WDA- FASTCAT CASE

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HRM A GROUP-3 2013
The document contains the organizational and compensation objectives
of FastCat.

TABLE OF CONTENTS
Contents
Introduction ______________________________________________________________________________________________ 1
Organizational Objectives ________________________________________________________________________________ 2
Compensation Objectives ________________________________________________________________________________ 4
Compensation Strategy __________________________________________________________________________________ 5
Looking Ahead Phase I ___________________________________________________________________________________ 6
Group 3 Members ________________________________________________________________________________________ 7

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Introduction
FASTCAT COMPANY HIGHLIGHTS

Medical communication software provider.

Healthcare support software for small and medium scale industries.
Privately held company.
Workforce of 200.
Revenue of $36.5 million and net income of $8.9 million.
Focus on patient-physician interface in ways that improve patient care.
Maintain reputation of providing best medical software at affordable cost.

HIGHLIGHTS OF PROBLEMS FACED BY FASTCAT

Revenue growth so far has not been strong.

Percentage of new customers has increased but not to a considerable amount.
Entering of big competitors into the small and medium scale industries.
Employees wary about their growth prospects under current economic conditions.
Customers raising concern about the cost of products.

FASTCASTS THREE PRONGED STARTERGY

Leaders at Fastcat are pursuing a three pronged strategy to meet the challenges of markets and customers.

Increase
customer base
with new
products

Expand into
new
geographies

Expand base
with new
categories of
participanst

EXTERNAL INFLUNECE
The government will implement HITECH/ARRA act which will bring urgency by the customers to
implement/upgrade EHR software which will usher tremendous industry growth. FastCat has to make sure
its strategy objectives allows it to ride the wave of change and establish a sustainable, cost effective position.

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Organizational Objectives
COST CONTROL HIGHLIGHTS
As mentioned in the case numerous times, with the increasing competition there needs to be something that
differentiates FastCat from its competitors. The main objective of the organization is to provide quality
products at a competitive price and to achieve this the organization has decided to keep a lid on their
operational costs.

INNOVATION
To sustain in this competitive era with big players like IBM also targeting the same market segment as
FastCat it is imperative for the organization to constantly innovate and produce superior quality products
which give value for money to its customers. As a result it is a constant endeavor of FastCat to invest in
R&D and come up with innovative products which can benefit both the doctors and patients.

INCREASE CUTOMER BASE

Being an aspiring organization FastCat wants to increase its customer base both within the territory of its
homeland as well as abroad. Growth and expansion is vital for any business to prosper in the long run and
the same is true for FastCat as well. With the competition pressing on its heels it makes even more sense
for FastCat to use its advantage of being the first mover and capture as many markets as possible.

END TO END SOLUTION

One of the major concerns that Fast Cat faces at the present is threat from larger competitors as it is more
viable for them to provide additional services apart from the core software such as application services and
management solutions. These additional services have a very high margin and contribute to a significant
jump in revenues. Hence it is imperative for Fast Cat to foray into the domain of end to end services.

CUSTOMER SATISFACTION
As per Fast Cats new mission statement, it is the intent of the company to measure its success by that of its
customers. The company also wants to focus on designing high quality solutions in collaboration with its
customers and wants to make them a part of the team. Also, as per a survey of the customers it is come to
the fore that some customers feel that the Fast Cat Products are not worth their cost. Hence, the company
needs to focus on customer satisfaction

EMPLOYEE VALUE CREATION

Fast Cat has clearly identified in its mission statement that it wants to focus on the recognizing the
contributions of its individual team members as they have been the backbone of the company in developing
products that have been a notch above the competitors. Also it has recognized that it would rather promote

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employees to leadership roles than bring in external talent as the familiarity with the companys products
would be higher for its own employees. Hence, employee value creation is also an important objective for
the company

UNPARALLED PRODUCT QUALITY

FastCast has built its reputation as providing the best medical software available. FastCat wants to have
enough employees who will produce outstanding quality and high reliability products. It also intends to
drill deeper and expand sideways. This means the company wants to sell new products to its existing
customers as well as cater to the needs of entirely new customers. These two objectives can only be fulfilled
if the products and services are of superior quality so that even the larger players cant eat into the share of
FastCat.

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Compensation Objectives
INCLREASED EMPLOYEE PRODUCTIVITY
One of the major issues faced by FastCat is the reduced

FAIRNESS IN PAY
To keep up the morale of the employees it of utmost importance for the organization to have a fair and
transparent compensation system in pay. Having worked in IT industry for some time we as a group
understand that problems relating to fairness in pay can hugely demotivate employees and increase employee
attrition. And increased attrition is something that FastCat cannot afford and to keep that in check a fair
compensation policy should not be overlooked.

ENHANCED EMPLOYEE COMMITMENT

According to the survey on employee engagement, the employee commitment of FastCat employees is low
as compared to the national survey. This is something which concerns the administration of FastCat and
compensation structure will be so created that it addresses this issue.

DRIVING INNOVATION
Innovation is a key Business objective for the organization and thus it has to be incorporated and cultivated
in the company's culture. So to promote a innovative culture, we will have a compensation policy that will
incentivize innovation at individual level as well as team level.

EFFECTIVE COMMUNICATION AND COLLABARATION

Again to facilitate better customer and employee satisfaction, communication and collaboration is one key
area where the organization needs to focus. So we have so form of rewards in connection with customer
feedback received. Also how quickly the teams respond to their customers, be it external or internal, i.e.
inter-team deliverables, will be a factor while deciding the compensation strategy. Compensation policy will
also include some form of bonuses based on team's ROI from its deliverables.

CAREER PLANNING
Our compensation policy will also focus on some form of leadership development program or sponsoring
higher education and professional courses for high performers.

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Compensation Strategy
Objectives
Increase employee productivity
Fairness in pay
Enhanced employee commitment
Driving innovation
Effective communication and collaboration

Career planning

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Strategy
1. Reducing errors and defects.
2. Shorten product life cycle time
1. Transparency in PMS
2. Pay for performance
1. Total reward program
2. Flexi pay benefits
1. Successful execution of innovative idea
2. Agile risk taking
1. Incentive based on client feedback
2. Recognition for market responsiveness
3. Team based incentives
1. Leadership development programme for high
performers
2. Promoting higher education only for star
performers

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Looking Ahead Phase I
1.1
1.2
1.3
1.4
1.5

Executive summary
Recommend Strategy and objectives
Recommend an internal structure
Recommend an implantation plan
Summary and rational

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Group 3 Members
NAME: AKSHAY SEQUEIRA
ROLLNO: H13009

NAME: ANIRBAN GHOSH

ROLLNO: H13010

NAME:CHERI BHENGRA
ROLLNO: H13017

H13009@astra.xlri.ac.in

H13010@astra.xlri.ac.in

H13017@astra.xlri.ac.in

NAME:SHUBHANG
AGRAWAL
ROLLNO: H13050

NAME: SOMIL GOEL

ROLLNO: H13051

H13050@astra.xlri.ac.in

H13051@astra.xlri.ac.in

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