice president of human resources, webasto americas, a maker of automotive sunroofs in auburn hills, mich..

We had to recruit for several hundred new openings at a brand-new facility right at the beginning of the pandemic. So we instituted an attendance bonus. For those who worked all their hours in a week, we paid an additional $3 an hour. We really had to keep it short-term, so we paid it weekly. If you wanted to pay it every month, you couldn't do it, because people needed that instant gratification.

Otherwise they could get it on unemployment. With our pay rate, they could earn more to stay at home and collect unemployment, a significant amount more than they could earn than working for us. So we also had to increase our wages, and we increased them by more than 20% in some classifications [in the summer of 2020].

We've filled all of our positions, but it's still a challenging market. We've had to increase all our wages, with the lowest for a position being $17 an hour, on up to $30 an hour.

We also have offered stay bonuses of $500 a month for three consecutive months, up to $1,500. And for hourly employees we've instituted a different attendance policy, where they can earn two hours of paid personal time for so many hours that they work consecutively with no attendance issues.

The key is the schedule—we can prepare and get someone to cover. That's easier to do than just managing whoever's going to come in today. In this environment, that really has changed with our workforce, and it's tough to rely on our current workforce.

Give Them the Keys

Elliott rodgers, chief people officer, project44, a freight-tracking software provider in chicago.

We have equipped and subsidized a van that we call Romeo, which employees can use to combine work with personal uses like family road trips. We cover the cost of the rental. It's a luxury van that comes equipped with a bed, a toilet and shower, Wi-Fi, device charging and a desktop workspace. And it's pet friendly.

We started it as a pilot project and reservations were full within 10 minutes of when we posted it internally. Then we extended it into 2022. By the end of 2021, more than 20 unique team members completed or nearly completed reservations. They've ventured out to places spanning Mount Rushmore and the Badlands; Rocky Mountain National Park; Salem, Mass.; and Pennsylvania. A pretty broad number of places.

It's something we're really proud of. It allows our team members the opportunity to work in a lot of different places while still being connected to us. And they've appreciated the opportunities to stay connected, but also be connected in other ways with nature and other places in the world. They can maintain their perspective while also continuing to contribute to their role in a productive way.

When you place a team member at the center of what they'd want in an experience like that, the value of it answers itself. It creates a comfort level where it provides the necessities for you to be able to continue to work, and you can work from anywhere. It's the best of both worlds. It's one thing to find that on your own but another to have that accessible to you via work, but done in a way that caters to you.

Help Them Come, Go—and Stay

Aamir paul, country president - u.s., schneider electric, a maker of electrical distribution and control products in andover, mass..

With our knowledge workforce, it's been about intentional flexibility. So, for instance, we launched a "returnship" program for women who'd left the workforce but might want to come back even at reduced hours. That means 20, 30, up to 40 hours a week, and we're finding some incredibly talented people who haven't been in the workforce.

This program is available to men as well. If there's a field engineer who's been in the electrical industry for 35 years and he's now retiring, but he's five years from getting his medical benefits, we say: Don't retire. Go on the program. Work 20 hours a week. Work from home. We'll reduce your pay proportionally, but we will couple you with three university hires, and they will call you on Microsoft Teams and show you what's happening on the job site, and you're going to walk them through it. Work just three days a week. We'll cover your benefits.

We've also expanded the parental leave policy, which already was one of the best in the industrial sector. And we created a way for people to buy more time off without having to leave their positions. They apply for more unpaid time off and we allow them to retain their position and seniority and allow them to work through whatever life event it is.

We landed on six weeks for the maximum. In the most intense industries—such as a fighter pilot or a surgeon—they've found that six weeks of being out of the rotation allows them to re-set. So that's what we did. Before, the limit was two weeks.

Give Sway to Local Management

Tom salmon, ceo, berry global, a maker of plastic packaging in evansville, ind..

We've got to be competitive in all the geographies we serve. We have 295 sites around the world and manage our employees in those sites geographically. Every geography will be a different labor environment. There are different criteria that employees are looking for. It's not just about wages but taking everything into consideration.

We let local management handle things with their insight about wages and competition. They're hearing directly from employees about what they like and don't like, what they want more of and less of. It's a site-by-site discussion.

For example, at some sites, it may be important for employees to be able to access the internet at lunch; at other sites, they may not value that as much. Some want a more advanced locker facility, with different shower facilities. That includes the southwestern United States, where the temperatures are warmer; but in New England, some might not want that.

In any event, if you treat these things locally, you're going to be able to affect that local population and address the need of that geography. If you blanket something across our entire plant population, you may provide something that's not desired or needed.

We depend on our local management to respond to the different demands in terms of compensation and benefits at their sites. The better the front-line leadership is, and the more satisfied their team is, the higher our retention rate and productivity and safety performance. So these leaders participate in profit-sharing plans for those respective sites, because they have a great influence on the success of a given facility.

Focus Benefits on Flexibility

Paul knopp, chair and ceo, kpmg us, a financial consulting firm in new york.

We announced a new package of enhancements to our benefits and compensation, tied to mental, physical, social and financial well-being. These increases are the biggest in the history of the company. You have to make sure your base compensation meets the market, but you also must have attractive benefits.

For example, we cut healthcare premiums by 10% for 2022 with no change in benefit levels, and we introduced healthcare advocacy services. We are replacing our current 401(k) match and pension programs with a single, automatic company-funded contribution within the plan that's equal to 6% to 8% of eligible pay.

As part of this, we're focusing on the crucial element of ensuring that employees know you're watching out for them. They also are looking for flexibility—you don't want to under-index on how important that is. So we also are providing up to three weeks additional caregiver leave, separate and apart from PTO. And all parents will receive 12 weeks of paid parental leave, in addition to disability leave for employees who give birth, allowing some up to 22 weeks of paid leave. We also have expanded our holiday calendar to now include Juneteenth.

Dale Buss is a long-time contributor to Chief Executive, Forbes, The Wall Street Journal and other business publications. He lives in Michigan.

This article is adapted from www.ChiefExecutive.net with permission from Chief Executive. C 2022. All rights reserved.

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HRM Case Studies With Solutions

Let’s study Human Resource Management Case Studies with solutions. HRM Case studies play a vital role in management education especially in subjects like Human Resource Management (HRM), Personnel Management, PAAP and related subjects.

It gives a clear picture of the concepts when you practise them through case studies. Here we have given some live HRM case studies that are short, useful & interesting. This will allow you to think beyond the theoretical part and make you capable to apply the concepts in real-time situations.

Table of Contents

We are also providing solutions which are free of cost. We welcome your feedback about these HRM case studies.

Below are short and simple Case Studies on HRM with Solutions, Questions, and Answers.

HRM Case Study 1

Harsha and Franklin both of them are postgraduates in management under different streams from the same B-School. Both of them are close to each other from the college days itself and the same friendship is continuing in the organization too as they are placed in the same company, Hy-tech technology solutions. Harsha placed in the HR department as employee counsellor and Franklin in the finance department as a key finance executive. As per the grade is concerned both are at the same level but when responsibility is concerned Franklin is holding more responsibility being in core finance.

By nature, Harsha is friendly in nature and ready to help the needy. Franklin is silent in nature ready to help if approached personally and always a bit egoistic in nature. They have successfully completed 4 years in the organization. And management is very much satisfied with both of them as they are equally talented and constant performers.

Harsha felt that now a day’s Franklin is not like as he uses to be in the past. She noticed some behavioural changes with him. During general conversations, she feels that Franklin is taunting her that she is famous among the employees in the organization, on the other hand, he is not even recognized by fellow employees.

One morning Mr. Mehta General Manager Hy-tech technology solutions shocked while going through the mail received from Franklin about his resignation. Mr. Mehta called Harsha immediately and discussed the same as she is close to Franklin. By hearing the news Harsha got stunned and said that she does not know this before she also revealed here current experience with him. Mr. Mehta who does not want to lose both of them promised her that he will handle this and he won’t allow Franklin to resign.

In the afternoon Mr. Metha took Franklin to Canteen to make him comfortable after some general discussion he starts on the issue. Franklin, after some hesitation, opened his thinking in front of Mr. Mehta. The problem of Franklin is

1) when he comes alone to canteen the people from others don’t even recognize him but if he accompanied by Harsha he gets well treated by others.

2) one day Both of them entered the company together the security in the gate wished them but the next day when he came alone the same security did not do so.

3) Even in meetings held in the office, the points raised by Harsha will get more value so many times he keeps silent in the meeting.

It happens to Franklin that he has to face such degradation in each day of work which totally disturbs him. Franklin also questioned that ” Harsha and myself have the same qualification, from the same institute, passed out in the same year both with first class. We have the same number of experiences in this organization. Moreover, the responsibilities with me are more valuable than those of Harsha. After all these things if I am been ignored or unrecognized by the fellow employees my ego does not allow me to continue here”.

By listening to this statement Mr.Metha felt that it is not going to be very difficult to stop his resignation. Mr. Mehta explained Franklin the reasons for such partial behaviour of the employees. After listening to Mr. Mehta Franklin said sorry for his reaction and ready to take back his resignation. And he called Harsha and spoke with like before.

Questions for HRM Case Studies: Case Study 1

Find the reason that Mr. Mehta would have given to Franklin.

Solution for HRM Case Study 1

Mr. Mehta listening to this case understood the situation and realized the reason behind the partial response given by the employees towards Franklin and Harsha. As Franklin said both Harsha and Franklin are passed out from the same college in the same year. Both of them joined the company together both have the same experience. Even in performance-wise, both stands in the same level i.e. both are constant performers and good performers.

Franklin analyzed all the above-said similarities between him and Harsha. He also stated that he holds more responsibility than that of Harsha. One thing Franklin did not notice or analyzed is the job profile of Harsha. It is true that Franklin holds more responsibility than that of Harsha but when it comes to direct interaction with employees Harsha wins the employees’ attention in this aspect. Harsha being a counsellor in HR she faces the employees every day. She developed good rapport among the employees due to her friendly nature. She is always remembered by the employees whenever they face any problem as she gives good counselling and most of the time she suggests the best solutions for such issues.

Franklin though holding a key position in finance his profile does not allow him to interact with the employees. Though he has a helping tendency he does only when someone approached him personally. As the employees of other departments do not have any relation with him they never approach him for help. Mr. Mehta having a good experience understood these things when Franklin explained his problems one by one. Later he relates each situation, explained by Franklin with the above said reasons and made Franklin understood the reality.

Mr. Mehta said that the security in the gate or the employees in the canteen who recognized Harsha and not Franklin would have interacted with her during counselling or approached her for any issues. And as usual, she would have counselled well or solved the issues of them that is the reason why they treat her and wish her whenever where ever they meet her. When it comes to the case of Franklin they would have hardly met him or interacted with him.

When it comes to the point that even in-office meetings Harsha, points are valued so Franklin keeps mum. For this, Mr. Mehta replied that the points put forward by her would be related to employees or from the employees’ point of view which actually the management wants to know so they give value to her points. And as quoted Fraklin after, one or two such incidents keep silent in the meeting. He never made an attempt to raise some suggestions so management does not have any option to listen to that suggestion.

After listening to all the explanations given by Mr. Mehta Franklin realized his mistake and felt proud of the Rapport developed by Harsha among the employees. He said to Mr. Mehta that he will take back his resignation. And rushed to Harsha to make an apology and to meet her as a friend as like his college days.

HRM Case Studies Part 2:

HRM Case Study 2

Watson Public Ltd Company is well known for its welfare activities and employee-oriented schemes in the manufacturing industry for more than ten decades. The company employs more than 800 workers and 150 administrative staff and 80 management-level employees. The Top-level management views all the employees at the same level. This can be clearly understood by seeing the uniform of the company which is the Same for all starting from MD to floor level workers. The company has 2 different cafeterias at different places one near the plant for workers and others near the Administration building. Though the place is different the amenities, infrastructure and the food provided are of the same quality. In short, the company stands by the rule of Employee Equality.

The company has one registered trade union. The relationship between the union and the management is very cordial. The company has not lost a single man day due to strike. The company is not a paymaster in that industry. The compensation policy of that company, when compared to other similar companies, is very less still the employees don’t have many grievances due to the other benefits provided by the company. But the company is facing a countable number of problems in supplying the materials in the recent past days. Problems like quality issues, mismatch in packing materials (placing material A in the box of material B) incorrect labelling of material, not dispatching the material on time, etc…

The management views the case as there are loopholes in the system of various departments and hand over the responsibility to the HR department to solve the issue. When the HR manager goes through the issues he realized that the issues are not relating to the system but it relates to the employees. When investigated he come to know that the reason behind the casual approach by employees in work is

• The company hired new employees for a higher-level post without considering the potential internal candidates.
• The newly hired employees are placed with higher packages than that of existing employees in the same cadre.
• Narrate the case with a suitable title for the case. Justify your title.

Solution for HRM Case Case Study 2

Employee Equality is not the need for every hour. In the above-said case, Watson Ltd had provided all facilities to employees at each grade in an equal manner. But still, the employees started creating certain issues like materials are meeting the quality supply schedule is not met etc. And the HR manager said that the policy of hiring new employees for the higher post without considering old potential employees is the major problem.

“Employee recognition VS Employee equality ”. As the HR manager states that employees are not been recognized for the potential rather the company has gone for new recruitment. Because of which the company faces problems.

• The points rose by the HR manager as the reason for the latest issues in the organization is justifiable or not. Support your answer with Human resource related concepts.

Yes, the points raised by the HR manager is justifiable because “Human beings are social Animals as popularly” said by many Human resources Scholars. So human minds demand social recognition, self-respect, consideration, etc for their work and performance.

In the above-said case, even the company provides and stands by the concept of employee equality when it fails to recognize the potential talents of existing employee they felt dissatisfaction towards the organization and they showed in the way of quality issues and slow down production.

Related HR concept.

Slow down Production:

The concept of slow down production is a type of employee’s strike. The Industrial Relations sates that when the employee wants to show their dissatisfaction to the management but don’t want to go for strike they follow slow down strike. The impact of which will be understood after a particular time period.

Employee Recognition:

Human beings can be easily motivated by Rewards and recognition than that of money. In this case, also the employee is not satisfied even after all facilities just because of the reason that they are not recognized.

Hawthrone Experiment:

In the four types of test conducted by Elton Mayo, the remarkable hike in production is recognized in the stage when they consulted the employees for the management decisions regarding them. The same thing was missing in Watson Ltd. Before the new hires if the management consulted the employees both management and employees would have avoided this issue

Hygiene Factor:

The theory of hygiene factors states that there are certain factors related to employees the presence of which will not create a major impact but the absence of such things will lead to a de motivation to the employees. Employee Recognition is one such factor when the management fails to do so it will Detroit the employees to a great extent.

• Help the organization to come out from this critical issue. If you are in the role of HR manager what will be your immediate step to solve this case.

If I was in the post of the HR manager I will try to discuss the issue and ask for the reason from the management for new recruiting rather than considering available potential talents. I will personally analyse the reasons provided by management and if acceptable I will discuss the same with the employees. Everything is possible with a discussion. So I will discuss and convince the employee that this won’t happen again in the organization. I will also initiate the collective bargaining process for reasonable salary hike for the existing employees.

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The state of AI in early 2024: Gen AI adoption spikes and starts to generate value

If 2023 was the year the world discovered generative AI (gen AI) , 2024 is the year organizations truly began using—and deriving business value from—this new technology. In the latest McKinsey Global Survey  on AI, 65 percent of respondents report that their organizations are regularly using gen AI, nearly double the percentage from our previous survey just ten months ago. Respondents’ expectations for gen AI’s impact remain as high as they were last year , with three-quarters predicting that gen AI will lead to significant or disruptive change in their industries in the years ahead.

About the authors

This article is a collaborative effort by Alex Singla , Alexander Sukharevsky , Lareina Yee , and Michael Chui , with Bryce Hall , representing views from QuantumBlack, AI by McKinsey, and McKinsey Digital.

Organizations are already seeing material benefits from gen AI use, reporting both cost decreases and revenue jumps in the business units deploying the technology. The survey also provides insights into the kinds of risks presented by gen AI—most notably, inaccuracy—as well as the emerging practices of top performers to mitigate those challenges and capture value.

AI adoption surges

Interest in generative AI has also brightened the spotlight on a broader set of AI capabilities. For the past six years, AI adoption by respondents’ organizations has hovered at about 50 percent. This year, the survey finds that adoption has jumped to 72 percent (Exhibit 1). And the interest is truly global in scope. Our 2023 survey found that AI adoption did not reach 66 percent in any region; however, this year more than two-thirds of respondents in nearly every region say their organizations are using AI. 1 Organizations based in Central and South America are the exception, with 58 percent of respondents working for organizations based in Central and South America reporting AI adoption. Looking by industry, the biggest increase in adoption can be found in professional services. 2 Includes respondents working for organizations focused on human resources, legal services, management consulting, market research, R&D, tax preparation, and training.

Also, responses suggest that companies are now using AI in more parts of the business. Half of respondents say their organizations have adopted AI in two or more business functions, up from less than a third of respondents in 2023 (Exhibit 2).

Gen AI adoption is most common in the functions where it can create the most value

Most respondents now report that their organizations—and they as individuals—are using gen AI. Sixty-five percent of respondents say their organizations are regularly using gen AI in at least one business function, up from one-third last year. The average organization using gen AI is doing so in two functions, most often in marketing and sales and in product and service development—two functions in which previous research  determined that gen AI adoption could generate the most value 3 “ The economic potential of generative AI: The next productivity frontier ,” McKinsey, June 14, 2023. —as well as in IT (Exhibit 3). The biggest increase from 2023 is found in marketing and sales, where reported adoption has more than doubled. Yet across functions, only two use cases, both within marketing and sales, are reported by 15 percent or more of respondents.

Gen AI also is weaving its way into respondents’ personal lives. Compared with 2023, respondents are much more likely to be using gen AI at work and even more likely to be using gen AI both at work and in their personal lives (Exhibit 4). The survey finds upticks in gen AI use across all regions, with the largest increases in Asia–Pacific and Greater China. Respondents at the highest seniority levels, meanwhile, show larger jumps in the use of gen Al tools for work and outside of work compared with their midlevel-management peers. Looking at specific industries, respondents working in energy and materials and in professional services report the largest increase in gen AI use.

Investments in gen AI and analytical AI are beginning to create value

The latest survey also shows how different industries are budgeting for gen AI. Responses suggest that, in many industries, organizations are about equally as likely to be investing more than 5 percent of their digital budgets in gen AI as they are in nongenerative, analytical-AI solutions (Exhibit 5). Yet in most industries, larger shares of respondents report that their organizations spend more than 20 percent on analytical AI than on gen AI. Looking ahead, most respondents—67 percent—expect their organizations to invest more in AI over the next three years.

Where are those investments paying off? For the first time, our latest survey explored the value created by gen AI use by business function. The function in which the largest share of respondents report seeing cost decreases is human resources. Respondents most commonly report meaningful revenue increases (of more than 5 percent) in supply chain and inventory management (Exhibit 6). For analytical AI, respondents most often report seeing cost benefits in service operations—in line with what we found last year —as well as meaningful revenue increases from AI use in marketing and sales.

Inaccuracy: The most recognized and experienced risk of gen AI use

As businesses begin to see the benefits of gen AI, they’re also recognizing the diverse risks associated with the technology. These can range from data management risks such as data privacy, bias, or intellectual property (IP) infringement to model management risks, which tend to focus on inaccurate output or lack of explainability. A third big risk category is security and incorrect use.

Respondents to the latest survey are more likely than they were last year to say their organizations consider inaccuracy and IP infringement to be relevant to their use of gen AI, and about half continue to view cybersecurity as a risk (Exhibit 7).

Conversely, respondents are less likely than they were last year to say their organizations consider workforce and labor displacement to be relevant risks and are not increasing efforts to mitigate them.

In fact, inaccuracy— which can affect use cases across the gen AI value chain , ranging from customer journeys and summarization to coding and creative content—is the only risk that respondents are significantly more likely than last year to say their organizations are actively working to mitigate.

Some organizations have already experienced negative consequences from the use of gen AI, with 44 percent of respondents saying their organizations have experienced at least one consequence (Exhibit 8). Respondents most often report inaccuracy as a risk that has affected their organizations, followed by cybersecurity and explainability.

Our previous research has found that there are several elements of governance that can help in scaling gen AI use responsibly, yet few respondents report having these risk-related practices in place. 4 “ Implementing generative AI with speed and safety ,” McKinsey Quarterly , March 13, 2024. For example, just 18 percent say their organizations have an enterprise-wide council or board with the authority to make decisions involving responsible AI governance, and only one-third say gen AI risk awareness and risk mitigation controls are required skill sets for technical talent.

Bringing gen AI capabilities to bear

The latest survey also sought to understand how, and how quickly, organizations are deploying these new gen AI tools. We have found three archetypes for implementing gen AI solutions : takers use off-the-shelf, publicly available solutions; shapers customize those tools with proprietary data and systems; and makers develop their own foundation models from scratch. 5 “ Technology’s generational moment with generative AI: A CIO and CTO guide ,” McKinsey, July 11, 2023. Across most industries, the survey results suggest that organizations are finding off-the-shelf offerings applicable to their business needs—though many are pursuing opportunities to customize models or even develop their own (Exhibit 9). About half of reported gen AI uses within respondents’ business functions are utilizing off-the-shelf, publicly available models or tools, with little or no customization. Respondents in energy and materials, technology, and media and telecommunications are more likely to report significant customization or tuning of publicly available models or developing their own proprietary models to address specific business needs.

Respondents most often report that their organizations required one to four months from the start of a project to put gen AI into production, though the time it takes varies by business function (Exhibit 10). It also depends upon the approach for acquiring those capabilities. Not surprisingly, reported uses of highly customized or proprietary models are 1.5 times more likely than off-the-shelf, publicly available models to take five months or more to implement.

Gen AI high performers are excelling despite facing challenges

Gen AI is a new technology, and organizations are still early in the journey of pursuing its opportunities and scaling it across functions. So it’s little surprise that only a small subset of respondents (46 out of 876) report that a meaningful share of their organizations’ EBIT can be attributed to their deployment of gen AI. Still, these gen AI leaders are worth examining closely. These, after all, are the early movers, who already attribute more than 10 percent of their organizations’ EBIT to their use of gen AI. Forty-two percent of these high performers say more than 20 percent of their EBIT is attributable to their use of nongenerative, analytical AI, and they span industries and regions—though most are at organizations with less than $1 billion in annual revenue. The AI-related practices at these organizations can offer guidance to those looking to create value from gen AI adoption at their own organizations.

To start, gen AI high performers are using gen AI in more business functions—an average of three functions, while others average two. They, like other organizations, are most likely to use gen AI in marketing and sales and product or service development, but they’re much more likely than others to use gen AI solutions in risk, legal, and compliance; in strategy and corporate finance; and in supply chain and inventory management. They’re more than three times as likely as others to be using gen AI in activities ranging from processing of accounting documents and risk assessment to R&D testing and pricing and promotions. While, overall, about half of reported gen AI applications within business functions are utilizing publicly available models or tools, gen AI high performers are less likely to use those off-the-shelf options than to either implement significantly customized versions of those tools or to develop their own proprietary foundation models.

What else are these high performers doing differently? For one thing, they are paying more attention to gen-AI-related risks. Perhaps because they are further along on their journeys, they are more likely than others to say their organizations have experienced every negative consequence from gen AI we asked about, from cybersecurity and personal privacy to explainability and IP infringement. Given that, they are more likely than others to report that their organizations consider those risks, as well as regulatory compliance, environmental impacts, and political stability, to be relevant to their gen AI use, and they say they take steps to mitigate more risks than others do.

Gen AI high performers are also much more likely to say their organizations follow a set of risk-related best practices (Exhibit 11). For example, they are nearly twice as likely as others to involve the legal function and embed risk reviews early on in the development of gen AI solutions—that is, to “ shift left .” They’re also much more likely than others to employ a wide range of other best practices, from strategy-related practices to those related to scaling.

In addition to experiencing the risks of gen AI adoption, high performers have encountered other challenges that can serve as warnings to others (Exhibit 12). Seventy percent say they have experienced difficulties with data, including defining processes for data governance, developing the ability to quickly integrate data into AI models, and an insufficient amount of training data, highlighting the essential role that data play in capturing value. High performers are also more likely than others to report experiencing challenges with their operating models, such as implementing agile ways of working and effective sprint performance management.

About the research

The online survey was in the field from February 22 to March 5, 2024, and garnered responses from 1,363 participants representing the full range of regions, industries, company sizes, functional specialties, and tenures. Of those respondents, 981 said their organizations had adopted AI in at least one business function, and 878 said their organizations were regularly using gen AI in at least one function. To adjust for differences in response rates, the data are weighted by the contribution of each respondent’s nation to global GDP.

Alex Singla and Alexander Sukharevsky  are global coleaders of QuantumBlack, AI by McKinsey, and senior partners in McKinsey’s Chicago and London offices, respectively; Lareina Yee  is a senior partner in the Bay Area office, where Michael Chui , a McKinsey Global Institute partner, is a partner; and Bryce Hall  is an associate partner in the Washington, DC, office.

They wish to thank Kaitlin Noe, Larry Kanter, Mallika Jhamb, and Shinjini Srivastava for their contributions to this work.

This article was edited by Heather Hanselman, a senior editor in McKinsey’s Atlanta office.

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Clinical Spectrum of SARS-CoV-2 Infection

Last Updated: February 29, 2024

Patients with SARS-CoV-2 infection can experience a range of clinical manifestations, from no symptoms to critical illness. In general, adults with SARS-CoV-2 infection can be grouped into the following severity of illness categories; however, the criteria for each category may overlap or vary across clinical guidelines and clinical trials, and a patient’s clinical status may change over time.

• Asymptomatic or presymptomatic infection: Individuals who test positive for SARS-CoV-2 using a virologic test (i.e., a nucleic acid amplification test [NAAT] or an antigen test) but have no symptoms consistent with COVID-19.
• Mild illness: Individuals who have any of the various signs and symptoms of COVID-19 (e.g., fever, cough, sore throat, malaise, headache, muscle pain, nausea, vomiting, diarrhea, loss of taste and smell) but do not have shortness of breath, dyspnea, or abnormal chest imaging.
• Moderate illness: Individuals who show evidence of lower respiratory disease during clinical assessment or imaging and who have an oxygen saturation measured by pulse oximetry (SpO 2 ) ≥94% on room air at sea level.
• Severe illness: Individuals who have an SpO 2 <94% on room air at sea level, a ratio of arterial partial pressure of oxygen to fraction of inspired oxygen (PaO 2 /FiO 2 ) <300 mm Hg, a respiratory rate >30 breaths/min, or lung infiltrates >50%.
• Critical illness: Individuals who have respiratory failure, septic shock, or multiple organ dysfunction.

SpO 2 is a key parameter for defining the illness categories listed above. However, pulse oximetry has important limitations (discussed in more detail below). Clinicians who use SpO 2 when assessing a patient must be aware of those limitations and conduct the assessment in the context of that patient’s clinical status.

The risk of progressing to severe disease increases with age and the number of underlying conditions. Patients aged ≥50 years, especially those aged ≥65 years, and patients who are immunosuppressed, unvaccinated, or not up to date with COVID-19 vaccinations are at a higher risk of progressing to severe COVID-19. 1,2 Certain underlying conditions are also associated with a higher risk of severe COVID-19, including cancer, cardiovascular disease, chronic kidney disease, chronic liver disease, chronic lung disease, diabetes, advanced or untreated HIV infection, obesity, pregnancy, cigarette smoking, and being a recipient of immunosuppressive therapy or a transplant. 3 Health care providers should closely monitor patients who have COVID-19 and any of these conditions until clinical recovery is achieved.

The initial evaluation for patients may include chest imaging (e.g., X-ray, ultrasound or computed tomography scan) and an electrocardiogram, if indicated. Laboratory testing should include a complete blood count with differential and a metabolic profile, including liver and renal function tests. Although inflammatory markers such as C-reactive protein (CRP), D-dimer, and ferritin are not routinely measured as part of standard care, results from such measurements may have prognostic value. 4-7

The definitions for the severity of illness categories also apply to pregnant patients. However, the threshold for certain interventions is different for pregnant and nonpregnant patients. For example, oxygen supplementation for pregnant patients is generally used when SpO 2 falls below 95% on room air at sea level to accommodate the physiologic changes in oxygen demand during pregnancy and to ensure adequate oxygen delivery to the fetus. 8  

If laboratory parameters are used for monitoring pregnant patients and making decisions about interventions, clinicians should be aware that normal physiologic changes during pregnancy can alter several laboratory values. In general, leukocyte cell count increases throughout gestation and delivery and peaks during the immediate postpartum period. This increase is mainly due to neutrophilia. 9 D-dimer and CRP levels also increase during pregnancy and are often higher in pregnant patients than in nonpregnant patients. 10 Detailed information on treating COVID-19 in pregnant patients can be found in Special Considerations During Pregnancy and After Delivery and in the pregnancy considerations subsections in the Guidelines. 

In children with COVID-19, radiographic abnormalities are common and, for the most part, should not be the only criteria used to determine the severity of illness. The normal values for respiratory rate also vary with age in children. Therefore, hypoxemia should be the primary criterion used to define severe COVID-19, especially in younger children. In a small subset of children and young adults, SARS-CoV-2 infection may be followed by the severe inflammatory condition multisystem inflammatory syndrome in children (MIS-C). 11,12 This syndrome is discussed in detail in Special Considerations in Children .

Clinical Considerations for the Use of Pulse Oximetry

During the COVID-19 pandemic, the use of pulse oximetry to assess and monitor patients’ oxygenation status increased in hospital, outpatient health care facility, and home settings. Although pulse oximetry is useful for estimating blood oxygen levels, pulse oximeters may not accurately detect hypoxemia under certain circumstances. To avoid delays in recognizing hypoxemia, clinicians who use pulse oximetry to assist with clinical decisions should keep these limitations in mind.

Pulse oximetry results can be affected by skin pigmentation, thickness, or temperature. Poor blood circulation or the use of tobacco or fingernail polish also may affect results. The Food and Drug Administration (FDA) advises clinicians to refer to the label or manufacturer website of a pulse oximeter or sensor to ascertain its accuracy. 13 The FDA also advises using pulse oximetry only as an estimate of blood oxygen saturation, because an SpO 2 reading represents a range of arterial oxygen saturation (SaO 2 ). For example, an SpO 2 reading of 90% may represent a range of SaO 2 from 86% to 94%. Studies that compared SpO 2 and SaO 2 levels measured before the pandemic found that pulse oximeters overestimated oxygen saturation in people who were classified as having darker skin pigmentation and in people whose race or ethnic origin was reported as non-Hispanic Black, Black, or African American. 14,15

Several published reports have compared SpO 2 and SaO 2 measurements in patients with COVID-19, including children. 14,16-18 The studies demonstrated that occult hypoxemia (defined as an SaO 2 <88% despite an SpO 2 >92%) was more common in patients with darker skin pigmentation, which may result in adverse consequences. The likelihood of error was greater in the lower ranges of SpO 2 . In 1 of these studies, occult hypoxemia was associated with more organ dysfunction and hospital mortality. 17 These studies did not specify the specific devices used to assess SpO 2 levels. The FDA has recognized the need for better real-world evidence to address ongoing concerns about the accuracy of pulse oximeters when they are used to measure oxygen saturation in people with darker skin pigmentation. 19

A 5-hospital registry study of patients evaluated in the emergency department or hospitalized for COVID-19 found that 24% were not identified as eligible for treatment due to overestimation of SaO 2 . 20 The majority of patients (55%) who were not identified as eligible were Black. The study also examined the amount of time delay patients experienced before being identified as eligible for treatment. The median delay for patients who were Black was 1 hour longer than the delay for patients who were White. 

In pulse oximetry, skin tone is an important variable, but accurately measuring oxygen saturation is a complex process. One observational study in adults was unable to identify a consistently predictable difference between SaO 2 and SpO 2 over time for individual patients. 16 Factors other than skin pigmentation (e.g., peripheral perfusion, pulse oximeter sensor placement) are likely involved.

Despite the limitations of pulse oximetry, an FDA-cleared pulse oximeter for home use can contribute to an assessment of a patient’s overall clinical status. Practitioners should advise patients to follow the manufacturer’s instructions for use, place the oximeter on the index or ring finger, and ensure the hand is warm, relaxed, and held below the level of the heart. Fingernail polish should be removed before testing. Patients should be at rest, indoors, and breathing quietly without talking for several minutes before testing. Rather than accepting the first reading, patients or caretakers should observe the readings on the pulse oximeter for ≥30 seconds until a steady number is displayed and inform their health care provider if the reading is repeatedly below a previously specified value (generally 95% on room air at sea level). 13,21 Pulse oximetry has been widely adopted as a remote patient monitoring tool, but when the use of pulse oximeters is compared with close monitoring of clinical progress via video consultation, telephone calls, text messaging, or home visits, there is insufficient evidence that it improves clinical outcomes. 22,23

Not all commercially available pulse oximeters have been cleared by the FDA. SpO 2 readings obtained through devices not cleared by the FDA, such as over-the-counter sports oximeters or mobile phone applications, lack sufficient accuracy for clinical use. Abnormal readings on these devices should be confirmed with an FDA-cleared device or an arterial blood gas analysis. 24,25

Regardless of the setting, SpO 2 should always be interpreted within the context of a patient’s entire clinical presentation. Regardless of a pulse oximeter reading, a patient’s signs and symptoms (e.g., dyspnea, tachypnea, chest pain, changes in cognition or attentional state, cyanosis) should be evaluated. 

Asymptomatic or Presymptomatic Infection

Asymptomatic SARS-CoV-2 infection can occur, although the percentage of patients who remain truly asymptomatic throughout the course of infection is variable and incompletely defined. The percentage of individuals who present with asymptomatic infection and progress to clinical disease is unclear. Some asymptomatic individuals have been reported to have objective radiographic findings consistent with COVID-19 pneumonia. 26,27  

Mild Illness

Patients with mild illness may exhibit a variety of signs and symptoms (e.g., fever, cough, sore throat, malaise, headache, muscle pain, nausea, vomiting, diarrhea, loss of taste and smell). They do not have shortness of breath, dyspnea on exertion, or abnormal imaging. Most patients who are mildly ill can be managed in an ambulatory setting or at home. No imaging or specific laboratory evaluations are routinely indicated in otherwise healthy patients with mild COVID-19. Patients aged ≥50 years, especially those aged ≥65 years, patients with certain underlying comorbidities, and patients who are immunosuppressed, unvaccinated, or not up to date with COVID-19 vaccinations are at higher risk of disease progression and are candidates for antiviral therapy. 1,2 See Therapeutic Management of Nonhospitalized Adults With COVID-19 for recommendations regarding anti-SARS-CoV-2 therapies. 

Moderate Illness

Moderate illness is defined as evidence of lower respiratory disease during clinical assessment or imaging, with an SpO 2 ≥94% on room air at sea level. Given that pulmonary disease can progress rapidly in patients with COVID-19, patients with moderate disease should be closely monitored. See Therapeutic Management of Nonhospitalized Adults With COVID-19 for recommendations regarding anti-SARS-CoV-2 therapies in patients at high risk of progression to severe disease. 

Severe Illness 

Patients with COVID-19 are considered to have severe illness if they have an SpO 2 <94% on room air at sea level, PaO 2 /FiO 2 <300 mm Hg, a respiratory rate >30 breaths/min, or lung infiltrates >50%. These patients may experience rapid clinical deterioration and should be given oxygen therapy and hospitalized. See Therapeutic Management of Hospitalized Adults With COVID-19 for treatment recommendations. 

Critical Illness 

SARS-CoV-2 infection can cause acute respiratory distress syndrome, virus-induced distributive (septic) shock, cardiac shock, an exaggerated inflammatory response, thrombotic disease, and exacerbation of underlying comorbidities.

The clinical management of patients with COVID-19 who are in the intensive care unit should include treatment with immunomodulators and, in some cases, the addition of remdesivir. These patients should also receive treatment for any comorbid conditions and nosocomial complications. For more information, see Critical Care for Adults and Therapeutic Management of Hospitalized Adults With COVID-19 .

Infectious Complications in Patients With COVID-19

Some patients with COVID-19 may have additional infections when they present for care or that develop during the course of treatment. These coinfections may complicate treatment and recovery. Older patients or those with certain comorbidities or immunocompromising conditions may be at higher risk for these infections. The use of immunomodulators such as dexamethasone, Janus kinase inhibitors (e.g., baricitinib, tofacitinib), interleukin-6 inhibitors (e.g., tocilizumab, sarilumab), tumor necrosis factor inhibitors (e.g., infliximab), or abatacept to treat COVID-19 may also increase the risk of infectious complications. However, when these therapies are used appropriately, the benefits outweigh the risks. 

Infectious complications in patients with COVID-19 can be categorized as follows:

• Coinfections at presentation: Although most individuals present with only SARS-CoV-2 infection, concomitant viral infections, including influenza and other respiratory viruses, have been reported. 28-30 Community-acquired bacterial pneumonia has also been reported, but it is uncommon. 28,31,32 Antibacterial therapy is generally not recommended unless additional evidence for bacterial pneumonia is present (e.g., leukocytosis, the presence of a focal infiltrate on imaging).
• Reactivation of latent infections: There are case reports of underlying chronic hepatitis B virus and latent tuberculosis infections reactivating in patients with COVID-19 who receive immunomodulators as treatment, although the data are currently limited. 33-35 Reactivation of herpes simplex virus and varicella zoster virus infections have also been reported. 36 Cases of severe and disseminated strongyloidiasis have been reported in patients with COVID-19 during treatment with tocilizumab and corticosteroids. 37,38 Many clinicians would initiate empiric treatment (e.g., with the antiparasitic drug ivermectin), with or without serologic testing, in patients who require immunomodulators for the treatment of COVID-19 and have come from areas where Strongyloides is endemic (i.e., tropical, subtropical, or warm temperate areas). 39,40
• Nosocomial infections: Hospitalized patients with COVID-19 may acquire common nosocomial infections, such as hospital-acquired pneumonia (including ventilator-associated pneumonia), line-related bacteremia or fungemia, catheter-associated urinary tract infection, and diarrhea associated with Clostridioides difficile . 41,42 Early diagnosis and treatment of these infections are important for improving outcomes in these patients.
• Opportunistic fungal infections: Invasive fungal infections, including aspergillosis and mucormycosis, have been reported in hospitalized patients with COVID-19. 43-46 Although these infections are relatively rare, they can be fatal, and they may be seen more commonly in patients who are immunocompromised or receiving mechanical ventilation. The majority of mucormycosis cases have been reported in India and are associated with diabetes mellitus or the use of corticosteroids. 47,48 The approach for managing these fungal infections should be the same as the approach for managing invasive fungal infections in other settings. 

SARS-CoV-2 Reinfection and Breakthrough Infection

As seen with other respiratory viral infections, reinfection after recovery from prior infection has been reported for SARS-CoV-2. 49 Reinfection may occur as initial immune responses to the primary infection wane over time. Data regarding the prevalence, risk factors, timing, and severity of reinfection are evolving and vary depending on the circulating variants. Breakthrough SARS-CoV-2 infections (i.e., infection in people who are up to date with COVID-19 vaccinations) also occur. 50 When compared with infection in people who are unvaccinated, breakthrough infections in vaccinated individuals appear less likely to lead to severe illness or symptoms that persist ≥28 days. 50-53 The time to breakthrough infection has been reported to be shorter for patients with immunocompromising conditions (i.e., solid organ or bone marrow transplant recipients or people with HIV) than for those with no immunocompromising conditions. 50

Although data are limited, no evidence suggests that the treatment of suspected or documented SARS-CoV-2 reinfection or breakthrough infection should be different from the treatment used during the initial infection, as outlined in Therapeutic Management of Nonhospitalized Adults With COVID-19 and Therapeutic Management of Hospitalized Adults With COVID-19 . 

Prolonged Viral Shedding, Persistent Symptoms, and Other Conditions After SARS-CoV-2 Infection

Symptomatic SARS-CoV-2 infection is typically associated with a decline in viral shedding and resolution of COVID-19 symptoms over days to weeks. However, in some cases, reduced viral shedding and symptom resolution are followed by viral or symptom rebound. People who are immunocompromised may experience viral shedding for many weeks. Some people experience symptoms that develop or persist for more than 4 weeks after the initial COVID-19 diagnosis. 

Viral or Symptom Rebound Soon After COVID-19

Observational studies and results from clinical trials of therapeutic agents have described SARS-CoV-2 viral or COVID-19 symptom rebound in patients who have completed treatment for COVID-19. 54-56 Viral and symptom rebounds have also occurred when anti-SARS-CoV-2 therapies were not used. 56,57 Typically, this phenomenon has not been associated with progression to severe COVID-19.

Prolonged Viral Shedding in Patients Who Are Immunocompromised

Patients who are immunocompromised may experience prolonged shedding of SARS-CoV-2 with or without COVID-19 symptoms. 58,59 Prolonged viral shedding may affect SARS-CoV-2 testing strategies and isolation duration for these patients. In some cases, the prolonged shedding may be associated with persistent COVID-19 symptoms. See Special Considerations in People Who Are Immunocompromised for more information on the clinical management of people who are immunocompromised. 

Persistent, New, or Recurrent Symptoms More Than 4 Weeks After SARS-CoV-2 Infection 

Some patients report persistent, new, or recurrent symptoms and conditions (e.g., cardiopulmonary injury, neurocognitive impairment, new-onset diabetes, gastrointestinal and dermatologic manifestations) more than 4 weeks after the initial COVID-19 diagnosis. 60 The nomenclature for this phenomenon is evolving; no clinical terminology has been established. The terminology used includes long COVID, post-COVID condition, post–COVID-19 syndrome, and post-acute sequelae of SARS-CoV-2. Patients who have these symptoms or conditions have been called “long haulers.” 

Data on the incidence, natural history, and etiology of these symptoms are emerging. However, reports on these syndromes have several limitations, such as differing case definitions, a lack of comparator groups, and overlap between the reported symptoms and the symptoms of post-intensive care syndrome that have been described in patients without COVID-19. In addition, many reports only included patients who attended post-COVID clinics. Details on the pathogenesis, clinical presentation, and treatment for these conditions are beyond the scope of these Guidelines. The Centers for Disease Control and Prevention provides information about the timeframes, presentation of symptoms, and management strategies for post-COVID conditions. Research on the prevalence, characteristics, and pathophysiology of persistent symptoms and conditions after COVID-19 is ongoing, including research through the National Institutes of Health’s RECOVER Initiative , which aims to inform potential therapeutic strategies.

MIS-C and multisystem inflammatory syndrome in adults (MIS-A) are serious postinfectious complications of SARS-CoV-2 infection. For more information on these syndromes, see Therapeutic Management of Hospitalized Children With MIS-C, Plus a Discussion on MIS-A .

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