Calleeta Corporation
The Calleeta Corporation
May 15, 2011
HRM 520
Identify three key business issues facing Jan, Calletta’s CEO.
As Calletta’s CEO, Jan is facing a number of problems such as: lack of support from board members/investors, increasing employee costs, and protests against Calletta’s offshore facilities due to the growing concern of working conditions. Jan key issue on hand is the lack of support from board members and investors. Board Members and investors right now are not supporting Jan or her proposal due to a poor return on investments. Board Members are concerned about the rapid increase of employee cost the company is incurring. Calletta is incurring a 12% cost increase annually compared to an industry average rate of just 4% in the U.S. It seems that until Jan is able to reduce employee cost along with increasing the company’s revenue and return on investments she will continue to lack the support needed for her future plans for Calleeta.
Another key business issue Jan is facing at Calletta is the rapid increase in employee cost. Board Members are furious that Calletta is paying a well higher annual rate of 12% versus the industry average 4% that their competitors are paying. Board Members are demanding that Jan seek ways to decrease employee cost before approving any future plans. As a result Jan is forced to choose between HR Vice-President John Nosmas practices or the board who affects her maneuvering power for future plans. John Nosmas defends his practice of paying higher wages along with providing expensive benefit programs because he believe in hiring the best employees and believes that his practice also keep employees along with products innovated. This key business issue kind of puts Jan in a hard place because both parties play a vital role in her success as CEO.
Finally, as CEO Jan is faced with the growing concerns over working conditions in their foreign facilities which are being targeted by activists on behalf of humane working
May 15, 2011
HRM 520
Identify three key business issues facing Jan, Calletta’s CEO.
As Calletta’s CEO, Jan is facing a number of problems such as: lack of support from board members/investors, increasing employee costs, and protests against Calletta’s offshore facilities due to the growing concern of working conditions. Jan key issue on hand is the lack of support from board members and investors. Board Members and investors right now are not supporting Jan or her proposal due to a poor return on investments. Board Members are concerned about the rapid increase of employee cost the company is incurring. Calletta is incurring a 12% cost increase annually compared to an industry average rate of just 4% in the U.S. It seems that until Jan is able to reduce employee cost along with increasing the company’s revenue and return on investments she will continue to lack the support needed for her future plans for Calleeta.
Another key business issue Jan is facing at Calletta is the rapid increase in employee cost. Board Members are furious that Calletta is paying a well higher annual rate of 12% versus the industry average 4% that their competitors are paying. Board Members are demanding that Jan seek ways to decrease employee cost before approving any future plans. As a result Jan is forced to choose between HR Vice-President John Nosmas practices or the board who affects her maneuvering power for future plans. John Nosmas defends his practice of paying higher wages along with providing expensive benefit programs because he believe in hiring the best employees and believes that his practice also keep employees along with products innovated. This key business issue kind of puts Jan in a hard place because both parties play a vital role in her success as CEO.
Finally, as CEO Jan is faced with the growing concerns over working conditions in their foreign facilities which are being targeted by activists on behalf of humane working
References: Sangeetha, K. K. (2010). Effective Recruitment: Strategy, 7 (1/2), 93-107. Retrieve from EBSCC on May 9, 2011. Leavy, N. N. (2010). U.S. employers push increase in cost of healthcare onto workers. Retrieved from http://articles.latimes.com/2010/sep/02/business/la-fi-healthcare-costs-20100903