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WeaveTech High Performance Change Case Solution
Johnson-Ware was purchased by a private firm using the equity in 2007, and CVX partners rebranded the firm Weave Tech immediately after its takeover. The firm makes fire-resistant suits, vests, and garments for military use. Weave Tech hired Frank Jennings as Vice President of Human Resources in 2010. In the first 2 years, Jennings was only largely involved in HR operations. The top executives routinely brought him into strategic planning sessions. He recently learned that the corporation intends to modify Weave Tech's client base. They intend to transition away from defense and security clients into the high-end fashion industry. To execute the plan, the CEO intends to lay off 20 percent of Weave Tech managers because the company has to grow and replace the existing management who fail to fulfill the company's competence requirements. Jennings is requested to provide a proposal to assist the corporation in executing this challenging strategy.
Following questions are answered in this case study solution:
What type of employee relations issues might WeaveTech anticipate during a workforce reduction?
How might downsizing affect employee engagement and retention?
What method would you use to implement an immediate downsizing?
How does downsizing conflict with the psychological contract that previously existed at WeaveTech?
Describe a complaint management procedure that ensures that employee issues are heard by management?
Describe a supervisory training program on conflict resolution that would be applicable to WeaveTech?
Case Study Questions Answers
1. What type of employee relations issues might WeaveTech anticipate during a workforce reduction?
WeaveTech might experience a number of problems with employee relations during a workforce decrease because there is a significant chance that unfavorable feelings will develop. The adjustments in the management personnel were required, since WeaveTech has a huge requirement for experienced workers to handle difficult and technical duties. By employing highly skilled workers, the company saved the money that could have been spent to hire extra services to handle the complexities. As a result, the company considerably reduced the headaches associated with hiring new staff. Instead, it looks for applicants with a variety of skills and substantially raises their salary.
The fact that the prior employees lost their jobs as a result of the staff turnover, which had a negative impact, made it obvious that the action sent the wrong message to the community.
Due to the fact that the more experienced employees were more familiar with the inner workings of the company than the new hires, their trust also decreased. It may become challenging to hire new employees as a result of the deterioration of a trustworthy environment, which will force highly skilled potential employees to seek employment at other reputable companies. It is without dispute that the staff replacement was carried out in a hasty manner, which is detrimental to the company's reputation and the trust of both present and potential employees. The goal to reduce management staff by 20 percent by the start of 2014, which was given in October 2013, is in opposition to the section of the company's mission that reads that they are committed to the well-being of their employees.
2. How might downsizing affect employee engagement and retention?
The employee's primary concern is always whether they would be affected by downsizing or suffer as a result of it. Downsizing can have a negative impact on employee productivity, engagement, and retention. Employees might feel misled and neglected. Their faith in the company will be affected, thus, making it difficult to maintain in the future. Changes to the work environment will result in more employee absenteeism and lower productivity in the long run.
In the worst-case scenario, employee engagement will plummet, and the company's operations may cease. If the employees' trust in the organization is not maintained, the company will struggle to retain its personnel, as they will consider moving on to more secure jobs. The potential employee who might be considering working for WeaveTech will now be cautious about proceeding with their decision. In this instance, the organization will lose highly skilled employees.
As a consequence of downsizing, remaining staff will contrast their current situation to the opportunities they had before and what they perceive they could gain otherwise. Several staff individuals might imagine themselves lucky to remain employed and might be dedicated to help the firm prosper. Whereas, others might feel resentful of their company because they did not receive an increase, for instance, and may decide to file a lawsuit. Employee retention and engagement rates may fall so low when their trust is eroded that rival companies may gain from hiring exceptional ones. If downsizing affects WeaveTech staff, competitors will capitalize on the blunder and hire the talent.
3. What method would you use to implement an immediate downsizing?
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