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1. Do you think that the purpose statement for HRP was a good one? Why or why not?

1. Do you think that the purpose statement for HRP was a good one? Why or why not?

Understanding Business
Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Directions: Read through the case that follows and answer the questions at the end. (This case is entirely fictitious.) The Lectro Mining Company is a small firm, employing 400 people. Its annual sales from coal mining are $63 million. Of this amount, $3 million per year is profit. The company's purpose is set forth in annual reports, the employee handbook, and budget documents. It is to "extract and refine coal for use by utility companies, manufacturing firms, and schools, while contributing to the quality of working life for employees and to a clean environment." Company goals are thus implicit in the pur- pose statement. They are (1) to extract and refine coal, (2) to contribute to the quality of working life for employ- ees, and (3) to contribute to a clean environment. The chief executive of the company recently hired a consultant to help top managers plan for the human resource needs of this non-unionized firm. The CEO and her immediate subordinates met for two days at a resort located 100 miles from the company's nearest coal mine. At that meeting, they crafted the wording for a role statement for HRP. They stated that role as follows: The purpose of human resource plans and development activities at Lectro Mining is to improve the quality of working life of employees through efforts geared to help them prepare for future promotion in the company. The top executives decided that HRP had not been systematically handled, but that it should be. Responsibility for HRP initiates was delegated to a committe consisting of the CEO, the vice president of personnel, one line manager, and two experienced miners. Questions 1. Do you think that the purpose statement for HRP was a good one? Why or why not? 2. What sort of culture do you think is evident in this company? Why? 3. How successful do you think this effort will be? Why do you think so? 4. Do you see any relationship between the purpose of the company and that of HRP? 5. What questions about HRP do you think will have to be addressed in the near future?
Transcribed Image Text:Directions: Read through the case that follows and answer the questions at the end. (This case is entirely fictitious.) The Lectro Mining Company is a small firm, employing 400 people. Its annual sales from coal mining are $63 million. Of this amount, $3 million per year is profit. The company's purpose is set forth in annual reports, the employee handbook, and budget documents. It is to "extract and refine coal for use by utility companies, manufacturing firms, and schools, while contributing to the quality of working life for employees and to a clean environment." Company goals are thus implicit in the pur- pose statement. They are (1) to extract and refine coal, (2) to contribute to the quality of working life for employ- ees, and (3) to contribute to a clean environment. The chief executive of the company recently hired a consultant to help top managers plan for the human resource needs of this non-unionized firm. The CEO and her immediate subordinates met for two days at a resort located 100 miles from the company's nearest coal mine. At that meeting, they crafted the wording for a role statement for HRP. They stated that role as follows: The purpose of human resource plans and development activities at Lectro Mining is to improve the quality of working life of employees through efforts geared to help them prepare for future promotion in the company. The top executives decided that HRP had not been systematically handled, but that it should be. Responsibility for HRP initiates was delegated to a committe consisting of the CEO, the vice president of personnel, one line manager, and two experienced miners. Questions 1. Do you think that the purpose statement for HRP was a good one? Why or why not? 2. What sort of culture do you think is evident in this company? Why? 3. How successful do you think this effort will be? Why do you think so? 4. Do you see any relationship between the purpose of the company and that of HRP? 5. What questions about HRP do you think will have to be addressed in the near future?
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