FLAK Industries, Inc is a company that is engaged into the manufacturing, marketing and distribution of semiconductor materials, cable wires and other devices installed in computers, telephones and industrial machines. FLAK was incorporated by two communications engineers, Sherman Hotchner and Donn Moore in 1950, in Wyoming. All throughout the history of their business of operations, they have enjoyed a steady growth in the business. The secret to their success according to them was attributed to their very strong sense of updating themselves with the latest innovation in technological advancement. For them, technology was moving at a far better pace than any other man has imagined, and thus, they should be able to survive in the industry if they were able to get their hands on the proper equipment and training that money can buy. During the time when the United States Air Force (USAF) began opening the doors for independent contractors to bid for the very first on board computers on their aircrafts that will be deployed for the Korean War, FLAK Industries was there. It didn’t even matter for Hotchner and Moore if they were just new in the business, but for them, they would grab any opportunity that will come along their way and they thought that they will be able to establish a name for themselves, and all they needed was a break…a very big break. The USAF was the perfect opportunity so they began to perform their research and designs for the exact specifications of the USAF only to find out that the competitor was able to outbid them. According to the test pilots, the onboard computer installed by FLAK Industries responded 2 seconds slower than the competition. The USSR had one of the most feared planes, the MIG 15. The USAF’s P-51 had to be outfitted with the best and fastest military systems, and clearly FLAK was not yet ready. It was during this tough moment when the two incorporators opened up their eyes for the possibility of venturing into a business that was not geared towards the military, rather to that of the industrial and manufacturing business. The potential of onboard computer programs in all military equipment would mean that the Department of Defense would always look for new bidders with new programs to sell. Being the case, they believed that there will be a future demand for computers and other hi-tech equipment. They could not be more correct than ever. By the year 1981, 29 years after they founded the business, they were now ready to offer their initial public offering in the stock market. Their IPO would later on be the expressway to their success. A company that humbly started as a very small player in the industry of technology and telecommunications was now actually gaining its much anticipated respect. They were no longer considered to be a small player in the industry, rather they were a pillar in their own respect. With the demise of the original incorporators, the business was later on succeeded by their children, Gideon Hotchner and Matt Moore. None of them were engineers, rather they were both post-graduate degree holders in business from the “Ivy League”. Positive transformation was implemented by these two as they believed that any business should have the proper vision and mission to achieve a good corporate strategy and propel them to success. Through their combined efforts, the company that their fathers have started suddenly boasted 1239 employees, had one of the best, if not the best compensation package for their employees. Bonuses left and right were generously handed down to those who deserved it. In the words of Hotchner, the backbone of it all was their careful selection of their different Vice-Presidents who would help them run the business well, and make sure that all angles are covered. Vice President for Finance was a registered and licensed CFA, William Greenaway. VP for HR was Elle Greyson, a former psychometrician and an experienced counselor. VP for Production/Operations was Jonas Stevenson and their VP for Marketing was Maxwell Hayes, both who were instrumental in the success of their stock market shares to be bought in droves. Everything was running smoothly, with the occasional bumps and bruises that went along the way. “NO organization can be perfect in the first place, so I guess that all of these setbacks are just minor ones anyway. For as long as we have our employees happy and contented, there’s no need to worry”, says Moore. With the growing demand of the new century, the year 2005 was the most challenging time for the organization. This was the time when people kept on resigning from the company. HR overall manager Francis Caster found out that the common reasons why people left the office were: ​5% ​Business ​17%​They want to try a different field ​20%​Take up their post graduate degrees ​22%​Salary and benefits ​36%​Career growth The statistical data presented by the HR department to the board of directors and to their top bosses were quite alarming since the company has a total of 115 open positions and 39 of them include marketing agents who were primarily responsible for working in the field, talking to customers and making sure that deals were signed. “How many agents are working for us anyway,” asked Hayes. “Well sir, to make sure that we meet the quota and the KPI’s we have sent for the year 2007, we will be needing a total of exactly 105 people for the marketing department, agents wise”, replied Caster. “I heard that the 39 open positions have been pending for 2 weeks now. Is this true?”, asked a concerned Moore. “Actually, out of the 39, we have filled in 15 positions already so that leaves us with 24 more”, said Greyson. “I have received reports that our HR personnel in charge of recruitment are expediting their recruitment process.” “HR is on to that sir,” said Caster. “We have also devised a new referral program for employees. Anyone who refers to us a candidate for interview and gets to pass and we hire that person, our employee gets a $100 bonus.” “No way! I don’t believe that I have approved of that move already, have I”, asked VP for Finance William Greenaway. “Well sir, this will be taken from the HR budget anyway”, countered Caster. “Nevertheless, this means that we are putting more money on the table when in fact we are faced with the dilemma that we are still in need of marketing agents who are supposed to bring in the money for us.” Immediately both Hotchner and Moore were convinced that such a move might be financially risky. Time and money was something that they were very concerned since they would not want brokers and traders from the stock market to find out that FLAK Industries, Inc. was having internal problems in terms of personnel. “Sir, with all due respect, I think that this will help expedite our process since head hunters will be charging us a professional fee and we don’t even have to use the print ads for our announcements. Albeit the fact that we may be one sided since we are just taking referrals, this could still be an economic move on our part”, contended Caster. “Well if this is going to make life easier for my department, I’m all for it. With my Marketing Manager position still pending, this idea may not be bad at all”, said Maxwell Hayes. “What if we promote Joshua Green from his current position of Supervisor to Manager”, suggested Greyson. “He’s been with us for 5 years now, I think he may be up to the task. If my memory serves me right, he got two employee of the year awards for closing the Duggan-McDermont and Fairwaye deals. Those were super accounts. Then we select one of your agents to replace Green.” “I don’t think he’s ready for it yet”, admitted Hayes. “Administrative and managerial skills might be an issue.” “Training”, said Caster. “That would be difficult to do since he’s always in the field”, said Hayes. “Making him report for a training exercise on a weekend will be a lot like pulling teeth. He’s a family man.” After the meeting, everyone came into a conclusion that these open positions need to be filled in ASAP. However, they were presented with the reality that there were also other positions that need to be filled in first. Breakdown was as follows: ​Finance Department ​​2 Accountants​​​Pending for 6 weeks ​HR ​​​​1 Comp & Benefits​​Pending for 8 weeks ​Business Process Data​​10 Research Analysts​​Pending for 9 weeks The following data given to them was an eye opener for them that immediately told them that staffing was indeed an issue. The conclusion: staffing was slow due to the low influx of CV’s. Time was of the essence. The longer the position was open and pending, the less productive was their company plus the fact that they had to pay their employees for their over time premiums. “What do we do now, sir”, asked Caster. “If only I had a dime for every question”, said Greyson. “I give to you the green light. Do whatever it is necessary to fill them up.” 1.) Which among all openings should be the priority? 2.) What can HR do in order to immediately fill up the positions?

FLAK Industries, Inc is a company that is engaged into the manufacturing, marketing and distribution of semiconductor materials, cable wires and other devices installed in computers, telephones and industrial machines. FLAK was incorporated by two communications engineers, Sherman Hotchner and Donn Moore in 1950, in Wyoming. All throughout the history of their business of operations, they have enjoyed a steady growth in the business. The secret to their success according to them was attributed to their very strong sense of updating themselves with the latest innovation in technological advancement. For them, technology was moving at a far better pace than any other man has imagined, and thus, they should be able to survive in the industry if they were able to get their hands on the proper equipment and training that money can buy. During the time when the United States Air Force (USAF) began opening the doors for independent contractors to bid for the very first on board computers on their aircrafts that will be deployed for the Korean War, FLAK Industries was there. It didn’t even matter for Hotchner and Moore if they were just new in the business, but for them, they would grab any opportunity that will come along their way and they thought that they will be able to establish a name for themselves, and all they needed was a break…a very big break. The USAF was the perfect opportunity so they began to perform their research and designs for the exact specifications of the USAF only to find out that the competitor was able to outbid them. According to the test pilots, the onboard computer installed by FLAK Industries responded 2 seconds slower than the competition. The USSR had one of the most feared planes, the MIG 15. The USAF’s P-51 had to be outfitted with the best and fastest military systems, and clearly FLAK was not yet ready. It was during this tough moment when the two incorporators opened up their eyes for the possibility of venturing into a business that was not geared towards the military, rather to that of the industrial and manufacturing business. The potential of onboard computer programs in all military equipment would mean that the Department of Defense would always look for new bidders with new programs to sell. Being the case, they believed that there will be a future demand for computers and other hi-tech equipment. They could not be more correct than ever. By the year 1981, 29 years after they founded the business, they were now ready to offer their initial public offering in the stock market. Their IPO would later on be the expressway to their success. A company that humbly started as a very small player in the industry of technology and telecommunications was now actually gaining its much anticipated respect. They were no longer considered to be a small player in the industry, rather they were a pillar in their own respect. With the demise of the original incorporators, the business was later on succeeded by their children, Gideon Hotchner and Matt Moore. None of them were engineers, rather they were both post-graduate degree holders in business from the “Ivy League”. Positive transformation was implemented by these two as they believed that any business should have the proper vision and mission to achieve a good corporate strategy and propel them to success. Through their combined efforts, the company that their fathers have started suddenly boasted 1239 employees, had one of the best, if not the best compensation package for their employees. Bonuses left and right were generously handed down to those who deserved it. In the words of Hotchner, the backbone of it all was their careful selection of their different Vice-Presidents who would help them run the business well, and make sure that all angles are covered. Vice President for Finance was a registered and licensed CFA, William Greenaway. VP for HR was Elle Greyson, a former psychometrician and an experienced counselor. VP for Production/Operations was Jonas Stevenson and their VP for Marketing was Maxwell Hayes, both who were instrumental in the success of their stock market shares to be bought in droves. Everything was running smoothly, with the occasional bumps and bruises that went along the way. “NO organization can be perfect in the first place, so I guess that all of these setbacks are just minor ones anyway. For as long as we have our employees happy and contented, there’s no need to worry”, says Moore. With the growing demand of the new century, the year 2005 was the most challenging time for the organization. This was the time when people kept on resigning from the company. HR overall manager Francis Caster found out that the common reasons why people left the office were: ​5% ​Business ​17%​They want to try a different field ​20%​Take up their post graduate degrees ​22%​Salary and benefits ​36%​Career growth The statistical data presented by the HR department to the board of directors and to their top bosses were quite alarming since the company has a total of 115 open positions and 39 of them include marketing agents who were primarily responsible for working in the field, talking to customers and making sure that deals were signed. “How many agents are working for us anyway,” asked Hayes. “Well sir, to make sure that we meet the quota and the KPI’s we have sent for the year 2007, we will be needing a total of exactly 105 people for the marketing department, agents wise”, replied Caster. “I heard that the 39 open positions have been pending for 2 weeks now. Is this true?”, asked a concerned Moore. “Actually, out of the 39, we have filled in 15 positions already so that leaves us with 24 more”, said Greyson. “I have received reports that our HR personnel in charge of recruitment are expediting their recruitment process.” “HR is on to that sir,” said Caster. “We have also devised a new referral program for employees. Anyone who refers to us a candidate for interview and gets to pass and we hire that person, our employee gets a $100 bonus.” “No way! I don’t believe that I have approved of that move already, have I”, asked VP for Finance William Greenaway. “Well sir, this will be taken from the HR budget anyway”, countered Caster. “Nevertheless, this means that we are putting more money on the table when in fact we are faced with the dilemma that we are still in need of marketing agents who are supposed to bring in the money for us.” Immediately both Hotchner and Moore were convinced that such a move might be financially risky. Time and money was something that they were very concerned since they would not want brokers and traders from the stock market to find out that FLAK Industries, Inc. was having internal problems in terms of personnel. “Sir, with all due respect, I think that this will help expedite our process since head hunters will be charging us a professional fee and we don’t even have to use the print ads for our announcements. Albeit the fact that we may be one sided since we are just taking referrals, this could still be an economic move on our part”, contended Caster. “Well if this is going to make life easier for my department, I’m all for it. With my Marketing Manager position still pending, this idea may not be bad at all”, said Maxwell Hayes. “What if we promote Joshua Green from his current position of Supervisor to Manager”, suggested Greyson. “He’s been with us for 5 years now, I think he may be up to the task. If my memory serves me right, he got two employee of the year awards for closing the Duggan-McDermont and Fairwaye deals. Those were super accounts. Then we select one of your agents to replace Green.” “I don’t think he’s ready for it yet”, admitted Hayes. “Administrative and managerial skills might be an issue.” “Training”, said Caster. “That would be difficult to do since he’s always in the field”, said Hayes. “Making him report for a training exercise on a weekend will be a lot like pulling teeth. He’s a family man.” After the meeting, everyone came into a conclusion that these open positions need to be filled in ASAP. However, they were presented with the reality that there were also other positions that need to be filled in first. Breakdown was as follows: ​Finance Department ​​2 Accountants​​​Pending for 6 weeks ​HR ​​​​1 Comp & Benefits​​Pending for 8 weeks ​Business Process Data​​10 Research Analysts​​Pending for 9 weeks The following data given to them was an eye opener for them that immediately told them that staffing was indeed an issue. The conclusion: staffing was slow due to the low influx of CV’s. Time was of the essence. The longer the position was open and pending, the less productive was their company plus the fact that they had to pay their employees for their over time premiums. “What do we do now, sir”, asked Caster. “If only I had a dime for every question”, said Greyson. “I give to you the green light. Do whatever it is necessary to fill them up.” 1.) Which among all openings should be the priority? 2.) What can HR do in order to immediately fill up the positions?