Cape Breton Wallcoverings - HRM analysis

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_________________

An Consulting Group

November 21, 2011

CONFIDENTIAL

Kwantlen University College

12666 - 72nd Ave

Surrey, BC, V3W 2M8

Attention:  Shari Ann Herman

     Professor

Dear Shari Ann,

Attached to this document is our final report. This report is a HRM analysis on the case study: Cape Breton Wallcoverings. With exploratory research and analysis on the current issues, we have made recommendations on how to strengthen Cape Breton Wallcoverings  operations, increase the efficiencies with HR concepts.

The focus of this report is to analyze the information from the Case study, provided by the Arcadia University. However some additional research was made to establish effective recommendations.

Gathering research and information for this group report was challenging, since this is a case covered a business that both of the group members were largely unfamiliar with. Also additional challenges came from the fact that the case study covered old situation, from 1989 to 1990. This made the additional research especially challenging as many of the current figures were not comparable to the figures from that time. Also legal research suffered from this, as the laws have been updated regularly.

The AN Consulting Group has worked many hours to put this report together, and we sincerely hope that the quality and depth of the analysis answers to your expectations.

Sincerely,

Navjot Kaur Chacal                Annaelisa Huhtala                



Table of Contents

Executive Summary        

Introduction        

Executive Summary

Introduction

The Cape Breton Wall covering is experiencing a number of issues during their first year of operations. Now they are facing a situation where the demand for their products is higher than their production capabilities at the moment. The company has to decide on whether to expand their plant or not. The AN consulting group provides an analysis with the focus on human relations management issues to give an answer to this question. At the end of the report are recommendations and implementation plan.

Organizational profile

History

St. Clair Paint and Wallpaper Corporation was founded as retail store by late Harry Litwin in 1939. By 1989, it had grown to be a retailer, distributor and a manufacturer. When the St. Clair Paint and Wallpaper Corporation’s plant located in United Kingdom reached its full capacity, in 1987, that was the time when Cape Breton Wall coverings was established. The decision of expanding itself in Cape Breton was solely based on the availability of financial assistance. The brief overview of the organization is as follows:

Location: 

Cape Breton, Nova Scotia.

No of employees:

103 lower level employees, 5 supervisors; one for each department, President and Chairperson. The breakdown of number of employees in each division was:

Design department: 5, Purchasing department: 4, Marketing and sales department: 8, Administration department: 11, Production department: 75.

Objectives:

To provide high quality and customized Wall coverings with current customer demands at reasonable prices.  

To provide Wall covering collections with 25 designs in each and providing 75 choices in total, by working closely with customers to determine what they exactly wanted.

To provide professional services, even if takes longer to complete each project.

Key Individuals:

President - John Hooker

Chairperson – Louis Litwin

Production Manager – Chris Wood

Central issues:

Unskilled labour:

95% of the employees were inexperienced and needed training in order to perform their job. Even the key personnel had no previous experience of their new jobs. The labour force didn’t have any skilled workers available. The decision to built the plant to Cape Breton was done only on the basis financial assistance, and no attention was given on the skills of the employees.

Inefficient production

The inadequately trained workers couldn’t match the industry standards. The production was only 75% of the industry norm, amount of waste was staggering, and quality of finished products was lacking.

Uncompleted jobs / need for expansion

Cape Breton Wall coverings was unable to comply with the increasing demand of their services and therefore, resulted in backlogs. With the increasing demand from consumers, Cape Breton Wall coverings needed to expand, but had lots of problems in the coming expansion such as unmatched skills for production, missing technical knowledge required for operating high technology machinery.

Lack of HR knowledge:

With all the issues related to the employees, HR knowledge is required for plant of this size.  HR department / skilled HR personnel would have improved the process of recruitment, selection and training.

Now the company is facing a decision on whether to expand the plan or not. ANC consulting is trying to find the root of these problems, propose realistic recommendations on how to solve the critical issues and provides a tentative implementation plan in this analysis.

Job Design

Situation

At Cape Breton Wall covering plant challenge was that only 5% of the employees had any previous work experience in the field. These included the senior management, 5 supervisors and 2 foreign experts. Other workers were hired from local labor market, and had little to none work experience in the industry. By year 1989 103 local workers had been hired.

Basically the Cape Breton wall coverings needed workers that had technical knowhow, office staff and warehouse workers. The plant had 5 departments and each of these needed workers. Some of the department such as purchasing, marketing & sales, Administration needed mainly office staff. These jobs were however fairly standardized and the Cape Breton had labor force available that could do the job. However design department and production department had needs that were fairly unique to the industry.

 Job simplification and industrial engineering

Cape Breton Wall coverings exercised job simplification while designed the jobs. Because of this the jobs were divided into clearly defined and specialized tasks. This was critical in this case as the labour was unskilled and needed a simplified work environment. However, the new machinery the plan had emphasised flexibility and smaller batch sizes than industry standard and thus required even higher skills for users than it was norm in the industry.  

In the job design, the administrative work was given to the supervisors and managers, while the lower level employees had properly defined tasks to accomplish. Because of this the plant was successful in its start off.  However, the job design could have been done even better, for instance if industrial engineering would have been included in higher scale. To achieve this, the Cape Breton Wall coverings could have analysed working methods, and established time standards to increase the efficiency of their work. With which, it could have been determined if there were there any elements that could have been changed or eliminated in order to reduce the time needed to complete each job. Altogether, just in time approach would have ensured the proper use of people and their skills to a higher degree.

Motivating potential

The starter level jobs at cape Breton wall covering plant were repetitive in nature. These included trainee and assistant type of jobs in all departments, but especially in the production department. To increase the worker motivation, different options are available. One of these is job enlargement, where the different task would be added to the job so that the job wouldn’t be so repetitive.

Second would be job enrichment where more duties and responsibility would be added to the job. However these options are not recommended for Cape Breton Case, because the employees are already under high pressure to perform well, and more duties / responsibility would have potentially negative effects.  

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Last option to increase motivation would be job rotation. With this the workers would be rotated between similar jobs to avoid repetitiveness. This would be a viable option if future for Cape Breton wall coverings, as it would potentially increase the motivation for workers, and it would give the workers more diversity in their skills and experiences. This would be potentially very valuable option, as the Batch type manufacturing process needs workers with high skills. Also group based job designs and human factors in the job design could be worth investing in a future when the workforce has learned their ...

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