Case Study 1

Case Study 1

May 25, 2020
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Case Study 1

Read the following hypothetical excerpt and based on your understanding of chapter 15 of the textbook answer the questions that follows.

Teachers’ Unions versus the State

By the end of 2019, high school teachers in Rotuma, Fiji, concluded that their situation was near a breaking point. Compared to other third world countries, Rotuman teachers’ pay ranked 101st, with an average starting salary of around $ 10 000 per annum and some teachers taking side jobs to make ends meet. Health insurance benefits were shrinking. Further, the government was considering some drastic changes to the employment relationship laws which were bitterly opposed by teacher unions.

As frustration increased, talk in the social media platform and elsewhere turned to the possibility of a strike. The union leaders suggested staging a nationwide strike that would affect some schools initially and then spreading it to remaining schools while the external examinations approached.

Question

i. Discuss the rationale of organizing an industrial strike in resolving employee dispute with the state, focusing on the detrimental effects strikes has on various stakeholders in an economy.

ii. Describe other options teachers and their union have in resolving the impasse before opting for a strike? For each point illustrate your discussion with examples from Pacific island countries (PICs)

[20 marks]

Case Study 2

Walmart Refocuses Its Employee Retention Strategies

For Walmart, the competitive environment keeps getting tighter. The company, which operates 5000 stores and employs more than 1.5 million people in the United States, is trying to stay ahead towards online shopping. Meanwhile, continually falling unemployment rates have been making employee retention difficult. Somehow the company needs to keep getting efficient (meaning spending less) while maintaining employee engagement.

Competing with online retailers, especially Amazon, requires low prices because price comparisons are easy online. It also replaces some demand for store employees and need for workers in warehouses and other parts of the distribution system. Walmart has addressed these challenges by restructuring work and closing some lower- performing stores, including more than five dozen Sam’s Club stores. The cuts free up money for offering more generous pay and benefits and for directing more resources to online retailing. Some of Sam’s Club stores that closed were to be converted to distribution centers.

The restructuring decisions include a revised approach to store management, with fewer assistant managers. Walmart also cut department managers in certain departments such as mobile phones, where it could bring in representatives from the phone service providers. In addition, store closures helped to set the stage for several rounds of layoffs: the downsizing of store payrolls by 16 000 and eliminating 7 000 back-office jobs in 2016, a layoff of 1 000 corporate positions in 2017, and the elimination of another 10 000 store jobs and 1000 headquarters employees in 2018. Automation has enabled a 15% reduction in the number of workers per square foot in stores. But many of the laid off employees, according to Walmart, were able to move to different positions within the company. At the same time, Walmart is placing more workers in warehouse jobs and store positions that fill online orders.

Simultaneously, the company cannot just be a job cutter and maintain its strength in the labour market. Even as it closes stores, Walmart has announced pay increases from $ 9 an hour starting pay in 2015 to $ 10 in 2017 and aiming to reach $ 15 an hour by 2021. Early in 2018, Walmart announced that it would spend about $ 400 million to give employees wage increases and one-time bonuses of up to $1000. The new hourly pay rate matched wages paid by Target and came closer to the $13 paid by Costco.

Walmart’s management appreciates the pay alone will not be enough to create employee engagement, especially for relatively low-paying retail jobs. So the company has announced other initiatives aimed at making the company a preferred employer. Along with the 2018 pay raises and bonuses, Walmart announced it would extend to store employees the paid family leave benefits previously available only to office workers. At the same time, the company promised to spend some of its savings from lower taxes on training. Months later, Walmart announced it would pay college tuition for employees who pursue degrees in business or supply chain management at three schools selected by Walmart. Finally, in a bit to make work more comfortable, Walmart announced it would relax its blue-shirt-and-khakis dress code to allow a variety of solid-colour clothing.

Questions

i. Discuss the circumstances that makes employee retention challenging for organisations like Walmart. Support your discussion with specific examples from the case study.

ii. Identify various sources of job satisfaction Walmart provides to its employees to retain its employees. List and discuss two additional sources of job satisfaction that may help Walmart retain its employees.

iii. Evaluate the importance of employee retention to organisations like Walmart. Support your discussions with relevant examples.

[20 marks]

Section B

Answer any one essay question in this section. Each question is worth ten marks.

Question 1

Assume that you are a human resource manager of a 5-star international resort chain operating in a South Pacific country. Your resort CEO recently assigns you to hire one hundred housekeepers and waiters for your chain of hotels. Besides personality tests, discuss three other selection measures you could use to select your targeted employees. Justify your choices with relevant examples.

[10 marks]

Question 2

Imagine that you manage human resources for a small business in your country. You have recently prepared a report on the market rate pay for salespeople. The company management disagrees with you and states that your calculations are well above the prevailing the market rate. The management further state that the company cannot afford this level of pay and such pay scales would cause salespeople to earn more than most of the company’s managers.

As a HR manager, you still insist paying your salespeople on the newly calculated market rates. Discuss three possible measures the company might take to help resolve this conflict. Support discussion with appropriate examples.

Answer and ExplanationSolution by a verified expert

i. Discuss the rationale of organizing an industrial strike in resolving employee dispute with the state, focusing on the detrimental effects strikes has on various stakeholders in an economy.

Teachers in the case organize strike because teachers are not contented with their salaries and benefits received from the government of Rotuman and Fiji.Health insurance benefits were shrinking. Further, the government was considering some drastic changes to the employment relationship laws which were bitterly opposed by teacher unions.

Employee union is doing strike because they want to protect themselves. It gives more of balance between the teachers and government of Rotuman and Fiji a power.
It can also solve dispute relating to salary and benefits of a teachers.
It also help to solve the problems of the teachers when it comes to their dissatisfaction of the policy because it was mentioned in the case that there is a government drastic changes to the employment relationship laws which were bitterly opposed by teacher unions.
This teachers strike has an effect to the stakeholders in the economy that is why the government should pay their attention to the teachers concern because students will fall behind on their studies. There is a higher chance that the students will repeat years of schooling if this will take longer time to solve because there is a law in strike that the employee the employer cannot fire the employee for organizing strike.

ii. Describe other options teachers and their union have in resolving the impasse before opting for a strike? For each point illustrate your discussion with examples from Pacific island countries (PICs)

Teachers in Fiji and Rotuman frustration increased, talk in the social media platform and elsewhere turned to the possibility of a strike. This means that before they will go into actual strike they already used whistle blowing to get the attention of the government. It means that they do not like strike if their grievances will be address ahead of time.
The union leaders suggested staging a nationwide strike that would affect some schools initially and then spreading it to remaining schools while the external examinations approached.
The government of Rotuman and Fiji Should address the demands of teachers and also improve their working conditions. Teachers do the strike because there salary is not enough for their standard of living due to economic condition in Fiji and Rotuman, price of goods and services increased therefore the salary of the teachers is not enough.

i. Discuss the circumstances that makes employee retention challenging for organisations like Walmart. Support your discussion with specific examples from the case study.

Employee retention in Walmart is difficult because the company needs to keep getting efficient (meaning spending less) while maintaining employee engagement.
The competitor of Walmart such as Amazon is also a threat because they are selling their products at lower price therefore costumers prefer to buy in Amazon because customers can easily compare prices online.
They also addressed challenges by restructuring work and closing some lower- performing stores, including more than five dozen Sam's Club stores. The cuts free up money for offering more generous pay and benefits and for directing more resources to online retailing. Some of Sam's Club stores that closed were to be converted to distribution centers. Therefore a lot of employees becomes unemployed.
many of there employees was laid off and some were to move to different positions within the company. At the same time, Walmart is placing more workers in warehouse jobs and store positions that fill online orders.
The above situation makes destroyed the image of the Wallmart and people are discourage to apply on the company because of those unexpected problem occurrence.

ii. Identify various sources of job satisfaction Walmart provides to its employees to retain its employees. List and discuss two additional sources of job satisfaction that may help Walmart retain its employees.

In order to retain Walmart should pay their employees accurately.For it is difficult to Watson to pay competitive salaries because the funds are low and budgets are tight, they should calculate the cost to replace employees. It can cost as much as 30 percent to 50 percent of an entry-level employee's annual salary just to replace him. Employees often find they can enjoy a 10 to 20 percent salary increase by simply moving from one company to the next, which makes jumping ship attractive.
They should also create an image again.Walmart should apply the specific factors consisted of two bundles of practices: HR factors (e.g., person organizational fit, remuneration, reward and recognition, training and career development, challenging job opportunities) and Organizational factors (e.g., leadership behavior, company culture and policies, teamwork relationship and satisfactory work environment).

iii. Evaluate the importance of employee retention to organisations like Walmart. Support your discussions with relevant examples.

Walmart can retain its best employees and hence maintain a lower turnover if they will going to build their good image again.
Employees will become efficient and productive if they are satisfied and stay in Watson for the long time.
Some clients has a good working relationship with the people who stayed in the Watson for the long time.

Assume that you are a human resource manager of a 5-star international resort chain operating in a South Pacific country. Your resort CEO recently assigns you to hire one hundred housekeepers and waiters for your chain of hotels. Besides personality tests, discuss three other selection measures you could use to select your targeted employees. Justify your choices with relevant examples.

For me I will do the following:

Ability test
It is very important to see if really the employee has a skills and ability to do the job in a 5 star hotel because this entity is very much concern with total quality management therefore their employees should showcase their individual ability to know well their ability for their future duties.
This assessment method helps in knowing more about the employee in a direct way.
Ability test include the following:
1.Verbal abilty

2.Reasoning Ability

3.Mathematical Ability

4.Reading Ability

5.Ability to do their skills based on their applied positions.

2.Knowledge about job test

This test is use to know if the applicant has a knowledge about the application of his work.
It describes the ability of an employee in knowing about the job which he is interested to work upon. Such tests include the traditional pencil and stencil test.
These tests cannot be used in a situation wherein an employee has to be trained after being selected. It works only on persons who have got to be selected and trained upon in one go.
3.Situational tests:

This test determine how an individual will react in a given situation undergoing in a company.
I will going to present a single situation and I will let the employee determine what to do in the situation or how they will handle the situation.

Imagine that you manage human resources for a small business in your country. You have recently prepared a report on the market rate pay for salespeople. The company management disagrees with you and states that your calculations are well above the prevailing the market rate. The management further state that the company cannot afford this level of pay and such pay scales would cause salespeople to earn more than most of the company's managers.

As a HR manager, you still insist paying your salespeople on the newly calculated market rates. Discuss three possible measures the company might take to help resolve this conflict. Support discussion with appropriate examples.

I will going to present to the salespeople the decision of the body, that the company cannot afford to pay them the rate that they are expected or else if the company will give it to them it might be the reason that the company will close or bankrupt. I will explain to them that they should give their concern to the company during this difficult time and we can request it again if the situation of the company become okey. If we will going to insist maybe compay will close and we will lost our company and the job.

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