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Yummy Company (YC) Opens a Branch in Davao City

1. What two important strategies does the company plan to adopt this year?

Based on the case study, the two important strategies that Yummy Company (YC) aims to adopt
this year are (1) Location Strategy, and (2) Productivity and Efficiency of Operations.

● Location Strategy:

Location strategy is one of the important strategies of the organization due to close proximity of
supplies, raw ingredients, and facilities. According to the case study, YC is already scheduled to acquire a
small canning factory located in Davao City. Given the locations of the canning factory, the organization
will have easy access to the availability of fruits (marang, durian, and mangosteen) in the Southern
Mindanao region. Moreover, the availability of fruits is distributed within the Visayas and Mindanao
regions. Therefore, this strategy will really benefit the organization’s goals and maximize the benefit of
location to the organization.

● Productivity of Business Operations:

Second important strategy would be improving the productivity of business operations by

establishing a marketing and sales department in a new office branch in Davao City. Not only
establishing a new office branch but also investing in new equipment for canning fruit jam in order to
improve the business operations’ productivity, as well as achieve high operating and profit margins for the
business. By purchasing some new equipment, this strategic initiative would help workers to reduce a
large amount of workload in the preparation process.

1.2 What potential challenges will the company encounter with these initiatives?

● Managing Multiple Locations:

The first potential challenge would be the managing and overseeing multiple branches of the
organization. This is because handling multiple office branches in different locations at the same time is
not an easy task since it requires coordinating and working with different departments and employees in
each branch location. Therefore, the YC must establish strong management teams and recruit reliable
employees who can support and manage business operations at each branch location.

● Managing Diversified Environment Setting:

Second potential challenge could be adapting and handling a diverse workforce whose members
differ from each other in terms of gender, age, ethnicity, and so forth. This provides a challenge for YU
because managers and HR will have to manage new employees coming from diverse groups and
backgrounds. Moreover, they will have to address and respond to many employee problems that arise
from differences among people, as well as adopting flexible company practices and procedures that would
cater to the needs of all employees.
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● Hire Multiple Employees

One of the potential challenges of adopting these initiatives would be finding adequate and
qualified potential applicants available to work in the new office branch in Davao City. Given the suited
location for the new office branch, it would require hiring multiple candidates who must be
knowledgeable, skillful, and dependable. Despite having regular employees or staff members from the
main branch, the organization would still require more new employees to occupy across a range of
specific job roles for the expansion. Therefore, YC will experience challenges and difficulties in hiring
new competent and experienced employees from a nationwide talent pool in order to manage and staff the
new office for managing its business operations in Davao City

● Staffing Problems:

Another potential challenge that would affect the operations of its new branch would be staffing
issues in terms of occupying critical job positions, screening potential candidates, and being understaffed.

Before opening the new branch, the organization would have to find skilled and specialized
candidates to fill up critical job positions (vice president, director, and managerial positions) as early as
possible. If the hiring process takes a lot of time to process, then there will be delay in operating the new
branch and a cost of having a vacant job position in the business. Not only hiring dependable applicants,
but also the organization would require its remaining employees and staff members to be transferred and
to manage different departments in the new branch.

Secondly, HR would have a challenge in screening a lot of candidates (400 non-unionized

employees) for the new branch because HR would have to screen and hire the right candidates who are
the best fit for the job.

Lasty, introducing new employees to the company’s organizational culture. This could be also
one of the possible challenges for both organizations and employees because new hires who clash with
company culture may cause problems within the organization. Cultural problems may often arise from
mergers and acquisitions or rival factions within the organization which would lead to numerous cases of
conflict and difficulties in company operations.

● Revamping HR System Policies and Procedures:

Given the new branch in Davao City, YC must update or create new HR system policies due to
internal and external environment issues that would impact the operations of the new branch in Davao.
An example of an external factor would be the government laws and regulations in Davao and the
relationship between the business and government. On the other hand, an internal factor would be the
changing nature of the workforce in the new branch since its employees will become increasingly more
diverse in terms of gender, ethnicity, age, and other dimensions. Another internal factor would be
maintaining employee contracts and benefits such as health insurance, life/disability insurance, pension
plans, work-life support, and others. This is because this would require HR to manually review and
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evaluate the contract of its employees to make sure that it is in compliance with any new organizational
structure.

1.3 What HR strategies can you recommend to contribute to the success of this plan?

1. Job Analysis:

First recommendation would be gathering and analyzing relevant information regarding the job
contents, contexts, and requirements within the organization by using Job Analysis. The job analysis
follows a systematic and logical manner: planning, preparing, conducting, developing job descriptions
and specification. First, planning job analyses can be done by identifying the objectives, reviewing
existing job descriptions, job analysis information, and other industry-related resources. Second, job
analyses can be conducted, but not limited to, through questionnaires, interviews, observations, logs or
diaries, and other related methods. This step must be conducted by managers or supervisors. Next, once
data is compiled and evaluated, they can develop job descriptions and job specification for each job role
within the organization. Lastly, HR should always revise, update its job descriptions and job specification
as the organization changes.

Since Yummy Company has successfully acquired a canning factory and is planning to open a
new branch, the organization must make use of job analysis in order to design and redesign specific job
requirements. Moreover, this would help them determine the proper compensation, training development
needs, and employee performance appraisals based on the specific needs and requirements of the job.

2. Training and Development:

Another strategy would be teaching new hires about the technical and operational aspects of the
job and how to perform the specific tasks. On the other hand, development is for both managers and
professionals to cultivate and advance their skills needed for future jobs. Since YC is scheduled to open
a branch in Davao, the organization should develop training programs for employees coming from
different departments (operations, marketing, sales, accounting and finance, and human resources).

HR must assess first what the new employees lack for the job and what skills they need to
develop. Once these deficiencies are assessed, HR may now create and develop different training
programs that can improve the performance of the employees. As training programs are being developed,
HR should coordinate with managers, supervisors, or department heads on what specific and measurable
goals that employees should achieve and learn during the training program.

3. Performance Appraisal:

This strategy would help HR design an appropriate, systematic, and fair method of evaluating the
performance of employees in line with their specific job roles and responsibilities. By using performance
appraisals, this can help HR regularly keep track of how well their employees are doing their job to ensure
that job expectations and strategic goals of the organizations are being met. Moreover, it’s an important
strategy to have performance appraisals because this would help HR and the administration determine the
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appropriate wages, salaries, pay raises, promotions, and training. Second, this will help provide feedback
to employees to improve their performance and plan their future careers.

For this strategy to contribute to the success of this plan, Yummy Company can make
performance appraisal methods in the results approach. This is because this would help the organization
measure performance results of each employee. Methods of result approach are Balanced Scorecards, and
Productivity Measurement and Evaluation (PerMES). The Balanced Scorecards can be used in evaluating
employees in sales since it will be evaluated by the company based on measurable indicators established
by them.

4. Compensation and Benefits:

Yummy Cleaners must be able to provide a proper and fair financial remuneration to employees
in exchange for their work based on measures, mechanics, and policies identified for each specific job
role. In order to deliver a good compensation system, the organization must refer to the job description
and job specification. Next, HR must evaluate specific jobs by using qualitative and quantitative
approaches. Furthemore, they must assess the worth of each job relative to other jobs to ensure
employees are properly rewarded. From there, they must compile the information in order to design
reasonable pay structures, pay grades, and pay ranges for individual jobs.

Since the organization will be having new employees in the sales and marketing department in the new
branch, Yummy Company should provide employees with sales commission or bonuses if they exceed the
number of sales by the company.

On the other hand, the organization should provide good benefits for their employees including
retirement plans, health or medical insurance, educational assistance, and other related benefits.
Moreover, providing employees with competitive benefits will help retain employees by giving them
different levels of compensation, variable pay, and benefits.

2. If you were hired to become the HR Director of this factory in Davao City:

a) Draw an organization chart showing your position and the types of functions/positions
that you think will be needed in this organization of 400 employees.
b)
Functional Organizational Design Chart for Yummy Company Branch in Davao City
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As for the organizational structure chart, I used a functional (U-form) design for organizing
different types of job positions and functions needed for the organization of 400 unionized employees.
This is because I would suggest the Yummy Company branch to have a close integration and coordination
with across different departments.

Furthermore, the organization chart is divided into 5 office departments: department head office
of operations, marketing & communications, sales, accounting & finance, and human resources. Since
Yummy Company has around 400 unionized employees, I suggested that each department should have at
least 80 employees and staff members who are fit and qualified for their specific jobs.

As for the different hierarchical level of job position, I believe that the branch manager should be
at the overall top level management since the branch manager will have to oversee the daily operations of
the business including human resources, marketing, sales, finance and accounting, and customer service
in line with the strategic objectives of the business. On the other hand, the deputy branch manager must
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assist the branch manager in monitoring business operations, develop forecasts and financial objectives,
coordinate and manage staff and employees even in the absence of the branch manager.
Furthermore, the new branch must have office heads for each department in order to coordinate
with the branch manager and assistant branch manager in order to ensure the smooth running of business
operations, to set measurable goals and objectives, supervise and train employees within the branch.
Therefore, the department heads must report to the branch manager for implementing effective policies
and standard operating procedures, goal and objectives, and formulating strategic planning of the
organizations

As for managers from different departments, they will have to internally manage their respective
staff and employees to ensure that they are performing their assigned tasks and responsibilities effectively,
meeting job requirements and expectations, and assessing the performance of its employees for further
improvement. In addition, the assigned managers or supervisors must report to their department heads
regularly. On the other hand, the assistant managers of each department must provide professional and
immediate assistance to their managers when their managers are not available. Lastly, the bottom level of
management in the functional organization chart are different employees and personnel of each
department within the organizations.

c) Develop a Davao HR plan for this year knowing what has to be implemented there.
Specify the major activities that you need to plan for.

Human Resource Planning for Yummy Company Branch in Davao City

At a glance, this is a process flowchart of the HR plan for Yummy Company’s New Branch in
Davao. Based on the diagram, the HR planning starts first with successful acquisition of a canning
factory in Davao before opening the new branch and starting of business operations of Yummy Company.
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After the acquisitions, the organization must establish and prepare different office departments in
the new branch: Operations, Marketing, Sales, Accounting & Finance, and Human Resources for them to
be filled with different levels of job positions. Once all of the different departments have already been
established, the organization must first develop and establish the human resources department since the
human resources oversees a wide range of tasks and activities within the organization. These activities
consist of core and key functions of human resources which are staffing, development, compensation,
safety and well-being, and employee and labor relations. Not only does human resources focus on
developing policies and procedures, and administrative roles, but also develop strategic plans in
addressing business realities and needs of the organization such as workforce planning, formulating
compensation strategies, and performance of human resources (Mathis & Jackson, 2007). In addition to
this, the human resources act as a strategic business partner because HR managers make sure that their
key functions align with the mission and vision of the organization. This can be done by helping the
business to find and hire the right people, create organizational structures and processes to maintain an
effective workforce for the business, provide necessary training and development needed to support the
people aspect of the business plan for strategic growth.

In the human resource office, it consists of sub-departments in the human resou: training human
resources, compensation and benefits, employee relations, health and safety compliance, Recruitment and
selection department

Firstly, the training and development department helps provide necessary training programs and
courses that are suitable for different employees in the organization based on their respective job roles and
positions. Secondly, the payroll and benefits department are responsible for structuring the competitive
and fair pay structures, pay grades, and pay ranges for individual jobs. Moreover, the payroll and benefits
department ensures smooth operation of the processing and providing of compensation payments and
benefit plans to employees. Third, the employee relations department focuses on the well-being of
employees by handling and resolving labor relations and work-related issues that would affect the health,
productivity and job satisfaction of the employees. Moreover, this department also discusses and orients
employees about the organization, rules and regulations, as well as standard policies and procedures.
Fourth, the safety and health department ensures that the employee complies and acts accordingly to the
employee safety and health regulations in the workplace to avoid injuries, accidents, and illnesses
amongst employees. Also, the department must update the health and safety policies as the organization
changes. Lastly, the recruitment and selection team handles hiring qualified applicants to apply for
specific job positions that are available in the organizations and create job listings by sorting and
summarizing resumés, conducting interviews, and preparing assessments for candidates.

Once developed and established different sub-departments in human resources, the HR manager
or director must develop and create clear policies and procedures since Yummy Company had no clear
and structured HR policies and procedures in the HR planning. Given this information, they can develop
necessary policies and procedures by identifying competencies of employees that are linked to the job
tasks and duties, develop lists job descriptions and job specifications of each job role, implement new
health and safety regulations, and design compensation pay structures and benefit plans.

The next step of the Davao HR plan would be providing the business with employees and staff
members in each respective department. As mentioned previously, these office departments in the new
branch are operations, marketing, sales, accounting and finance, and human resources. Since Yummy
Company will be employing 400 non-unionized employees, I would suggest that there should be 80
employees and staff for each department in the organization. Given the new respective office departments
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of the organization, both existing and new employees must undergo a technical training program in order
to familiarize themselves with the job roles and responsibilities, improve their work performance, and
perform specific job tasks with excellence and outstanding results. Before undergoing the training
program, HR must coordinate with managers and department heads to establish training measurable
objectives and priorities, assess training needs and evaluate the efficiency of the training program, and set
job expectations and standards for employees.

Finally, tYummy Company may launch its new branch opening and start its business operation in
Davao City once these steps are completed and accomplished based on the design concept of the HR plan.
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