SHRM case executive summary PDF
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Transcript of SHRM case executive summary PDF
SHRM Case Competition
Ashell Coba
Roxanna Diaz
Dayde Moreno
Javier Quinonez
Terence Timmerman
This report was commissioned to examine the next steps Maria and the management team should
take for the Fire & Ice Company (F&I).
F&I is a commercial A/C and heating company. The research draws attention to the fact that
with each passing year, revenue is increasing but profitability is dropping. F&I have experienced
a decrease in service agreement renewals and high employee turnover. Further investigation on
the hiring process reveals a lack of an onboarding training program, which has resulted in
inefficiency with new company hires. Nor does F&I recognize the need to encourage current
employees to grow within the company, which has created a stagnant company culture.
Moreover, key positions plan on retiring soon, and as well in five years. However, no succession
planning has been accommodated for any changes in management.
F&I would improve with a restructured hiring process that can be led by Maria Rodriguez, HR
Director. This restructure includes using alternate hiring resources instead of Craigslist to find
new members; this will be done through career fairs at technical schools and F&I’s new
volunteer program. Another key change will be the execution of reference checks to ensure
stable hires. Finally, the largest impact to this process is the implementation of an internship
program for multiple departments. This internship program will be originally led by the general
manager, construction manager, and service manager. Once interns are hired and promoted, the
program will be led by the new hires, at the time will be associates or assistant managers. F&I
will also need to establish this hiring process for all departments, by having a guideline to abide
by. Each department will have the same quality of employees, thus all departments will be of the
same caliber. Headhunters will not be used due to the Bob Cook’s, the CEOs, feelings on their
pricing. Additionally, due to the managers’ involvement, a more organic work culture will be
created as every hire will be a right fit for the company.
F&I’s sales department will also reorient their compensation and benefits policy. To create less
stress, and as a result better efficiency, rather than employees work to cover their compensation,
benefits, and produce a 30% profit, a base salary will be implemented. The base salary will
consist of $42,000, as well as offer a 2% commission rate. By having every sales member have a
base salary, and a base commission rate, an easier environment will be created which will
promote a heightened sense of teamwork, thus boosting the sales department as a whole, both for
the company, and for the individuals involved.
Performance management will go through an evolution as well. Apart from the sales staff,
performance goals are not established to anyone else in the company. Each department manager,
Hamilton Lewis, Connor Grant, and Lou Clark, will work alongside with Maria, HR director, to
implement department goals. Each department manager will also work alongside with Maria to
do performance reviews to negotiate pay and recognize any long needed employee pay raises.
After careful review of multiple surveys, F&I will undergo careful modifications to boost
employee morale. Currently, employees do not experience a sense of team work with one
another. F&I will transition this culture into a more organic one through the use of management
implementing proper employee recognition, to establish a rectified management-employee
relationship. By having this relationship established the old thought of managers having favorites
will be forgotten. Another tool that will be used is the implementation of team building
exercises, to improve employee relations. The most impactful method to create an organic
company culture is the use of the new internship program. By finding students that are in the
midst of finishing their Bachelor’s degrees, F&I can create a pool of young and qualified interns
for each department. These interns can be groomed with the expectation of having them integrate
into each department smoothly, and eventually create a staff for each department that work well
with each other due to their origins in the company. By having teams of interns become company
employees, company culture will naturally better itself as every team will have equally qualified
team members.
F&I’s current basic hiring program involves Karen Cook, HR manager, finding employees
through Craigslist ads. This process has been going on for years, however has resulted in high
turnover rate, thus establishing a weak staff within the company. In five to ten years, multiple
key managers are expected to either retire or switch positions internally in the company.
However, with the current administration staff there are no qualified candidates that are suitable
to be promoted to these positions. With this in mind, a well-structured internship program will be
introduced as a proper way to rectify this distant issue by hiring the interns with the idea of
promoting them to managers. The internship program is based on the idea of F&I creating a
well-established pool of employees that are not only qualified, but groomed to stay in the
company long term, thus fixing the high turnover rate. The internship program is broken down
based on department, and as a result each department manager will be heavily involved with
their departments internship branch.
The accounting and service departments will have their own branches within the internship
program. This is to ensure that qualified individuals are brought along to the current team, and
work well with one another, as these two groups are responsible for the current underestimates
that are occurring. By rebuilding these two departments with interns F&I can establish a strong
cohesive team and bring forth lost profit.
F&I’s current state of meetings are extremely inefficient. Being led by Bob Cook, the CEO, the
meetings involve an “open floor” type of setting where all employees are given the opportunity
to voice their complaints. However, almost all meetings end with Bob reciting “we must be
perfect” as no employees take the opportunity to voice their views. Due to how Bob Cook’s
abysmal reactions to new ideas, a tense environment is created when Bob is leading the
meetings. As a result of Bob Cook’s past the team decided to have Hamilton Lewis lead the
monthly meetings in order to create a more comfortable environment to voice opinions.
Other changes made are the structure of the quarterly meetings. Quarterly meetings will now
involve each department manager leading their respective departments through safety
presentations to discuss the latest state regulations. Along with these presentations the
department managers will lead team building exercises in order to improve the company’s work
culture. Lastly, one final change is the implementation of after work socials, these socials will
involve F&I inviting employee’s, and their families, to an open bar event and have Karen Cook,
the HR Manager, hand out awards in recognition of the employee’s hard work.
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