Case Creation Report

Bonus Assignment

December 11, 2020

Lam, Riley. Sarayba, Kyle. Santos Aubrey.

Case Creation Report

You are a newly appointed HR manager and your team notices that grievances and turnover

have been relatively high, and morale has been relatively low. Your team also noticed that the

company is not performing as well as it should be in terms of productivity. The company is

lacking in many aspects that includes diversity and equality and you have been instructed to

assist in improving the work environment and employee attitudes.

Human Resource Department Budget

● Given that the size of your company is relatively small in the beginning, your company’s

annual budget is $750,000. Each year, the annual budget will increase by $250,000 if

your company does not exceed the annual budget.

● Your company’s budget will need to cover expenses for hiring, training, wages, benefits

and HR programs.

Employee turnover

● The current company turnover is currently 9.8%. This is relatively high in comparison to

your competitors in the industry. Several factors may be affecting the company’s

turnover, one of which could be the employees’ morale. Managers have mentioned

several possible reasons why employee morale in your was relatively low; employees

aren’t provided enough training for safety and quality, wages and benefits were

lacklustre, and the lack of a grievance procedure and a proper performance appraisal.
Productivity

● Productivity at the start is at 190 per employee, which is comparatively lower than the

other companies in the industry. It has been noted that training, morale and proper

staffing have an effect on productivity.

Staffing

● Your company is relatively small in size, with only a little over 400 employees, it is hoped

that the company continues to grow and achieve a population of 500 employees by the

end of the 2-year period, ultimately leading to a low turnover rate which is one of the

leading issues of your company.

Wages

● Wage rates in your company are relatively low across all work levels in your company,

many people are leaving to work for a company that has a higher wage rate, which

causes the turn over rate to be substantially high.

● The lowest level employees are paid per hour while the higher level workers are paid

salary.

● Increasing wages will have a tremendous impact on budget.

Employee Benefits

● Complaints from your company’s employees have mentioned that employee benefits are

mediocre at best since the start of the company, You may add additional non-work days

which could be considered a paid holiday. You may allocate your budget to give

employees benefits.
Trainings and Programs

● As of right now, the company has no formal training. You have the opportunity to select

from a variety of training programs and the funds necessary for training will be deducted

every quarter from your budget.

● Safety and Accident Prevention Program

○ The accident rate for the firm in the last quarter was reported to be 232,

while the average for the industry is reported to be 201.

○ Concerns about the safety of the employees have been spreading,

making the other employees worried about their own safety.

○ The trust in the company as well as morale are affected

● Quality Program

○ From a scale of 0 (extremely low quality) to 100 (extremely high quality),

The company produces mediocre products, scoring a quality index of 48

○ This is closely related to grievances, turnover and training.

● Grievance Procedure

○ Complaints about discriminatory attitudes between the employees of the

company is a common occurrence.

○ These complaints have been handled by department heads in an informal

manner. There were an estimated 25 grievances last quarter. Rather than

seeking resolution, employees are quitting and seeking for a job with a

better work environment elsewhere or continuing to work with very low

morale and trust in the company.

● Performance Appraisal System

○ The firm does not have a formal performance appraisal system. Some

employees complain that some supervisors and managers have a bias

towards who receives a raise and who does not.