PAC Resources

A Case Study

Presented to:
Ms. Ruth Botin

Presented by:
Jessie Karl Aspera

In Partial Fulfillment of the Requirement

For the Degree of
Bachelor of Science in Business Administration

Synopsis
The Organization PAC resources were founded in 1994 by current CEO,
David Dukakis. PAC resources started the company in small rented quarters
in nearly vacant strip mall. Dukakis brought in Cliff McNamara early on as
chief financial officer. McNamara managed the business, and Dukakis was
the idea man and designer of the specialty components, patents of which
were the backbone of PACs success. Today, PAC employs 835 full time
workers in its own contemporary facility built in 2002. Its market niche
continues to be high-quality equipment, specialized equipment. The
company is proud that its product continues to be made in United States.
Eighty three percent PACs sales come from building original specialty
components for one manufacturer. There have been steady income source
for PAC, but heavy reliance on one customer is a significant worry for PACs
management team, especially because of sales finish products are down this
customer and cutbacks are expected. PAC instituted a hiring freeze, and
marketing sales budgets were directed to increase company customer base.
Though PAC remains non-union, three years ago the organization went
through difficult period of employee unrest, There were reports of poor
management, inconsistently enforced policies and unfair practices regarding
jobs changes and movement of employee within organization. Dukakis
remain the CEO but he no longer manages day to day operations. Decision
making is primarily in the hands of McNamara who is not the senior vice
president and Mark Schilling as second vice president. In addition to the
hiring freeze, McNamara directed managers to cut waste and improve
productivity across the board because of the economic downward turn.
Employees were reminded that every department would be affected and
nothing was sacred, This includes the human resource departments training
programs and school reimbursements, safety and securitys health care
compensations, staffings reduction of force, and compensation and
benefitss packages. Despite of this major cost cutting, there are unresolved
employee relation disputes which give the company a heavier burden.

Statement of the Problem

What would the organization do to survive on the current economical

downward turn?

What ways does human resource development have to do in order to

survive the down turn, would they even need to cut their training for
programs and school reimbursement just to survive?

What would safety and security do when cost cutting is implemented?

What would staffing do, would they need to resort on reduction in force
just to stay in line of the business?

What would the company do in order to cut compensation and benefits

without the risk of losing the productivity of their employee, or worse
losing them?

What would the employee relations do to fix the dispute with the
employee and management

Statement of the Objective

To be able to know if the company can survive the current economic

downward turn

To be able to know if what will the human resource department will cut
in order to
survive the economic downturn

To be able to know if what would safety and security do when cost

cutting is implemented

To be able to know if what would staffing do so that they would not

lose any good performing and long term employees with experience
with the current economic downturn if they resort on reducing the
force

To be able to know if what compensation and benefits to cut without

the risk or lowering the employees productivity or worse, letting them
resort in resignation.

To be able to know if what will employee relations do to fix employee

and management disputes

Statement of Areas of Consideration

STRENGTH

The hiring freeze will give them space from

unnecessary expenses
Cost cut may lessen the losses that they have
been experiencing because of the downward
turn of economy
They develop a trusted high quality American
made products which will not be easily affected
by the downturn of economy
They have employee active wellness programs
and tuition reimbursement that can satisfy the
employee

WEAKNESS

Their managerial officers have favoritism

They are suffering from economy downward

turn
They are forced to cut cost in all areas of the
organization which will let them lose some
benefits such as school reimbursements
They have weak employee communications
and actions with employee concerns

OPPORTUNITY

The cost cutting might save them from the

probability of bankruptcy because of the
downturn of economy
The hiring freeze might lessen the expenses
with the training
Other competitors might close because of the
downward turn of the economy which is an
opportunity for PAC resources

THREAT

The downward turn of the economy causes a

loss of profit
Hiring freeze will let them miss talented job
seekers
Ignoring of sexual harassment reports of the
human resource manager might stain the
name of the company
Mass layoff might happen if the economy
downward turn continues even further

Statement of Alternative Course of Action

1. The organization must have a union to have a fix and centralized typed
of wage and benefits without so they will not have any excess benefits
which can be a big loss in the time of economic downturn.
PROS
It can help them monitor they wages to know if there is any fraudulent
sales data and they can have a collective bargaining agreement
CONS
It creates a gap between a manager and employees which can affect
with their productivity
2. Training programs and School Reimbursements are useless because of
the hiring freeze and the only employees left are old and experienced
employees so they need to cut it.
PROS
They will save money because of the cutting
CONS
Employees that is studying while working will be affected and might
become unproductive because of the cutting of school reimbursement
3. Safety and security can cut their budget by conducting morning and
break exercises which can let employees lose fat and spend less on
health issue
PROS
It is cheaper
CONS
Other employees needs even more than exercise just to lose weight
and might find it ineffective
4. They must stop their plan for layoff because they already freeze the
hiring and it will only be a loss if they lose even more employees
PROS
It can stabilize the consistency of the profits
CONS
It could be a burden if the employees are incompetent when working
5. A union can fix the compensation and benefits problem by having a
collective bargaining agreement
PROS
Collective bargaining agreement can make both employees and
employer have a meeting of the minds or arbitration if they cannot
CONS
It takes time to be created
6. They must have an employees desk to talk about any dispute that
happens inside the company and resolve it
PROS

It can make the employees open up on what they really want to say
CONS
It will be a luxury because of the economic downturn

Statement of Conclusion

Therefore I conclude that PAC resources is in panic because of the

economic downturn, so they need a union to settle any problems with the
wages, benefits and disputes with a collective bargaining agreement that
can fixed by them or by an arbitrator that can resolve the companys needs
and for the managerial not to abuse the benefits. They also need to cut
unnecessary expenses such as training programs, health expenses and
resort into a much cheaper adjustments. The layoff is not a good choice for
they already have a hiring freeze and they must have an employees desk to
listen to any disputes inside the company to let them open up and fix it

Statement of Recommendation
It is recommended that they do as follows:

They must have a union for collective bargaining and centralized

wage to monitor it even easier
They must cut unnecessary expenses such as training program
budget and school reimbursement temporarily until the economic
downturn passes through
They must resort on having a morning and break time exercise to
cut the health benefits
Layoffs must be stop because they already have a hiring freeze, it
will be a lose losing anymore employee rather than saving
They must have an employees desk to resolve any dispute inside
the company to listen on the side of the employee and let them
open up