Advantage of new markets and products

You are hired as the HR director for the fictitious Motors and More, Inc. Motors and More, a business-to-business sales company, manufactures small motors and accessories for industrial and home products. The industry is highly competitive, and the company follows a prospector strategy.


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A prospector strategy takes advantage of new markets and products (Gomez-Mejia, Galkin and Cardy, 2001). Organizational emphasis is on growth, innovation and new product development. A prospector wants to be first to market. To respond to competitive and rapidly changing markets, prospectors have flexible, flat and more decentralized organizational structures.


Motors and More is headquartered in a small southern town of 28,000 people, with a low unemployment rate of 3.1 percent. This means that demand for workers exceeds the labor supply. There is a technical school and a community college within 50 miles of Motors and More. Motors and More’s president is former military and is highly patriotic. He is committed to staying in the community. Recently, several other local companies have experienced labor organizing activities.


Motors and More employs 116 people. Until you were hired, there was no HR department. Recently, the organization’s employee turnover rate has been higher than normal. The marketing and sales department continues to sell products to an expanding market. Because of this increased product demand, output must be increased by 96 percent.


Eighty-eight percent of Motors and More employees are Caucasian. With the exception of one female supervisor in the customer service department, the president and all other managers are Caucasian men. Management promotions have been based on seniority. The local labor market population is approximately 48 percent minority. There is a growing Hispanic and Kurdish population that have not been accepted into the community.


All the employees in manufacturing (including quality control), customer service and operations (responsible for shipping and receiving; distribution of raw materials, components parts and finished goods inventory; and maintenance and cleaning) have at least a high school degree or GED. The organization provides some skills training courses. Please refer to the organizational chart in Figure 1 for more details.


Figure 1: Motors and More Organization Chart





Gomez-Mejia, L. R., Galkin, D., & Cardy, R. (2001). Managing human resources. Upper Saddle River, NJ: Prentice-Hall, Inc



 Suggested Readings for Case Study

1.   Anthony, W., Kacmar, K. M., & Perrewe, P. (2006).  Human resource management: A strategic approach. Mason, OH: Thomson Custom Solutions.

2. Daft, R. L. (2003).  Essentials of organization theory & design. Manson, OH: South-Western, Thomson Learning. DeNisi, A. S., & Griffin, R.W. (2001).  Human resource management. Boston: Houghton Mifflin Company.

3. Griffin, R. W., & Moorhead, G. (2006).  Fundamentals of organizational behavior, managing people and organizations. Boston: Houghton Mifflin Company.

4. Gomez-Mejia, L. R., Galkin, D., & Cardy, R. (2001).  Managing human resources. Upper Saddle River, NJ: Prentice-Hall, Inc.

5. Jackson, S., & Schuler, R. (2006).  Managing human resources though strategic partnerships (9th ed.). United States: Thomson South-Western. Kirkpatrick, D. L. (1994).  Evaluating training programs: The four levels. San Francisco: Berrett-Koehler Publishers, Inc.

6. Mathis, R., & Jackson, J. (2006).  Human resource management (11th ed.). United States: Thomson South-Western.

7. Noe, R., Hollenbeck, J., Gerhart, B., & Wright, P. (2007). Human resource management (2nd ed.). Boston: McGraw-Hill Irwin. Robinson, D. G., & Robinson, J. (1996). Performance consulting: Moving beyond training. San Francisco: Berrett-Koehler Publisher


Instructor notes:


The scenario provides background information and a framework for the progressive case study.  You will be asked to address the organization’s issues through discussion board assignments. Assumptions for this assignment include:

· Motors and More, Inc. has adequate resources to support any reasonable initiatives.

· Motors and More, Inc. produces products and services that will continue to be in demand.

· Motors and More, Inc.  does not have a succession plan.

· Entry-level employees in the manufacturing department are paid minimum wage as mandated by federal law.

· Wage rates are defined for employees in the different divisions.

· Student will define the organization’s compensation. Student will decide if Motors and More, Inc. meets, leads or lags the competition.  Student should consider where the organization stands in comparison to other organizations in the area. Search for information that will help you decide the organization’s approach to pay.

· Regarding benefits, Motors and More, Inc. provides unemployment insurance, workers’ compensation and Social Security withholding for employees as mandated by law.

Part A:  Design a typical HR department and identify each HR unit. For each HR unit, provide roles/ responsibilities and job titles. Develop an organization chart of a typical HR department.   To complete these two activities, please answer the two questions listed below. Post your answers in Discussion Board A. Make sure to type the question and then your response.


PART A | Question 1. Conduct research on the SHRM webs

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