A1. Please identify Three (3) current HRM/ER issues in Orange Electronics, with a maximum of two (2) illustrations/examples to support each of your findings.

(10 Marks)

A2. Please describe the following of Orange Electronics, with illustrations and application of academic model: (15 Marks)

1. Management/Leadership style (5 Marks)
2. Corporate values and organizational practices (5 Marks)
3. Ways and channels of communication (5 Marks)

A3. Develop and propose Three (3) employment relations policies and procedures, with Two (2) illustrations for each policy, should Orange Electronics consider introducing or changing, and what implications will these have on the companys informal approach. (25 Marks)

Case A (50 Marks) Mr. David Chan was recently appointed Human Resources Manager of Orange Electronics, a small media and technology company that provides a range of information and communication technology (ICT) services to other organizations in Hong Kong. The company specializes in the design and technical support for internet and intranet software products, many of which incorporate technological security systems. Orange Electronics started in 1995 by five friends, who between them had specialist knowledge in information technology and technical engineering. Shortly after they all graduated from university, they spotted a niche in the ICT market and created Orange Electronics. In its first few years, the company was particularly successful in attracting business from the growth in outsourcing activities amongst public sector organizations. Today, its client base includes many well-known private sector companies and public sector organizations, such as the Hospital Authority, Police, the Inland Revenue, several major local banks and multinational companies with sites in Hong Kong. From its inception, employment relations at Orange Electronics have been very informal and relaxed. All of the five owners are personal friends, and they started a business venture in what amounted to their personal interests and hobbies. In its first year, clerical and admin support was "draft-in from amongst family and friends, often working long hours as the company was in its start-up phase. As the company grew, two of the owners' sisters were employed on a permanent basis as clerical assistants when they left school, and another owner's auntie is now the full-time general office manager. The use of a network of family and friends has remained the main source for recruiting new staff Orange Electronics now employs 100 people and has an annual turnover of 1.5 Billion Hong Kong dollars. Pay is generous and the working conditions are reasonably pleasant. The owners set pay unilaterally for each individual employee. The rate of pay is based on the owners' evaluation of an individual employee's performance over the previous year (e.g. in terms of commitment, loyalty. client satisfaction, performance and profit and technical expertise). Overall, the owners have never felt the need to have any formal policies or procedures, as everyone in Orange Electronics are all friends and all work for the good of the client. What formality does exist is a very short one page contract of employment which employees sign on their first day, and which was drafted by the owners in the early days of the company. Indeed, one owner remarked that human resources management is just another term for common sense. Despite the appearance of a friendly and informal employment relationship, a number of tensions have been developing in the company. First, despite generous pay and benefits, some technical consultants have started to complain that they are working excessively long hours, and without any extra pay. Indeed, on one occasion a team worked for three consecutive days and nights to meet a client's deadlines. Furthermore, the relationship between one of Orange Electronics major clients and the consultant team seems to be getting worse. The technical consultants on this particular project, which is due to run for another 2 years, are concerned that managers in the client organization are issuing them with rules and procedures. For example, they have been asked to attend the induction for new employees of the client organization, and have been asked to make any requests for annual leave to management in the client company and not to the office manager of Orange Electronics. Second, some of the clerical and admin staff have been muttering concem they never seem to see any of the fringe benefits as they are always office-based, and therefore not directly linked to a client project. Of the 20 clerical employees, half of them are women, working part-time as they have family responsibilities, and they now feel their part-time status means they are treated as second-class citizens. Third, a married couple who work at Orange Electronics, a clerical assistant and technical consultant, are expecting their first baby, and have asked for time off together. However, the office manager feels that the company cannot support releasing the two of them at the same time, especially the technician who is a key specialist on an important client project. Finally, Mr. John Lau, the Managing Director of Orange Electronics, received a letter explaining that a former clerical employee is taking the company to the Labour Tribunal to claim unfair dismissal. The employee was dismissed for what the office manager described as excessive and unauthorized leave over a period of 6 months. While Orange Electronics tried to help the employee with support and some time-off to deal with family and childcare issues, the office manager eventually felt that matters were getting worse and not better, and therefore felt they had no alternative but to terminate the person's employment. Given the above information, the owners have come to realize that employment relations matters are perhaps a little more complicated than just relying on common sense, and have therefore appointed David as the HR Manager. Please answer the following questions if you assume the role of Mr. David Chan, the HR Manager of Orange Electronics