Module 1 case
OUTSOURCING
Case Assignment
Jenny is an HR manager at Company XYZ who has worked for
this volatile organization for 10 years. Jenny grew up in a conservative family
in the Midwest and believes that “hard work” pays off. She comes from a family
that prefers to only drive American-manufactured cars and she currently drives
a Chevrolet Impala that was handed down to her by her uncle. Furthermore, many
of her family members served in the US military and her son is currently
stationed overseas in a war zone. Over the years, she successfully implemented
many policies and procedures at Company XYZ that she is very proud of. Her goal
is to be promoted to Vice President of HR at Company XYZ.
Jenny has a weekly meeting with the CEO (Jasjit Singh) to
review different HR initiatives such as recruitment and retention efforts.
Jasjit is originally from India and is very clever and strategic with his
decision-making. At her recent meeting, she learned that Company XYZ is not
doing well financially and certain cuts need to be made. Jasjit asks Jenny to
create a plan for helping the organization become more profitable and to
present her action plan at their next weekly meeting. Based upon her training
and education, Jenny prepared a plan for laying-off 10% of the employees which
will help the organization save at least $2 million each year. Also, she
believes that if most employees are able to work from home, the organization
can potentially save $3 million each year because all of the money that will be
saved from overhead. She believes that Jasjit will be flabbergasted with her
action plan and creates a detailed PowerPoint presentation for her upcoming
meeting.
On the day of the meeting, Jenny presents her PowerPoint
presentation to Jasjit and he is somewhat impressed but makes the following
remark, “We need to save at least $10 million a year in order to survive” and
that her plan “is not sufficient.” He further suggests that “outsourcing to
India” is what would help the organization significantly along with laying-off
25% of the employees who are lowest on the seniority list. Jenny is upset but
is unable to voice her disapproval to the CEO.
As Jenny returns to her office, she decides to call her old
college professor who specializes in Human Resource Management to ask for some
advice. Jenny explains to her professor that it is not fair that American
employees are getting laid-off and that “underqualified people” in India will
be getting jobs. Her professor is quick to recommend conducting a CAGE Distance
Analysis because the results may portray some unwanted distance that may cost
the company millions of dollars. She thanks her professor for the advice. Jenny
has a lot to think about and does not know if she can work for an organization
that is willing to terminate American employees in order to hire cheaper labor
overseas.
Drawing on the material in the background readings and doing
additional research, please prepare a 2-4 page paper (not including the cover
and reference pages) in which you thoroughly answer the following questions
(your paper should be in essay format where you address these questions in your
essay):
Case Study Questions
Generally speaking, are you for or against outsourcing
overseas? Justify your response. Conduct some outside research.
Generally speaking, what are the pros and cons to
outsourcing overseas to a developing nation? Conduct some outside research.
Should Jenny focus on her own job and career at Company XYZ
or should she challenge the CEO based upon her own personal values and
principles? Justify your response.
What are some potential problems with outsourcing to India?
As a hint, air pollution is getting worse in India according to the 2014 Yale
University Environment Performance Index (EPI). Currently, India ranks 174 out
of 178 because of its potent and toxic air pollution.
What are some alternative solutions to this case study so
employees do not have to be laid-off? Ultimately, what can Company XYZ do to
save money? Jenny already suggested a work from home policy and laying-off 10%
of the employees. What are some more alternative solutions?
