Organizations face challenges in their areas of operations. Sometimes the problems could have a significant impact on the organization thus require immediate action by the management. However, the management should remain cautious in their decision to prevent further problems from arising. The decisions should also be inclusive of the employee’s welfare even though the organization might emphasize on enhancing customer satisfaction. The employees remain a valuable resource within the organization. Therefore, management should not ignore their needs. The presented information below thus seeks to provide an analysis of the situation in PAC Resource Inc. while identifying the issues, giving alternative actions for the provided solution and finally offer recommendations on the measures the management should take to solve the problems and consequently lead to reduced costs.

Case Review

This case focuses on PAC Resource Inc. small manufacturing that produces high-quality components for the computer industry (Gusdorf, 2011). It has experienced a decrease in sales; thus the management seeks to implement a strategy that aims to reduce costs while maintaining competent staff to work towards achieving the set objective.

Major issues within the organization

Many companies in the computer industry were affected by unexpected changes in the industry. However, PAC was not affected as its marketing position was that of high quality and specialized computer equipment. PAC concentrates on selling its products to the small customer bases throughout the U.S and in Asia, therefore, has small revenue returns (Gusdorf, 2011). The company relies heavily on one of its components as a source of income. Developing and building of original and unique components for one manufacturer generates the highest percentage of sales. In as much as PAC benefits from the one manufacturer, it is necessary for the company to broaden its customer base as having one customer is a risky venture (Gusdorf, 2011). The customer might have a change in preference and look for a new supplier. When such incidence occurs, PAC might go out of business since the available revenue can no longer sustain the business operations.

The company continues to explore Canadian and European markets and increase budget on sales and marketing to expand its customer base. In as much as PAC has interest in the international markets, if it does not sign contracts at the right time, it might risk losing the market to its competitors, and it will be a waste of resources exploring such markets. The employees do not also belong to the employee unions; therefore when they have an unresolved dispute with the organization, it becomes difficult to address the issue especially when they decide to hold a strike. The operations of PAC can no longer continue, and the many complaints submitted by the employees on poor management reduce their ability to perform and remain productive and profitable in the industry.

Another issue is on human resource management as some employees felt the HR Director Patricia Harris was an incompetent leader (Gusdorf, 2011). She may have had excellent goals for the company but failed to lead the employees through the performance goals, and they viewed her management as being unfair and promoted inequality among the employees. Sometimes the management might have good intentions for the employees and the organization but failing to motivate them and including them in the decision of the organization, and the employees will drift apart and remain unproductive therefore contribute to reduced sales (Gusdorf, 2011). The company does not have an effective communication channel that allows the employees to submit their complaints and the managers to respond to those claims as evidence from the emails. Only two emails direct to all employees indicating that there is a lack of frequent communication between the employees and the management. The management also intends to layoff some employees especially those who are not accountable and involved in misinterpretation of sales. Lay off strategy aim to reduce the cost to while maintaining quality and quantity of production thus increasing sales. The company also faces lawsuits which could ruin their reputation and contribute to decreasing sales.

Alternate courses of action to address the issues identified

It is necessary that PAC has alternative measures for the identified problems to remain competitive in the computer industry.  For instance, instead of relying on one customer for a considerable revenue contribution, the company should be aggressive in the international markets and sign contracts to begin their marketing operations before their competitors do the same (Gusdorf, 2011). The company can also diversify their products instead of concentrating on specialized equipment to attract a broad customer base.  The employees feel distant with the operations in the company yet the management aim to enhance sales. It is thus essential that the management uses other ways of motivating employees such as organizing team bonding activities that allow them to socialize at any level and understand each other better.  In case the management does not have the right communication channel for the employees, they could consider communicating through available social media platforms and emails a since the management has to check any new information from such sites every day.

The management also has intentions to lay off some employees to reduce labor costs. However, other alternatives could also be effective without compromising the welfare of the employees. The company should consider reviewing all policies on employee reimbursement and ensure that employees’ performance matches their payment. Incompetent employees should also be liable for their actions and not receive the amount that equates to the value of misappropriated sales. The management could even consider implementing a hiring freeze in some departments while distributing roles among human resource management. Besides, it is possible that the management and employees in the departments have related skills, knowledge and experience; therefore, they can multitask thus improving productivity and sales.

The recommendation for action, with the appropriate supporting arguments

PAC must strive to remain competitive despite the challenges; therefore; the management should consider the following suggestions. As suggested from the email interactions the company needs to reduce the labor cost by 10% but not at the expense of the employees’ welfare (Gusdorf, 2011). The employees could forgo the wellness program at the organization if it costs more than it should. The wellness program is not necessary as they can still exercise individually. The management should also deactivate the human resource hotline as the company could consider some communication channels such as face to face interactions to enhance effective communication. The company should utilize the available social media channels to advertise for their products and gain a broader customer base instead of focusing on one customer.

From the analysis, it seems that there is reduced employees’ satisfaction level; thus the management should ensure that they host regular staff meetings. It is a way of enhancing the employees’ morale as they can express themselves freely to the management thus reducing the number of complaints. The management should also address the issue of misappropriation with immediate effect (Gusdorf, 2011). When the management address critical issues, the employees believe they are responsible for the development of the organization, therefore, increases their trust and become motivated to work towards fulfilling the set organizational goals. The accountability of the management will also rebuild the trust among the employees, therefore, giving them the opportunity to highlight their complaints within a specific time before the problem escalates to severe issues like employee unrest.

The management should ensure that it investigate the issue of sexual harassment to determine if the case is true or not. If it is true, the responsible employees should be accountable for their action and the management should also develop and implement policies that protect all employees against any form of harassment. The management should also terminate or suspend incompetent employees especially those who think that they can go on harassing people to instill trust among employees and create a friendly environment for everyone. As noted from the arising issue with Patricia Harris and some employees, it appears as if the management is not efficient in their role thus the need to introduce new policies and communicate them to all staff to eliminate the possibility of bias and inconsistency of the policies (Gusdorf, 2011). There is also a need for training for managers to equip them with relevant skills and knowledge on how to handle the diverse workforce thus promoting unity and enhancing motivation to work towards a common goal for the organization.

Generally, it is essential that the management remain efficient in an organization as they are responsible for addressing various issues that affect a company. They should strive to look into the employees’ welfare even as they focus on customers since the employees significantly contribute to the productivity of the organization. Also, the management should implement the recommended actions to promote the efficiency and effectiveness of an organization.

Reference

Gusdorf, M. L. (2011). PAC resources, inc.: A case study in hr practices. Society for Human Resource Management (SHRM).