Inspired by the case entitled: A time for Change from the book Human Resource Management by Wendell French, Houghton Mifflin Company, 2007.

WHY THE NEED TO CHANGE?

Joseph Williams was appointed CEO of Pharaohs Enterprises upon the death of his father, Jacob.

The company went public under the leadership of Joseph and had to adapt to being open and transparent to outside investors. There were pressures from the shareholders to reduce costs and increase profits. In response, Joseph implemented cost- cutting measures including downsizing by means of enforcing early retirement of employees who he felt could not cope in the move to digitize the operations of the business.

As expected, most of the employees were not happy and this affected the morale of their employees. Joseph sought the assistance of Nehemiah Daniels, the VP of HR. Nehemiah suggested a comprehensive program wherein it is not just the managers who would be evaluated based on achieving results but even the employees by means of demonstrating to their employees that their performance affects company results. This in turn will show to the shareholders that the companys primary objective is to increase performance.

1. Do you agree with the proposal of Nehemiah Daniels? Explain your answer.

2. If you were an employee of Pharaohs Enterprises, how would you react to the new evaluation system that will measure your performance vis--vis predetermined outcomes or objectives.

3. Who should be involved in developing employee outcomes/objectives?