Answer Question in APA style.

1. What challenges should Montgomery anticipate in the transition to hot-desking, and what can be done to ensure success of the project? 2. What support should HR provide to help transition supervisors from managing traditional employees to managing mobile ones?

Thompson Technology: A Case Study in controlling labor costs

Scenario C: hot-Desking Players: Scott Montgomery, CHRO Jack Albright, COO Rick Stephens, facility manager Vickie Carothers, employee Dianne Sturgis, employee Thompson Technology has changed since the hiring freeze was implemented in 2008. The sales numbers are up slightly, and costs have been saved because staff levels are down about 5 percent overall. It has been difficult for some departments; reduction by attrition doesnt ensure that it will occur in the appropriate areas. Some departments lost a significant number of employees, and others experienced little to no employee attrition. Montgomery has worked with the managers to reconfigure departments and reassign staff to balance the workload. The most significant change occurred when the company moved to flexible scheduling and telecommuting. For nonexempt employees, the standard 8 a.m. to 5 p.m. shift was scrapped in favor of a 12-hour flex time day from 6 a.m. to 6 p.m., with core business hours between 10 a.m. and 2 p.m. when all employees should be on-site. In addition, a number of exempt employees shifted their work off-site and began telecommuting two or three days each week. That resolved most of the persistent absentee problems because flexible scheduling allowed employees the flexibility needed to manage work and family responsibilities. Now, several months into the new schedule, it is clear that employees love flexible scheduling, but the managers dont. Most of Thompsons managers had never supervised off-site employees or employees with time flexibility, and many were resistant to the change. Montgomery had anticipated that it would be a difficult change for some, but he hadnt expected all the grumbling about the difficulty of managing invisible employees. He has been working one-on-one with supervisors who cant seem to let go of the time clock mentality, and he hopes that with time most managers will realize the value of the new schedule. At least absenteeism is no longer an issue, and morale and productivity are finally improving. After all, thought Montgomery as he reached to answer his phone, our employees have been through a lot in the past few years with the hiring freeze and reorganization. Its about time something made them feel better. The call was from the COO Jack Albright. Good morning, Jack, said Montgomery. Scott, said Albright, we need to sit down and figure out where were going from here. Im looking at maximizing facility use for cost savings, and its going to affect people. Lets talk about how we can do this to benefit both our areas. Fine, Jack, said Montgomery. Ill stop by your office tomorrow morning. The next morning, Albright got right to what was on his mind. Scott, I think flextime and telecommuting is a huge success. It really changed the nature of work

round here. Have you walked through the customer service area or the marketing department lately? There are empty desks everywhere, especially early morning and late afternoon. Yes, Im very pleased with the results, said Montgomery. Our productivity numbers are up, absenteeism is down, and employees seem to be more content. Its taken a bit for supervisors to get used to the idea, but I think most of them are coming around. Ive still got a few old-style managers who think they have to police an employees time. But if I can get them to let that go, its a lot easier for everyone when an employee can take their child to the orthodontist or go to a ballgame without a lot of hassle over scheduling. Well that may be, said Albright, but Im looking at all those empty desks. Have you tracked employees new work patterns? Do we have any solid information on which hours employees are here and how many employees are actually here at the same time? Weve been tracking work hours and productivity levels since the beginning. Most employees are here during the core hours of 10 a.m. and 2 p.m., said Montgomery. And some people work off-site two or three days a week. We dont have long-term data yet because this is a new process, but weve got good numbers so far, and there are definitely patterns and trends emerging that we should consider. Great, said Albright. Lets meet again. Id like to have a look at your numbers. Im interested in a better use of our space. I see a lot of empty desks throughout this building, and it seems to me that if we consolidate some of that space, we could save costs and even generate revenue by leasing out what were not using. Ive been thinking the same thing, said Montgomery. Ive already talked with some colleagues in other companies where they use hot-desking for mobile employees. Whats that? asked Albright. Ive never heard of it. Its a process where mobile employees have no assigned work space. They dont need a designated space in the office because they do most of their work off-site. On days they work in the office, they use whatever desk is available. They simply find an empty desk, sit down, turn on the computer and go to work. Its working well in other companies, and I dont see any reason it wouldnt work for us, replied Montgomery.

I like it, said Albright. Lets go over those numbers and get it going right away. Montgomery sent the attendance and productivity data to Albright later that afternoon. He also scheduled a meeting with the facility manager, Rick Stephens, for the next morning. From there, things moved quickly. They identified two floors that could be consolidated into one floor of hot-desk areas. It was decided to proceed with the plan. A project team was formed and an implementation schedule was devised. Stephens staff would work with the IT department to make the physical changes during the final weekend of the conversion to reduce business disruption.

Approximately 30 days before the change, Montgomery sent the following e-mail to employees:

All Staff: I am pleased to report that our flexible scheduling and telecommuting programs have been very successful; a number of employees have taken advantage of the programs. We encourage all employees whose job duties can accommodate flexible scheduling or telecommuting to take advantage of the programs. Since the programs began, you may have noticed the increased number of empty desks because employees are working different hours and in various locations. Keeping empty desks open for employees working off-site is a significant cost to Thompson Technology. To reduce costs and to better use our physical space, individual desk areas will be eliminated from floors three and four. The fourth floor will remain available for other purposes, and the third floor will be converted to hot-desk areas for staff use when working on-site. The conversion will take place at the end of the month. All staff members currently on the third and fourth floors are asked to remove all personal effects by the Friday before the conversion. Our IT department and facility staff will make the conversion over the weekend to avoid as much downtime as possible. As always, your cooperation and support is appreciated. Scott Montgomery Chief Human Resource Officer

Later That Day Vickie Carothers stomped into the cluttered fourth-floor cubicle occupied by her friend Dianne Sturgis. Did you see the e-mail from HR? she asked. No, Im really rushed today, said Dianne. Ive got to get this project to marketing by 3:00 this afternoon, and Im way behind. I havent had time to look at anything. What is it? Well, its another announcement from HR, replied Vickie. What are you talking about? asked Dianne. What do they want now? As Vickie read the e-mail aloud, Dianne stopped working and turned toward her. Are you kidding me? she asked incredulously. No, its for real. Youve got to haul all this stuff out of here by the end of the month, Vickie replied, punctuating her comment with a wave toward the artwork by Diannes six-year-old twins adorning the cubicle wall. And then what? Dianne asked. Ive been in this cubicle for five years. How does anyone work at a shared hot-desk? I dont know, but it looks like were going to find out.

Montgomery realizes that hot-desking will affect not only the physical work space in the company, but also how managers supervise employees. Many of these managers have no experience in managing mobile employees, and he has promised them support in making the transition. He has asked your team to design a plan to help the supervisors transition from traditional management to managing mobile employees. He is meeting with your team this afternoon. Please provide him with answers to the following questions: