SUBMITTED TO: ISSIE GOLDMAN

Case Study 1
Strategic Human Resource Planning
Sanjay Pillai/6209522

2011

[TYPE

THE COMPANY ADDRESS]

Given these facts, chose one facility and identify 5 stakeholders. Explain how closing the facility may impact on them and how they may react to news that it may close. Facility chosen Toronto The five stakeholders who will get affected with the closing of the facility are: Employees: There is no doubt that closing the facility in Toronto will have negative impact on employees, this impact will not only have on Toronto facility but also on employees of other facilities also. Moral of both Toronto facility and other two facilities employees will go down. That might also have the adverse impact on productivity level of the employees at other two facilities. Some of the Employees of Toronto facility may face difficult time further as unemployment rate in Toronto is 10 percentages and cost of living is very high there. Same time there is chances that they might get better opportunity in the same industry as around 100 other competitive companies are there in Toronto and the Scanim is already paying below average wages in the industry. The employee of Toronto facility could react in four different waysi like, Denial Employee might think like it will never happen, Resistance- Employees could oppose the decision, Exploration & Commitment- Whereas employee go and look into the process how it will work and when it is going to start , try to find out about the benefit and support services etc. They may accept the reality and try to move on and start looking for other job opportunities. Employer and Shareholder: By closing the facility at Toronto, shareholders of the company surely will be not happy. They may start losing faith in the company they can start questioning about the decisions made by the company and about the future plans. In terms of talking about the loss it might not be that much right now for Scanim as they are compensating their loss of the contract by shutting down one of the facility but in longer term it might be there in the way loosing clients and customers due to lack of faith. Closing down one of the facility may also adversely impact Scanims goodwill. Scanim will become more proactive for their future projects. They may start take immediate action to avoid negative impact of closing the Toronto facility at other two facilities. Competitors: Once the Scanim will shut down their one of the facility, the employees of the other companies may feel of insecurity, they may have some doubt whether their company also going to take such a step. Competitors will become more conscious in terms of projects they have under taken. Their clients might have question about whether they also planning to shutdown their facilities in some places as Scanim has done. In other way competitors may have opportunity to take out market share of Scanim in Toronto by offering services to the Scanims clients.

Society (Students, Bus service provider, Family members of Employees): There would be an impact of closing down of Toronto facility on society. It will contribute towards in increasing more unemployment rate. Students who are into call centre related certification programme may feel uncertainty about the future job opportunities. The employees who will not get job for a while and have families may struggle and suffer a lot. Public Transport provider may needed to look for other roots to start as not that much income would be there as employees will leave. Unions: Toronto facility in Scanim Company is a non unionized branch. But their Cornwall location has union and they may react on this decision and can ask for the more job security for the employees. Same time at Cambridge facility union has already being approached to the employees, in this situation employee at Cambridge may prefer to join the union to become organize. This would be an opportunity for the Union people to get into the facility. Given the facts, chose one facility and select 5 external factors that you would investigate/scan and evaluate how they would influence your recommendations. Cornwall Facility The five external factors are: Economic Climate The economic climate at Cornwall comparatively is good even though unemployment rate at this facility is high at 14 percentages. Due to high unemployment ratio local and federal governments are offering incentives to business. Same time the average tenure of Customer representative in Cornwall is 24 months, that is an added advantage as not that much effort and money has to put every now and then for recruitment activities. Labour Market Another external factor which needed to be scan and evaluate is labour market at Cornwall. Evaluation of labour market will give an idea about the people availability of people for the job. No doubt the unemployment rate is bit higher side with 14 percentages, but as just recently one of the colleges from Ontario has opened a campus in Cornwall, the future need for the workforce can be fulfilled from there. Another fact related to labour market is average wages at Cornwall, it is just 12$ and that will help in reducing cost and adding in profit. Political and Legislative Factor In any business environment there is major role played by the governments. The employment condition in Cornwall is not that fine due to very high unemployment rate. The federal and local government really wish to improve the employment conditions in Cornwall. Governments are willing to develop more job opportunities in Cornwall. As a part of that, both federal and local

governments are offering incentives to the business to relocate there. This is the ideal legislative environment for a business to grow and establish the company. Demographic Factors It is quite necessary to look at the population statistics of a place where business is going to start, because it influences the HR policies in big way. The population of Cornwell is 50 thousand only, and it quite necessary to study the population of the place in terms of count of working population, what is the percentage of old age and young age people in total population etc. It gives an idea about the availability of the work force at Cornwall in compare with companys future requirement. Select 3 internal factors and compare them between all 3 facilities. Based on these factors, which facility would you recommend should close? I would recommend closing down Toronto facility on the basis of three below mention internal factors: Average Tenure of the employee: When we look at the average tenure of an employee in all facilities we can find that the highest turnover rate of employees is in Toronto facility with tenure of 10 months only. Cambridge and Cornwall facilities of Scanim Company have low turnover rate with 18 months and 24 months average tenure respectively. High attrition rate in any organization cause for the additional cost to that organization as cost for recruiting is always higher than the retaining an employee. Number of competitors could be the reason behind high turnover rate at Toronto facility but the additional cost due to that cant be ignored. Rental Facility Scanim only have owned facility at Cambridge, both Toronto and Cornwall facilities are on rent. As mentioned in the case Toronto real estate market is very expensive it means Scanim could have paying high rent for the facility in Toronto, whereas facility at Cornwall is much cheaper than the facility of Toronto. Same time the current facility at Cornwall could be expanded three times to its actual size, while Toronto facility can only be expanded to twice of its actual size. In this aspect also we can say that Toronto facility needed to be close rather than closing any other facility. Average Salary: The average salary given to the employees at Toronto branch is $15 while other employees at two other locations have low average salaries compare to Toronto location. By taking decision of closing down the Toronto location it would be helpful in get rid of with this additional burden.

As the HR Manager for Scanim, what steps would you institute to introduce strategic HR planning to the organization? A strategic plan describes the organizations future directions, performance targets and approaches to achieve the target. The steps in introducing HR plannings are: Establish the vision, mission and values As a part of introducing HR planning to the organization the first thing needed to be done is Scanim is defining the Vision, Mission and values of the company. A vision statement is needed to like something which gives an idea about where company want to be in longer term. In other hand while we create a mission statement it should be create in such a way that it tell us about why organization is into this business, what is the purpose of being in this business. Developing Objectives The second step which is needed to be done in Scanim is developing objective. Which give fair idea to each person about what exactly company is expecting from the employees. And what is the time line for reaching those objectives. Determine the Competitive Position The Scanim needed to determine about what kind of service they want to provide, who will be their customers, where they want to be situated and how will their business will function. Implement the strategy Implementing strategy is the process of establishing programs, budgets and procedures for facilitating the achievement of the strategic goals. If Scanims strategic goal is growth then they have to decide whether they want to expand by setting up more branches in different locations. Evaluating the Performance It is very critical for an organization to evaluate the strategy after the implementation. In Scanim it could be done by looking at the financial target achievement such as profit, call efficiency rate number of calls handled by etc.

The internal culture of an organization can provide a competitive advantage. Explain how this can happen and what must exist within the culture for it to improve organizational performance. In todays highly competitive environment a strong internal culture is must for any organization for its growth. Internal organizational culture influence individuals decisions in big way. Good healthy culture within an organization always keeps employees motivated and productive. Same time if culture of the organization has been spoiled then it will put adverse effect on the

attitude of the people who works for the organization. To keep ensure that organizations culture will not be get spoil; continue proper communication is needed to be done. There are few attributes which must exist in internal culture of organization which helps in improves organizational performance. These attributes includes value, which could be find in the services provided by the company; Unique, in terms of no other organization should have similar kind of culture; Imitable, should not be easy to copy by other organizations; Substitutability, no other company can provide the services or product with same value; Make money, at the last culture should be help in making money.

References:
http://uhs.berkeley.edu/facstaff/pdf/care/Managing%20Workplace%20Reactions%20to%20Layoffs.pdf Strategic Human Resources Planning, Monica Belcourt and Kenneth.J.McBey