Pak Star Automobile Limited

Mr Gulraiz Khan, a newly appointed general manager of the Pak Star (Pvt) Automobiles Ltd observed dissatisfaction of staff regarding low salaries, lack of recognition, prevalent job insecurity, the absence of reward for performance and poor handling of labour matters. A high turnover at the managerial and executives cadres was evident of their extreme dissatisfaction on the job. Most of the human resource related activities were being performed by administration department which resulted in various inadequacies in recruitment & selection, training & development and performance and compensation management. This ultimately caused work load, dissatisfaction, declining performance and demotivation of staff. A gradual shift from hierarchical to an informal organizational structure was adopted with an intention to reduce perceived power distance and to improve performance. Despite the provision of significant employee benefits, allowances, health care and safety measures, employees’ distress was on the rise. There was an increased pressure on Gulraiz to handle all these issues surfacing drastically in the organization. Gulraiz was determined to address the human resource issues on priority but bewildered as from where to start and how to revamp the whole HR system to resolve numerous conflicting issues. European Case Clearing House, Cranfield, UK. Case Study - Ref 411-063-1 + Teaching Note - Ref 411-063-8