Question

Case study 5
Metro company, for example in Egypt, attracts a huge number of candidates for employment every year.
The company organizers require methods to recruit new staffs. Railway transport in Egypt has declined
over the past decade in terms of both infrastructure availability and transport capacity, especially in the area
of freight transport. This is due to:
• Competition from road haulage;
• Longer delivery times due to the priority given to passenger transport;
• Complicated formalities;
• Cross-border differences in infrastructure and staffing.
Ms. Ramaa is nominated as a human resource manager in one of the largest rail Service Company in the
Egypt. She has to manage the work of the department and implement the functions of Human Resources
management. She has to follow all rules of the company without discrimination.
Questions:
1. Is retaining employees an issue only for rail Service Company in the Egypt? Discuss.
(3 marks- Answer in 75-100 words)
2. Examine the challenges that Ms. Ramaa would face in retaining talented employees.
(3 marks- Answer in 75-100 words)
3. Suggest and explain any four activities which rail Service Company in Egypt can implement in
retaining their employees. (4 mark

Answer 1

Solution :

Part 1 : Issue of retaining employees :

No, the issue of retaining employees is an issue prevalent among all the companies operating in the market. It is not a problem which is faced only by the Rail service company.

The employees tend to shift from one organization to the other. This is because they are not satisfied with the current organization. The following could be the reasons for poor job satisfaction :

• Failure to recognize the employee's work
• Poor incentive for the work done
• Unable to develop friendly relationships with the management
• Personal reasons
• High pressure from the management or over workload

Hence, the employees tend to leave the organization for a better incentive offered in the new organization.

Part 2 : Challenges faced by Rama in retaining employees

Sometimes the employees expect more from the organizations. The expectations would be even unrealistic. The following problems would be faced by Rama :

(i) Demanding high salary :

Talented employees would expect a very high salary which sometimes would be over and above the industry range or the budget of the organization.

(ii) Competition :

The competitors offer lucrative incentives to attract talented employees. The employees prefer to work in a company that offers more incentives and recognition for the work done by him. Hence, the competitors offer higher incentives to attract talented employees from their competitor

(iii) Same repetitive job :

The employees tend to get bored by performing the same job again and again without any job rotation. Hence, they need a change.

Part 3 : Activities to retain talented employees :

(i) Good work environment :

The employees tend to stay in the organization when they develop good rapport and friendly relations with their colleagues and management.

(ii) Higher pay and recognition :

The organization should recognize the efforts of the employees and reward them with promotion and higher pay.

They can offer more perquisites, non-monetary incentives, awards, etc. to motivate the employees and recognize their contribution to the organization

(iii) Job security :

The employees should be given assurance about their permanency. This is an important factor that enables an employee to continue in the organization.

(iv) Fair and equal treatment :

All the employees of the organization should be treated fairly and equally without any discrimination against their race, religion, sex or background.

Miss Rama can prepare a new HR policy, incorporating all these changes as mentioned and communicate to the employees to ensure retention.