Yummy Company
A Case Study in Strategic
Human Resource Management
Submitted to:
Mrs. Roxanna Castro
Submitted by:
Chua, Donna Jane M.
BSBA-HRDM3
Yummy
Company
(Background of the Study)
Yummy Company goes to Davao
Yummy company is a producer and marketer of fruit juices packaged dried fruits, and canned jams made from all natural exotic tropical fruits. The company has been in the business since 1960 and its primary plant is located in Tagaytay City, Cavite. It distributes its products locally and exports dried fruits and jams to Japan. Originally, it produced only packaged dried fruits, but the firm expanded its business by canning exotic fruit jams and fruit juices. Yummy has experienced tremendous growth during the past two years. The company has a workforce of over 1,200,900 whom are regular employees and about 300 are seasonal or temporary employees. The employees are currently non-union. Its revenue has increased by 20% in 2004.
In 1990, yummy bought two small canning companies located in southern Luzon. This acquisition did not go smoothly since one of the acquired companies had unionized employees and their HR was not prepared to handle the diversity in HR practices and producers brought about by the acquisition of the two factories. The HR director was not involved in the strategic planning process. He was just informed of the acquisition after the deal was sealed. The strategic planners were mainly concerned with the financial implications of the move. As a result of this lack of concern for HR-related problem s for at least three years and this proved to be detrimental to employee morale and productivity.
Some of the problems pertained to the acquired companies’ lack of performance management, and formal pay scales for non-union employees, hiring practices that allowed members of the same family in a supervisor-employee relationship, absence of training facilities, inconsistent enforcement of employee discipline procedure despite the presence of
Human Resource Management
Submitted to:
Mrs. Roxanna Castro
Submitted by:
Chua, Donna Jane M.
BSBA-HRDM3
Yummy
Company
(Background of the Study)
Yummy Company goes to Davao
Yummy company is a producer and marketer of fruit juices packaged dried fruits, and canned jams made from all natural exotic tropical fruits. The company has been in the business since 1960 and its primary plant is located in Tagaytay City, Cavite. It distributes its products locally and exports dried fruits and jams to Japan. Originally, it produced only packaged dried fruits, but the firm expanded its business by canning exotic fruit jams and fruit juices. Yummy has experienced tremendous growth during the past two years. The company has a workforce of over 1,200,900 whom are regular employees and about 300 are seasonal or temporary employees. The employees are currently non-union. Its revenue has increased by 20% in 2004.
In 1990, yummy bought two small canning companies located in southern Luzon. This acquisition did not go smoothly since one of the acquired companies had unionized employees and their HR was not prepared to handle the diversity in HR practices and producers brought about by the acquisition of the two factories. The HR director was not involved in the strategic planning process. He was just informed of the acquisition after the deal was sealed. The strategic planners were mainly concerned with the financial implications of the move. As a result of this lack of concern for HR-related problem s for at least three years and this proved to be detrimental to employee morale and productivity.
Some of the problems pertained to the acquired companies’ lack of performance management, and formal pay scales for non-union employees, hiring practices that allowed members of the same family in a supervisor-employee relationship, absence of training facilities, inconsistent enforcement of employee discipline procedure despite the presence of