As a senior manager for a global player in automobile productionand sales, Kirby Ellis had joined thousands of fellow employees inthe excitement surrounding production of the companyâs new hybridvehicles. But barely two years into production, embarrassingcomponent shortages, delivery delays, and a recall of the firstmodels had a ripple effect, presenting the company with mountingconcerns. In the confusion, many customers canceled orders andturned to competitors for purchase of the eco-friendly vehicles.Ellisâs company was facing a financial downturn. With three decadesof service to the company, Kirby led a contingent of managersintent upon keeping together as much of the company and as manyemployees as possible. âWe know there will be some necessary cuts,âKirby admitted. âBut this company has a long history of sticking byits people. Our first priority should be internal streamlining ofhow we do things and making sure we have the right people onboard.â Many managers liked what they heard from Kirby. He was wellrespected and had an unequaled reputation for his leadership andcollaborative skills and his ability to work with managers, as wellas line workers on the factory floors. People marveled at thenumber of individuals he knew on a personal level throughout thecompany. Drew Cunningham influenced a second contingent within themanagement group. A brash go-getter with a reputation for fixingcompanies in crisis, Cunningham proposed across-the-board cuts inemployees in order to implement a solution as quickly as possible.He proposed the immediate creation of a forced ranking system inorder to identify and get rid of lower-ranking employees. Kirbyraised his hand and rose to his feet in objection. âSo weâre goingto create a system to fire â¦â âI didnât say fire â¦â âOK, cut ourown hard-working people? It sounds like some lame governmentcommission,â Kirby said. âWeâve got bright people. This thingsimply got worse faster than we thought. We can work with thepeople we have in setting up more efficient workflow, establishingreasonable deadlines to increase output and â¦â âKirby, these arenot the days of knowing everyone in the plant,â Drew said. âYouârenot throwing out your wifeâs uncle Harry. We are taking a seriouslook at what we do, how we do it, and streamlining everything bykeeping the right people in the organization and cutting therest.
1. What kind of employee social contract is assumed by Kirby andCunningham?Explain.
2. If you were an HR manager at the company, which view wouldyou support? Why?.
3. HR department hire and develop human capital tp serve theorganization's strategy and drive performance. Which approach-Kirby's or Cunningham's-is more likely to have a greater positiveimpact on performace? Discuss
As a senior manager for a global player in automobile productionand sales, Kirby Ellis had joined thousands of fellow employees inthe excitement surrounding production of the companyâs new hybridvehicles. But barely two years into production, embarrassingcomponent shortages, delivery delays, and a recall of the firstmodels had a ripple effect, presenting the company with mountingconcerns. In the confusion, many customers canceled orders andturned to competitors for purchase of the eco-friendly vehicles.Ellisâs company was facing a financial downturn. With three decadesof service to the company, Kirby led a contingent of managersintent upon keeping together as much of the company and as manyemployees as possible. âWe know there will be some necessary cuts,âKirby admitted. âBut this company has a long history of sticking byits people. Our first priority should be internal streamlining ofhow we do things and making sure we have the right people onboard.â Many managers liked what they heard from Kirby. He was wellrespected and had an unequaled reputation for his leadership andcollaborative skills and his ability to work with managers, as wellas line workers on the factory floors. People marveled at thenumber of individuals he knew on a personal level throughout thecompany. Drew Cunningham influenced a second contingent within themanagement group. A brash go-getter with a reputation for fixingcompanies in crisis, Cunningham proposed across-the-board cuts inemployees in order to implement a solution as quickly as possible.He proposed the immediate creation of a forced ranking system inorder to identify and get rid of lower-ranking employees. Kirbyraised his hand and rose to his feet in objection. âSo weâre goingto create a system to fire â¦â âI didnât say fire â¦â âOK, cut ourown hard-working people? It sounds like some lame governmentcommission,â Kirby said. âWeâve got bright people. This thingsimply got worse faster than we thought. We can work with thepeople we have in setting up more efficient workflow, establishingreasonable deadlines to increase output and â¦â âKirby, these arenot the days of knowing everyone in the plant,â Drew said. âYouârenot throwing out your wifeâs uncle Harry. We are taking a seriouslook at what we do, how we do it, and streamlining everything bykeeping the right people in the organization and cutting therest.
1. What kind of employee social contract is assumed by Kirby andCunningham?Explain.
2. If you were an HR manager at the company, which view wouldyou support? Why?.
3. HR department hire and develop human capital tp serve theorganization's strategy and drive performance. Which approach-Kirby's or Cunningham's-is more likely to have a greater positiveimpact on performace? Discuss
