Final Presentation Notes Slide 1(2-5 minutes) KTI lost revenue and market share over the past 3 years. Sales of tape storage units are down 35%. KTI believes it needs to reduce human capital by 25% per year while maintaining the current level of production. Jan Ricter, Vice President of Human Resources for Keller Technology Inc. and the Consulting Group are key players. Jan has asked our consulting group to determine the right mix of human capital reduction and RIF strategies for KTI. Our job as consultants is to recommend a downsizing mix that Jan can use to execute the RIF. 5 elements of an effective proposal? Goals of Proposed Effort- The goal is to make sure the Human Capital Reduction effort process goes smoothly. We need to determine the right mix of human capital reduction strategies. We also need to develop a plan to offset the negative effects caused by the reduction. Recommended Action Plan- We need to collect preliminary data to determine what is causing the symptoms listed above. (Company records/interview key members) Specifications of Responsibilities Strategy for Achieving the Desired State Fees, terms, and conditions Mutual expectations are the outcomes of the services that the OD is going to provide to the organization stated by the client. The client further states what to expect from consultant and processes used to pursue the goals of the proposal. Encouraging clients to state what they expect in form of personal accomplishments, working relationships and outcomes facilitates the development an ideal contract. In any project, there are various client issues which must be handled with care for the goals of the project to be achieved. One of the client issues is usually the fear of losing control of the organization to OD practitioners. The other issue is the client being exposed and vulnerable as he has allowed OD practitioners to have access to organization’s confidential information. Therefore, these issues need to be sorted before the OD practitioner can begin working on the project. Slide 2 The presented problem is a symptom. Something is causing KTI to lose revenue. Something is causing sales of tape storage to be down. Slide 3 Job performance is work-related activities that are expected of an employee and how well the employee performs those activities. Job performance can be measured by looking at quality and quantity of work. Each department measures performance differently. Job performance can be evaluated weekly, monthly, quarterly, or annually; depending on the work setting. Performance can be evaluated by using performance appraisals. A performance appraisal is a human resource system designed to provide feedback to an individual or group about its performance and its developmental opportunities. The performance appraisal process can be linked to a reward system. There is also a process called performance management that involves goal setting, performance appraisal, and reward systems th ...

1. Final Presentation Notes
Slide 1(2-5 minutes)
KTI lost revenue and market share over the past 3 years. Sales
of tape storage units are down 35%. KTI believes it needs to
reduce human capital by 25% per year while maintaining the
current level of production. Jan Ricter, Vice President of
Human Resources for Keller Technology Inc. and the
Consulting Group are key players. Jan has asked our consulting
group to determine the right mix of human capital reduction and
RIF strategies for KTI. Our job as consultants is to recommend
a downsizing mix that Jan can use to execute the RIF.
5 elements of an effective proposal?
Goals of Proposed Effort- The goal is to make sure the Human
Capital Reduction effort process goes smoothly. We need to
determine the right mix of human capital reduction strategies.
We also need to develop a plan to offset the negative effects
caused by the reduction.
Recommended Action Plan- We need to collect preliminary data
to determine what is causing the symptoms listed above.
(Company records/interview key members)
Specifications of Responsibilities
Strategy for Achieving the Desired State
Fees, terms, and conditions
Mutual expectations are the outcomes of the services that the
OD is going to provide to the organization stated by the client.
The client further states what to expect from consultant and
processes used to pursue the goals of the proposal. Encouraging
clients to state what they expect in form of personal
accomplishments, working relationships and outcomes
facilitates the development an ideal contract.
In any project, there are various client issues which must be
handled with care for the goals of the project to be achieved.

2. One of the client issues is usually the fear of losing control of
the organization to OD practitioners. The other issue is the
client being exposed and vulnerable as he has allowed OD
practitioners to have access to organization’s confidential
information. Therefore, these issues need to be sorted before the
OD practitioner can begin working on the project.
Slide 2
The presented problem is a symptom. Something is causing
KTI to lose revenue. Something is causing sales of tape storage
to be down.
Slide 3
Job performance is work-related activities that are expected of
an employee and how well the employee performs those
activities. Job performance can be measured by looking at
quality and quantity of work. Each department measures
performance differently. Job performance can be evaluated
weekly, monthly, quarterly, or annually; depending on the work
setting. Performance can be evaluated by using performance
appraisals. A performance appraisal is a human resource system
designed to provide feedback to an individual or group about its
performance and its developmental opportunities. The
performance appraisal process can be linked to a reward system.
There is also a process called performance management that
involves goal setting, performance appraisal, and reward
systems that guide, develop, reinforce, and control employee
behavior toward desired organizational outcomes.
Performance is relevant to the case. Performance will
need to be measured in both locations: San Jose and Austin.
Each division will also need to be measured. The divisions
include skilled labor, unskilled labor, engineering and R&D,
and professional labor. By looking at the data, it’s easy to see
that the Austin location is excelling in most areas. By
evaluating Austin’s performance, it might give us an idea of

3. what is going wrong at the San Jose location.
Performance can be linked to the group level diagnostic model.
The San Jose location has been struggling in general, but the
Engineers and R&D sector is struggling the most. The turnover
rate in the engineering and R&D department is especially high,
while the team cohesiveness is high. The actual engineers are
not the problem; the group is working well together. Recent
changes in management is the root of the department’s failure.
The employees are not happy and it is showing in their
performance. It is clear performance is suffering because this
year Tape Store revenue is $88,000,000 which is down 35%
from last year. Last year, tape storage revenue was
$118,800,000. Attached Storage increased by 25% - this could
be due to the hand-picked team that was chosen to work on this
project. The employees picked are happier with their jobs. We
know that job performance is suffering, so we need to develop
ways to see why it is suffering. We can look at managerial
standards, motivation, commitment, and job satisfaction. In
order to restore the company to high performance, we need to
determine what is causing low job satisfaction and high
turnover rate in order for sales to exceed what they were in
2015.
Absenteeism can often tell you about what design components
aren’t good for groups and individuals. It can also give you a
clue into group composition and job satisfaction. Low job
satisfaction can often lead to a higher absentee rate.
Absenteeism is a symptom of a deeper issue within the company
which needs to be evaluated. We need to measure this at KTI by
keeping records of all worker absences so that we can see if
there are specific groups / areas that are experiencing more or
less absences than others or if it is evenly spread throughout the
company. Also we need to measure if it is higher or lower now
than in past years by looking at the records. We can also look at
the different sites and job titles and see if the absenteeism
coordinates with the “job satisfaction” and “intent to turnover”
figures we were given as well. Also, I think it would benefit us

4. to survey or talk to those with higher absences to see if we can
get more of a picture of what’s causing the absences. Is it just
personal issues or health? Or does it have to do with team
structure or functioning? Group composition? Getting feedback
would help us figure out where our focus needs to be. And also
in the future, excessive absenteeism could be part of the criteria
if they did end up having to do any RIF, as they stated they
needed to decrease the workforce but keep the same level of
production.
Job Satisfaction
Job satisfaction is highly relevant to this case and it is evident
that job satisfaction is a clear issue with KTI. Upper
management may not understand this, but job satisfaction is
vital for a company to keep its best employees; pay and
incentives can only go so far. Employees spend 40+ hours per
week at their job and want to be employed where they feel
generally happy. While job satisfaction may be measured trough
“anonymous surveys”, it will be more accurately measured
through observation in areas such as turnover rates,
absenteeism, and job performance. Turnover rate is a great
indicator of poor job satisfaction. Turnover is inevitable –
employees will leave for personal reasons, higher pay at a new
company, geographical moves, and retirement. However, if
turnover rate is abnormally high, then it is safe to say job
satisfaction needs improvement. With the data the company has
collected, a direct correlation is seen between low job
satisfaction and high intention to turnover. As mentioned above,
absenteeism also indicates low job satisfaction. If a person is
unhappy with his or her work, then there will be lack of
personal drive to go to a job for which they have no passion for.
A happy, satisfied employee will put time, care, and effort into
their work. If job performance – specifically in areas measured
in quality and quantity – is below company standards, low job
satisfaction could be a factor. There are multiple issues within

5. KTI that might be causing poor job satisfaction.
Currently, the sales department employees 50 salespeople, 12 of
which are new hires to sell the attached storage unit. These 12
new hires have been given the opportunity to earn a 20%
premium in their commission that the 38 tenured employees do
not receive. While this is great news for the newly hires, the
veterans of the company aren’t happy. It is insulting to be a
long-time employee and watch a new hire receive a reward you
have not been offered. KTI needs to start treating the employees
better. KTI takes care of the upper management without putting
much care into anything else.
Personal Development
Personal development is poor at the organization because only
senior level managers are allowed opportunities to transfer. The
lower level employees were not given the increase in salaries or
opportunity to move in to a new location. This is a
discriminatory personal development. Additionally, there are no
opportunities for the unskilled workforce to improve their skills
meaning that they will remain underpaid and with no
opportunity for career progression in the organization. This is
likely to cause a high level of dissatisfaction among the
unskilled labor force. If an employee has no opportunity to
develop, then he or she will find employment elsewhere.
Alignment
KTI is also having an alignment issue. Typically, the company
is known for having a very employee friendly culture. They
offer several different compensation packages such as private
pension plans, benefit, and retirement plans where they
contribute 10% of employee’s gross pay go to the retirement
plan yearly. Some of the packages are funded 100% by KTI and
cost employees nothing. Part-time workers also have the
opportunity to use these packages. The CEO has said “KTI is
successful only because we have the most talented, well-trained,
and rewarded employees in the industry.” They have been able

6. to avoid unionization in the past due to how well they treat their
employees.
They are now considering reducing human capital by 25% and
in the past year talk of unionization has risen. They only
offered certain employees the opportunity to move to Austin,
while also giving them a raise and a stipend for the move. They
hired an unqualified manager instead of trying to hire
internally. In Austin, the Engineering and R&D sector is getting
higher pay than the San Jose location. The company says that
value their employees, but they are planning to lay off many
employees and have not given their employees equal
opportunities. They have allowed department heads to pick and
choose who will move to Austin and get a raise.
Team Management
Team management is becoming a crucial part of employee
management (Edmondson, 2012). It not only makes tasks and
problem solving easier, but also it affords employees an
opportunity to learn from one another and create a bond that
drives performance. As indicated from the data, team cohesion
is high among all groups of employees except for the unskilled
groups. However, the data indicates that teams are part of
everyday leadership in the organization.
3 parts of long term success –
1. One aspect of long term success is the knowledge behind
performing organizational development is transferred to the
organization.
2. A second aspect of long term success is the organization
becomes a high involvement organization long term
3. We want them to be an innovative and successful company
who’s profits have turned around and are prosperous

7. Keller Technology Inc.
Contracting & Entering
Why kti approached us and what they think the problem is
Jan Ricter – Vice President of Human Resources
KTI has lost revenue and market share over the past 3 years
Sales of tape storage units are down by 35%
Executive team wants a RIF by 25%
Diagnosing the Problems
Discuss these are not problems but instead symptoms
Discuss the diagnosis
Discuss the interventions
Discuss how interventions will increase employee involvement
Discuss how interventions will change KTI