JUNEL DELA CRUZ

CASE STUDY:

The New Human Resource Manager

The Prime Manufacturing Company is a garment factory that employs about 1,250 employees of varied
skills. About 75 percent are women who are mostly in the production department. Men employees are
assigned in the maintenance department and as operators of machines used in the garment production.
Women are mostly in sewing department, packaging and quality control.

Mister Rod Santos was hired to head the HR department. Prior to his assignment at Prime
Manufacturing Company, Rod was in a construction firm, a medium-size organization. His main concern
was preparing the payroll and handling employee’s record.

The Human Resource Department is composed of 5 employees, a payroll clerk, a personnel assistant and
two supervisors and Mister Rod Santos as manager. The record of Rod Santos in his academic
achievements is quietly satisfactory. His bachelor’s degree is in the field of Engineering. Performance in
the previous employment is quite satisfactory. The construction company of his previous employment
closed shop due to an economic slowdown, this cause his separation form employment.

The garment business is globally competitive and customer’s satisfaction is of prime importance.
Employee’s commitments to performance standard are high priority. In the three-month span of Rod
Santos’ employment, 20 percent of women employees and 12 percent of male employees resigned for
unknown reasons, as there was no exit interview conducted. Production schedule was delayed and
foreign customers were alarmed.

The general manager, Mario Mabilangan, called Rod Santos regarding the problem. He noted Rod’s
indecisive approach to the HR problem and actions that he failed to take. He pointed out to Rod Santos
that he exactly did not know what to do regarding the current situation. His subordinates began to
complain to Mister Mabilangan about Rod Santos’ indecision.

Rod Santos became more withdrawn from his subordinates and other managers in the plant. He showed
little interest in his job and concentrated in mental jobs concerning the department. In general he lost
control of his job of managing the department. (25 points)

Note: use the case analysis format

I. State the problems

• Mr. Rod Santos became more withdrawn from his subordinates and other managers in
the plant. He showed little interest in his job and concentrated in mental jobs concerning
the department. He lost control on his job of managing the department

• Production schedule was delayed and foreign customers were alarmed.

II. Case facts

• The Human Resource Department has 5 employees only. ( A payroll clerk, personnel
assistant and the two supervisors and Mr. Rod Santos the Manager)

• The garment business: Prime Manufacturing Company is globally competitive and

customer satisfaction is of prime importance.

• Employee’s commitments to performance are highly priority.

III. Analysis/Hypothesis
Mr. Rod Santos lost his focus as the Human Resource Manager, the fact that he has degree
in Engineering. Because of his achievements and satisfactory results of performance Prime
Manufacturing Company hired him as a Human Resource Manager.

Improving performance is an important goal of modern management. the quality of the

workforce is a deciding factor behind organization’s success because employee performance
has proven to have a significantly positive effect on their performance. There is a growing
recognition that the primary source of competitive advantage is derived from an
organization’s human resource.

The garment industry is made up of many small firms, caught between two giants — the big
textile firms that sell raw fabric and the mega-sized retailers who buy the finished product.
The size discrepancy means the small, family-owned garment shops have little negotiating
power in setting prices; garment firms are “price takers.” As such, garment firms are
unusually sensitive to costs, particularly labor costs, which are by far their largest expense. It
is hard for them to offer their workers benefits and better wages. Added to that, mega-
retailers have introduced marketing changes such as “lean retailing”— the practice of
holding low inventories and replenishing only items that sell well. Lean retailing enables
retailers to showcase eight or more fashion “seasons” a year, which is great for them but
puts enormous pressure on small garment shops to adjust production to frequent style
changes.

IV. Alternative Courses of Action

• labor standards (prescribes the conditions of employment that both employers and
employees have to abide by, such as types of employment, working hours, minimum wage,
mandatory benefits, holidays, rest days, and employment rights)
• human resources development (stipulates provisions on local and overseas employment
as well as employment of foreign nationals)
 • labor relations (concerned with employer-employee relationship on termination of
employment and the rights and duties of both parties in union formation, collective
bargaining, and labor strikes)

V. Recommendation and Conclusion

Human Resource Management deals with issues related to compensation, performance management,
organisation development, safety, wellness, benefits, employee motivation, training and others. HRM
plays a strategic role in managing people and the workplace culture and environment. If effective, it can
contribute greatly to the overall company direction and the accomplishment of its goals and objectives.

HR development has the same goal: to make better employees. The purpose of HR
development is to provide the 'coaching' needed to strengthen and grow the knowledge,
skills, and abilities that an employee already has. The goal of development and training is to
make employees even better at what they do. Many employees come into an organization
with only a basic level of skills and experience and must receive training in order to do their
jobs effectively. Others may already have the necessary skills to do the job, but don't have
knowledge related to that particular organization. HR development is designed to give
employees the information they need to adapt to that organization's culture and to do their
jobs effectively.

Human resource management (HRM) refers to the policies, practices and systems that
influence employees’ behavior, attitudes and performance. Human resource practices
include determining human resource needs, recruiting, screening, training, rewarding,
appraising and also attending to labor relations, health and safety and fairness concerns.
The effective implementation of HRM practices in organizations is a key source of
competitive advantage and has been shown to have a positive relationship with company
performance.

Prime Manufacturing Company shouldn’t focus only to maintain sales and production of the
company but should tackle first mainly on the strategic plan in Human Resource
Management which is a very important in one effective organization in the business.

Simply put, Strategic HR is when HR processes are integrated and form part of the agency
strategy. It is strategic when individual performance is linked to the achievement of
organizational goals. Most importantly, it is strategic when there is a results-based
performance monitoring system.
Experience is one of the best ways to learn the inside out of any specific area, but attending
an appropriate HR course will give an excellent starting point of your future development. It
is important to pick a program, well adjusted to the current trends in Human Resources
Management. Otherwise you may gain knowledge, which is not applicable to the current
business environment