CASE STUDY SUBMITTED BY: CARAMONTE, KIMBERLY F. JARABA, JOANNA MARIE O.
CASE 4: JAMIESON DRUGS, INC
I.
Time Context In today’s generation (millennial stage), outsourcing has become one of
the main drivers for economic growth especially for developing countries. The outsourcing sector can be a huge economic driver especially when it comes to employing the young people who are the highest number of unemployed people in a certain region. Today, we can say that outsourcing is in demand. Companies have been benefiting from outsourcing for years. It can save costs up at least of 60%. With also this, you can construct a virtual team that can have diversified talents. In 2015, the outsourcing industry employed over 1 million Filipinos, with projections that it can generate up to $55 billion by 2020 or roughly 11 percent of the country’s GDP, according to World Bank estimates.
In this case study, we came up with an analysis having a millennial mind: finding the solution that is timely and practical.
II.
Point of View (Perspective)
Human Resource Head, Mr. Joseph Nierras
III.
Statement of the Problem
The inefficiency of product detailing among hospital administrators, clinicians, and doctors is the central issue/problem followed by the lac k of employees due to the massive turnover of sales personnel paralyzing the sales operations. There is also a problem regarding the recruitment of applicants due to the depletion of
CASE 4: JAMIESON DRUGS, INC
talent pool of the HR department adding cost and time consuming recruitment process of the right applicants suited to that field/position when hiring needs arise.
Cause and Effect of the Problem: CAUSE
Massive personnel turnover
20% try their luck outside the country
EFFECT
Sales operations have gone down to 2% of the target sales this month
Pressure within the company to
25% will apply as call center
cope up with the demands and
agents
expectations of the customers
30% are tired of their jobs and wants to try another
Several closure of manufacturing plants
fields
IV.
25% will start a family
Poor Compensation
Increase in workload
Presentation of the Alternative Courses of Action
Areas of Consideration: The main areas of considerations are Human Resources, Marketing and the Sales Department.
CASE 4: JAMIESON DRUGS, INC
STRENGTH: * Established Name - has been in the industry for more than 25 years and considered as one of the top pharmaceutical companies. * developed from purely ethical to overthe-counter drugs *since 1980, achieved a compounded annual growth rate of 35%
WEAKNESS: • Lack of employees due to the massive sales personnel turnover paralyzing the sales operations • inefficient hiring process making it time consuming and costly
SWOT ANALYSIS
OPPORTUNITIES:
THREATS:
• Being meticulous in hiring salesperson by
• Opportunities of employees outside the
having shortlisted candidates for sales • Outsourcing services offered by the Manpower Magnate
company reluting to a massive personnel turnover • low sales rate this month
Alternative Courses of Action: 1. Recognize the proposal of outsourcing the HR functions of recruitment, training, and payroll from Manpower Magnate Advantages:
Having Manpower Magnate do such functions will lessen the burden from the HR department in the interview process
CASE 4: JAMIESON DRUGS, INC
It will save time in the hiring process
No risks of red tapes because Manpower Magnate maintains confidentiality and has not revealed their identity
Disadvantages:
Manpower Magnate is relatively new in the outsourcing agencies and their record of accomplishment is just their “claim”
This may result to an ineffective employment due to the fact that they will not be as meticulous as the Marketing and Sales department in recruiting and hiring applicants.
Outsourcing may result to some potential disadvantages such as poor quality control, decreased company loyalty, lengthy bid process and a loss strategic alignment.
2. Providing compensation benefits in order to satisfy the needs of the employees to prevent them from leaving the company and company hiring Advantages:
It will cost less than having a massive personnel turnover
No need for another hiring process and the company just need to utilize the assets and resources to avoid further complications
The risk of having inefficient recruitment is lower compare to outsourcing the Human resources function from other companies.
CASE 4: JAMIESON DRUGS, INC
Disadvantage:
Generally accompanied by significant portions of paperwork to facilitate the change of plans
V.
The company may also have an additional financial considerations
Conclusion
It is best to choose the second option wherein the company will provide compensation benefits to their employees and conduct company hiring. It will be more cost-effective because the company will not depend unto third party for their recruitment that may result to certain risks. Outsourcing is convenient however generating the solutions internally is more efficient and practical since the decision of choosing the right applicant that will fit for the position will rely entirely on the company and no one else.
VI.
Recommendations
The company must identify the reason behind the massive personnel turnover. With this, the company should focus on satisfying the needs of the employees to prevent them from leaving. Thus, providing compensation and employee benefits may be a solution for making them stay.
Workload must be distributed properly and evenly to prevent massive workloads that will cause employees to be tired at their jobs. This can be done by the proper segregation of duties.
CASE 4: JAMIESON DRUGS, INC
If the company cannot raise the salaries, they may consider hiring fresh graduates. These kinds of applicants are more focused and the eagerness to work will be a good driving force for the operations of the company.
If the company can raise the salaries, hire experienced personnel that would be more efficient and effective making it cost-effective.
Develop a light and friendly environment that will lessen the pressure of the employees but is still under strict control. This kind of environment will motivate them to work even under pressure.
