CASE STUDY

Instructions: This assignment requires that you demonstrate a sound understanding of the concepts and principles included in this class. Read the case presented below and complete the assignment presented at the end. Proofread your work before submitting. You can submit multiple times. I will grade your last submission considering the quality and sufficiency of answers given, your demonstration of understanding of the concepts included, and the extent to which you satisfy the questions asked.

MOTORS AND MORE INC.

You are hired as the HR director for the fictitious Motors and More, Inc. This business$-$tobusiness sales company manufactures small motors and accessories for industrial and home products. The industry is highly competitive and the company follows a prospector strategy.

A prospector strategy takes advantage of new markets and products. Organizational emphasis is on growth, innovation, and new product development. A prospector wants to be first to the market. To respond to competitive and rapidly changing markets, prospectors have flexible, flat, and decentralized organizational structures.

Motors and More is headquartered in a small southern town of $28,000$ people, with a low unemployment rate of $3\mathrm{.}1\%.$ This means that demand for workers exceeds labor supply. There is a technical school and a community college within $50$ miles of Motors and More. Motors and More's president is a former military and is highly patriotic. He is committed to staying in the community. Recently, other local companies have experienced labor organizing activities.

Motors and More employs $116$ people. Until you were hired, there was no HR department.

Make It Play is a manufacturer that specializes in three types of toy instruments: xylophones, electronic keyboards, and drum sets. Grandparents across the globe flock to stores so they can buy their kids' kids these especially noisy toys. Company managers are equally excited about their products and await the profit report for this year's performance. The following partial income statement was released to all managers last week.

$\backslash$table$[[,$Xylophone,Keyboard,Drums,Total$],[$Sales$,$$$500,000,$$$900,000,$$$600,000,$$$2,000,000],[$Cost of goods sold,$215,000,440,000,350,000,1,005,000],[$Gross margin,$285,000,460,000,250,000,995,000],[$Operating expenses,,,,$800,000],[$Operating income,,,,$$195,000]]$