Abstract Science Construction’s business is in planning, developing and building road projects. The major of its clients are municipalities, city governments, and other public sector entities. While the bankruptcy rates for these clients is very low, when economic downturns happen, their ability to pay in a timely fashion also suffers. This leads to businesses such as Science Construction needing to take on additional debt and to find creative methods in order to stay afloat during times of recession. Methods such as selling accounts receivables at discounted rates and taking larger lines of credit through banks and other lending institutions are some of the ways organizations can remain viable when their cash inflows have turned into a trickle. Science Construction is asking the Turkish Courts to postpone their bankruptcy proceedings for a year while they attempt to restructure. Through this, suggestions such as forcing shareholders to pay their debt to the organization, gaining credi...
Abstract
The case of this assignment has highlighted several problems which revolve around economic
recession and probability of employment loss. Retrenchment , ethical dilemmas, among many
others, are revealed in the given case study of the company, with Jason as the manager, and his
employees, Brad and Kerry, as the engineering officers. However, in terms of human resources,
the problem identified is insufficient human labour during periods of economic recession.
Introduction
NewBuild is a construction and architectural design company that was founded in 1909. Like
every other construction company that existed during the great world economic recession in
2008, this company experienced some economic dilemmas as the results of the 2008 global
economic recession. Before this period, this company has enjoyed conservative and steady
growth since its establishment. According to the given article, this company had no long-term
debt and held substantial cash reserves with which to withstand a long term economic decline.
The company mission statement was built around customer delight, high integrity, and
dedication to each of its employees development and growth. The economic dilemmas of 2008
have resulted in a situation when the company has to make a decision on which of its newly
hired engineers to keep and which among them to let go. According to the given article, Jason
has been a project manager in NewBuild for the last six years, since he joined the company as a
part-time associate. Through hard work, he has grown through the company to become a project
manager with over ten engineers to look after. Jason is responsible for managing both Brad and
Kerry, as the company is deciding their fate with the company. Jason had to make a decision of
which of the two employees, Brad and Kerry, to be assigned to the next project, as the project
can only accommodate one engineer. This responsibility is under the purview of Jason as the
team lead and the Head of the Engineering Department. Both of these individuals directly
report to Jason for the period they have been with the company. Sadly, there was a strong
possibility that if the economy continued with this decision, the one not chosen to be on the new
project team could be terminated due to insufficient jobs available to the engineers.
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Identify the problem: Define the problem in Human Resource Terms.
The problem of less and insufficient human labour is caused by the main problem in the case
study which is economic recession. During this time, many employees are subjected to
retrenchment, which later accumulates a lot of work to the company, hence the need to hire more
experts, and hence the problem. Retrenchment is, therefore, a human-based cause of the issues in
this case. The roots of this problem are neither caused by the company nor the management of
the company. Rather, they are caused by the global economic recession that rocked construction
industries and many other industries across the globe. The financial downturn has impacted both
developed as well as developing economies and caused deeper depression due to the increase in
job losses that followed the 2008 global recession.
Diagnose the cause(s): what Human Resource situation(s) created the problem?
As the given article made us understand, the severe recession began in 2008 and was impacting
the commercial construction industry in general. NewBuild planned to spend a significant
portion of its reserves in order to avoid layoffs of its employees through 2010. This should have
been the case before the recession, because both Brad and Kerry are both capable with nine
months experience with the company. The human resource department owns the obligation of
ensuring that the company retains its best employees. The decision of who to keep between
these two employees required a technical evaluation of both of them, notwithstanding the fact
that the human resource did not create the problem of economic recession. But human resources
together with the management would have planned for the unforeseen.
Prescribe Possible Alternatives.
a. Productive employees relations: The given article stated the flaws of both Brad and
Kerry. This shows the way those employees would have acted to improve their
relationship with Jason. Maybe this would have given Jason more understanding about
their abilities and capabilities. So, therefore both employees must create a balanced
relationship with Jason in order for him to be able to have a personal understanding of
each of them.
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b. As the article stated, both Brad and Kerry must learn how to work effectively with their
boss, Jason, in order for them to be able to assess his style of work.
c. Brad and Kerry must clarify goals and expectations with Jason. Although it is a bit too
late it is still doable. This will allow them to check regularly in order to be able to
determine if these change overtime.
d. It is very important for both Brad and Kerry to have determined Jason’s personal
objective. This will allow both of them to ensure that they did not work against them.
e. Open communication: Both Brad and Kerry must adopt open communications with
Jason. This includes asking follow-up questions about upcoming projects and the goals
for the month, quarterly, and annually. The article made us understand that Brad has the
problem of communicating his thoughts and observations. Brad must address this in order
for him to have a good review from Jason.
Apart from highlighting the solutions given in the case study, new solutions can also be noted,
for instance in subjecting both Brad and Kerry to an interview in order to select one of them.
The pros of this approach is that interviews minimize biases hence fairness will be administered.
The cons, however, is that too much work will be left behind for one engineer, be it Brad or
Kerry.
Recommend a plan of action
I will recommend that NewBuild employs more people and the pros is that work efficiency will
be met at the same time and will not be wasted. However, the cons is that this will incur more
costs for NewBuild, which is what company is trying to avoid. As the hired engineers will need
to be paid; hence these difficulties. Therefore, the plan of action is for NewBuild to take its
initiatives and hire a replacement of Brad who seems qualified based on its academic and work
experiences for this proposed work. Hence he is the one likely recommended to be given the
promotion.
The importance and Relevance to a Study of Business.
The company’s employees are its greatest assets and resources. Managing employees well and
providing them with opportunities to help the company achieve its idea and ace the company
business plan (Michael, 2016) is one of the areas this case study is relevant and important to the
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study of business. Secondly, this case study shows how Jason and NewBuild can improve the
company’s bottom line with the knowledge of both engineers. Brad and Karry demonstrate how
their services will affect the company's success if the right decisions are not taken. Managers
like Jason with expertise in employees’ management strategy participate in business
decision-making that underlines the current staffing assessments and projections for the future of
the company. This needs to be based on the current situation of the company.
Based on the case of discussion, the Human Resources management aspects are very useful and
important. If the company has to be able to make decisions based on employees fairness, the
company must apply strategies that are supported by the Human Resources Department, not just
Jason alone (Patrick, 2002).
Conclusion.
In this regard, an ethical dilemma plays out as Jason is in a dilemma, and unsure about who to
select as the promoted engineer to become the engineer for the new project being planned for.
Therefore, despite the fact that interviews may be done to use justice and personal presentations
of the candidates, Jason would still find it hard to select one of them to be the engineers, when
thinking about how the other one would feel. Hence this clearly demonstrates how an ethical
dilemma comes.
Additional resource are:
Glynn Lowth, Malcolm Prowle, and Michael Zhang. (2010). The impact of economic recession
on business strategy planning in the UK companies. Nottingham. Nottingham Business School.
https://www.cimaglobal.com .
Churchill NC and Lewis VL (1984) Lessons for small business from the recession. Journal of
Small Business Management 22(2): 5–17.
Bertola, G, A Dabusinskas, M. Hoeberichts, M. Izquierdo, C. Kwapil, J. Montornes, and D.
Radowski, Price, Wage and Employment Response to Shocks: Evidence from the WDN Survey,
2010.
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Reference:
Patrick Lencioni. (2002). The Five Dysfunctions of a Team: Leadership.San Francisco. Wiley
printing Press.
Michael Bungay Stainer. (2016). The Coaching Habit. Say Less, Ask More & Change the way
your lead Forever. Toronto. Box of Crayons Press.
Glynn Lowth, Malcolm Prowle, and Michael Zhang. (2010). The impact of economic recession
on business strategy planning in the UK companies. Nottingham. Nottingham Business School.
https://www.cimaglobal.com .
Churchill NC and Lewis VL (1984) Lessons for small business from the recession. Journal of
Small Business Management 22(2): 5–17.
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