Sharad Chandra Pyakurel EMBA Fall, 2012

1. Discuss the relationship between corporate human resources structure and operations at the plant level. What impact, if any, did that relationship have on the situation described by Newcombe? The corporate human resource has limited access at the plant level. The human resource department at the corporate have developed human resource tool for the entire company, but it was back to address human resource issues at the plant level. There was no effective communication between human resource department at the corporate and the plant level. There was need of human resource department at the plant level but corporate office was failed to address this issue. Plant supervisor has right to recommend human resource department about the salary increase and promotion of the plant employees. The basic philosophy of the company is to value its employees as much as its clients, management was committed regarding this philosophy but its implementation at the plant is not becoming successful. The human resource department has developed employee handbook as well as supervisors manual but operation in the plant was not happening according to the rules and guidelines provided by the corporate human resource department, many of plant supervisors were functioning indiscriminately. This relation has negative impact on the situation described by Newcombe. If there were human resource department at the plant level Bud Johnson need not had to ask for raise and promotion because human resource department would evaluate the performance and decide independently. Newcombe has also realized; plant supervisors are not following the company policy. Johnsons performance was extra then his job description, he was quick learner, dedicated to work, was performing equipment operators job. But his supervisor denied his increment even after talk; his supervisor had no rational reason to deny his promotion. Besides supporting Johnson, Larry Braxton manipulated the reason of termination of Johnson by stating that he left to take another job which was not true. The company wants to remain nonunion, but if this kind of discrimination by the plant supervisors continuous it is difficult to maintain this objective.

2. How should Newcombe have handled this situation? As a vice president of human resource department, Newcomb was responsible for analyzing and responding all the human resource related issues. Being a responsible Vice President of Human Resources, she needs to know what may be the reason behind resign of Mr. Johnson. As Johnson has informed her that the reason mentioned by Braxton is incorrect, she has to

Sharad Chandra Pyakurel EMBA Fall, 2012

take steps to handle the situation prudently. She should have monitored HR activities at the plant level frequently. She could have conducted employee satisfaction survey in some regular intervals in every plant, at-least yearly. If she were pre-informed regarding employee satisfaction at the plant, this situation would have rarely occurred. If the situation in fact occurred, first of all she would ask Braxton for clarification regarding Johnsons allegation. She should hear from the both sides Johnson and Braxton. She has to investigate the issue. If the johnsons claim was true, she should have taken corrective action against Braxtons misdeed. If Johnson was really eligible for promotion, he definitely should have promoted to equipment operators position, and she should have taken some action against Braxton too. The communication system between corporate human resource department and the plant level seems not good. There should have proper communication system so that any employee could directly report his issues to the corporate HR department.

3. What, if any, disciplinary action should have been taken against the plant superintendent (Braxton) at the time of the incident? Before taking any disciplinary action against plant supervisor, she should have investigated the problem properly. If Braxton is found guilty, she could warn him for the first time. It also seems that plant supervisor have lack of knowledge on human resource related things, so she could conduct training program for plant supervisors regarding human resource policies and government regulations. In many of the cases changing roles, transferring in some other department or location works, for Braxton it could be done as disciplinary action. If similar types of incidents repeated by the Braxton even after warning, company can suspend him because he knowingly violated the important company norms and rules. 4. If Johnsons allegations were true, what are the legal ramifications of Braxtons behavior? For the company it would be very serious problem, if Johnsons allegation were true. To sign Johnson an empty form is itself illegal. Asking employee to sign empty form and manipulating information indiscriminately is criminal activity. In this case legal action

according to the law can be taken against Braxton. Johnson and the company would appeal to court according to employee right against Braxton for forcing to sign an empty form and manipulating the information.

Sharad Chandra Pyakurel EMBA Fall, 2012

5. Describe Mount Ridges business strategy. What is the relationship between its business strategy and its human resources practice? Mount Ridge has cost leadership business strategy. Maintaining the low cost production for gaining competitive advantage was the main strategy of the company. To achieve this objective efficient production and providing competitive salary to employees was the main concern, but there was a constraint that employees salary should not be very high so as to attract employees from customers. For becoming cost competitive its strategy is to reinvestment of profits for future plant expansion and can sell energy to the utilities. In addition, its strategy is to remain nonunion by offering employees a good quality of work life and attractive benefits. To successfully implement these strategies, human resource practices plays a critical role. HR department should maintain trustworthy relationship with industrial and utility clients to remain competitive and progressive in business fraternity. Also, internal employee relationship should also be taken care of to maintain an enjoyable and productive workforce for the future. Issues of each employee should be addressed quickly and effectively. Effective human resource practice is important to implement the followed strategies and achieve organizational goal.

6. What strategic human resource issues will Newcombe likely face as the company expands to the Northeast? How might this expansion affect the structure of the organization and its human resource department? With the increasing number of plant and employees, the vice president of human resource department is more likely to face various strategic human resource issues. As there is demand of plants in different states of Northeast, Newcomb is likely to face various human resource issues. It has been estimated that employees will increase to 650 over next two to three years. Newcombe is likely to face issues like: recruiting and selection of employees, job analysis and establishing chain of command, it is very challenging to identify right people for the right position and place. Company had the primary focus on staying nonunion, but when the number of employee's increases, expectation of each individual employee will also becomes high. To fulfill their self interest of individual, they form the union to put pressure on management which is more difficult to stop.

Sharad Chandra Pyakurel EMBA Fall, 2012

Apart from the federal law, each state has different rules and regulations in United State. When the company wants to expand its plants in different states, it also should follow rules and regulations of each state. It could be difficult to manage human resource according to the rules and regulation of particular state.

As the demand for cogeneration plants is strong in different states, business will obviously be high in near future. Along with business expansion, number of employees also increases and is expected to increase to 650 employees over next two to three years. Increasing the number of plants and number staffs, definitely the organization structure becomes larger. To manage more employees human resource department also should be large enough to address issues of all employees. Structure of the organization need to be revised and different positions should be created too. As employees are the biggest asset, issues related to them should not be undermined. So, human resource department should plan and operate effectively to address issues of employees. There will be need of effective communication system from plant to the corporate office. If it is not implemented there will be gap on communication between plant employees and corporate human resource department and high probability of information modification as mentioned in Johnsons case. Every company policies and information should be accessible to the employees; every employee must know it and should follow accordingly. There is need of timely revision of employee handbook and supervisor manuals as needed. There might be need of regional human resource department; it might increase cost of company.