CASE STUDY

Case Study: The Calletta Corporation



Case Study: The Calletta Corporation

Requirement 1: Identify three key business issues facing Jan, Calletta's CEO

Growing cost of HR

Chief executive officer of the company is facing the challenge of growing cost of HR workforce, and this issue is also raised by the directors of the company. The cost of employees is increasing at the rate of 12%, which is almost 8% higher than what industry is paying. However, at the same time company requires most talented workforce to be innovative in the industry, and gain competitive advantage as said by the vice president. Due to a rapid increase in employee cost, the board members are demanding that Jan seek ways to decrease employee cost before approving any future plans. As a result, Jan is forced to choose between HR vice president John Nomas practices or the board of directors who effect affects her maneuvering power for future plans.

Plants in Mexico and Vietnam were becoming targets of activists

At the same time, the plant of the company situated in Vietnam and Mexico are at the target of activities who are demanding that the company should make the working condition better meet the criteria that are being followed in the United state. However, in the time when company is concerned with the increasing cost of its human resource it seems difficult. The plant in Mexico and Vietnam is constructed to acquire cost competitiveness; if company invests in making the working condition at the standard of practices in United States then it will lead an increase in cost of goods manufactured.

Slowing financial returns

Shareholders are restless as financial returns slowed because who bought the stock of Calleta as the Radio Frequency Identification (RFID) manufacturer led the boom in new uses for its products. The decrease in the investors' confidence can lead the company to fund raising difficulty, which can harm the operation and liquidity of the company.

Requirement 2: Discuss the ways that Calletta's HR operations are contributing to the company's success.

HR operation at Calletta can be approached in two fundamentally different ways. Human resources employees can fill purely administrative roles, merely facilitating the paperwork involved for tasks such as hiring new employees and handling workers' compensation insurance. HR employees at Calletta can become strategic contributors to company success. One way HR operation is contributing company's success is transforming the HR function into a strategic contributor that can take the workforce strategies to the next level, increasing the value of human capital to accrue distinct competitive advantages (Ulrich, 1997).

Strategic human resource management is all about creating a competitive advantage through a company's workforce. Employing dedicated, knowledgeable, motivated and well-trained employees can increase efficiency and productivity of Calletta in operations, as well as enhancing product quality and the customer experience (Smith, 1995). At Calletta, HR managers are concerned with hiring employees with high potential for professional growth, then giving employees ample opportunity to learn and grow in their job roles. Developing employees with top-level expertise in their fields can grant access to ...