Question: What potential consequences would there be for those decisions if Mr . Cuizon is the human resources ( HR ) manager for the distributor of
What potential consequences would there be for those decisions if Mr Cuizon is the human resources HR manager for the distributor of fastmoving consumer goods. The company operates in the province of Cavite in the southern part of the island of Luzon in the Philippines As HR manager, Mr Cuizon is responsible, among other things, for the development of HR policies, personnel recruitment, staff retention, performance management, rewards and recognition, salary budget preparation, grievance desk maintenance, and company compliance with relevant laws. The distributor has suffered from substantial losses in the last three years, due mainly to the combined effects of the international financial crisis and the reduced value of domestic consumption. As rising costs and diminishing sales gradually eat their way into the dwindling profit margin of the company, the distributor is looking for ways to increase personnel productivity in order to meet sales volume and distribution targets that the company has committed to its multinational principal. The distributor leadership team thus tasked Mr Cuizon to prepare a report reviewing the productivity level of the current sales personnel. In the course of his preparations, Mr Cuizon receives feedback from the grievance desk that a number of the sales personnel are dissatisfied with their net take home pay and are contemplating union action on the matter. The desk reports that the personnel are not objecting to their daily wage rates as reflected on their employment contracts; they are complaining about the fact that their wages are severely reduced by numerous deductions borne out of company policies. Alarmed, Mr Cuizon decides to investigate the matter. He finds out that the particular subject of grievance is the company policy on van inventory reconciliation, the application of which reduces take home pay by an average of forty percent.
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