BP&S Case Analysis

8/19/2019 BP&S Case Analysis

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TRINITY UNIVERSITY OF ASIA

COLLEGE OF BUSINESS ADMINISTRATION

CASE ANALYSIS

Human Resource Management

Business Policy and Strategy

A.Y. 2014 – 2015

Gerald Jader

Ronald Flores

Airi Imamura

Lee Ann Espiritu


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Case Analysis: Human Resource Management | 1

PROBLEM ANALYSIS

Jamieson Drugs, Inc. is one of the top pharmaceutical companies in the country and

has been in the industry for more than 25 years. Along with the company’s coping with the

demands and expectations from their customers to maintain its position in the industry is a

significant turnover of its sales personnel. The turnover can be traced from better

prospects, dissatisfaction, career growth and leading a family life – which, later on, stem

further.

Sales personnel form the major portion of the company making up sixty percent of

the key positions and identified to be the income generators. With significant turnover, the

sales of the company are affected to which it decreased by two percent and workloads of

incumbent sales personnel became heavy since they have to fill in those who have resigned

– therefore, employee performance depletes. To settle vacancy, the HR department hires

new employees at which they are able to employ 150 individuals in just a year. However,

these don’t make the scenario even better. Hiring a number of employees in a year to which

their number exceed almost twice of the tenured personnel would mean inefficiency in

hiring because most probably these people are hired for the sake of keeping up its

manpower without a complete regard to the qualifications demanded by the position.

Hence, it only contributes in the decline of sales as evidenced by inefficient product

detailing among hospital administrators, clinicians and doctors.

With these problems on hand, Jamieson Drugs is looking into outsourcing its

recruitment processes to Manpower Magnate. Manpower Magnate is relatively new in the

outsourcing industry and maintains an account with a multinational firm, the first in its

recruitment line. Jamieson Drugs has not yet received any feedback regarding the

performance of the outsourcing company and confidentiality of its (Manpower Magnate)

client is maintained; instead, they only relate that they possess an excellent track record in

outsourcing. The problem here rises in the unfamiliar identity of the company should they

be worthy of risking especially if the assignment would be the recruitment for sales

personnel.


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PROBLEMS AND ALTERNATIVE COURSE OF ACTIONS (ACA)

PROBLEM 1: Significant turnover of sales personnel

The value and importance of employee are often underrated and neglected to be

seen by managers as valuable assets of the company – as in the case of Jamieson Drugs

evidenced by better prospects, dissatisfaction, career growth and leading a family life as

the reasons for resignation of sales personnel.

Employees are drivers of a company to which they put any strategic plan set by the

management in action – with the management overseeing the operations to ensure the

business succeed. Without these employees, business would be paralyzed.

Employees have valuable knowledge and skills that contributes to the success of a

business. Although automation can be utilized to save costs, nothing can replace the

exceptional knowledge that each and every employee has especially for industries where

public relations is considered to be essential in generating sales. The significant skills that

employees have add worth to a company and these employees are worth keeping.

ACA 1: In order to address this problem, Jamieson Drugs should create an

inclusive workplace in which employees will have the sense of

belongingness. Employees need to feel that they are valuable to a company.

Develop programs that would promote teamwork and sportsmanship, and

boosts employees’ morale. Support career growth and development among

employees. Give them trainings and development programs that will further

enhance their technical skills and abilities to produce better performance. In

this way, employees continuously learn and realized that they are of great

value to a company.

ACA 2: A low cost solution to high cost turnover is retention. HR

professionals estimate that it costs nearly 1.5 times the employee's yearly

salary to lose them. Avoid a high turnover rate by proactively recruiting and

retaining your employees. Keep employees engaged and belonged to prevent

them from becoming bored and losing interest in their work. Seek ways to


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keep the job interesting and fresh. To keep talented employees, compensate

adequately. Also spend time to mentor, train and advance the staff. Keep the

lines of communications open and build trust from the current employees.

ACA 3: Invite people who fit in the company's culture and allow those who

don't fit to leave. There are many ways to solve the turnover problem but

these only give temporary fix. To get concrete, positive and long-term results

the company must assess its corporate culture. If the organization is very

clear about the kind of culture they want to work in and communicates that

clearly to the employees, it will show up in the hiring process. As a result,

right kind of people will be invited to the organization. Right from the

beginning they would feel significant. On the contrary, turnover can be agood thing. There are employees that prefer to exist in organizations where

everything is not so clear and they can spend a lot of their time complaining

and avoiding work.

Recommendation: ACA 1 and ACA 2 are highly recommended because keeping the

employees is very important. Before the company can fix the external problems, internal

problems must be prioritized first. Prevention is better than cure. Current employees must

be prioritized first and should always be because they drive the company towards either

success or failure. Once internal problems are fixed and resolved, fixing external problems

will be easier for the company. Eventually, the company will return to their normal

operations.

PROBLEM 2: Inefficient recruitment

Recruitment process is the method that an organization uses to fill vacancies and

hire new talent. Vacancies should be given to qualified applicants – following the demands

set for a specific position – and not to those who just bother to apply for the sake of getting

employed.


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It is essential that organizations put time and resources into developing an effective

process for bringing in good employees. By not properly screening job candidates, an

organization wastes resources through training an employee that will not stay or by being

stuck with an employee that is not productive. The process must also make clear to the

candidate what he or she can expect should the job be offered; it may be that a highly-

qualified candidate may not want to take the position after all. An unsatisfied employee is

also not as productive.

ACA 1: In order to call a hiring process efficient, the company must invite the

right people in the first place. It is important to screen all potential hires

carefully. Getting to know if the person is a good fit to the company's

workplace culture should be concentrated taking into consideration the workexperience, educational background and skills. Also, a thorough background

check shall be performed before a final decision is made. A series of skills test

should be outlined with the department heads to determine if a candidate

meets the criteria for a post.

ACA 2: In order to avoid employee turnover costs and find talented

candidates who are willing to become loyal employees, the company must

consider employee referral. Employee referrals are the number one source of

external hires. Referral is also beneficial to new hires' culture fit. In addition,

employees can benefit from the incentives attached to internal referrals.

There will be higher production of employees who are productive and have

higher retention rates.

ACA 3: Most job seekers exploit job portals and job fairs for chances of

landing a job. The company should make use of these channels in search of

qualified individuals. These channels provide for a wider reach of job-

hunting people; hence, more chances of getting the most fit for a post.

However, the company should only join recruitment activities (job fairs)

based on the setting and its audience. Job fairs setting where most of the


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applicants are newly graduates would not fit for a company who is looking

for seasoned applicant.

Recommendation: ACA 2 and ACA 3 are considerably acceptable but ACA 1 has the

greater preference. Implementing a hiring process that would result in getting the most

qualified for the job is important especially if the position is relatively in connection with

the income generating unit of a company. The company can select the best of the bests that

they need with good hiring process in place.

PROBLEM 3: Outsourcing may lead to loss of managerial control

The very first challenge that companies are likely to experience when embarking on

outsourcing certain functions, is that of a possible lack of buy-in from people inside the

company, which may take the form of active or passive resistance; create the desire for

“special treatment” or opt out from the outsourcing services, and result in business case

deterioration. The prospect of outsourcing also creates uncertainty for existing employees,

who may decide to look elsewhere for employment.

Whether you sign a contract to have another company perform the function of an

entire department or single task, you are turning the management and control of that

function over to another company. It is true that you will have a contract, but the

managerial control will belong to another company. Your outsourcing company will not be

driven by the same standards and mission that drives your company. They will be driven to

make a profit from the services that they are providing to you and other businesses like

yours.

ACA 1: The best way to address both these problems is to implement an

effective change management strategy as soon as the outsourcing contract

has been signed. A comprehensive communication program should be

developed and disseminated to all stakeholders who will be affected by the

outsourcing process. The message should be personalized for different levels


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Documents

BP&S Case Analysis