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Organizational Growth: Integrating Business and HR at MD Solutions*

CASE STUDY, HUMAN RESOURCE MANAGEMENT
ET Cases - GSMC, 11 Pages

Case Preview

Organizational growth: Integrating Business and HR at MD Solutions

 

“Growth itself is a big problem but a good problem to have”

- Manish Bhasin, Founder and CEO of MD Solutions



Sandeep Kapoor (Sandeep), Head-HR at MD Solutions, came from a long meeting with the top management of the company – Manish Bhasin (Manish), Co-Founder and CEO, Avneet Gupta (Avneet), Co-Founder and Head-Business Development, Jatin Das (Jatin), Co-Founder and Chief Sales and Marketing Officer, and Renu Bhasin (Renu), Co-Founder and COO. The meeting was called to discuss the growth path of the company. There were two primary agendas – challenges which lie ahead in terms of sustaining the remarkable growth; and making preparations to handle the growth.

The management was primarily concerned with loss of some of the clients in the past and was seriously contemplating on what went wrong – was it in their control or it comes with growth. The issue was not of losing the customers alone but also of scaling up by inclusion of new customers and maintaining existing customers. Manish was very much concerned about scaling but not at the cost of quality and profitability. This meant, he was very serious about issues related to maintaining customers.

The other primary concern was to prepare the organization for handling very high growth. Management wanted seamless integration between functional and people processes and stressed on human capital as primary resource as a key enabler of growth without compromising on the quality. This required the HR function to play a more strategic and central role.

How would Sandeep be able to integrate, align and prepare human resources to meet the growth demands of the business? Would he be able to create value for the business by equipping HR for better customer service, even at the times when organization was witnessing more than hundred percent growth (Exhibit I)?..........

Teaching Note Preview

Organizational growth: Integrating Business and HR at MD Solutions

 

Synopsis

The case is about MD Solutions which is a seven year old start-up. The company created the market for sports curriculum industry in India. In the past, company faced some issues with respect to quality of customer service. The company is witnessing almost hundred percent year-on-year growth and Manish Bhasin (Manish), the Founder and CEO, wanted to drive the growth but with caution and by adhering to the core values of the company. He understands the importance of growth but at the
same time is very particular about zero tolerance on customer service.

In service industry, people resource is the most important factor for maintaining service quality andtherefore human resource becomes most important function. Also, with the growing business, oneneeds to keep adding the right employees. Then there is the challenge to manage them and developthem for managerial positions. All these challenges require HR to function as strategic business partner and evolve and learn in tandem with the growth of business. The case captures the journey of MD Solutions and how its HR became its strategic partner in managing human resource with growth of business.

Prerequisite Conceptual Understanding (PCU)/ Before the Classroom Discussion

The students/ participants should be encouraged to read the following mandatory reading:

  • • Dessler, G. (2009). A framework for human resource management. Pearson Education India.

 

Pedagogical Objectives

The learning objectives for the students are:

  • • To understand the role of HR as strategic business partner. HR should not be seen as support function but as value creation function
  • • To make students understand the close integration of business strategy with HR strategy at the time when business is witnessing tremendous growth
  • • To give an overview of Indian start-up and its working. The main highlight is that business and functions evolve by practicing flexibility

 

Case Positioning and Setting

  • • Target audience is first year management students in the course Human Resource management
  • • Final year management students in the elective course on Entrepreneurship, Strategic Human Resource and change management
  • • Also middle level managers who are working in industry, in the management development program related to strategic HRM and change management

 

Assignment Questions

  • 1. What are the challenges faced by MD Solutions ?
  • 2. How MD Solutions plan to manage its growth?
  • 3. What is the role of HR as strategic business partner and hence partnering in managing business growth?
  • 4. In what way HR strives to achieve a) horizontal fit, Inter-HRM area fit b) vertical fit, Strategy-HRM fit?
  • 5. ......

 

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Abstract

The case is about MD Solutions which is a seven year old start-up. The company created the market for sports service industry in India. In the past, MD Solutions faced some issues on quality of customer service. The company was witnessing almost hundred percent year-on-year growth. However, Manish Bhasin (Manish), Founder and CEO, wanted to drive the growth, but with caution and by adhering to core values of the company. He understood the importance of growth but at the same time was very particular about zero tolerance on quality of customer service.

In the service industry, people or human capital is considered to be one of the valued resources to maintain service quality and business growth. Several, challenges like ensuring the recruitment of right talent, managing and developing people for building organizational capabilities demand Human Resource (HR) department to function as strategic business partner and learn and evolve in tandem with the growth of business. MD Solutions was also facing a similar situation. There are two decision points in the case which require students to keep themselves in the footsteps of Sandeep Kapoor (Sandeep), Head HR. First, did Sandeep succeed in aligning business growth strategy with HR functions and in what way? Second, is there any sub- HR function which still needs to be aligned with business growth requirements in MD Solutions? Students are required to critically evaluate data, as supplemented in the case, for understanding strategic perspectives of HR in MD Solutions - the current and future road map.



Pedagogical Objectives
There are three fold learning objectives for the students:

  • The first objective is to understand the role of HR as strategic business partner. HR should not be seen as support function but as value creation function
  • Second objective is to make students understand the close integration of business strategy with HR strategy at the time when business is witnessing tremendous growth
  • Third objective is to give the overview of Indian start-up and its working. The main highlight is that business and functions evolve by practicing flexibility

Case Positioning and Setting

  • The target audience is first year management students in the course of Human Resource management
  • Final year management students in the elective course of Entrepreneurship, Strategic Human Resource or Change Management
  • Also middle-level managers who are working in industry, in the management development program related to strategic HRM and Change Management


* GSMC 2016, IIM Raipur

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