Case Study 2 HRM Company Expansion and Restructuring
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Course
MAN 1103
Institution
Lambton College (
)
A manufacturing organization which has two plants, a corporate head office and five sales offices at different locations in the country, is embarked on a capacity expansion strategy. It is planning to double its production and sales in the next two years. The expansion is taking place because the c...
Expansion and Restructuring of a Company.
A manufacturing organization which has two plants, a corporate head office and five sales offices at
different locations in the country, is embarked on a capacity expansion strategy. It is planning to double
its production and sales in the next two years. The expansion is taking place because the company has
acquired a new robotic manufacturing technology which has not only increased production capacity and
product quality significantly but has also reduced costs substantially. A new software has also digitized
supply chain and sales transactions online.
The new technology and software have raised sales by 180% and profits by 210%. However, on an
overall basis, the company’s manpower is being reduced by 20% even though as part of the capacity
expansion, a new plant and office will be set up in a neighboring country.
Given the expansion of the company,
1. What should be the five main corporate goals of the company?
2. Propose an organization chart for the company and explain the main objectives of each of the
following departments: HR, Marketing, Production, Supply Chain, IT.
3. The company wants to right size. What strategy should the company adopt for downsizing?
Which departments would be most affected by the downsizing and why? Will any departments
have a shortage of manpower?
4. To induct the new technology, an intensive training program must be implemented at all the
company’s locations. Describe the process that should be followed in designing this training
program.
5. Make a Gantt Chart incorporating the steps mentioned in (3) and (4) above.
Please give detailed assumptions, reasons, and justifications for your answers. Apply the concepts, processes
and practices taught in the course. Write at least 5 pages. Upload a Word document in Moodle before the
deadline. The Gantt chart could be uploaded as an Excel document. Late submissions will be penalized.
Resubmissions are not allowed.
, CASE STUDY 2: Expansion and Restructuring of a
Company.
1) Five main corporate goals of the company
Prior to pursuing the expansion and restructuring plans, the manufacturing company has to first set
their company goals in order to succeed. The five (5) corporate goals of the company are as follows:
1. Pursue right sizing of the organization with competent and highly skilled employees to be
assigned in appropriate role, department and location.
As the company innovates its processes and technology, the company has to restructure the
organization and assess the right workforce for the head office and different plant locations so
they can optimize operational costs while maintaining the same service level. HR and line
managers would have a crucial role in this goal it is important to ensure that employees with the
right skill will be deployed in the right position. Approach to be taken in transferring, relocating
and reassigning employees must also be done carefully to ensure the new structure will be
effective in delivering the over-all mission and vision of the company. Recruitment for new
positions must also be done correctly and carefully in order to hire the right talent who will fit
the requirement of the new organization structure.
2. Increase employee engagement despite downsizing of the organization.
The news of downsizing can potentially affect the morale of the employees. Hence, it is
important that employees are motivated thru different programs that will recognize every single
effort. The company can involve employees during planning and strategizing so they can get
valuable inputs from their point of view. This way employees will feel that their contributions
are being valued and recognized. Programs such as recognition and rewards program can also
increase loyalty to the organization. Other activities can also be launched like mental health
wellness programs, employee survey and feedback, support employees’ personal passion thru
activities, and other initiatives to increase employee engagement.
3. Equip the employees with the right knowledge and skills to deliver productivity and efficiency
in the production line.
Before the deployment of the new software and technology, the company has to ensure that all
the employees who will be operating on the new AI technology are prepared in order to
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