JVA Corporation has a presence and expertise within the market of nearly two decades, during which period they have been faced with a wide array of challenges, but also opportunities. The company, for instance, has been able to expand into the increasingly popular and evolving technological sector, hiring better trained and specialized staffs. On the other hand however, the company has also faced challenges as a result of macroeconomic conditions, such as the terrorist attacks or the global recession.
Today, the company finds itself in a complex situation in which they have to continue to function at high levels of performance and productivity, but also to reduce their operational costs. This need resulted from the financial hurdles brought on by the economic crisis. When numerous firms have downsized or even declared bankrupt, the JVA Corporation continued to operate and secure the employment of its thousands of employees.
The company as such employs 185,000 individuals across the globe, most of whom however are located within the United States facilities of the corporation. 3,500 of the employees are full time salaried managers, and the rest of 181,500 are operational staffs. The compensation packages of the operational staffs are based on a fixed hourly payment,...
JVA The change is permanent in nature. The compensation structure is simply too high in the long run, and needs to be brought under control. 8% of revenues for bonuses is just too much, so this change is going to be permanent. JVA's revenues are $311.7 billion based on the $53 billion loss being 17%. A total of 3% of that will be eliminated, so $9.35 billion is on the table. This
JVA HR How permanent or temporary is the change? Since the HR strategy was driven by a downturn in the economy, it is reasonable to suspect that once the economy is back on its feet the strategy will change as well. Thus the change is only as permanent as the macro-economic environment as well as the company's individual performance. How much will employees lose by the change? Employees will suffer some losses. They would
This brings us to the costs that both employees and JVA Corp. will face if this strategy is implemented. The employees will lose because, after the economic crisis, they will find themselves at the same professional levels as before the crisis. As no performance management has been undertaken, there have been no training programs etc. And the employees will simply find themselves not adapted to the challenges of the environment.
International Business What information would you require to assess the options which are open to ABH Electronic (15 Marks) In order to properly assess the options that are available to ABH electronics I would need additional information pertaining to the economic conditions of the three countries seeking to attract ABH. Specifically I would need to know the Gross Domestic Product, the overall market index, the consumer price index (inflation), the annual per
Compensation and Performance management: Two Sides of the Same HR Coin While it is unquestionably part of a human resources manager or director's job to ensure that the company achieves some level of cost savings -- and definitely cost benefit -- in its human resources expenditures, this does not mean that keeping compensation packages at the minimum possible level is the ideal target to shoot for. The well-being and satisfaction of
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