Ehrm1514 Questions

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PRACTICAL ACTIVITY

CASE STUDY

Office Space Inc.

Office Space Inc. incorporated is a manufacturing company specialising in the supply and
distribution of office furniture, equipment, and stationery. The organisation was founded in
2000 and grew from 10 employees to a workforce of 98 employees. This gradual expansion was
needed due to the ever-increasing demand for the high-quality products offered at affordable
prices by Office Space Inc.

Jeffrey King is a HR consultant and periodically provided consultation and advice to Office Space
Inc. as the need arose. The recommendations made by Jeffrey was always valued and approved
by top management. Until recently the action plans, as suggested by Jeffrey, were implemented
by Parker Williams, the procurement manager at Office Space Inc. This implied that apart from
his duties as procurement manager, Parker and his two assistants, Monica and Portia had to
ensure that the organisation’s human resources were managed effectively.

In 2021 Office Space Inc. bought over Fabulous Office Equipment Pty Ltd. and the workforce
suddenly expanded from 98 to 312 employees. At the first strategic meeting after the merger,
top management announces that the operations of Office Space Inc. will be further expanded
and that a second and third warehouse will be built over the next three years. Top
management further makes known that they want to expand the workforce and foresee that
the workforce will triple in the next five years. Parker raises his concern to the executive board.
He explained that with the greater workforce, the workload would be too much for him,
Monica and Portia. They would not be able to manage such an extensive workforce. He
successfully argued that the organisation needs a dedicated HR department.
Apart from objections made by one executive, Peter Marx, top management approved the
recommendation made by Parker. The majority vote is that Office Space Inc. should again
consult Jeffrey King to guide the process of setting up a dedicated HRM department. During the
meeting Peter Marx makes two comments. 1) He stated that tasks should merely be simplified
and then employees will know what to do and that if employees know what to do it will be easy
to manage them. 2) He stated that employees are only interested in earning as much money as
possible. If management ensured that employees are paid enough, no problems should arise,
and the task could easily be managed by Parker, Portia and Monica.

QUESTIONS

1. From the comments made by Peter Marx, it is clear that he does not understand the
function and purpose of HRM. It is the responsibility of Jeffrey King to explain the
purpose of HRM. If you were Jeffrey, explain to Peter Marx what HRM is and what it
entails.
2. From the comments made by Peter Marx, it is clear that he believes in a different
approach to management of employees that was used in the past. Identify and discuss
this approach.
3. Identify at least five employment positions that will be needed in the new HRM
department at Office Space Inc. for the organisation to be successful.
4. Since Office Space Inc. have been loyal clients of Jeffrey King for more than twenty
years, Jeffrey decides to provide the organisation with an additional service free of
charge. He advises and makes recommendations to the organisation on aspects of the
micro-environment that should be considered to ensure the continuous successful
performance of Since Office Space Inc. What factors will typically be included in this
report?

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