The Calleeta Corporation

Answer #1:

Currently the major problem that is faced by the company includes high cost that was related to the employees of the company. Recently the company has its employee cost going around 12% which is much higher than the industry cost which is 4%. The company is spending huge amount in its employee retention and recruitment. This has become one of the major concerns for the board directors due to which they have asked for a cut in the employee spending by the CEO.

Other than that the major concern in front of Jan was the activists who were creating problems for the company as they thought that the company was not providing sufficient working environment to the employees in Mexico and Vietnam. The activists were creating problems for the company which then became a problem for Jan since the board members highlighted that and asked her to reduce the amount that is spent on the human resources of the organization.

Answer # 2:

The company has been spending a huge amount of its resources on the human resources of the company. It is spending huge amounts of money in order to retain its employees. The company along with providing the basic health, dental and life insurance the company provides a 6 week fully paid vacation and a complete elder care and child care allowances. Bonuses and stock options are some other ways by which the employees are catered by the company. This creates a satisfied employee base which in turns makes sure that the customers of the company are satisfied. These allowances and benefits have gotten success for the company as the employees in the company are satisfied.

The company pays a lot of attention to its employees and special recruitment representatives are allotted to each individual who then takes care of everything regarding that employee. This further adds up to the satisfaction of the employees in the organization. The satisfied employees are the major reason for the success of the company. (Lovelock, n.d.)

Answer # 3:

The major concern for the board members is the increasing cost. In order to reduce it the company should reduce some of the expenses that it is incurring on the employees. The benefits that are been provided should be reduced to some extent. The company should bundle the various benefits that are being offered and thus rather than giving it to so many employees it should be restricted to only the ones on the top management levels.

The company in order to motivate the employees should focus on various non monetary rewards which includes praising them and coming up with options like employee of the month. Such rewards would serve to motivate the employees in order to ensure a satisfied customer base with spending less on it.

For the other major concern that the company is going through, it should incorporate measures to satisfy the activists by ensuring proper working conditions. This might cause the company to incur a few expenses but if these would not be catered the company might land up in a serious trouble.

Answer # 4:

By using the balanced score card the CEO may be able to justify the huge expenses the company is incurring on its employees. By using the balance scorecard the CEO would be able to clearly identify the vision and the goals that she ahs on her mind and then explain the huge spending that is done on the employees of the company.

The balanced scorecard would identify the important aspects that the company should measure while measuring the financial perspective. This would clearly justify the huge amount that is spent because along with the financial measure this tool would also incorporate the impacts that this huge spending is having on the earnings of the company.

The huge financial cost that is incurred is causing employee satisfaction which in turns brings in customer satisfaction which ultimately is responsible for the earnings of the company.  (Niven, 2002)

Answer # 5:

Financial (return on assets, human capital):

The company is currently spending a lot on its human resources which is around 8% more than the industry average but this would in turn get customer satisfaction as satisfied employees lead to satisfied customers. Other than that since the company looks forward to a lot of innovation so it has to invest a lot in retaining the employees.

Customer (on-time delivery — customer satisfaction)

Customer satisfaction is very important to the company. A lot of amount is spent in retaining highly skilled labor which would ensure innovation in the company. Innovation is very important for the customer satisfaction because in the RFID industry the customers are always looking forward to a new and improved product.

Internal processes (improved productivity):

In the RFID industry improvement in the product and technologies play a very vital role. With such a high tech product the company needs to be very high in terms of improvements and innovation.

Learning and growth (HR training to develop new employee skills):

Human resource is the most important factor in the organization. The company would not compensate on anything when it comes to employee training and resources. As the company is already spending huge amounts in recruiting and retaining employees, similarly it would not hesitate in training the employees. This is also very important when it comes to the RFID industry where the product is of such high technology and requires constant updates. (Balanced Scorecard Method, n.d.)

References

Balanced Scorecard Method. (n.d.). Retrieved May 14, 2010, from Value Based Management: http://www.valuebasedmanagement.net/methods_balancedscorecard.html

Lovelock, C. (n.d.). Services Marketing People, Technology, Strategy. New Delhi: Pearson Education India.

Niven, P. R. (2002). Balanced scorecard step by step: maximizing performance and maintaining results?. John Wiley and Sons.