An HR manager is the liaison for the sales department at an organization with roughly 600 employees. Recently the organization had a slight downturn in revenue and profit. To save money, over the past year, the sales department's senior management has laid off several administrative assistants and assigned their work tasks, such as photocopying and processing sales orders, to the sales staff. Additionally, the department has modified its compensation system by reducing base pay but increasing sales commissions. The HR manager believes that the additional work duties and new compensation system have put substantial stress on employees. It's been observed that employees seem dissatisfied with their jobs and are leaving the organization or thinking of leaving. One recently departed employee told the HR manager that he had looked for a new job because the increased workload caused him to make fewer sales, thereby significantly reducing his salary.
The HR manager brings their concerns to the vice president (VP) of sales. The manager tells the VP that he is worried about the effects of these changes on the department, such as high turnover and the loss of institutional knowledge. The VP disagrees with the manager; he believes that turnover is good for the department because poorly performing employees are leaving. The VP notes that one employee comes in late, leaves early, and takes a long lunch break every day. The VP believes that the recent changes to compensation save the company money by not employing administrative assistants and motivate sales employees to work harder by focusing on sales commissions. The VP tells the HR manager to ignore employees' complaints and focus on hiring new employees who are willing to take on the additional tasks and work harder.
Which approach is most effective for the HR manager to use to resolve his disagreement with the vice president of sales?
A CEO assigns employees to participate in fund-raising for a nonprofit school for students with learning disabilities. The company provides time off and covers the employees' expenses. Employee contributions and school accomplishments are communicated in newsletters and at annual meetings. How could this attempt at community involvement be improved?
The HR department in a musical instrument company is struggling to support the company's rapid growth. The company, which started as the home business of a casual musician, logged $17 million in sales last year. The HR department has hired additional team members over the years but hasn't changed its structure since start-up. All HR team members currently function as generalists, doing whatever it takes to support the company.
The organization now consists of multiple store franchises. Each store has a sales department, a service and repair department, and a department offering music lessons. This initial product and service offering was followed by instrument rentals and later the acquisition of a publishing company that specializes in learning guides for new musicians and music teachers. The company's newest effort, the production of their own brand of mandolin, is recognized by most of the senior leaders as a high-risk effort but with the potential for a profitable high-margin instrument being added to their product line.
With the rapid growth and expansion, the CEO is becoming increasingly concerned about quality and has made it clear that the entire corporation is to prioritize quality and efficiency while maintaining focus on the strategic plan.
What is the best course of action the HR leader should take to determine how to structure the HR department to support the needs of the growing business?