please answer question #2.

CHAPTER 2 Strategic Human Re HR IN SMALL BUSINESS Radio Flyer Rolls Forward The mid 2000s were a dificult time for Radio Flyer, a pri The company's effort with its remaining U.S. employees hundreds of thousands of dollars to develop what they hope lens for employees to have fun and pursue their passions vate business famous for its hite redwapons. After spending fixused on building morale. These efforts include creating was a hit, managers realized their idea wouldn't fly, so they with events such as the Radio Flyer Olympics, during which killed it. And in the same year, management decided the employees compete in silly contests like tricycle races. More company could no longer afford to build wagons in the criously, teams of employees tackle issues that they care United States about. The wellness committee put together a cash benefit that First, the development flop (Thomas Schlegel, be presi dent for product development, thought he had winner with pays employees up to $300 for participating in health-related an idea for a collapsible wagon to be called Fold 2 Go activities such as weight loss counseling or running races Wagon. It would be a fun product that parents could fold up Another committee brought together employees concerned and toss into the back of a minivan for a trip to the park or about the environment. They assembled a campaign aimed at persuading employees to reduce their carbon footprint. other outings. The problem was, a collapsing toy that chil In caring for the US employees, Radio Flyer hasn't for dren sit inside is difficult to make both functional and cate gotten the ones in China. The company tries to maintain The costs were excessive. similar levels of benefits and engagement among the four When Schlegel ended the project, he feared his reputation doren employees in its Cuina office. might suffer as well. But CEO Robert Pasin assured Schlegel that failure was acceptable as long as the company could QUESTIONS learn from it. The value placed on learning became some 1. How could a human resource manager help Radio Flyer thing that Schlegel capitalized on as his team applied what get the maximum benefit from the motivational efforts they learned to the development of a new success, the TWIST described in this case Trike and a new model of its wagons called the Ultimate 2. Do you think outsourcing would be harder on employees Family Wagon. Furthermore, Pasin expanded that one expe in a small company such as Radio Flyer than in a large rience into a teaching opportunity. He invites new employees corporation? Why or why not? How could HRM help to to join him for breakfasts, during which he recalls the inci smooth the transition? dent as a way to reinforce the company's commitment to 3. What additional developments described in this chapter innovation and learning, could help Radio Flyer live out the high value it places on The story of Radio Flyer's need to outsource manufactur learning and innovation? ing has what some might see as a less-happy ending. Look ing at the numbers, management determined that it would SOURCES Company webu wwwblyer.com, cessed May 2015 Best Places to Work 2015 in Chicago a Radio flyer," Chain Chicago have to close its factory in Chicago and lay off about half of www.become My 34.015. its workforce. Manufacturing moved to a factory in China. Royer learn from Crasher Pasin describes the effort as an incredibly difficult time." bus May 2015