Project #95611 - Human Resources

You are the VP, HR at Canadian Bio-Medical Instruments Ltd. (CBMIL). After last week’s strategic planning exercise with the senior management team, you are now thinking about how best to support the company’s objectives. In the past, the HR function at Canadian Bio-Medical Instruments was very administrative in nature. One of your key roles is to educate the senior management team about human resources and how it can positively impact the bottom line success of the business. Another key part of your mandate is to make sure each division has the right people in the right jobs. Last week, when you were talking with the CEO, you were very clear that different business units may need different HR policies to optimize employee performance. 

There are three business units that comprise Canadian Bio-Medical Instruments Ltd. Here are your notes on each:

Clinical Products Division:

  • blood pressure cuffs, stethoscopes, otoscopes and thermometers
  • in a stable position from a market share perspective
  • products are seen as good quality, cost –effective, and durable
  • popular among doctors establishing new practices and expanding existing onesincreasing sales is the key business priority for this division
  • need to increase sales in existing markets and find new ones
  • creation of a ‘virtual’ (online) sales team is a critical step in achieving this
  • Director of Sales has serious concerns about this new direction
  • feels current sales team is performing well using a traditional ‘customer relationship management’ (sales) approach
  • has concerns that customer service will be negatively impacted using technology

Surgical Products Division: 

  • high end, specialty products used in the operating room (such as surgical scalpels and clamps)
  • high quality and specialized nature of products makes it a niche market
  • currently dominate market space with sales of $30 million a year in Canada
  • ability to deliver new, innovative products is critical to future success
  • main business objective for this division is growth
  • immediate need to hire industrial designers and medical advisors to work collaboratively
  • key priority to design and develop several new products to bring to market over next 1-3 years 

Medical Equipment Division: 

  • manufactures examining room tables, hospital beds, operating room beds and basic folding wheelchairs
  • division is underperforming against sales and revenue targets
  • hospital budgets are tight and affordability is critical
  • main business objective for this division is to cut costs while maintaining quality
  • decision has been made downsize or restructure existing manufacturing facility
  • future may include shifting production to contract / offshore manufacturing 

You have a couple of immediate issues you need to address:

Two divisions in CBMIL are growing and need people. Given that you are new in your role, you need the existing senior managers to help you with forecasting. But, based on various conversations you’ve had, the concept of future oriented planning in HR is a new concept here. 

It may be a hard sell. 


Meanwhile, the General Manager, Medical Manufacturing Division, has asked you to meet with him to discuss downsizing and restructuring the manufacturing division. Sales have been in a slump for several quarters and action must be taken. 


Question (1 1/2 - 2 pages)

If you proceed with downsizing, what approach will you recommend? Make sure you consider the planning and implementation of any downsizing as well as strategies to help the ‘survivors’. 


Subject Business
Due By (Pacific Time) 11/24/2015 12:00 pm
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