Management Report: Contractual or Permanent Employment at Doshi Group

This management report, prepared for the MGT726 Managerial Project at the University of the Sunshine Coast, examines the strategic implications of employing individuals on contractual versus permanent terms within the building and construction industry, specifically focusing on Doshi Group of Companies in Australia. The report explores the advantages and disadvantages of both employment models, considering factors such as talent acquisition, cost-effectiveness, workforce flexibility, and employee motivation. It analyzes the benefits of accessing a global talent pool through freelance contracts, as well as the potential drawbacks of high employee turnover and training costs. The report utilizes both primary and secondary data collection methods, including the use of SPSS tools, to assess the impact of different employment terms on the organization's success. Ultimately, the report aims to provide recommendations for Doshi Group regarding the optimal approach to employment, considering its business needs and market dynamics, and provides insights into the importance of talent management in the building and construction sector.

Management report on whether to employ
individuals in contractual or permanent
terms
[Put your full name here]
[student number – i……..]
[date]
[MGT726 Managerial Project]
School of Business
Faculty of Arts and Business
University of the Sunshine Coast
Words: Do NOT exceed the word limit (+/- 10%)

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Executive Summary
From the report, it was understood that employing individuals on contractual terms could be
beneficial for expanding the talent pool whereas the permanent employment opportunities would
cerate more scopes for the individuals to succeed. It would also bring more reliability and might even
incur a huge amount of cost as well. The purpose of the report was to determine whether it would be
effective to employ individuals contractually as freelancers or permanently. The management problem
was lack of ability to understand which could go right or wrong. The analysis and collection of data
was done through both primary and secondary methods and with the use of SPSS tools. Based on
collection and analysis, contractual terms employment could be beneficial for expanding business
operations and maintaining efficiency within the building and construction industry.
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Table of Contents
Executive
Summary………………………………………………………………………………………………
………………….…i
List of
Figures…………………………………………………………………………………………………
………………………...iii
List of
Tables…………………………………………………………………………………………………
…………………….…….iv
List of
Abbreviations………………………………………………………………………………………
…………………………..v
1.
Introduction…………………………………………………………………………………
………………………………….1
1.1
Purpose………………………………………………………………………………………
…………………………………..1
1.2 Background and
significance…………………………………………………………………………………
……….1
1.3 Management problem, research question and objectives
…………………………………………..…1
1.4 Research boundaries…………………………………………………...
………………………………………………….1
1.5 Report outline……………………………………………………………….
………………………………………………..1
2. Literature Review/Theoretical
Framework…………………………………………….…………………..2
2.1
Introduction…………………………………………………………………………………
………………………………..2
2.2 Topic
1…………………………………………………………………………………………………
………………………….3
2.3 Topic
2…………………………………………………………………………………………………
…………………………3
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2.4 Topic
3…………………………………………………………………………………………………
…………………………3
2.5 Implications (research gap and conceptual framework)…………………..…..
………………………3
3.
Methodology…………………………………………………………………………………
………………………………..4
3.1
Introduction…………………………………………………………………………………
………………………………..4
3.2 Rationale for method and justification……………………………………………….
…………………………4
3.3 Details of specific data collection
techniques………………………………………………………………..4
4. Proposed Analysis of
Results……………………………………………………………..…………………………5
References…………………………………………………………………….…...
……………………………………………………7
Appendices…………………………………………………………………….…...
…………………………………………………..8
Appendix A: Numbered and labelled
…………………………………………………………………..……….8
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List of Table
Table 1: Analysis of research objectives.............................................................12
Table 2: Research timeline..................................................................................13
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List of figures
Figure 1: Conceptual framework............................................................................................................8
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1. Introduction
The report will demonstrate how Doshi Group of companies needs to make proper
plans for the employment for the production of good quality hardware components and
electrical industrial products. The report will be prepared to focus on employing the
individuals either ob a contractual or permanent basis for meeting the needs and requirements
of the people and sustain both locally and globally (Green and Leeves 2013).
1.1 Purpose
The purpose of the report is to prepare a management proposal regarding ways of
employing individuals on contractual or permanent basis.
1.2 Background and significance
The current management problem is faced due to the complexity in understanding the
availability of talents for the competitive job market and those who like to work as
freelancers. Due to this, problems can arise regarding the employment opportunities
permanently or contractually, considering their skills and knowledge and their interest in
working permanently or contractually. It is important for investigation, because if the
employees’ interests are not considered, then they may not feel like working for the company
and on the other hand, the company’s sales will decline too (Minelli et al. 2013). There is also
need for selecting and recruiting the best talents, which can allow the organisation to grow
and develop, furthermore handle business problems easily and negotiating the terms and
conditions in the contractual freelance pattern as well.
Doshi Group feels that there are both advantages and disadvantages of employing
individuals on a permanent or contractual basis. The recruitment of individuals in contracts
could be a good solution for finding the different sets of skills that are needed for managing
key products and business initiatives. The freelance pool of talents can help in engaging
people from anywhere in the world according to their skills sets, knowledge and expertise.
Many technological platforms have created ease to engage the individuals in contracts, which
can be crucial for competing in the freelance market as well (Bosio 2014). If the problem is
not addressed then it can create a huge challenge for the organisation to understand whether
to offer contractual term or for permanent terms (Chadi and Hetschko 2013).
1.3 Research question and objectives
 To identify the impact of employing individuals on permanent and contractual basis
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 To evaluate the benefits that can be obtained by enabling a talent pool consisting of
freelancers
 To assess the probable effects that can be caused on the individual offered with
permanent employment opportunity
 To recommend necessary measures, which will allow to understand whether to
employ on contractual terms or permanent terms at Doshi Group, Australia
Research questions
What is the impact due to the employment of individuals on contractual and permanent terms
at Doshi Group, Australia?
How could be the organisation be benefited by forming a workforce to engage people
interested in freelancing from all over?
What are benefits achieved by an individual who is offered with employment on permanent
terms?
What suitable recommendations could help to make a decision regarding employment in
contractual or permanent terms?
1.4 Research boundaries
Doshi Group of Companies have innovated its business activities within the building
and construction industry in Australia that meet the business needs, still the company has not
entered the Indian market. There are many states and provinces there which consists of
established and reputed construction companies, but Doshi Group has yet not been successful
in the Indian market. Thus, it can be geographic boundary for the organisation (Sestito and
Viviano 2016).
1.5 Report outline
Introduction – The introductory chapter illustrates about the purpose of the research and its
objectives, based on which questions have been prepared.
Literature review – The literature review will combine the various aspects related to the
research and identify the gaps in literature.
Research methodology – This chapter will define the various methods and approaches of the
research, how data and information have been collected and analysed.
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2. Literature Review/Theoretical Framework
2.1 Introduction
This particular section of the research will review the literature on these major
research topics including Benefits of hiring talents on permanent and contractual terms and
the second topic would illustrate the drawbacks of these two kinds of employment trends
nowadays. The third topic would present the decisions that should be taken about whether to
choose one from any of these and even provide justification on how could it be beneficial for
the individual and business itself (Buddelmeyer, McVicar and Wooden 2015). The project
discusses about the various aspects of employing in a contractual and permanent basis.
Business organisations within the building and construction industry have nowadays become
more cautious about maintaining a steady workforce and overcome problems like lack of
skilled and knowledgeable workers whenever required immediately. With the continuing
trends of employment, many people are choosing the field of freelancers as their career paths
(Brinkley 2013). Thus, there are many questions that have arisen regarding whether to hire an
employee on contractual or permanent terms.
2.2 Topic 1 Benefits of hiring talents on permanent and contractual terms
Various benefits could be achieved by a business by hiring talents under contractual
terms. The individuals were easily attracted due to lucrative job offers within the building and
construction industry and this make many of them feel interested in getting paid for work
only for the time they worked. There are fixed term contracts that are considered as
amendments managed by the Labour Relations Amendment Act. This included illegal abuse
of fixed term contracts and made people get their wages properly for the time they had been
working (Sola et al. 2013). The employment trends started to grow and it got permitted once
it specified termination of the fixed term contracts only when an event had occurred, the task
was completed and a fixed date based on the agreed retirement age. The employees employed
on contractual terms must be permitted by statute, sectoral determination and the collective
argument. One of the most important benefits of hiring a freelancer on a contractual basis
could be that they are good at what they do. Freelancers are manageable at lower costs than
the permanent employees and even the individuals get paid for the work they did and this
prevent wastage of money on downtime (Flint et al. 2013). There would be short-term
commitments, and thus employment should be possible in contractual pre-project basis.
According to many of the companies in Australia, the talent pool is unlimited based on
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location and with contractual hiring, the talent pool should expand. The freelancers give their
full energy on the project in hand while the permanent employees focus more on managing
the organisational values. The company does not need to provide training to them as the
regular permanent workers, which reduced the time consumption and sped up the business
performance and work quality (Cappelli and Keller 2013).
On the other hand, the empl0yees hired on permanent terms could feel more interested
in the business success because they would no longer have to think about their career for the
next few years. The job opportunity would make them gain enough skills and afterwards use
thee experience to achieve long terms goals (Buddelmeyer, McVicar and Wooden 2013). The
individuals employed permanently had been working on a project altogether and had invested
more time and energy than the freelancers. There were slight differences between the way
organisations treat the employees selected on contractual basis or permanent basis (Findlay
and McCollum 2013).
2.3 Topic 2 Disadvantages of employing individuals kinds on permanent and
contractual terms
In spite of the benefits of employing individuals on a permanent basis, there are still
some drawbacks such as huge amounts of expenses incurred, lack of enough ability to find
out the right talents, rights and responsibilities of the employees along with lower employee
morale due to lack of motivation, which does not happen for the freelancers. The permanents
employees were always paid monthly along with additional tax o be paid. To hire an
employee from a competitive job market, good perks, offers and benefits should be included
along with fair wages to influence the individual to work for the organization. The selection
process, interviewing, negotiations made along with the training programs offered to them
required huge effort, time as well as money (Kazi et al. 2014). If not done properly, it could
deteriorate the efficiency of human resources’ management; create an inappropriate culture
and working condition too.
The freelancers hired have faced certain difficulties such as lower amount of money
paid, extremely tight deadline for work and bad working conditions. This often can be costly
for them, as for any wrong work, penalty could be imposed and the employees could be
terminated from the entire project. The individuals hired on contractual terms focus more on
short term goals and objectives, due to which, they could disappear anytime, The quality of
work dropped in many cases and deadlines were missed and even the freelancers failed to
respond to the mails and disappeared any time (Gollmitzer 2014). Freelancers need training
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as well, which had been a daunting task for the company due to the expected huge cost and
poor HRM strategies to attract skills set from all over. Many freelancers do it just for money
and focus less on the task, which made them exaggerate their skills and knowledge level.
This deteriorated the work and so it might be essential to check for the samples of the
freelancers’ existing works and testimonials.
2.4 Topic 3 Impact of these employment trends on organisation’s success
Both these employment trends were doing the rounds at the present century within the
building and construction industry. Both these approaches had many advantages as well as
disadvantages. The organisations must focus on their business needs and then choose to make
a decisions about whether to employ an individual on a contractual or permanent term.
Impacts of freelancers employed could be expansion of skills set, better management of tasks
and completion within tight deadlines (van Stel and de Vries 2015). The freelancers get paid
for only what they work while the permanent jobs provided to the employees were found to
be more secured from the competitive job market perspective. The budgetary plan must be
prepared because while employing an individual on a contractual basis would tend to incur
lesser costs, permanent employment to an individual could bring more reliability and
openness to teamwork, coordination and communication. The selection depended on the
business needs and by studying the literature review, it could not be concluded about whether
to choose employment in contractual or permanent terms (Bögenhold, Heinonen and Akola
2014).
2.5 Implications – the research gap
One of the most important gaps was the inability to found a proper conclusion about
choosing the right employment trend among the contractual and permanent basis
employment. Few secondary sources included websites and journal articles that were not
authentic enough to justify the information obtained. It would be essential for conducting the
research methodology to determine the research designs, methods and approaches determine
whether the objectives could be obtained or not.
Conceptual framework
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Figure 1: Conceptual framework (Bögenhold, Heinonen and Akola 20914)
3. Methodology
The research methodology is another important chapter of the proposal that
defines the various research methods, approaches, designs and ways of collecting and
analysis of data and information too. This should help in gaining an appropriate
conclusion and achieve the research objectives with ease and effectiveness.
3.1 Introduction
The section would demonstrate the designs, approaches and strategies adopted during
this research conduction, which should help in addressing the research goals and objectives
too as it was stated in section 1.3. The section 3.2 demonstrates the entire methodology by
using which the research shall be conducted and positive outcomes will be derived (Neuman
2014).
3.2 Research approach and justification
Both primary and secondary sources have helped in addressing the research
questions and research objectives. The sampling methods suitable here could be the
probability and non-probability sampling method. Though the probability random
sampling would select few candidates randomly, the most amounts of tasks were to be
done with the use of non-probability convenient sampling method. A convenient time
for the managers of the organisation helped in providing useful responses and opinions
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