Do you see any relationship between the purpose of the company and that of HRP?
Do you see any relationship between the purpose of the company and that of HRP?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Do you see any relationship between the purpose of the company and that of HRP?

Transcribed Image Text:Directions: Read through the case that follows and answer the questions at the end. (This case is entirely
fictitius.)
The Lectro Mining Company is a small frm, 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 committee consisting of the CEO, the vice president of personnel, one line
manager, and two experienced miners.
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