As the new vice-president of human resources, you have been asked by the president to prepare the human resource components of the business plan for ABC Inc.’s continuing rapid expansion. Once approved, the HR policies and practices that you have recommended will be implemented under your leadership.

Case Facts:

(a) Assume that you are the new vice-president of human resources for ABC Inc., a company that makes and sells specialized software for hospitals, clinics, and doctors’ and dentists’ offices throughout Canada and the United States. The company has experienced very rapid growth in both sales revenue and employment since it started four years ago with only 10 persons.

(b) Currently the company has 350 employees, with 25 professionals experienced in medicine, nursing, medical labs, or dentistry working in product research; 100 professionals with expertise in software development or computer science working in software development and related fields; 100 salespersons; 50 professionals (such as lawyers, accountants, finance specialists, HR specialists, and marketing specialists) providing staff services; 50 clerks and other office workers; and 25 managers and supervisors.

(c) ABC Inc. is expected to continue its very rapid growth as its products are highly valued by the market despite fierce competition from other companies and despite public health and economic concerns related to the pandemic. The president of the company expects to double the number of employees over the next two years. Each category of employee would experience large increases in personnel.

Question:

(a) As the new vice-president of human resources, you have been asked by the president to prepare the human resource components of the business plan for ABC Inc.’s continuing rapid expansion. Once approved, the HR policies and practices that you have recommended will be implemented under your leadership.

(b) In the first four years of its existence, ABC Inc. has had no vice-president responsible for human resources since the president (who has a background in medicine and computer science) has handled some of the HR tasks herself and delegated others to various managers (none of whom have any HR background). Your challenge is to recommend and then establish a professional HR function at ABC Inc.

(c) What HR policies and practices should be adopted to meet this challenge; and why do you think your recommendations would be effective? You are to outline and explain what the company should do in terms of HR policies and practices to make its expansion as effective as possible in addition to ensuring that both its current and new employees are as productive and satisfied as possible.

(d) Support your answer by using relevant terms, concepts, examples, and information from the course. Also, indicate what limitations and problems might be associated with your recommendations (because, of course, no plan is perfect!).

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