Question: READ the case and answer the question below: Q) Evaluate the Request for Proposal (RFP) a) Please identify your judgement on whether this RFP is
READ the case and answer the question below:
Al Hilal Group of Companies (AHG] is a traditional 2nd generation family business established in 1970. It's into construction and transport services and has 2000 employees including 40 managers. Although the 70 year old Founder and Managing Director Mr Khalil is slowly handing over the control of AHG to his MBA (UK) educated daughter Kulthoom aged 35, he is still involved with all major decisions on AHG matters. Since 'people are everything'. AHG has an HR Department with 20 staff, -available in person to meet any employee who needs to see them. Mr Khalil believes that common sense and basic human intelligence is more important than investing in technology. However, Kulthoom (MBA-HRM) is keen on introducing newer technologies to improve and manage AHG's operations, especially HRM. The newly hired and young Finance manager, and Kulthoom's MBA/UK batchmate, shares Kulthoom's views regarding the need for AHG to adopt more advanced HR technology One half of AHG's senior managers are traditional style', including the Co's senior advisor to Mr Khalil. The other half are progressive (like Kulthoom) in their work practices and outlook. Unlike the recently hired younger managers, the traditional managers have direct access to Mr Khalil if and when they wish to meet him, and they prefer the evening majlis-style meetings to discuss all company and employee related matters (including whom to promote/grant study leave to etc). During these majlis meetings, most of the traditionalists' seek and receive 'verbal approvals' for further study and house loans etc for their own departmental employees, based on their closeness and loyalty to Mr Khalil. The other managers ('progressives) don't enjoy such closeness. Kulthoom and the progressives believe it's time the company's affairs (especially HR) must be managed through a modern HRIS system, unlike the simple existing one that provides very limited options (such as payroll processing and recording of employee personal details etc.). They wish to have a comprehensive HRIS software package that helps manage all the HR sub-functions, and, which as a company-wide system would work based on fixed / common-to-all policies and procedures, with clearly identified approvers' and 'decision makers for various HR related transactions and processes. All employee requests and also managers' decisions would be only made through the HRIS system, based on approved work-flows (HR processes), and not based on 'case-by-case' requests taken to Mr Khalil for approval during the majlis meetings. AHG's Finance manager shares Kulthoom's views on this matter. This way all HR decisions will undergo certain criteria for approval, and thus will be transparent to all employees. On 10th April Kulthoom talks to her father -and his advisor- about the increasing competition and changing business conditions, and states "if we wish to win new high-value construction & transport contracts for the Expo 2020, we need to quickly streamline and manage our HR more effectively than before, and must invest in a more versatile HRIS Software urgently. If we don't, our current speed of HR work and lack of *real time decision making will lose new contracts for AHG, as we cannot make quick, accurate HR related forecasts. Besides the old and slow existing HRIS, we also lack good project management skills in the Co. Also, even if we do win contracts through your connections, our speed of work -due to poor employee management-will let us down with the Expo 2020 authorities". After this initial discussion, Kulthoom decides to prepare a formal business case that she would propose to her father (and his advisor) on the 15th of April. She, therefore, asks her Finance Manager to meet her on 11th April to work on the proposal. Following are the main points they discussed for the business case to be presented on 15h of April: i) The new package needed to be purchased within 30 days, by 15th May 2020. This is considered a short time interval ii) On 12th April Sunday, Kulthoom (MBA (HRM) would take the day off to work alone on the HRIS Needs Analysis, and identify what the new HRIS would need to be able to do for AHG, that the current package couldn't do. Kulthoom did not have enough time to invest in planning the needs, nor did she have the time to form a team that would support the needs analysis stage - a vital stage in SDLC. iii) On 12th / 13th April the F/M (MBA / Finance) would also take 2 days off to work alone and complete the Cost-Benefit Analysis (CBA) for the new / proposed package. Regarding the CBA, Kulthoom tells the F/M Since the time available is quite short (15th May proposed deadline), I think we will not have time to search for Vendor software packages. I think we should find someone who will create an 'in-house package for us .... I am an HR person and can myself tell them what's needed: it's all here in my head..... however, to save time, I will first phone the software Co. that you select, and ask them if they are unable to convert any of the work-flows that I create into software programs, so I could then redesign these work-flows to fit with what they are able to do....' - 'Also, just let me know the cost of the new package first in AED, and I will then justify the benefits. First focus on the costs, / will handle the benefits later ..maybe we ask for up to AED 2 million......we can make the programmers fit this budget So, let's say the total cost is 2 million, and benefit at the end of 5 years is 3.5 million..... you're the F/M, and for the business case must somehow make the benefits to exceed the costs iv) Kulthoom decided, that the best approach with her father on the 15th would be to focus on the possibility of AHG losing new contracts from Expo 2020 due to the existing HRIS. This would convince him to quickly approve the expense of AED 2million The FIM however disagreed, and felt the better option to receive approval for AED 2 million was to go the ethical route and based on evidence convince (the very welfare' minded) Mr Khalil how the new HRIS would enhance the quality of employee attraction, retention motivation, long-term engagement, offer better L&D opportunities for staff development etc, and this way. improve the long term profitability of AHG. Besides, the F/M thought this is the ethical as well as the professional argument to tell Mr. Khalil V) The colleagues did not discuss topics in relation to management support (the senior managers other than Mr. Khalil) nor they discussed how they will introduce the company to the proposed changes. On the 12th 13th April the F/M worked from home and contacted 4 HRIS vendors (see details below) who designed customized packages for Co's. He sent out an RFP to them all. The RFP primarily includes "some of the features needed in the HRIS, but with no extensive discussion of each functionality nor the technical requirements of the new HRIS. Further, price was proposed from the company rather than requested from each vendor. The RFP was done in a rush, and overall lacks much details typically found in a regular RFP. RIP CHRIS Software for ABG Carpentie Weited construction and transportline company with 200 ml lage HIRIS podkape before the May 1, place the existingen. We will putin AD MO eply visit to the RIP with your propea Further details on Vendors of Customized HRIS packages. and Market Conditions: Hamza HRIS LLC: Considered new to the market with about 3.5 years of experience in UAE and in Bahrain only. Designs supplies HRIS only to construction Co's. Excellent references from 6 customers Co's. Annual turnover-6 million AED, 30 staff. Reported limited spending on R&D. Can provide currently up to 80% of the current "expected needs of the company. Price is high but due to the current market conditions of the company is "negotiable". Arabian HRM solutions: 20 years in the UAE, operates in 6 countries, designs / supplies HRIS to schools, hospitals and banks, Excellent references from 12 customers that operate in the education, healthcare, and finance industries. Co's. Annual turnover 10 million AED each year of which 10% is spent on Research and Development (R&D). Can provide 80% of current functional needs. Has ambitious plans to increase market share within the next few years. Total 80 staff. Price is relatively high. -Gulf HRM Solutions: 2 years in the UAE, operates in UAE only. Designs / supplies HRIS only to Transportation Co's, but claims capability to handle other tasks too. Excellent references from 2 customers only. Co's. Annual turnover-1 million AED: 8 staff. Company claims to have plans to spend on R & D but nothing reported yet. Can currently provide 85% of the needs of the company. -Maghreb HRM Solutions: 1 year in the UAE, operates in the UAE only. Designs / supplies HRIS only to Construction & Transportation Co's on 'urgent' and low-cost basis. I reference currently available, being a newly established company. Annual turnover-300,000 AED 3 staff. No information on R & D. Can provide about 85% of the needs. Market conditions: Since 2018 general business conditions are low due to various global influences, and very tight since Mar 2020 due to the CORONA outbreak. Businesses are struggling to survive Q) Evaluate the Request for Proposal (RFP) a) Please identify your judgement on whether this RFP is appropriate or not; b) Describe the essential elements that must be there for an RFP to be complete AND describe each of the three parts briefly.



Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
