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HRM0040 Mandatory Cost to Enhance Savings HUMAN RESOURCE MANAGEMENT 1 www.ibscdc.org On-Site Medical Clinics: Perks or Teaching Note Available • To understand how Google has been Productivity Boosters? Struc.Assig. Available successful in making its employees brand ambassadors. This case study helps in analysing how Keywords companies can derive benefits from a Industry Internet search and Navigation On-Site Medical Clinics, On-Site clinics, Reference No. HRM0040 mandatory cost to enhance savings. The Company Doctors, Health Insurance, case also helps in understanding the Year of Pub. 2009 Employee Health, Medical Costs in the Teaching Note Available importance of On-Site clinics in the era of US, Outsourcing Healthcare Management exorbitant medical costs, ever escalating Struc.Assig. Available healthcare-related expenses of the Keywords employees and companies and enables a discussion on whether this model is Employees as Brands: The Case Google, Brands, Employees, HRM, Culture, sustainable. Or will it meet the fate of its of Google Motivation, Compensation, Employee predecessor – the Company Doctor, Retention, Talent Management, Best abandoned during 1960s. This case is written primarily to raise an practices, work culture, Organisational interesting arguement over a simple, yet, culture, Innovation For many observers, 'On-Site' medical thought-provoking concept – how can clinics are the refined version of Company human resources be leveraged as a source Doctor – a practice that has long been out of competitive advantage? Illustrated fashioned by high maintenance costs. through the example of Google, this case Microsoft: Reshaping HR However, for the HR executives, 'On-Site' raises many intriguing issues. In a span of a Strategies medical clinics are a novel concept that decade, Google has emerged as a Founded in the year 1975, Microsoft is the improves the morale of the employees and technological powerhouse with two worldwide leader in software, services and for top managers, this is a cost item which extraordinary innovations, ‘search’ and solutions. Employees at Microsoft are has the potential to boost revenues. ‘adwords’, to its credit. The company recognised as the intellectual fuel and are However, in essence, it is a basic healthcare attributes this enviable rise to glory to its provided with various benefit plans and facility provided by the companies to most valued assets – the Google employees. resources, which are designed to retain them. employees and their dependents in the Since its inception, the company has Lisa Brummel, who joined as the chief of factory premises. Companies through constantly hired only the best talent in human resources at Microsoft, in the year setting up On-Site medical clinics want to the industry, preferring creativity to work 2005, started reshaping the company’s HR control the soaring medical costs, improve experience. Striving to attract and retain strategies. She began to innovate the HR the productivity of the employees besides bright and inspiring employees, Google system and tailored it to meet the needs of enhancing the quality of treatment for the focused on motivating its employees by individual employees. The case helps to employees. The On-Site medical clinics creating a challenging yet fun-filled work analyse the importance of innovation in model provides better returns for the environment coupled with a wide array of HR practices of an organisation. The case companies on employee health-related perks ranging from free food and a gym to also offers a backdrop to debate whether investments compared to any other employee stock options. Additionally to the reshaped HR strategies of Microsoft existing model. Some healthcare experts foster innovativeness, Google has adopted help to satisfy, retain and motivate the advice that On-Site medical clinics should the ‘70/20/10’ model, to encourage employees at Microsoft. not be confined only for controlling the Googlers to spend 20% of their work time medical costs and improving the on a project of their choice. These efforts productivity of the employees but also paid off and Google emerged as the most Pedagogical Objectives focus on improving personal health and sought after place to work for two • To analyse the significance of employees creating community awareness on disease consecutive years (2007 and 2008). in a knowledge-based industry prevention and management. This model, However, can a company that has focused hailed by one and all, however, has its on small teams and individual interaction • To analyse how companies attract the Achilles Heel – safety and security of with all employees cope up with the same best-knowledge workers and retain employees' health records from the when its meteoric climb to success has employees in a competitive managers. The possibility of managers captured the interest of many competitors? environment using personal medical records of The appreciation of Google’s • To analyse the HR practices at Microsoft employees for undue benefits can neither achievements has been accompanied by be ruled out nor can be overlooked. increasing apprehensions about the long- • To analyse the reshaped HR practices term sustainability of Google’s informal implemented by Lisa Brummel Pedagogical Objectives and fun-filled culture. Whether Google’s success is a result of its much hyped work • To analyse whether the new HR Strategy • To analyse the significance of On-Site culture or vice versa, continues to be an helps to satisfy, motivate and retain medical clinics to the companies in the unresolved enigma. employees at Microsoft. times when medical costs are ever Industry Software Services increasing in the US Pedagogical Objectives Reference No. HRM0039C Year of Pub. 2008 • To analyse how the On-Site medical • To analyse the role and essence of HR Teaching Note Available clinics reduce the medical costs and management across different industries Struc.Assig. Available improve the productivity of employees and their contribution in building • To debate whether On-Site medical successful organisations Keywords clinics model will be a successful • To analyse factors contributing to Microsoft; HR Strategies; Reshaping HR Healthcare model or it will be withdrawn Google’s meteoric rise in a short span of Stratgies; Google; Lisa Brummel; like Company Doctor. time Knowledge-based industry; Comparitive Analysis; Steve Ballmer; Mini-Microsoft Industry Health Care • To examine Google’s HR practices and Blog; mymicrosoft 1.0; HRM Case Studies; Reference No. HRM0041 debate on the replicability and Next Generation Work Place Year of Pub. 2009 sustainability of these practices 2 www.ibscdc.org HUMAN RESOURCE MANAGEMENT HUMAN RESOURCE MANAGEMENT HUMAN RESOURCE MANAGEMENT HUMAN RESOURCE HUMAN RESOURCE MANAGEMENT Innovative HR Practices at innovative breakthroughs in the experiencing closures affecting thousands HUMAN RESOURCE MANAGEMENT Southwest: Can they be technology front, but is also known for its of employees, KDHPCL with 13,000 Sustained? unique culture and innovative Human employees could not only recover within Resource (HR) policies. In a survey a year the loss of $ 24 million run up by With 35 consecutive years of profitability, conducted by BusinessWeek magazine, Tata Tea, but could also register a post tax the Dallas-based Southwest Airlines had Google was the most sought after company surplus of $ 50,000 as on March 31st 2006. been the most successful low-fare, high by college students, MBAs, women, However, when Tata Tea went onto frequency and point-to-point carrier in the engineers, and diverse individuals. Google implement a similar model in the North US. Southwest is known not only for its ranked 1st on the 10th annual ‘100 Best India Plantation Operations, it met with innovation in operations but also for its Companies to Work For’ list of Fortune, a considerable resistance. The case discusses HR practices which were nurtured by its well-known international business about the crisis that was facing the tea long-standing CEO, Herbert D. Kelleher. magazine. HR practices at Google is named industry in India, the role played by Tatas He developed a culture aimed at fun and ‘People Operations’, which is designed to in the formation of the KDHPCL and the employee satisfaction. He also devised underline the fact that it is not a mere challenges faced by the employees of South numerous employee-oriented administrative function, but ensures to build Indian Plantations Operations in organisational practices, training and a strong employee-employer relationship. accomplishing this unique business model. motivational programs. His fun loving way Google’s HR practices clearly reveal the of treating employees and charismatic impressive results of the company’s Pedagogical Objectives: leadership qualities made him a supreme approach, which help in increasing hero among them even after he stepped employee productivity. The case facilitates • To understand the crisis facing the Indian down from the CEO post in 2001 and discussion on whether the ‘Best Place to tea industry and to debate on measures became its chairman. But in May 2008, Work For’ culture at Google is to really required to regain its lost leadership Kelleher announced that he will step down attract and motivate the employees or if position in world markets from the post of chairman. Following the it is with a business motive. • To analyse the case and find out the announcement, the entire airline industry reasons behind the success of KDHPCL is skeptical about the sustainability of Pedagogical Objectives Kelleher’s innovative HR practices at • To identify the causes behind a similar Southwest. The case discusses how a leader • To analyse how employees help a model facing resistance while being influences the HR practices of a firm with company in differentiating itself from implemented in the North his own leadership style. It also allows for its competitors in knowledge-based • To debate and identify whether the same discussion on whether it is the right move industries model can go forth in the North or an for a company to follow HR practices • To analyse how companies attract the alternative scheme needs to be developed which are highly influenced by a leader.
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