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Progressive Case_HR.pdf

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BUSI 2312U

Don McCain Progressive Case Study Motors and More, Inc. (fictitious) Learning Objective(s): The case is designed to help the student think through issues associated with developing and sustaining an HR department to support a company facing labor shortage and high product demand. The student will be able to: - Align HR initiatives with corporate strategy - Develop a complete HR organization structure with roles and responsibilities and then adjust the structure to support Motors and More - Develop a basic staffing plan - Develop a basic training plan - Determine and support a pay and benefits plan - Determine future HR requirements Note: Students will need to draw on their experience and conduct research beyond their text. Case Overview You are hired as the HR Director for Motors and More, Inc. (fictitious) which manufactures small motors and accessories for industrial and home products. Therefore, they are in business-to-business sales. The industry is highly competitive and the company follows a prospector strategy. According to Gomez-Mejia, Galkin, and Cardy, (2001), a prospector’s objective is to take advantage of new markets and products. They emphasize growth, innovation, and the development of new products. They want to be first to market. To respond to their competitive and rapidly changing markets, prospectors have flexible, flat, and more decentralized organizational structures. This requires the company to respond quickly to market changes. Motors and More is located in a small town of 28,000 people with a current unemployment rate of 3.1%. As it relates to employment, demand exceeds supply. In essence, all traditional types of employees that want to work are working. Within the surrounding area (50 mile radius) there is a technical school and a community college. The owner and President, having an exemplar military record and is very patriotic, is committed to keeping the organization local. Several other local companies have experienced recent labor organizing activities. Motors and More is beginning to experience higher than normal turnover. The racial demographic makeup of Motors and More is 88% white, while the local labor market population is approximately 48% minority. Promotions to management have been based on seniority/tenure. There is a growing Hispanic population and a large Kurdish group that has not been accepted into the community. The President and four managers are white males. The only female supervisor works in the customer service department. All other management positions are filled by white males. Motors and More currently employs 116 employees, not including HR. Due to increased product demand, output needs to be increased by 96%. Marketing and Sales continues to sell products to an expanding market. All of the employees in manufacturing (including quality control), customer service, and operations (responsible for shipping and receiving – distribution, including raw materials, components parts and finished goods inventory; and maintenance and cleaning) have a minimum of a high school education or GED. Some skills training courses are provided by the company. Refer to the organizational chart (Figure 1) for more details. 1 Don McCain Progressive Case Study Part One: Designing the HR Department A. Explain the concepts of organizing and organization design. Develop a complete HR department, indicating each HR unit. For each HR unit, provide typical roles/responsibilities and job titles. Provide a typical organization chart of a typical HR department, not for Motors and More. B. Given the size of Motors and More, indicate which jobs you would combine to reduce the number of employees in HR. Provide new job titles and organization chart for Motors and More HR department. Given this change, indicate the total number of staff for each HR area. C. Indicate what HR practices are required to support a prospector strategy. D. Prepare a 15 minute presentation including discussion on your HR organization for Motors and More. Part Two: Developing the Recruitment and Retention Plan A. Recruitment and retention plan. Given the increase in demand, how many people will you need to hire and in what functional areas (manufacturing, operations, customer
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