Activity 5-5: Case Study

The XYZ Corporation is a small, independently owned company that sells and
services bulldozers andother construction equipment in a major metropolitan area. It
employs 308 full-time and 103 part-time employees in various capacities related to
sales and service.

Recently, the top managers—consisting of the owner/chief executive, the

corporate controller, the corporate treasurer, the corporate sales manager, the
corporate service manager, and the corporate personnel manager—met for the purpose
of devising a strategic plan. Until recently, economic conditions were quite unfavorable
to the firm: Interest rates were high, prompting major construction firms to delay
purchase of new equipment. However, prospects for the next three years appear to be
favorable, because interest rates are dropping and construction demand had jumped to
a record high.

In this corporation, the HR department is responsible for recruiting and hiring all
employees except the highest-level executives. The recruitment-hiring goal of the HR
department centers merely on replacing employees as their positions are vacated
through turnover or promotion. In general, the HR manager tries to replace someone
who leaves with someone whose education and experience is identical to that of the
original employee. The HR manager does not think he/she is or should be responsible
for comparing amount of work to existing numbers and skills of workers.

Questions

1. Assume that an HR department audit will be performed in the XYZ Corporation.

Based on what you read in the case, how would you summarize the personnel
manager’s perception of the HR department’s role, goals, and objectives in hiring
and recruiting?
2. According to the case, what change in environmental conditions will probably
have to be acted on by the organization? Why do you think so?
3. In what different ways can strengths and weaknesses of any HR department be
analyzed?
4. In what ways do you think the strengths and weaknesses of the HR department
in this case should be analyzed?
5. How can data about this department be collected?
6. Who do you think should carry out the audit in this case? Why?
7. To whom should audit results be reported? Why?