CASE STUDY: THE CALLEETA CORPORATION

Name: Priam, Nahid Fatema. ID: 21-91924-1. HRIS, MBA

Ans 1
Jan is facing a number of key business issues. The first one is lack of support from the board of
directors. The key issues that Jan was faced with where the stockholders were restless and have
no patience, they were buying its stock as the RFID manufacturer headed the broom in brand
new uses for its manufactured good. Second is the employee expense growth. Moreover, the
financial returns were slow down as well. Costs were growing at a rate of 12% annually,
compared with an industry average of 4%. There were some concerns that the board members
were having, regarding the CalleetaCO plants in Vietnam and Mexico starting to grow into
targets for activists that supported that businesses guarantee working circumstances that are
humane. Board members ordered Jan to instantly relocate to lead in the employee costs in its
U.S. operation.

Ans 2
CalleetasCo’s HR operations are contributing to the company’s success by putting value on its
human capital talent acquisitions and retention plan. They were able obtained the most highly
skilled individual in their industry giving the organization a competitive advantage. These
contributions support the company’s strategic goals because it will help them avoid high
turnover rates along with inconsistency in the quality of their RFID technology. The changes that
john can make to HR operations to meet the board demands is to focus on cutting employee cost
in the area of employee benefits.

Ans 3
John’s proposed change to cutting employee costs in the area of employee benefits will not
hinder CalleetaCo achieve sustainable competitive advantage. Right now the HR departmental
costs is 20% higher than competitors competitive firms. If I were in John’s position I would cut
employee cost by getting rid of unnecessary luxury services such as onsite pet boarding, onsite
spa. These types of services should not be at the cost of the company if they do not have the
revenue to support it. I would also consider cutting the cost of health care. Instead of CalleetaCO
having to pay all of the health, dental and life insurance.