Woodcorp Corporation Case Study

HN1230 HUMAN RESOURCES

CASE STUDY 1

Due: December 1, 2014

Table of Contents

Introduction -------------------------------------------- Page 2

Problems and Effect on Organization ----------- Page 3

Alternatives -------------------------------------------- Page 4

Recommendations ----------------------------------- Page 6

Conclusion --------------------------------------------- Page 10

INTRODUCTION

Woodcorp Inc. is a manufacturing company specializing in custom-made original design office furniture. The company’s main clientele is situated in downtown Vancouver.  Woodcorp Inc. has been in operation for 35 years and has 150 employees. Woodcorp Inc. is a public corporation and has also been listed on the stock exchange for the past 10 years. During these 35 years the company has experienced a lot of growth and has retained many dedicated employees. However, in the next three years there will be many of our key employees retiring. This presents a challenge to the Human Resources Dept.

HR has already begun the task of management succession but we still face the challenge of a shortage of qualified finish carpenters. There has been a three-year succession plan developed. The major points include hiring a replacement for the General Controller, appointing a new Manufacturing Director and addressing the shortage of skilled trades workers in the province of British Columbia.

Another issue that came out of this three-year directive is the company’s job descriptions. They are outdated and need to be revised. The CEO of Woodcorp Inc. has also indicated that testing for all new hires should be implemented and evaluation of the recruitment and selection process should be done. HR also needs to look at the type of interviews required and the legalities involved.

PROBLEMS AND EFFECT ON ORGANIZATION

Problems to be identified:

• In a period of 3 yrs. there will be a significant reduction in top level management due to attrition – retirement.
• There will also be a number of plant employees up for retirement as well.
• We have had difficulty in finding qualified artisans for the plant.
• In the upcoming year the CEO’s right hand man, the General Controller, will be retiring.
• The manufacturing director has been with us for 30 years, so the director will eventually look at retiring.
• We have to decide out of the five employees who can replace the manufacturing director, which one would be the best candidate.
• Due to a shortage of skilled workers we must look at recruiting and retaining capable carpenters who are skilled in technical carpentry skills as well as finishing skills.
• Our job descriptions are 10 yrs. old and need to be updated.
• Testing for new employees will be implemented.
• The recruitment and selection process needs to be evaluated.

The company is affected by these problems as follows:

• Loss of knowledgeable workers.
• Inability to attract technical and knowledgeable workers.
• Inability to attract skilled artisans.
• Productivity is affected when the company is unable to obtain these workers.
• Employee dis-satisfaction when new hires are brought in from the outside.
• Employee morale may be affected when employees are promoted from within the organization.
• The loss of key employees such as the General Controller has the ability to affect the smooth operation of the company, as it is a public corporation. Shares may go down if we are unable to replace this key employee.
• Outdated job descriptions make it difficult to attract the right workers for the company.
• Costs associated with job recruitment.
• We need to consider the legal aspects of recruitment.
• Woodcorp is on a tight time frame to replace the General Controller because the General Controller is the CEO’s right hand person.

ALTERNATIVES

In our detailed success plan we prioritized the following:

• A replacement for the General Controller (urgent).
• A replacement for the Manufacturing Director (less urgent).
• Within the next three years there will be a significant loss of essential employees at Woodcorp.
• There is a shortage of skilled workers available due to a growing economic boom in Alberta.
• The development of new job descriptions.
• The implementation of testing for new hires.
• The recruitment and selection process such as the type of interviews to be used.
• The legalities that need to be considered.

The first task at hand is to hire a replacement for the General Controller. The position has to have very specific requirements. The General Controller is a key position within Woodcorp and the CEO depends on this knowledge to keep Woodcorp operating efficiently.

We are fortunate to have five employees interested in the Manufacturing Director’s position. The right candidate will be chosen from the applicants and we will begin the training process.

The downside to hiring outside the company is employee dis-satisfaction and low morale. Woodcorp needs to promote employee engagement in order to retain the excellent workers we have in our company. We can implement incentive programs to retain our current workforce. A furthering education program would be beneficial to both our employees and the company. If any employee wishes to take advantage of this program they must commit to staying three years with Woodcorp or repay the costs associated if they are unable to keep their commitment. The con associated with the education program is it is very costly to the company and the shareholders.