Case Study HRMG 5000

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AXii Com Case Study (Case Analysis I). Review the information on this company.

Review the dialogues and answer the following questions:

– Which employment laws or regulations should Paul pay the most attention to and why?

– Keeping in mind that it takes time/energy to implement systems to retrieve data, which HR metrics should start Paul capturing?

– Paul knows he should be updating job descriptions but he “just hasn’t had the time”. Why should he make this a priority (or should he)?

– Identify 1-3 things the company could do to improve employee retention and reduce turnover.

Write a 1000-1200 word analysis, being sure to address the questions at the end. The analysis should be in the form of a paper so, do not simply answer the questions. Please note there is not one best approach or right answers. You will be graded on how well you support your analysis. The case study must have supporting data in the form of citations. A minimum of three credible references which are sources from library databases are required.

Paul arrived at AXii Com 18 months ago, as the first HR professional the company ever had. Started fifteen years ago by two brothers, the company has been experiencing a “growth spurt” for the past 3-4 years, fueled by increasing demand for small plastic parts: computer keyboards, toys, airplanes….a wide variety of needs. Paul was directed by the owners to “use HR to keep us staffed up so we can grow” and to “keep us out of court.” The company has a single location which is in an industrial park outside a major metropolitan area.

When the company was founded most of their workers were Caucasian and about 20% African-American because this was the racial make-up of the surrounding area (labor market). In the past few years people of many different ethnicities have moved into the area: Hispanics, Asians, people from India, Bosnians, Serbians, and Russians, others.

AXii Com’s employees are primarily Caucasian and African-American, although there are two Hispanic employees and one Vietnamese. There is a high demand in the local labor market for semi-skilled labor like the majority of the jobs at AXii Com.

As soon as Paul arrived, he attempted to get relevant data and HR metrics so we he could understand the company’s strengths and weaknesses regarding their labor force. While he was able to piece together some data, a lot of it just wasn’t available or if it was available, it wasn’t easy to retrieve and analyze. .

Additional Dialogue:

Meet John and Roy, at the AXii Com Company. Later in the class, you will apply the dialogue below and other dialogues in later weeks to resolve a case study situation:

“John, our production numbers are getting worse,” said Roy, who is John’s manager at the small plastic molding company. “What’s going on?”

“ We’ve laid off several people in my area,” replied John.

“Can’t you get them to work harder? asked Roy.

“Before the layoff, we had a lot of people quitting,” said John. “And the ones who are left just don’t do as much work.”

“Why did we have so much turnover?” asked Roy. “ What can we do to get these people up to speed?

“Well,” said John, “Some of the people said they were quitting because they could make more money someplace else.” “Others said it was a dead-end job and there was no place to go.” “I had two people quit awhile back who said the health insurance was better at their new jobs.” “And to be honest, I can see now that there are a few people who shouldn’t have been hired in the first place so it was just as well that they left.”

“We’ve got to do something,” said Roy. “The company is going to grow a lot in the next few years and we’ve got to be able to produce a lot of product once we start getting more orders again. Our numbers need to go way up, not down. I think we’d better go see HR.

John and Roy had a good discussion with the Director of HR, Paul. They learned that the company tracks these metrics: turnover rate, benefits as a percent of payroll, and wages and benefits compared with other local employers. They also learned that the productivity issue and the problems with turnover before the layoff were complex and would require assistance from several HR areas: Total Rewards (Compensation and Benefits), Staffing, Talent Management, and probably Employee and Labor Relations too. They also got some ideas about interviewing and how to work with HR to recruit candidates when the time comes to hire more people again. The Training Manager stopped by and discussed skills and gaps with them, and showed them classes currently available for themselves and for their workers.

Paul, the Director of HR at our small plastics company, reviewed exit interview information from voluntary terminations in the past year, after his first discussion with Roy and John. Then he set up a meeting with them to discuss the results.

Paul: As I looked through the exit interview notes I found some patterns that hadn’t been apparent before. The people who left because they got a better job or went to a company that had better promotion opportunities were all women or minorities. Were you aware of that?

John: No I wasn’t.

Roy: But really, these Hispanic women don’t really want to be the boss. They’re not comfortable in the role.

John: We tried one of them as a lead one time but it didn’t work out.

Paul: Have you mentioned your views about this to anyone else, inside or outside the company?

Roy: No

John: No

Paul: Good, because what you’ve just said could get us in trouble sometime. We’ll come back to this issue later, but I want to continue with the exit interview information. I also noticed that several of the women who left said they were uncomfortable with a lot of the stuff that goes on out there on the floor. We tried to get them to give us details, but none of them would. Can you tell me what you think they might have been referring to?

Roy: Gosh, I don’t know what they would be uncomfortable with. Do you, John?

John: Yeah, I think I do. The guys like to joke around, tell jokes, you know, boys will be boys. Some of the women don’t like it.

Roy: Well, I guess the guys shouldn’t do that.

Paul: No, they shouldn’t. And that’s probably the reason some of the women quit. The kind of behavior you’re referring to – off-color jokes and innuendos – is against the law. I can see we need to do some harassment prevention and diversity training around here. As far as hiring people for you now, what are your thoughts about the increasing Asian population in the area around our plant? I know in the past we’ve brought several Asian candidates in for interviews but nobody’s been hired. Any reasons for that?

Roy: John and I both think that Asians are hard to understand – their English isn’t so good. And when we had two Vietnamese working here a few years ago, they used to talk Vietnamese to each other and it was kinda weird.

Paul: We’ll need to have some more detailed discussions about this too, but for now let me just say that the turnover we had recently is hurting your production numbers now, right?

Roy and John: Yes

Paul: You’re going to need to make some changes in your assumptions about people, and in what you allow over there. I’m going to enroll you both in our Diversity and Respect training series. Let’s get together and talk some more after that.

Roy and John: Okay.

When Roy and John attended the Diversity and Respect Training, they were very surprised at a lot of the information.

John: I had no idea that telling off-color jokes was illegal, did you?

Roy: I sure didn’t. I also didn’t realize how many different ethnic groups we have in this city.

John: I did know about a lot of the ADA accommodations, but I didn’t know that substance abuse can be considered a disability.

Roy: And I didn’t know about the “job relevance” test – like requiring people to speak English at work, and other job requirements.