King Company

 

Staffing at The King Company

Kevin Tu has managed staffing at King since the early years when the company had less than 100 employees. Tu runs a tight ship and manages the department with only one other recruiter and an administrative assistant, who maintains all job postings, including a telephone employment hotline and the company’s job line web site. Tu is well-respected across the organization for his strict adherence to ensuring equity in hiring and job placement that goes well beyond equal opportunity requirements.

Tu recently completed an aggressive hiring drive at major universities, hiring several new engineers and CAD specialists. These new hires barely squeaked in before the hiring freeze, but with the downturn in sales, the atmosphere has changed dramatically. The staffing department has known only hiring; they never had to plan for a layoff. Tu worries that a layoff of newly hired employees will seriously harm the company’s reputation in the community and make recruiting difficult when the economy gets better.

Tu received a confidential memo from Smith and Grant requiring a 10 percent reduction in labor costs by the end of the fiscal year. He wonders if there is some way to cut labor expenses while saving as many jobs as possible. He also worries about the loss of talent and retaining the knowledge of long- time employees. He’s got some cost-saving ideas, but it certainly won’t add up to 10 percent. Tu feels certain there will be a reduction in force. A few managers will be delighted; they all have some bad apples they want to get rid of. Tu wonders how he is going to ensure that the layoffs are equitable and nondiscriminatory. This is not going to be good for morale, and he dreads the backlash when word gets out.

Case Assignment

Address the following questions in a well-integrated case assignment:

How can The King Company reduce labor costs and still save as many jobs as possible?
How might up-to-date job analysis information aid King in determining how to reduce labor costs?

Discuss the short-term and long-term implications of downsizing. Be sure to also discuss possible EEO issues that may occur in downsizing. 

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