SHRM Case

Competition

Ashell CobaRoxana Diaz

Dayde MorenoJavier Quinonez

Terence Timmerman

• Background on case

• Organizational Charts

• New Positions/Division

• Introduce new finance, recruiting, and training

process

• Address performance management and

company culture

• Succession Planning

• Meeting and safety regulations

ROAD MAP

BACKGROUND

• Fire & Ice Company (F&I) is a commercial heating and air-conditioning mechanical contractor

• Sales of over $40 million per year– Service comprises about $10 million of gross sales– New and existing construction projects accounts for the remaining

annual sales• Employees about 100 people• The mission of F&I is to offer the best customer service

Bob Cook

CEO & Co-

Owner Karen Cook

HR Manager

& Co-Owner

Maria Rodriguez

HR Director

Key Playe

rs

ORGANIZATIONAL CHART

VP

General Manager

Construction ManagerService Manager

Sales & Marketing Manager

Controller

Herbie Hall

Hamilton LewisConnor GrantLou ClarkFrankie SinderTyrone Daniels

ORGANIZATIONAL CHART

Interns6 Months – 1

Year

Associates1 Year – 2

Years

Assistant Managers2 Years – 3

Years

NEW POSITIONS/DIVISIONS

• Short Term Issues:– Leadership keeps financial statements private from other managers– Members in the accounting department are unqualified

• Short Term Solutions:– Restructure management meeting to discuss updated financial status– Build database based on previous estimates

• New data base will approximately cost $2,400 a year– Implement new training program

• Long Term Issue:– Decrease in profits

• Long Term Solution:– Restructure accounting department through new internship program– Actively use the new data base for accurate pricing

FINANCIALS

HIRING

• Short Term Issue:– Use of inappropriate resources for recruiting new hires

• Short Term Solutions:– The HR Director should provide recruiting guidelines– Reach out to schools

• Long Term Issue:– No formal certifications and training resulting in unqualified employees

• Long Term Solutions:– Set up succession planning though internship program– Interns will be properly trained – Offer certification courses

COMPENSATION & BENEFITS

• Issues:– Potentially unattainable goals for sales staff– Profit sharing plan has not had employer contributions due to

drop in profits• Solutions:

– Change sales staff salaries to a more customer oriented goal– Salary raises dependent on workers qualities– Standard benefits for new hires

COMPLIANCE

• Issues:– Safety regulations are not consistently followed– Lack of periodically checking new standards and regulations

• Solutions:– Clarify who will be responsible for actively checking regulations– Stay up to date with policies and enforce them

PERFORMANCE MANAGEMENT

• Issue:– Hesitancy to discuss merit and/or goal structuring with employees

• Solutions:– Have the management team work along with the HR Director to

do performance reviews to establish goals with employees and negotiate pay

– Have managers create a culture of constructive criticism and growth

COMPANY CULTURE

• Short Term Issue:– Employees don’t feel recognized/validated

• Short Term Solutions:– Restructure quarterly meetings to include award system – Incorporate suggestion box to leave comments/concerns

• Long Term Issues:– Teamwork has deteriorated– Lack of attention towards organic work culture

• Long Term Solutions:– Create clear company goals

• Hire people who fit the company’s goals – Include team building exercises in quarterly meetings

SUCCESSION PLANNING

For Accounting Department:• Short Term Issue:

– Accounting department only knows how to do data entry• Short Term Solution:

– Implement Developmental Training for current staff• Long Term Issue:

– No succession or replacement planning for department leadership• Long Term Solution:

– Create internship program for this branch to build stronger staff for department

SUCCESSION PLANNING

For Service Department:• Short Term Issues:

– No Database for reference points – Unqualified workers being transferred to accounting department

• Short Term Solutions:– Implement Developmental Training for current staff– Create database software to assess job cost based on old estimates

• Long Term Issues:– No planned leadership replacement upon retirement of current staff– Underestimates are occurring and costing the company major profit

• Long Term Solutions:– Internship program will allow for planned leadership replacement– Data collecting software should begin to show results

SUCCESSION PLANNING

For Maria, the current HR Director:• Short Term Issue:

– Maria is overworked and does not feel valued• Short Term Solutions:

– Promote Maria immediately to HR Manager– Hire an assistant– Implement Volunteer Program supervised by Maria but headed by assistant

• Program will reach out to low income households and school• Long Term Issue:

– Maria does not have an established job description• Long Term Solution:

– Establish  clear job descriptions for the two HR Managers, Karen & Maria

TRAINING & INTERNSHIP PROGRAM COSTS

• Training Program:- Length:

Current Staff 3 weeks, 3 days a week New Hires 2 weeks, 3 days a week

- Cost: Current Staff $1,200 for 3 days Total of $3,600 New Hires $1,200 for 3 days Total of $2,400

• Internship Program:- Length: 6 months - 1 year- Cost: $6,900 - $14,000

• According to our research companies typically spend $10,000-$50,000 to replace and retain employees

MEETINGS

• Short Term Issues:– Quarterly meeting are perceived as inefficient by employees– The entire management team isn’t always present in weekly

management meetings• Short Term Solutions:

– Restructure quarterly meetings– Give Karen, the current HR Manager a role she would appreciate as head

of HR• Long Term Issues:

– Employees feel they are not being heard• Long Term Solutions:

– Have the managers per department lead quarterly meetings– Provide opportunities for employees to voice their opinions

SAFETY

• Short Term Issue:– No one responsible for updating and enforcing safety

regulations• Short Term Solution:

– Create the safety “triforce” (Hamilton-GM, Lou-SM, Connor-CM )• Long Term Issues:

– No clear safety regulations shared with employees• Long Term Solutions:

– Address safety at quarterly meetings to all employees

REFERENCES

• “Field Service Management Software. Scheduling, Dispatch, and More.” MHelpDesk. N.p., n.d. Web. 05 Jan. 2017.

• “FLSA Overtime Rule Resources.” SHRM. N.p., 01 Jan. 0001. Web. 05 Jan. 2017.• “How Much Does It Really Cost to Train an Employee?” ELearning Mind. N.p., 11

Sept. 2016. Web. 05 Jan. 2017.• “Intern to New Hire: Reduce Recruiting Costs by Hiring Within: Intern Program

Tips.” Internships.com. N.p., n.d. Web. 05 Jan. 2017.• “Ordinance.” Earned Sick Time Chicago. N.p., n.d. Web. 05 Jan. 2017.• “OSHA Finally Issues Walking-Working Surfaces Rule.” SHRM. N.p., 06 Dec. 2016.

Web. 05 Jan. 2017.• “UNITED STATES DEPARTMENT OF LABOR.” OSHA Injury and Illness Recordkeeping

and Reporting Requirements | Occupational Safety and Health Administration. N.p., n.d. Web. 05 Jan. 2017.