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Unformatted text preview: RUNNING HEAD: MOTORS AND MORE INC. – A PROGRESSIVE HR CASE STUDY Motors and More, Inc. A Progressive HR Case Study Saint Leo University Dr. Sheri Bias MBA-533 Abstract MOTORS AND MORE INC. – A PROGRESSIVE HR CASE STUDY 2 The objective of the project is to provide information about how our company Motor’s and More, Inc. will prosper through issues associated with developing and sustaining a human resource department to support our organization while facing labor shortages and high product demand. We have found ways that best support Motor’s and More, Inc. to progress by reviewing and implementing new business strategy reports, HR organizational designs, a compensation plan, training and development plan and an HR forecast plan which has allowed Motor’s and More, Inc. to create an ideal HR department for the organization. Within the presentation, it breaks down how Motor’s and More, Inc has developed a complete HR organizational structure, developed an essential staffing and training plan, determined a pay and benefits plan, and we’ve determined the future HR requirements. The goal is to deliver top-notch customer service and produce the best products for our community. Motor’s and More, Inc is a company that takes pride in their community, which is why we hope to hire people within the community that can bring great strategies to the organization while still having a voice within the community. TABLE OF CONTENTS MOTORS AND MORE INC. – A PROGRESSIVE HR CASE STUDY Executive Summary Business Strategy Report HR Organization Design Compensation Plan Training and Development HR Forecast Plan Conclusion Figures Tables References Document Work Log 3 4 4 8 25 31 40 48 50 51 53 57 Executive Summary Motors and More, Inc. is a company that specializes in manufacturing small motors and accessories for industrial and home products. Concentrating on business-tobusiness sales, the company engages in a prospector strategy that seeks to capitalize on new and emerging products and markets. Motors and More, Inc. is headquartered in a small southern town that faces low unemployment and increasing demands for qualified employees. MOTORS AND MORE INC. – A PROGRESSIVE HR CASE STUDY 4 Current employee demographics is predominantly white and fails to exploit labor pool of the collective minority groups in the local area. Active recruitment techniques are applied to diversify workforce and encourage applications of perspective employees. HR looks to attract, select, and retain best-fit candidates through competitive compensation, robust benefits, and training. Reorganizing the HR department will consolidate the differing aspects of the HRM functions to allow flexible and agile decision-making processes congruent to the company’s prospector strategy. Continuous application of cost-benefits analysis on decisions will be the driving force in implementing policies for the organization as it looks forward to growth and sustainability efforts. Business Strategy Report Motors and More, Inc. is a business-to-business company focused on growth, innovation, and new product development. The company is a manufacturer of small motors and associated parts for home and commercial products. Corporate office located in a small southern town with 116 employees in an area with a 3.1 percent unemployment rate. Motors and More, Inc. has been pursuing a prospector’s strategy in hopes to gain a competitive advantage and allow adjustments in business policies be made to ensure agility. We will evaluate these business strategies through a review of Porter’s Five Forces of Competitive Position analysis. Understanding the bargaining power of suppliers to a manufacturing company can be a deciding factor for failure or success. In the supply and demand scenario in the realm of human resources, the supply of human capital for the manufacturing process comes into question. Motors and More, Inc. will have to entice employees to stay with the company by utilizing intrinsic and extrinsic rewards due to the low unemployment rate in the local area. Prospective MOTORS AND MORE INC. – A PROGRESSIVE HR CASE STUDY 5 employees supply the human capital required for expansion and “suppliers can have an impact on the profitability of a company by imposing their own conditions (in terms of cost or quality) in the same way as the customers” (Michaux et al, 2015). Utilizing a prospector strategy, the company employs first-mover tactics as it targets a strategic market position in establishing itself in its niche. Use of this tactic allows the company to capitalize on new products and growing markets. According to Michaux, Cadiat, and Probert (2015), having a new and innovative product allows a company to limit the bargaining power of customers for being the sole manufacturer of the product/(s). As a supplier to businesses that wants to be first in developing unique products, Motors and More, Inc. can leverage pricing and contracting to B2B customers by supplying unique hard to find parts for their finished products. The third of Porter’s forces of competitive position analysis is competitive rivalry. Due to the competitive nature of the industry this force is important to Motors and More, Inc. as it can have significant impact on the profit margins of the company. In the current home and industrial accessories market, there are several competitors with similar products. Therefore, the company must be able to compete with these companies that are selling the same products. One way to do this could be to expand their marketing tactics while using their hometown identity to prove their products have been trusted by the community for quite some time. Competitor companies may have focused more on increasing advertising and marketing tactics than Motors and More, Inc. Motors and More, Inc. can target local families and beyond using media ads as opposed to more traditional marketing tools that may have been used in the past. Additionally, the company should place an emphasis on the quality of their products and using their loyal consumer following as a testament to that. By establishing a strategy to combat competitive rivalry the MOTORS AND MORE INC. – A PROGRESSIVE HR CASE STUDY 6 company will be able to establish an economic value that direct and indirect competitors cannot fully compete with while also increasing profits (Makadok, 2010). Substitution of a product is always a danger when a business is being created or expanded. Motors and More, Inc. is an established manufacturer of motors and accessories, so the initial idea of manufacturing a product has already been put into place, however; just like any company could, they are going through a period of high turnover, but the production needs have been continuously increasing. Because of the ever-increasing need of products from this manufacturer, without establishing quality assurance, the idea that substitution could become a means to ease the strain of the increasing high demand could come into play. Quality assurance and control becomes an absolute necessity. This may mean, that for Motors and More, Inc. they will need to employ either an outsourced company to ensure they are meeting quality assurance points each financial quarter, or perhaps establish a regular employee or department within the company that ensures quality measures are created and maintained and the products that are manufactured within the company are put through set measures of rigor that ensures the product meets company standards. Those measures that are going to be reviewed must be established, maintained and available to the public to ensure that a product manufactured within Motors and More, Inc. results in a highly competitive and profitable market. The threat of new entry into the part manufacturing market is always present as the need for small motors and accessories is high. Motor and More, Inc. employs 116 people, all of which have at least a high school degree or GED. The company is comprised of 88 percent Caucasians, and management is comprised of Caucasian males. The company offers some skills training, but not a formal career path. MOTORS AND MORE INC. – A PROGRESSIVE HR CASE STUDY 7 Unemployment rate is low at 3.1 percent in this small town where the company is headquartered. While it would not be easy for new competition to enter the market and quickly obtain workers, the concern for competition is still present. Several local companies have experienced labor organizing activities. The local market population is approximately 48 percent minority and there is a growing Hispanic and Kurdish population that have yet to be accepted into the community. There are also two schools within a reasonable distance to Motors and More, Inc.; a technical school and a community college. We recommend Motors and More, Inc., establish a recruitment strategy that seeks out minorities and tap into this communities’ diverse offerings of available workers. Additionally, the company can leverage that diversity to support its emphasis on growth, innovation and new product development. Currently, the company is experiencing voluntary attrition, in part to do with allegations of harassment, discrimination and having no career paths established. As part of this strategy, the company will address workplace harassment policies, clear career paths, training opportunities through a partnership with the local technical college and community college to create training programs. In support of the company objectives, implementation of changes will need to be made to the human resource strategy. In order to further enhance efficiency, new training plans will need to be developed for employees, supervisors, and managers. This training will also be directly related to specific roles within the organization. Evaluating employee's current knowledge and skillsets will be assessed through periodic assessments to determine areas for growth within their job roles. These tests will also help determine each employees' areas for improvement and growth within the organization. If additional training is determined to be required, an external trainer can be acquired to administer the training. A third-party company will be utilized in MOTORS AND MORE INC. – A PROGRESSIVE HR CASE STUDY 8 creating a relaxed and non-judgmental atmosphere for the employee in a classroom setting. Additionally, after completion of the training, surveys will be administered to determine employee reaction, evaluate learning objectives, assess behavior changes, and measure results. HR Organization Design The purpose of the Motors and More, Inc. HR Organization plan is to call attention to changes that are necessary to the human resource department. Motors and More, Inc. employs 116 people but is currently experiencing high turnover rates despite the fact the company is situated in a town that has an unemployment rate of 3.1 percent. Motors and More, Inc. will continue to evolve using the prospector strategy and focus on the intent to emphasize growth, innovation, and new product development within the organization. Due to an increase demand in the market, Motors and More, Inc. desires to expand their human resource department. Therefore, an organizational design is required to assist in the creation of this department to outline the roles and responsibilities in each respective position. Due to the smaller size of the company, the initial creation of the department does not need to be expansive. Enough positions will be created to fit the size and demands of the company and the department can add more positions with increased sales and demand for products as determined by company leaders. Due to the low rate of employment it is important to the mission of Motors and More, Inc. to hire the most qualified individuals for the respective positions. Prior to the hiring process, we must create an effective plan of what positions are needed for the company and the responsibilities and, expectations for the candidates within those positions. Each position will provide a specific role that contributes to the success of the HR MOTORS AND MORE INC. – A PROGRESSIVE HR CASE STUDY 9 Department, as well as, the company. The goal of the Motors and More, Inc. HR department is to create a cohesive team that works together to make it a desirable place to work. Human Resource Department Human Resource Director The Director of the Human Resources Department is responsible for the components that form the Human Resources department are functioning according to company guidelines and policies. The leadership in each department will address any issues to the director of the Human Resources. The Director has a clear understanding of each department’s goals to help determine staffing needs (Pomeranz, 2009). Responsibilities include but are not limited to leading and managing the department through supporting diversity and affirmative action initiatives. The Human Resource Director ensures compliance with labor laws and maintains labor relations in a union or union-free environment. Develops relationships with internal clients and configures internal contracts. Develops relationships with external clients and configures external contracts. Participates in the organizational planning and review session. Ensures that the company is compliant with all local, state, and federal regulations. Understands how departments can collaborate and share staff to save time to focus on programmatic functions (Pomeranz, 2009). Maintains a strategic balance between the company’s bottom line and organizational morale and capacity (Pomeranz, 2009). Scans the external environment for changes that could affect HR. Assistant Human Resource Director The Assistant Director of the Human Resources Department ensures the components that form the Human Resources department are functioning according to company guidelines and policies. The leadership in each department will address any issues to the director of the Human MOTORS AND MORE INC. – A PROGRESSIVE HR CASE STUDY 10 Resources. The assistant HR Director has a clear understanding of each department’s goals to help determine staffing needs (Pomeranz, 2009). Responsibilities include but are not limited to supporting and assists HR Director in maintaining vision, and mission of the company. Conducts organizational research, analysis, and diagnosis to identify organizational issues. Alongside the HR Director, scans the external environment for changes that could affect HR. Participates in the organizational planning and review session. Ensures that the company is compliant with all local, state, and federal regulations. Understands how departments can collaborate and share staff to save time to focus on programmatic functions (Pomeranz, 2009). Ensures legal compliance with all decisions made with for and regarding Motors and More, Inc. HR department. Develops relationships with senior management to align HR goals and strategies with those of the organization. Assists in creating a culture of learning, development and achievement. Facilitates and maintains organizational change. Develops or contracts with consult to develop instruments such as tests or preemployment processes, procedures or protocols. Supports diversity efforts and maintains affirmative action laws. Maintains a strategic balance between the company’s bottom line and organizational morale and capacity (Pomeranz, 2009). Along with the Compensation Specialist(s), determines pay positions relative to the competition with the goal to lead, lag or meet the competition. With the Compensation Specialist(s), Assistant Director will assist in developing types of reward pay, including merit, incentives, bonuses, gain sharing, profit sharing, stock options and other rewards. Organizational Development Organizational Development Specialist MOTORS AND MORE INC. – A PROGRESSIVE HR CASE STUDY 11 Helps to strategize the company's growth to improve organizational systems and people (Gilbert, 2018). The Organizational Development Specialist will implement programing that aids in further development of training needs of employees. This person will be responsible for being a resource for proving tools for employees to improve in job related skill areas. Responsibilities include but are not limited to supporting performance management efforts. Assessing current needs within the company and to develop specific training programs. Employment Staffing Employment Manager, Staffing and Recruiting Coordinator The Employment Staffing department is responsible for developing creative ideas and methods to advertise job openings and opportunities for potential candidates. The publication of available job openings must be timely and consistent with the requirements for the position and the expectations of potential candidates. During the hiring process, a complete screening of resumes and backgrounds for each candidate, before moving on to the next phase of the hiring process. If the candidate successfully passes these minimum requirements and has a successful interview, they will be brought in to start the employee paperwork. Responsibilities include but are not limited to advertises job openings. Conducts background checks, contacts reference, initiates the onboarding process for new employees Employee and Industrial Relations Employment Manager, Staffing and Recruiting Coordinator The Employment Staffing department is responsible for developing creative ideas and methods to advertise job openings and opportunities for potential candidates. The publication of available job openings must be timely and consistent with the requirements for the position and the expectations of potential candidates. The Employment Staffing department will screen MOTORS AND MORE INC. – A PROGRESSIVE HR CASE STUDY 12 candidates before interview process, as well as, initiate transition for hired employees into the company. Additionally, in this position individuals will help mediate employee disputes and establish an agreement between parties involved. Charisma and excellent problem-solving skills are essential requirements for this position due to the interactive nature of the work. Responsibilities include but are not limited to advertises job openings and conducts screenings on potential employees. Conducts background checks and contacts references. Initiates the onboarding process for new employees. Assists team managers with potential conflict resolution strategies within departments. Maintains communication and works as liaison between supervisors, HR Director, and the VP of HR. Human Resource Development, Health, and Safety Department Training Manager HRD is responsible for the development of the organization’s intellectual capital while including Health and Safety Compliance through workforce education. HRD professionals are involved in needs assessment; design, development, delivery, and evaluation of learning experiences; development of career path models; employee orientation; etc. HRD supports the performance management process by training managers and employees on performance management (Johnason, 2009). Health and Safety administration includes OSHA compliance in reporting procedures and integrate health and safety training in employee development. Responsibilities include but are not limited to lead, train, coach, and guide new and existing employees through company development programs. Manage and audit training effectiveness. Provide feedback channels and adjust training for increased effectivity. Design full-content and instructional strategies for leaders’ and participants’ including media development and related instructional aids. Perform administrative record keeping for OSHA MOTORS AND MORE INC. – A PROGRESSIVE HR CASE STUDY 13 compliance. Directs safety and security audit for the company. Manages and directs all training facilitators and provides feedback for facilitator effectiveness. Training ...
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