CASE STUDY SUBMITTED BY:

CARAMONTE, KIMBERLY F.
JARABA, JOANNA MARIE O.
CASE 4: JAMIESON DRUGS, INC

I. Time Context

In today’s generation (millennial stage), outsourcing has become one of

the main drivers for economic growth especially for developing countries. The

outsourcing sector can be a huge economic driver especially when it comes to

employing the young people who are the highest number of unemployed people

in a certain region.

Today, we can say that outsourcing is in demand. Companies have been

benefiting from outsourcing for years. It can save costs up at least of 60%. With

also this, you can construct a virtual team that can have diversified talents.

In 2015, the outsourcing industry employed over 1 million Filipinos, with

projections that it can generate up to $55 billion by 2020 or roughly 11 percent of

the country’s GDP, according to World Bank estimates.

In this case study, we came up with an analysis having a millennial mind:

finding the solution that is timely and practical.

II. Point of View (Perspective)

Human Resource Head, Mr. Joseph Nierras

III. Statement of the Problem

The inefficiency of product detailing among hospital administrators, clinicians,

and doctors is the central issue/problem followed by the lack of employees due to

the massive turnover of sales personnel paralyzing the sales operations. There is

also a problem regarding the recruitment of applicants due to the depletion of

talent pool of the HR department adding cost and time consuming recruitment

process of the right applicants suited to that field/position when hiring needs

arise.

Cause and Effect of the Problem:

CAUSE EFFECT

 Massive personnel turnover  Sales operations have gone down

 20% try their luck outside the to 2% of the target sales this month

country  Pressure within the company to

 25% will apply as call center cope up with the demands and

agents expectations of the customers

 30% are tired of their jobs  Several closure of manufacturing

and wants to try another plants

fields

 25% will start a family

 Poor Compensation

 Increase in workload

IV. Presentation of the Alternative Courses of Action

Areas of Consideration: The main areas of considerations are Human Resources,

Marketing and the Sales Department.

STRENGTH: WEAKNESS:
* Established Name - has been in the • Lack of employees due to the massive
industry for more than 25 years and sales personnel turnover paralyzing the
considered as one of the top sales operations
pharmaceutical companies. • inefficient hiring process making it time
* developed from purely ethical to over- consuming and costly
the-counter drugs
*since 1980, achieved a compounded
annual growth rate of 35%

SWOT ANALYSIS

OPPORTUNITIES: THREATS:

• Being meticulous in hiring salesperson by • Opportunities of employees outside the

Alternative Courses of Action:

1. Recognize the proposal of outsourcing the HR functions of recruitment, training,

and payroll from Manpower Magnate

Advantages:

 Having Manpower Magnate do such functions will lessen the burden from the HR

department in the interview process

 It will save time in the hiring process

 No risks of red tapes because Manpower Magnate maintains confidentiality and

has not revealed their identity

Disadvantages:

 Manpower Magnate is relatively new in the outsourcing agencies and their record

of accomplishment is just their “claim”

 This may result to an ineffective employment due to the fact that they will not be

as meticulous as the Marketing and Sales department in recruiting and hiring

applicants.

 Outsourcing may result to some potential disadvantages such as poor quality

control, decreased company loyalty, lengthy bid process and a loss strategic

alignment.

2. Providing compensation benefits in order to satisfy the needs of the employees to

prevent them from leaving the company and company hiring

Advantages:

 It will cost less than having a massive personnel turnover

 No need for another hiring process and the company just need to utilize the

assets and resources to avoid further complications

 The risk of having inefficient recruitment is lower compare to outsourcing the

Human resources function from other companies.

Disadvantage:

 Generally accompanied by significant portions of paperwork to facilitate the

change of plans

 The company may also have an additional financial considerations

V. Conclusion

It is best to choose the second option wherein the company will provide

compensation benefits to their employees and conduct company hiring. It will be

more cost-effective because the company will not depend unto third party for

their recruitment that may result to certain risks. Outsourcing is convenient

however generating the solutions internally is more efficient and practical since

the decision of choosing the right applicant that will fit for the position will rely

entirely on the company and no one else.

VI. Recommendations

 The company must identify the reason behind the massive personnel

turnover. With this, the company should focus on satisfying the needs of

the employees to prevent them from leaving. Thus, providing

compensation and employee benefits may be a solution for making them

stay.

 Workload must be distributed properly and evenly to prevent massive

workloads that will cause employees to be tired at their jobs. This can be

done by the proper segregation of duties.

 If the company cannot raise the salaries, they may consider hiring fresh

graduates. These kinds of applicants are more focused and the eagerness

to work will be a good driving force for the operations of the company.

 If the company can raise the salaries, hire experienced personnel that

would be more efficient and effective making it cost-effective.

 Develop a light and friendly environment that will lessen the pressure of

the employees but is still under strict control. This kind of environment will

motivate them to work even under pressure.