POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

SELECTING FOR SURVIVAL AT FUTURE HORIZONS FOUNDRY

A Case Study Presented to the Faculty of the Graduate School Polytechnic University of the Philippines Sta. Mesa, Manila

In Partial Fulfillment of the Requirements for the course MBA 633 Human Resource Management

by

Jonnie P. Baraquio

October 15, 2011

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES CASE ANALYSIS SELECTING FOR SURVIVAL AT FUTURE HORIZONS FOUNDRY

I. TIME CONTEXT

The problem started when Future Horizons purchased a computerized foundry machine. The following are just some of the requirements and/or constraints associated with the foundry machine: (a) the machine consumes a lot of space; (b) it requires a crew of three to four workers to set specifications to sample the product and compare it against standards; (c) the computerized system is down two-thirds (2/3) of the time; and (d) there is complexity in the machines settings and controls.

II. VIEWPOINT The case is taken from the standpoint of Future Horizons top management/ executive managers.

III. CENTRAL PROBLEM The case involves the top managements dilemma of having to close down the companys operations unless the Foundys computerized portion is fixed so that it will run profitably. Given the threat, the union of FH has agreed to the establishment of a selection program for placing workers in the computerized section of the foundry.

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IV. STATEMENT OF OBJECTIVES

A. Must

To devise the best method possible in staffing workers in FHs computerized section of the foundry.

B. Wants

To establish selection criteria in FHs staffing processes To train selected employees on the machines complex settings and troubleshooting

To reduce the downtime in FHs computerized portion thus increasing its profitability

V. AREAS OF CONSIDERATION A. External Environment 1. Threats Scarcity of skilled manpower in the employment pool Higher compensation/ benefits offered by competitors maintaining the same technology or equipment

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2. Opportunities Availability of skilled manpower in the labor market The technology is considered highly advanced as compared to the companys competitors

B. Internal Environment 1. Strengths Current employees are willing to be trained as regards the proper usage and control of the machine The company is financially stable, thus being able to acquire such technology

2. Weaknesses Not all employees who are open for trainings are actually trainable The production area where the machine is located became congested due to the size of the machine

VI. ALTERNATIVE COURSE OF ACTION

1. Provide trainings for current employees regarding the proper use and how to troubleshoot the newly-installed foundry machine

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Advantage It is less costly and would allow employees to become more familiar with the technology

Disadvantages Some employees may simply be non-trainable The trainings that would be provided may not be sufficient to cover all areas that would result to optimal usage of the machine

2. Hire new employees that already have enough experience(s) in making use of new technology installed by FH.

Advantages Highly-skilled employees could be sourced Trainings that might be given need not be extensive

Disadvantages The selection process may take some time especially when theres scarcity of skilled or talented applicants The company may incur additional cost during the hiring, selection and training processes

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3. Provide trainings for trainable employees and concurrently outsource skilled and experienced employees from the labor force

Advantages It could result to selecting the best employees to run the machine from both internal and external sources Time constraints in employee selection could be reduced

Disadvantages Costs will be the combined costs of the first two alternatives

VII.

FINAL DECISION

It is recommended that alternative no. 3 be pursued, that is, provide trainings for trainable employees while concurrently conducting external recruitment.

VIII. DETAILED ACTION PLANS

1. Provide trainings for employees who had manifested great potentials to easily adapt in the use of the computerized foundry machine.

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 2. Consider who would be conducting the training. It could be an expert outside of the company who had enough experience in running said machine or an expert from the supplier of the technology.

3. Instill proper control mechanisms to secure that the trainings would result to better performing employees.

4. While trainings are ongoing, also conduct external recruitment for prospective employees that already have enough experience and experience in running said machine or technology.

5. Adopt standard hiring and selection procedures to select the best applicant.