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This case is suitable for undergraduates, MBA students and students from business administration departments in the teaching of human resources management and performance management.

Luodian Electric Power Construction Corporation Group (LEPCC Group) is a state owned enterprise transformed from a construction unit of Luopu Power Supply Bureau (LPSB), a governmental organization in charge of all the electricity supply in Luopu City. The general manager of LEPCC, Gu Ming tried to set up a modern market-oriented management system for LEPCC. Unfortunately the problems that had accumulated in the past two decades during which LEPCC was a governmental organization made his reforms very difficult. The first headache for Gu Ming was the performance appraisal reform in LEPCC. The existing performance appraisal system seemed to have at least three problems in practice: unclear appraisal objectives, an improper assessment system, a different appraisal standard for similar positions. What should Gu Ming do to build a proper performance appraisal system to help the fast-growing LEPCC Group to make LEPCC a competitive market-oriented player?

The first objective of this case is to enable students to understand that the issues of working performance are issues of people first, rather than issues of the management system. If the management focuses on the system instead of on the staff of the company to design the performance management system, the system will be fruitless and inefficient. The second objective is to cultivate students' capability to apply the basic theories of human resource management and the knowledge of performance appraisal in case analysis and practical management. This case, seemingly about performance appraisal, is in fact about the organizational structure and processes of the organization. Reform should start with organizational analysis, job analysis and job descriptions. Only when all these have been done correctly, can the performance management system be designed more reasonably, scientifically and efficiently.

Teaching notes are available; please consult your librarian for access.

At the end of the session, learners are expected to be able to evaluate the detrimental impact of stress on blue-collar workers’ well-being in Attainer Engineering Sdn Bhd; develop effective strategies to improve stressful conditions experienced by blue-collar workers in Attainer Engineering Sdn Bhd; analyse and select appropriate approaches that can help maintain the motivation levels of blue-collar workers in Attainer Engineering Sdn Bhd; analyse the impact of Attainer Engineering Sdn Bhd’s extensive investment in training new blue-collar workers, alongside the subsequent high turnover rate, on the decline in sales and profit; identify the critical changes that the managing director should have implemented to prioritize employee retention among blue-collar workers at Attainer Engineering Sdn Bhd; discuss the strategic implementation of mechanization, specifically in the context of automating repetitive processes, as an innovative solution to address the challenges faced by the ship repair and maintenance service industry heavily reliant on blue-collar workers in emerging markets; cultivate thoughtful debates on ways to keep blue-collar workers in the shipping repair and maintenance industry, as well as active learner participation and group interaction; develop learners’ analytical and critical thinking skills by guiding them through the analysis of a real-world case study in the shipping repair and maintenance industry, concentrating on the difficulties and potential solutions for blue-collar worker retention; and equip learners with practical knowledge and insights on implementing effective human resources strategies for retaining blue-collar workers in the shipping repair and maintenance industry, emphasizing the conversion of theoretical concepts into workable solutions.

This teaching case study centres on Attainer Engineering Sdn Bhd, a Malaysian conglomerate that bestows ship repair and maintenance services. Regrettably, the corporation has been subjected to a decrease in profitability and productivity owing to its high turnover rate of blue-collar workers. The ship repair and maintenance service industry is accountable for delivering comprehensive repair and maintenance services to ships, including their engines, hulls, machinery and other related components. The fundamental aim of this case study is to ascertain the rudimentary factors that contribute to this issue and foster effective strategies to enhance the motivation and retention rate of blue-collar workers in the ship repair and maintenance service corporation, using appropriate management theories, models and concepts. The case study brings to light the importance of discovering the most suitable approaches to retain blue-collar workers in the corporation to improve its profitability and productivity in a highly competitive market. This teaching case study will be beneficial for students and practitioners who want to grasp the disputes associated with retaining blue-collar workers in the ship repair and maintenance service industry and learn how to apply management theories, models and concepts to address these disputes effectively.

This case discussion would be highly suitable for undergraduate and postgraduate university students who are pursuing their studies in management or related fields and are eager to delve into the nuances of the ship repair and maintenance service industry. Furthermore, trainers from both private and public agencies who are keen on gaining a deeper understanding of the issues pertaining to retaining blue-collar workers in this particular industry and devising result-oriented strategies to tackle these concerns would also find this case discussion immensely helpful.

Teaching notes are available for educators only.

CSS 6: Human resource management.