Outsourcing Some HR Functions

Page 251

1. Discuss the pros and cons of outsourcing.

Pros:
a) Outsourcing can save cost. Building an infrastructure and additional
personnel for HR functions is an additional cost to the company.
b) The time that is supposed to be devoted by the company in some HR
functions can be used to focus on the main objective of the company. In
this way, outsourcing can help the company become efficient.
c) With outsourcing, the company and agency shares with the risk. Thus, if
the employee gets injured or died by the reason of his job, the
responsibility does not only rest with the company but also to the agency.
Cons:
a) There is a limited control of the employer to the agency. In outsourcing HR
functions, the agency selects the individuals to be hired and not the
company. The company cannot control the process done by the agency
although in some cases the final judgment is made by the company
b) There is a risk that the outsource agency is less competent than the
company. It means the company can do better than the outsource agency.
c) There may be leak of information. The company’s confidential records or
secrets will be invaded. To deal with this, the company must design a
strong counter intelligence.

2. Justify the decision made by Mr. Andres

Considering the pros and cons above, it is a good idea to outsource HR functions
such as recruitment and initial screening of applicants because those are not the core
functions of the company. Along with this, the company must choose the reliable
outsource agency for better service to customers. The company must be particular on
the competence of the employees hired otherwise outsourcing is a vain decision.
The Computer Whiz
Page 229

1. How will you handle the problem if you were Cyrus’ supervisor?

If I am the supervisor of Cyrus, I will issue a disciplinary action but only a one
week suspension without pay. 2 weeks is long enough and may cause Cyrus to resign.
Based on the information above Cyrus is doing well therefor he is a good asset of the
company. A disciplinary action is given to discipline an employee and not to give cause
of its termination.

2. How will you handle the problem if you were the HR head of Montoya’s Enterprises?

As a Human Resource Manager, I will assess the rights that can be invoked by
Cyrus and observe the compliance of labor laws with regards to the problem in order to
fix the employee-employer relationship. This has to be done in a fair way to maintain
harmonious working environment.

3. If you were the union steward, how will you help Cyrus?

If I am the union steward, I will emphasize to Cyrus the importance of separating

personal use and company use of computer equipment. The computers are acquired for
the purpose of using it to generate an economic flow to the entity. The right thing to do
is to accept the consequences and learn from it.
Possession of Alcoholic Drinks
Page 205-206

Time Context: March 29, 2019

Viewpoint: Jojo’s Supervisor
Statement of the Problem: Jojo brought an alcoholic drink inside the premise of the
company. He was also caught in the act of jokingly drinking it.
Statement of the Objective:
 To settle the problem with regards to bringing of alcohol inside the
company
 To take necessary action in accordance with the company rules and
regulations
 To enforce applicable laws with regards to the case
Areas of Consideration:
 The security guard lets Jojo to bring the alcohol inside the company
premise.
 The CBA provision of Drinking, possession, use of, or bringing alcoholic
beverages including beer, or drugs, narcotics of any kind within the
company premises or being under the influence of alcohol, the first
offense is dismissal.
 Jojo and Anthony are not in good terms.
Alternative Courses of Action
The action must be taken either by dismissing Jojo or by giving only disciplinary
action.
Recommendation: The provision of CBA is enough to dismiss Jojo. In the first place,
an employee is not allowed to bring an alcoholic drink inside the premise and he
violated this. His intention to leave it on the guard is not an excuse for violating the
provisions of CBA. It was explicitly stated that the first offense is dismissal therefore
giving disciplinary action is not applicable. If he really wanted to be in good faith then he
leaves it on the guard to express his commitment and loyalty to company rules and
regulations.
Action Plan: Dismissal of Jojo
Persons
Activities Objectives Division Cost Time
Responsible

Process the
HR
termination of To dismiss Jojo HR Manager 0 1 day
Department
contract

Compute the To measure if any Payroll Payroll

salary that the salary that Department/ Officer/Financial 0 2 days
accrue to Jojo accrue to Jojo Cashier officer

Compute the To measure if any Payroll Payroll

benefits that the benefits that Department/ Officer/Financial 0 2 days
accrue to Jojo accrue to Jojo Cashier officer

There will be no necessary cost in the computation of salary and benefits except for the
salary and benefits itself.
Gantt Chart

1st week of the month

Activities
Day 1 Day2 Day 3 Day 4 Day 5 Day 6 Day 7

Process the termination

x
of contract

Compute the salary that

x x
accrue to Jojo

Compute the benefits that

x x
accrue to Jojo
Stipulation Against Marriage
Page 191
1. What are the specific labor laws violated by ABC Airlines against Irish Arellano?
ABC Airlines violated Article 134 of the Labor Code which states that “it is
unlawful for an employer to require as a condition of employment or continuation of
employment that a woman employee shall not get married, or to stipulate expressly or
tacitly that upon getting married, a woman employee shall be deemed resigned or
separated or to actually dismiss, discharge, discriminate or otherwise prejudice a
woman employee merely by reason of her marriage.”
ABC Airlines violated Article 135 of the Labor Code which states that;
“It is unlawful for any employer to deny any woman employee or to discharge any
woman employed by him for the purpose of preventing her from enjoying any of the
benefits provided under the Labor Code; To discharge such woman on account of her
pregnancy, or while on leave or in confinement due to her pregnancy; and To discharge
or refuse the admission of such woman upon returning to her work for fear that she may
again be pregnant.”

2. Present and evaluate reasons cited by ABC Airlines why they need to have single
flight attendants.
The reason why ABC Airlines requires single flight attendants is that, marriage
will make them inefficient and less effective. ABC is concerned about the attention of
flight attendants. The focus will be devoted to their child or family which hinders them
from fully devoting their time and attention to the company.

3. Is ABC Airlines justified in citing inefficiency as valid ground for termination? Explain.
Inefficiency is not a justifiable reason to terminate woman employee by the
reason of marriage because it is unlawful as provided by law. Having a family is not a
hindrance to function efficiently. Efficiency depends upon the competence and
commitment of employee. Flight attendants are essentially women and it is also an
essence of every woman to give birth to a child. The company must consider this fact.
Employee Layoffs at the University Medical Center
Page 111-112
1. State the main problem of the hospital.
The main problem of the hospital is effect of opening biggest government
hospital in the province that cause a projected deficit of P1,300,000.00 and occupancy
rate has declined.

2. State the areas of consideration using the guide bellow.

Strengths of the hospital:
 The facilities of the hospital have grown gradually over the years and
considered one of the largest in the city.
 Immediate response for problems by the BOD
Weaknesses of the hospital
 Declined occupancy rate
 Tightening of requirements of equipment and supply purchases
Opportunities
 Decrease in cost may help the hospital recover
 The hospital is unionized
Threats
 Existence of Government Hospital
 Existence of more competitors
 Tightening requirements for equipment may cause poor service
 Layoffs may hardly affect employees

3. Give your proposed solutions/alternative courses action or ACA (minimum of 3) to

help the hospital overcome this problem.
a) Employee Layoffs as suggested by the BOD
b) Decrease salaries of employees and create budget plan
c) Reduction of working hours
4. State your recommendations to your ACA.
Employee termination should be the last resort of the hospital. It is better to
decrease the salaries of employees. It is also important to create a budget plan and
allocate resources wisely to avoid a deficit in financial statements. A budget plan helps
control cost. The decrease of salaries must not be substantially low but as to what a
sound budget can cater, that is, enough and not unfair to employees yet still favorable
for the company.

5. Provide a conclusion/detailed action plan to implement your recommendation using

the guide bellow.

Action Plan: Decrease salaries of employees and create budget plan

Specific Activity Persons Responsible Time Frame Budgetary Requirements

Accountant/ Financial
Budget Plan 1 week 10,000
Officer

Evaluation of CEO/ HR Director/

1 week 0
Budget Plan Financial Officer

Decrease
salaries based HR director/ Financial
1 week 0
on the sound Officer
budget Plan
The Unsatisfied Department Chair

Page 131 to 132

1. State the main problem of Dr. Pancho.

Dr. Pancho is unsatisfied for the salary increase of only 7% instead he expect a
15% increase due to his accomplishments and hard work.
2. State the different areas of consideration following the guide bellow.
Strengths of Dr. Pancho
 He is a member of the department for 15 years and a full time professor
for 10 years.
 Hardworking
Weaknesses of Dr. Pancho
 High expectation
Opportunities
 With his competence, he can be hired by other schools who can
compensate his efforts
 His ability to open up in these matters can have the attention of paying off
the hard works of every employees
Threats
 If hard works of Dr. Pancho will not be compensated, he may consider
transferring to other schools
 If the problem will not be solved Dr. Pancho will be demotivated
3. Give your proposed solutions/alternative courses of action or ACA (minimum of 3) to
help Dean Lacap solve the problem raised by Dr. Pancho. State aslo the advantages
and disadvantages of each ACA.

Alternative Courses of Action Advantages Disadvantages

There are instances
Provides
a) Assessment of merit and allocate the that the merit does
motivation to
applicable increase of salary not benefit the
employees
company

Save cost and

b) Remove the salary increase for No motivation for
reduce employee
merits employees
expectation

Promotes
c) Provide a clear provisions as to what The specific merits
competence and
merits are qualified for the increase of cannot be or
provides a clear
salary impossible
view of objectives

4. State your recommendation based on your ACA.

Based on the information above, the best thing to do is “to provide clear
provisions as to what merits are qualified for the increase of salary” is the best
alternative because it promotes competence and give every employee a clear view of
objectives for them to achieve.

5. Provide a conclusion/detailed action plan to implement your recommendation using

the guide bellow.
Action Plan: Provide a clear provisions as to what merits are qualified for the increase of salary
Specific Activity Persons Responsible Time Frame Budgetary Requirements
Set specific merit
or personal Campus Dean 1 week 0
requirements
Provide personnel Campus Dean/ HR
to monitor Manager/ Financial 1 week 15,000
performance Officer
Grant applicable
HR Manager 1 week 0
increase of salary