Jacildo, Mark Aeron B.

BSBA/2L

Case Analysis
QUESTIONS:

1. Point out which changes are occurring in the business that affect HRM.
2. What are some considerations the company and HR should be aware of when making
changes related to this case study?
3. What would the initial steps be to start planning for these changes?
4. What would Juan role be in implementing these changes? What would Lucas’s role be?

1.) Changes Affecting HRM:

a. Expected Revenue Growth: The anticipated revenue growth of 10% over the next 3 years,
with some quarters seeing growth as high as 30%, will likely require HRM to plan for increased
hiring, possibly to meet increased demand or to replace retiring workers.

b. Workforce Demographics: The retirement of 5 long-term employees will impact HRM in

terms of knowledge transfer, succession planning, and ensuring a smooth transition for new
hires. Managing a workforce with diverse ages also presents HR challenges.

c. Telecommuting and Virtual Organization: The potential shift towards telecommuting and
a virtual organization will require HRM to address issues related to remote work policies,
productivity measurement, and maintaining employee motivation and engagement.

d. Health Care Benefits and Employment Status: Lucas's consideration of cutting health
care benefits and transitioning employees to contract-based roles would require HRM to
navigate potential legal and employee relations issues, as well as address concerns about
employee morale and retention.

2.) Considerations for HR and the Company:

a. Succession Planning: HR should work on a succession plan for the retiring employees to
ensure a smooth transfer of knowledge and responsibilities to new hires or existing employees.

b. Remote Work Policies: Developing clear policies for remote work, productivity
measurement, and communication will be crucial if telecommuting or virtual organization
becomes a reality.

c. Employee Engagement and Motivation: HR must devise strategies to keep employees

engaged and motivated, especially in a virtual work environment. This might include virtual
team-building activities, regular check-ins, and support for work-life balance.

d. Legal and Ethical Concerns: Changes to employment status and benefits should be in
compliance with labor laws and regulations. HR needs to navigate these legal aspects carefully.
e. Cost-Benefit Analysis: HR should conduct a thorough analysis of the costs and benefits
associated with changes in health care benefits and employment status to assess the impact on
employee morale and retention.

3.) Initial Planning Steps:

a. Identify Key Stakeholders: Identify all relevant parties, such as employees, managers, legal
counsel, and labor experts, who should be involved in the planning process.

b. Conduct a Needs Assessment: Understand the current and future workforce needs to plan
for hiring and succession.

c. Develop Policies and Procedures: Create or revise policies related to remote work, benefits,
and employment status.

d. Communicate Changes: Prepare a comprehensive communication plan to inform

employees about the upcoming changes, including the reasons behind them and the expected
timeline.

e. Monitor and Evaluate: Establish mechanisms for ongoing monitoring and evaluation of
the changes to ensure they align with the company's goals and are having the desired impact.

4.) Roles of Juan and Lucas:

Juan's Role:
• Juan should take the lead in researching and gathering information to
provide well-informed recommendations to Lucas.
• He should work on developing the succession plan for retiring
employees and policies for telecommuting and virtual work.
• Juan should assist in the communication of changes to employees and
help address their concerns.

Lucas's Role:
• Lucas should provide input and guidance based on his vision and
expectations for the company.
• He should support HR in implementing the changes and ensure they
align with the overall business strategy.
• Lucas should be involved in high-level decision-making, especially
concerning benefits and employment status changes.

Both Juan and Lucas should collaborate closely to ensure that HRM strategies align with the
company's goals and address the challenges presented so that their company will become
successful.