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Case Study Chapter 2

Jennifer, the owner of a company with 10 employees, has hired the assistant to take over the HRM function. The company is expected to experience 10-30% revenue growth over the next 3 years. However, 5 employees will retire within 3 years, leaving a loss of historical knowledge. The remaining 5 employees are of diverse ages. Jennifer is considering allowing telecommuting 1-2 days per week but has concerns about productivity. She is also considering making the company fully virtual or cutting health benefits and using only contractors. Jennifer schedules a meeting to discuss changes affecting HRM.

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186 views2 pages

Case Study Chapter 2

Jennifer, the owner of a company with 10 employees, has hired the assistant to take over the HRM function. The company is expected to experience 10-30% revenue growth over the next 3 years. However, 5 employees will retire within 3 years, leaving a loss of historical knowledge. The remaining 5 employees are of diverse ages. Jennifer is considering allowing telecommuting 1-2 days per week but has concerns about productivity. She is also considering making the company fully virtual or cutting health benefits and using only contractors. Jennifer schedules a meeting to discuss changes affecting HRM.

Uploaded by

Tường Anh Phan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Case study chapter 1.

Changes, Changes
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.
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?
Case study chapter 2. We Merged...Now What?
Earlier this month, your company, a running equipment designer and manufacturer
called Runners
Paradise, merged with a smaller clothing design company called ActiveLeak. Your
company initiated the buyout because of the excellent design team at ActiveLeak and
their brand recognition, specifically for their MP3-integrated running shorts. Runners
Paradise has thirty-five employees and ActiveLeak has ten employees. At ActiveLeak,
the owner, who often was too busy doing other tasks, handled the HRM roles. As a
result, ActiveLeak has no strategic plan, and you are wondering if you should develop
a strategic plan, given this change. Here are the things you have accomplished so far:
 Reviewed compensation and adjusted salaries for the sake of fairness.
Communicated this to all affected employees.
 Developed job requirements for current and new jobs.
 Had each old and new employee fill out a skills inventory Excel document,
which has been merged into a database.
From this point, you are not sure what to do to fully integrate the new organization.
1. Why should you develop an HRM strategic plan?
2. Which components of your HR plan will you have to change?
3. What additional information would you need to create an action plan for
these changes?

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