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MBA 1st Globalisation Scenario Case Study 5 With Question Answer

MBA 1st Globalisation Scenario Case Study 5 With Question Answer


MBA 1st Globalisation Scenario Case Study 5 With Question Answer
MBA 1st Globalisation Scenario Case Study 5 With Question Answer

Case Study 5 (Globalisation)

Softcore consultancy services are in the information technology sector. It is currently facing a shortage of skilled manpower and is fueling a hike in employee salaries, which have been posting a 10-40 per cent growth during the last couple of years. While there is an abundance of trainable human resources a dearth in skilled manpower is being full across the industry and this has resulted in a hike in salaries.

Typically, salary jumps happen not only in the conventional manner of being promoted but also because of professionals changing jobs more frequently. The increase in salaries varies from job to job, and ranks highest in the IT sector where employees get a hike of over 40 per cent when they join a new establishment. There is no dearth in entry level human resources as there is a large supply, but a severe shortage is felt in a middle level position.

According to Mr. Raj, CEO of Softcore, many new captive and third party off-shore facilities being set up in the country have led to a competition for skilled human resources that are already scarce. This is also leading to an ever-widening demand supply gap and rise in the average salary level for all positions apart from pushing up attrition in existing facilities, he said.

There is new trend of employees moving to multinational companies abroad for higher salaries and global experience. The salary package and working environment is far better than India in countries like USA

Then returning to India with global experience makes for a higher pay and position. This is also one reason for the shortage of skilled manpower and hike in employee salaries in the IT sector

MBA 1st Globalisation Scenario Case Study 5 With Question Answer


Q.1. What problems is Softcore facing? Suggest some remedies for its problem.

Ans Softcore is an IT company where technology upgradation and the trends changes frequently This industry needs highly knowledgeable persons and it is dillicult to retain the employee for a

period because of changing environment and technology upgradation. Because of fast changing technologies, training is required for the employees. So, the basic problems that the Softcore is facing are as follows:

1 Salary Hike: Because of lack of talent, industry is paying more to the employees as they can easily change the company if they are not satisfied with the pay

2. Skilled Employees: Changing environment needs that the employees should be updated and provided with IT education or such employees those are well trained, is tough and expensive task.

3. Brain Drain: Everyone in the market wants highest pay and for this, people move to MNOS Young generation wants this higher pay for which they move abroad and as Indian market is filled up with cheap labour people, MNCs hire employees from such sources

4 Competition: New captive and third party off-shore facilities led to a competition for skilled uman resources that are already scarce. This is leading to a widening demand supply gap and rise in erage salary for all positions.

For such problem of decreasing human resource talent in the market and problem in retaining em for longer period, following measures are taken: 

1. Company can go for direct hiring of fresh students from the campus by conducting interviews and tests and suitable candidates are hired. 

2. Because of lack of skill, many companies are opening colleges and training centres. Company’s start such colleges where they can train the students and provide education about the field in which they want and the manner they like to provide education 

3. A highly qualified employee wants much to be paid whereas a less qualified person can be hired at a lower cost and can be trained for the job. 

4. Softcore can provide attractive offers to the employee instead of constantly increasing the salary as this increases the financial burden on the company. Thus, company can provide basic facilities and attract employees and hence solve personal problems easily.

MBA 1st Globalisation Scenario Case Study 5 With Question Answer 

Q.2. Do you support globalisation? 

Ans. Globalisation means integration with the world economy and the process of integration of the orld into one huge market. The reasons for which the globalisation is supported are: 

1. It brought in huge amounts of investments into the industry especially in BPO, pharmaceutical and manufacturing industries. 

2. Many foreign companies set up industries in India that helped to provide employment to many people in the country thereby reducing poverty in the country. 

3. Foreign companies bought in highly advanced technology with them that helped to make the industries technologically advanced. 

4. More goods and services are available at lower cost to a wider group of people as markets become global. 

5. Globalisation helps for free flow of capital from one country to the other and thus helps the investors to get a fair interest rate.

6. Free flow of capital along with the technology enable the developing countries to boost up industrialisation in their countries. 

7. The developing countries industrialise their economies with the flow of capital technology and manufacturing facilities in developing countries. 

8. Indian consumers have been getting the products of high quality at lower prices. Increased industrialisation enable the companies to produce and sell such type of products 

9. Globalisation reduces the physical distance among the countries and enables people of different countries to acquire the culture of other countries 

10. Increase in industrialisation on balanced lives in the globe improves the skills of the people of developing countries and increased economic development enable the povt to provide welfare facilities that contributes for the balanced numan development throughout the world

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