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22/08/2022
Option 2 : Another director has a different opinion. He thinks that a better option for dealing with competition is to merge with or take over one of the larger ones located within the EU. This will give the company a foothold in the large EU market after Brexit takes effect, and will therefore potentially give it a competitive edge. He has identified two such possible targets, and Appendix 2 has a summary of their last two years financial statements.
Irrespective of the option taken up, there is no doubt at all that a significant shake-up of the companys workforce and the way it is managed will be required. One move they are considering for example is to set up an HR function and bring in-house many of the activities that can usefully be done internally from their current out-sourced arrangements. Among many things, they think that such a move may help them in dealing with the whole issue of managing the redundancy scheme that will surely have to be done. Deciding who to make redundant and who to retain will be a huge task, given the close interconnectedness between many of the employees. Preparing a streamlined workforce that is professionally selected, well-trained/qualified and motivated for the huge task of rebuilding the company going forward will be another challenge.
Several directors currently running the company are also approaching retirement age. Even though there is currently no compulsory retirement age limit, there is nevertheless some concern that not sufficient planning appears to be taking place.
The managing director has asked you to look at the company in detail and write a report to him covering a detailed review of :
HR Function :
a. Review Homages existing practice with regard to HR activities. and identify and discuss key areas of weakness/concern.
b. Outline and briefly discuss the possible ways in which the setting up of an effective HR Function/Department could help the company in its current predicament as well as in the future. Indicate in your report which areas, in your view, will require priority attention.
c. Finally, provide a well-balanced summary of arguments for and against a company having its own fully functional HR Department as opposed to having it outsourced, and given the circumstances of Homage Engineering, make a recommendation as to whether or not to establish one.
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