HRD CASE Study #2 Changing ORG PDF

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MANAGEMENT AND THE CHANGING ORGANIZATIONCASE STUDYJennifer, the owner and manager of a company with ten employees, has hired you to take over the HRM function so she can focus on other areas of her business. During your irst two weeks, you ind out that the company has been greatly afected by the up ...

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MANAGEMENT AND THE CHANGING ORGANIZATION CASE STUDY #2 Jennifer, the owner and manager of a company with ten employees, has hired you to take over the HRM function so she can focus on other areas of her business. During your first two weeks, you find out that the company has been greatly affected by the up economy and is expected to experience overall revenue growth by 10 percent over the next three years, with some quarters seeing growth as high as 30 percent. However, five of the ten workers are expected to retire within three years. These workers have been with the organization since the beginning and provide a unique historical perspective of the company. The other five workers are of diverse ages. In addition to these changes, Jennifer believes they may be able to save costs by allowing employees to telecommute one to two days per week. She has some concerns about productivity if she allows employees to work from home. Despite these concerns, Jennifer has even considered closing down the physical office and making her company a virtual organization, but she wonders how such a major change will affect the ability to communicate and worker motivation. Jennifer shares with you her thoughts about the costs of health care on the organization. She has considered cutting benefits entirely and having her employees work for her on a contract basis, instead of being full-time employees. She isn’t sure if this would be a good choice. Jennifer schedules a meeting with you to discuss some of her thoughts. To prepare for the meeting, you perform research so you can impress your new boss with recommendations on the challenges presented. Discussion Questions: 1. Point out which changes are occurring in the business that affect HRM. 2. What are some considerations the company and HR should be aware of when making changes related to this case study? 3. What would the initial steps be to start planning for these changes? 4. What would your role be in implementing these changes? What would Jennifer’s role be? SUGGESTED ANSWERS: 1. Point out which changes are occurring in the business that affect HRM. Human resources aid as a link between the top management and the employees in facilitating the changes in the organization. Most of the changes that occur in an organization affects human resources in so many areas. There are many factors that influence change in the organization. one of these factors are external environmental factors that may affect the ability of the organization to function well. Thus, the management should regularly

monitor these external factors so that they may be able to plan strategies ahead to cope up with these changes that may happen. In the case given, one external factor that may affect the organization is the economy. The management must monitor the economy efficiently and learn how to respond to it. The changes in economic could affect the organization in decision making related to HRM such as the following: recruiting, benefits and compensation, training & development, downsizing, employee’s contract, and money will spend on the business growth. The company that was mentioned in the case was expecting a 10% growth in the revenue which means that the organization will get busier and may need to hire more employees to meet the needs and wants of their clients or consumers. However, the organization is also expecting to have a workplace diversity changes. Five out of ten employees are expected to retire from the organization and those who will left are younger ones. Thus, the HR management must prepare a retirement plan for those who will leave and training programs for those young employees who will be left to be able to replace the older workers with the required skills. The management must be ready to meet the needs as they respond to economic and internal changes to avoid any problems in the future. 2. What are some considerations the company and HR should be aware of when making changes related to this case study? The following should be considered the following before making some changes in the organization: 1. The company objectives. The management must assess whether the changes to implement will help the organization achieve its goals. 2. The labor law of applicable to the state or location. The HR management must ensure that they are complying with the law and regulations and does not deprive the rights of the employees. 3. The risks associated with remote work set-up. The management must be aware of the issues and challenges that may arise from this set up such as internet connections and the materials and equipment needed. 4. Communication. The management must clearly communicate the changes that are about to happen to prepare the employees and avoid any conflicts. 5. Human Resource motivation. Due to the expected retirements that will happen, the management must have programs that could attract, satisfy and motivate employees to attain the goals of the organization and to prevent a high rate of employee turnover. 6. Health Care Insurance. The management must reconsider the removal of health care insurance because of the health risks that are present nowadays. Having health insurance as one of the employee benefits is ideal for organizations during the present time. 7. The timeline of change implementation. The management must create a timeline on how they will implement the change. In the case given, the changes must not be implemented all of a sudden but slowly as possible to give time for communication and prepare the necessary things to avoid any issues along the way. 3. What would the initial steps be to start planning for these changes?...