The New Director of Human Resources

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of Braxton’s behavior?

 Considering the local law, probably following legal ramifications could be derived of Braxton’s behavior:

a. Johnson can file against Mount Ridge at the labor court.

b. Mount Ridge would be liable to compensate Johnson and even replace him at work.

c. Braxton could face the court, and (if in law) take jail sentence or other consequences.

5. Describe Mount Ridge’s business strategy. What is the relationship between its business strategy and its human resources practices?

 Mount Ridge has small efficient power generating plants and industrial plant. It sells the steam to industrial plant and the electricity to local utilities. It operates the business with cost leadership business strategy which aims to offer cheap price by minimizing the production cost.

Human resource was framed in Mount Ridge to develop necessary human resource programs, plans and policies needed to staff the plants once they were operational. The HR director Newcombe developed employee benefit package for corporate office and plant staffs, employee handbook, job descriptions, salary program, supervisor’s manual and basic personnel policies that would fulfill basic requisites of human resource aspect in an organization. HR Director Newcombe is the vice president of company now. Although the president of Mount Ridge relates business success with employee satisfaction, the incident shared about Johnson from the plant doesn’t match. The company has gained success in short time span and is expecting more expansion in few years. The company’s success and strategy of being cost efficient has somehow created a gap with human resource practices. The organization structure does not have a VP for plant yet as it has for Human resource. HR seated at the corporate headquarters is unaware of the activities happening in plant area. Even the management is less concerned as the business has been successful.

In contrary, the relationship between the strategy and HR at Mount Ridge is not fully integrated as a part of the success of the company which can lead to adverse human related effects as the expansion continues or business gets matured.

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?

 The growing difficulty in balancing the good quality of life and attractive benefits to employees to remain nonunion will be the biggest challenge company faces as it expands. The underlying fact that plant management is not strong and abiding policies, it creates further opportunities for employee’s dissatisfaction and likelihood to be united to step ahead together. Formation of union will be most difficult for Newcombe. She will not be in position to make or allow managers decide on hiring/firing employees as union will demand thorough documentation and clarification for each activity related to employee, mostly employee dismissal. Employees responsible for task other than described in job descriptions will seek higher wages and compensation. Promotion requirement will also increase. There will be strict demand for at least following solutions in HR.

a. Company code of conduct and ethics

b. Corporate code of conduct and ethics

c. Plant code of conduct and ethics

d. Transparent recruitment and selection process

e. Employee training and development team and program

f. Employee performance appraisal (yearly or half yearly)

g. Revision of organization structure with specific structure focused on development of plant (example: VP Plant, with plant managers directly reporting to the VP Plant)

The major challenge will be to meet the expectations of employee adhering to the business strategy of being cost efficient. It is therefore recommended that Newcombe starts looking at the future risks today and make plans.