A manufacturing organization is in the decline phase of its life cycle. The organization's largest customer has notified the CEO that it plans to withdraw its business over the next two years. The CEO and his staff must consider options to replace the lost revenue related to this customer account. The company's employees are nervous and uncertain about their future. Two options are quickly identified to replace the expected loss of revenue.
Option 1 is to develop a new product that could be manufactured and delivered in one week while the competition delivers product in six weeks. To compete successfully with this approach, the company would also need to design an order entry system so customers could place orders online. This strategy requires engineering to design the product line. It also requires IT staff to design the software and customer portals, marketing and sales to develop sales literature and pricing models, manufacturing to prepare for production, and HR to develop the workforce plan.
Option 2 would be to acquire a struggling competitor and quickly turn that company around.
The CEO has asked the HR manager to assess possible HR issues for both of these options.
The CEO decides on option 1 to develop a new product. In this scenario, the engineering department would be understaffed. Which action should the HR manager recommend as a first step to assess the engineering manager?
Assist the engineering manager by researching
engineering outsourcing firms and other short-term sourcing opportunities.
Consult with the engineering manager to assist with prioritizing the work of the drafters.
Share information about the employee assistance program (EAP) to assist engineers stressed by increased workloads.
Assist the engineering manager in creating an organizational chart showing the engineering department reporting structure.