1. In 1982 it seems the company will have to downsize. What are the factors that are forcing the company to make that decision? (10 marks)…
The main issue that caused all these layoffs to be done was the fact that the company did not seem to have a growth plan in action to help control and streamline the process. According to a plant manager, “Staffing was done sloppily, so we ended up with a lot of fat”. Carter tried to adjust his departments through demotions to trim the fat, but was denied.…
Define and explain the significance of the term ‘derived demand’ as it applies to Strategic Human Resources Planning. (5 marks)…
Cumberland Metal Industries (CMI) is one of the largest metal manufacturers in the world. The company evolved from selling metal as a finished product to one that used it as a raw material, increasing sales from $250,000 in 1963 to over $18,500,000 in 1979. Currently, CMI relies heavily on SlipSeal, which is used as a high-temperature sealant in automobiles. Although CMI dominates the market for this product, corporate sales figures decreased over the last year. As a result, the management at CMI realized the importance of diversifying its product-line so that the company does not rely as heavily on SlipSeal or the automobile industry.…
The company that I chose was Carlson companies because I work at The Cedar Bluff location of Country Inn and Suites. Carlson is a privately held international corporation which means there is no public trade. Carlson is well known for being one of the largest family-held corporations in the country. The headquarters of Carlson Companies is located at 701 Carlson Parkway Minnetonka, MN 55305 and the phone number for general information is 763-212-5000. Carlson’s business can be divided into 3 different groups, hotel, restaurant, and travel management. Regent, Radisson, Park Plaza, Country Inn and Suites, and Park Inn are Carlson’s hotel brands. T.G.I. Friday’s and Pick Up Stix are the restaurant brands of Carlson. Carlson Wagonlit Travel is Carlson’s travel management company. These three groups operate in conjunction with one another to form one of the world’s largest and most profitable private companies (Company Overview, n.d.). Hubert Joly is the president, CEO and Director of Carlson. Under Mr. Joly, there are 3 vice presidents, Jim Porter (CAO), Trudy Rautio (CFO), and William A. Van Brunt general counsel of Carson (Company Leadership, n.d.).…
When a company experiences a financial setback of the magnitude that More Beer, Incorporated had after its failed venture into internet marketing, it sometimes becomes necessary to reduce the workforce in order to mitigate the losses. The Human Resources (HR) Department faced a very difficult decision in choosing whom to fire, as there was a potential for legal action with each of the five candidates presented for possible termination. In addition, many of the candidates also had personality traits or issues in their personal lives that could have contributed to the decision. In the ending analysis, however, one must remember that More Beer, Incorporated is a business, and the personnel decisions made herein must first serve the best interest of the company, not the individual. Therefore, after careful consideration, the HR Department has concluded that the best way for the company to survive the economic downturn is to terminate three of the five employees and internally transfer the other two, according to the following recommendation, effective at the start of the pay cycle three weeks from Monday.…
McKinley, W., Sanchez, C. M., Schick, A. G., & Higgs, A. C. (1995). Organizational downsizing: Constraining, cloning, learning [and executive commentary]. The Academy of Management Executive (1993-2005), 9(3), 32-44. Retrieved from http://www.jstor.org.proxy.library.georgetown.edu/stable/4165271…
His decision to “replace nearly every member of the company’s senior management team” could have been more effective and beneficial had he only replaced those on the management team who were not upholding and enforcing the values and cultures of the company.…
Rabin.J.(1999) Organizational Downsizing:An Introduction. Pennsylvania State University-Harrisburg School of Public Affairs, Vol. 2, No, pp.39-43…
Labor was next dealt with but knowing that ‘telling’ style won’t work. He first hired president of Chrysler’s labor union to the board of director. Then he used the ‘selling’ style by first reducing his salary, and then giving the labor an option of cutting their salary or leaving Chrysler.…
In the midst of a global recession, Clayton Industries is challenged by a diminishing demand for their product and rising variable costs. These issues are further compounded by stiff market competition that threatens the existence of their most profitable product. This analysis focuses on the Italian subsidiary, Clayton SpA. Italy’s Brescia plant is no longer profitable; it faces declining sales, increased production expenses, and high personnel costs. The previous president concentrated his efforts internally in Italy, ignoring his regional responsibility for marketing compression chillers (A/C units) throughout Europe. Successor Peter Arnell has been tasked with meeting corporate initiatives and restoring profitability. Three choices are available: revitalize and further invest in the Brescia plant, change the product line to absorption chillers, or study strategic options for at least six months while focusing on efficiency.…
There is a well known issue in corporations when it comes down to downsizing. Corporate downsizing is that act of corporations cutting workers usually by closing whole plants or divisions to increase profits. This practice is often used today and is thought by some to be a moral practice to improve economy overall. On the other hand, some think that it causes the workers great suffrage from unemployment, which leads to loss of homes, depression, and crimes. Furthermore, it affects the economy by the decrease in money flow. Many believe that the people who invest their money in the corporation (shareholders) deserve to have the most interest from the managers to maximize their profits. One method of maximizing their profits is to downsize workers. Some people have a problem with that because they believe that the employees being cut at the expense of maximizing profits for the shareholder is morally wrong. John Orlando thinks that downsizing is often wrong. In his article, The Ethics of Corporate Downsizing, he gives both sides of the argument for downsizing then tells how to apply his finding in real corporations.…
a. In what way is Carson a surplus unit? Carson invests in Treasury securities and therefore is providing funds to the Treasury, the issuer of those securities.…