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The Cost of Employee Loyalty at Bikanervala

HUMAN RESOURCE MANAGEMENT
ET Cases, 32.46 minutes
PUBLISHED DATE: 17/02/2015

Teaching Note Preview

The Cost of Employee Loyalty at Bikanervala

Synopsis

This case spot enables a discussion on various aspects of employee loyalty in an organization considering the case of Bikanervala Foods Pvt. Ltd. (Bikanervala), Hyderabad, where employee loyalty is conspicuously high. Given the various dimensions of employee loyalty that it discusses, this case spot can be suitably used in multiple course settings – Human Resources Management Course (“Managing the Employment Relationship” Module or “Employee Engagement” Module), Sustaining High Performance Teams Module, Talent Management and Employee Retention Module, and Employee Loyalty in Family Businesses Module.

It discusses the importance of employee loyalty in an organization’s sustained and superior performance; the relationship between the nature of industry, nature of business, nature of the job and employee loyalty; factors contributing towards very high employee loyalty at Bikanervala; and employee loyalty in family businesses vis-à-vis that in professionally driven organizations. This case spot, however, focusses on an interesting dilemma of the cost of employee loyalty in organizations. It throws open several interesting questions related to employee loyalty such as long standing employees becoming indispensable for the organization, employee loyalty being a boon or a bane, etc. It concludes on the note that while employee loyalty is an asset, it can become a liability if its smoking signals are not taken care of.

Expected Learning Outcomes

At the end of this case spot, the students/participants would have a fairly deeper understanding of the underlying and related connotations of employee loyalty and more specifically, the students would be able to understand:

• The concept of employee loyalty and its importance for an organization’s sustained and superior performance
• The contributing factors for high employee loyalty at Bikanervala
• The relationship between the nature of industry, nature of business, nature of the job, employee loyalty factor and organization’s sustained and superior performance
• The cost of employee loyalty (i.e., is increased employee loyalty an asset or a liability?) at Bikanervala (Hyderabad), given fairly longer tenures of employees
• Whether family businesses foster relatively better employee-loyalty factors?

Positioning and Setting

This case spot can be used under multiple settings. It can be equally effective either in general, people management courses (like HRM/People Management, etc.) or specific modules in any customized program. Accordingly, this case spot can be used for the following:

• Human Resources Management Course in – (a) “Managing the Employment Relationship” Module or (b) “Employee Engagement” Module (c) ‘Sustaining High Performance Teams’ Module – to discuss what it takes for a company to nurture and sustain high performance and purposeoriented individuals
• ‘Talent Management and Employee Retention’ Module – to discuss on the specific factors that contribute to higher employee retention
• ‘Employee Loyalty in Family Businesses’ Module – to discuss and debate on whether family businesses nurture relatively better employee-loyalty enhancing practices than the professional corporates

This case spot was used for discussing the factors that were instrumental in creating and sustaining high employee loyalty levels in the HRM course for students in the second semester of PGDBM/ MBA program.

Suggested Orchestration

Before the Case Spot Discussion

As this case spot has been appropriately mapped in HRM course in the 2nd Semester of PGDBM/MBA Program, the students were aware of the necessary threading, i.e., forward and backward linkages of this case spot. However, to let them imbibe the intended purport of this case spot, and to make the classroom learning effective and to ensure that the scheduled case spot’s learning outcomes were appropriately contextualized and conceptualized, the students were asked to do the following excercises prior to the classroom discussion:

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Product code: CASE SPOT-1

The cost of employee loyalty in the backdrop of a company where the average tenure of an employee is about 15 years

Abstract

This case spot can be used for discussing and debating the cost of employee loyalty in the backdrop of a company where the average tenure of an employee is about 15 years. It is generally argued that, 'my loyalty to the company is contingent on my firm's loyalty to me'. When viewed from the nature of industry and nature of business that the featured company - Bikanervala Foods Private Limited (Bikanervala) - is in, the learning outcomes can be quite pronouncing. Set in the backdrop of Hyderabad's outlet of Bikanervala, the century-old Indian manufacturer of traditional sweets and savories' this case spot rummages through what it takes to command employee loyalty and also the unseen costs (if at all there are any) of employee loyalty. With over 42 successful outlets across India with a global presence spanning across Nepal, UAE, UK, New Zealand and Singapore, Bikanervala transformed a traditional and highly geographic-centric business into a scalable and growth-driven business with its unique business and people practices. While every company wishes to celebrate its high employee loyalty factor, the contrarian perspectives would offer some intriguing and interesting insights into employee loyalty to have a balanced view on high employee loyalty. What are the costs of high employee loyalty - for the employers as well as the employees? What is the relationship between high employee loyalty, innovation, business sustenance, growth, etc.?



Pedagogical Objectives

  • To understand the concept of employee loyalty and its importance for an organization’s sustained and superior performance
  • To understand the contributing factors of very high employee loyalty at Bikanervala
  • To understand and discuss the relationship between the nature of industry, nature of business, nature of job, employee loyalty factor and an organization’s sustained and superior performance
  • To discuss and debate on the cost of employee loyalty (i.e., is high employee loyalty an asset or a liability?) at Bikanervala (Hyderabad), given fairly longer tenures of employees
  • To discuss and debate on whether family businesses foster and command relatively better employee loyalty

Positioning and Setting

This case spot can be used under multiple settings. It can be equally effective either in general, people management courses (like HRM/People Management, etc.) or specific modules in any customized program. Accordingly, this case spot can be used for the following:

  • Human Resources Management Course in - (a) 'Managing the Employment Relationship' Module or (b) 'Employee Engagement' Module (c) 'Sustaining High Performance Teams' Module - to discuss what it takes for a company to nurture and sustain high performance and purposeoriented individuals
  • Talent Management and Employee Retention' Module - to discuss on the specific factors that ;contribute to higher employee retention
  • Employee Loyalty in Family Businesses' Module - to discuss and debate on whether family businesses nurture relatively better employee-loyalty enhancing practices than the professional corporates

This case spot was used for discussing the factors that were instrumental in creating and sustaining high employee loyalty levels in the HRM course for students in the second semester of PGDBM/MBA program.



This Case Pack Includes:
 - Abstract
- Case Spot (Video Case Study)
- Case Response (Video Case Response)
- Teaching Note
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