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KAZIAN GLOBAL SCHOOL OF BUSINESS MANAGEMENT
Marks: 80
Course: MBA Sem-II
Note: Attempt all the Question
All Questions carries Equal Marks
Name: Pandav Sunil Ramchandra Reference No.: KH00711-10797
Subject: Human Resource Management
__________________________________________________________________________
Case 1
Fun at Hitech
Hitech Corporation (Hitech) is a well known IT company based in Hyderabad , India. Hitech provides
networking solutions to many Fortune 500 companies. Started in 1990 by two technology experts, Hitech
currently has almost $40 million in annual revenue. When the founders started the company, they
established as one basic value that working at Hitech should be enjoyable as well as profitable. That belief
has helped create a company culture today that gives Hitech competitive advantages when recruiting and
retaining talented workforce in the challenging labor market of IT.
Because recruitment of talented employees to handle growth at Hitech is so crucial, , the HR unit has an
aggressive employee referral program which pays employees up to $5,000 for referring new hires who
stay with the firm.The HR unit prides itself on prompt feedback to potential employees. Other "fun"
programs include-
· Football, pool tables, volleyball courts, assorted video games, pianos, ping pong tables, and gyms
that offer yoga and dance classes.
· Grassroots employee groups for all interests, like meditation, gourmet cooking and salsa dancing..
· Healthy lunches and dinners for all staff at a variety of caf?
· Theme parties organised each month. Last month Hitech had its executives wearing animal
costumes as part of a "jungle" party .
These fun initiatives have a more important business purpose-to demonstrate that people are important at
Hitech. Is all this fun profitable? Hitech's answer is an unqualified yes. Over 40% of all Hitech ?s new
employees come from the employee referral program. The firm?s cost to hire each new employee is about
$5,000 less than the industry average. Even more important, those hired stay longer as indicated by its
retention rate of 42 months compared to the industry average of 20 months. Also, employee turnover is
about 6% annually? significantly below the industry average. It is obvious that Hitech's approach to HR
management is paying off, both in an enjoyable company culture and in contributing to organizational
success.
Question:
1. Employee referral is the best approach to recruitment .What is your view?
2. Why has "fun at work" been profitable at Hitech?

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 KAZIAN GLOBAL SCHOOL OF BUSINESS MANAGEMENT Marks: 80 Course: MBA Sem-II Note: Attempt all the Question All Questions carries Equal Marks Name: Pandav Sunil Ramchandra Reference No.: KH00711-10797 Subject: Human Resource Management __________________________________________________________________________ Case 1 Fun at Hitech Hitech Corporation (Hitech) is a well known IT company based in Hyderabad , India. Hitech provides networking solutions to many Fortune 500 companies. Started in 1990 by two technology experts, Hitech currently has almost $40 million in annual revenue. When the founders started the company, they established as one basic value that working at Hitech should be enjoyable as well as profitable. That belief has helped create a company culture today that gives Hitech competitive advantages when recruiting and retaining talented workforce in the challenging labor market of IT. Because recruitment of talented employees to handle growth at Hitech is so crucial, , the HR unit has an aggressive employee referral program which pays employees up to $5,000 for referring new hires who stay with the firm.The HR unit prides itself on prompt feedback to potential employees. Other "fun" programs include- Football, pool tables, volleyball courts, assorted video games, pianos, ping pong tables, and gyms that offer yoga and dance classes. Grassroots employee groups for all interests, like meditation, gourmet cooking and salsa dancing.. Healthy lunches an ...
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