1. Overcoming human resource challenges in a
downsizing manufacturing environment.
“Aligning people, processes, and technology.”
January 24, 2015
UMUC HRMN 495 Contemporary Issues in Human Resource Management
Dr. Stephen Kenealy
1
PAC Resources, Inc.
Stan Phillips

2. 2
PAC Resources downsizing will create opportunities for operational efficiency through
identifying gaps, overcoming barriers and creating a flatter organizational model.
The purpose of this report is to empower change and communications through
identifying recommendations that align measurable solutions to business objectives.
Ultimately, providing management with a roadmap of the strategic relationship
between management and human resources increasing the credibility of HR, and the
validity of the information flowing from HR to all stakeholders. By closing gaps and
assessing risks, now not later, PAC will move towards competitive advantage, with an
“assist” from HR, to regain a leadership position in its segment and the roadmap HR
helps to create will add organizational value and communicate a consistent message
about HR’s value to all stakeholders.
PAC Resources
Introduction and Purpose
(Google Images, 2015)

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"Global Human Resources (HR) at PAC includes change champions and risk managers who identify and align
core HR metrics to flatter organizational capabilities by identifying core competencies of employees, so that
management can use the data to make faster business decisions that are aligned with measurable organizational
objectives.”
My purpose behind the Mission Statement is based on the following:
PAC Resources: Mission Statement
Organizational change often leads to management change which also means HR being realigned into a flatter
organizational model that decreases “silos” and increases validity of HR within management.
Aligning core HR metrics will give HR a baseline of information to capture on exit interviews the data necessary to
deploy lean HR methodologies, identify competencies and regain competitive advantage.
A flatter organization model is inevitable, as “silos” disappear, HR reassigns personnel, and responsibilities increase.
Management must have accurate data to make decisions through HR metrics. HR can bring it to the management
table with valid data benchmarked in its segment.
(Google)

4. 4
PAC Resources
SWOT Summary, Champions of Change
(Google)
Specific internal threats include (1) legal (2) worker comp. claims, (3) decreased strength in financial reports.
These internal threats can lead to external organized labor threats if not addressed immediately.
Talent Management and staffing is a strength, but the “silos” need to be reorganized to reflect a more lean and
flatter organization with increased decision making responsibility.
PAC’s Leadership and employees are its best resources. This strength combined with identifying credible
activist’s (more than one) will provide the future leadership to create/sustain a flatter organization.
The underlying strength of PAC is they are a small business, can make changes quickly, reduce red-tape due to
minimal regulatory oversight and increase their ability to align talent, create vision, identify opportunities.
Overcoming barriers, using experienced leadership and existing talent to attract new business and implement
leaner process methodologies (ex. just in time inventory) to effect change in people, processes and technology is
an underlying strength poorly utilized to create opportunities.

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PAC Resources
Recommendations
Domain or Role Institutionalizing
Best Practices
Value in People Value in
Performance
Value in
Information
Value in
Workflow
HR Metrics
ROI
Risk Management
Retention
Maintain an HRIS
System Aligned
with Data that is
Relevant and
Timely
Decrease Risk to
Organization and
Employees
Decreased Risk
Increases Focus
on Objectives not
Survival
Increase Valid
Data to
Management to
Speed Decision
Making
N/A
Outsourcing
Transactional
Tasks
Communicate
often to
Outsourced
Contractors
Focus HR on
Strategy vs.
Processing
Routine Data
Make the
Quantitative Case
to Outsource
Align HR to Flatter
Model
HR’s Flatter
Organizational
Model focused on
adding value
Build a Coalition
and Consensus
within HR to Align
Responsibilities
Core
Competencies of
HR Strengthen
Empowering HR
Increases Decision
Making
Increased
Information Flow
on Objectives Less
on Transactions
More Time to
Align HR to
Measurable
Outcomes
(Brown, 2010)
(Google)

6. 6
PAC Resources
Justification for Recommendations
HRIS System: To move towards ROI, for HR, we need to know “risks and rewards” of who we hire. Retention of the
most critical employees and where are the new hires coming from. We want to know what is the cost of having a
position unfilled. And in an economic downturn this data is equally important. PAC does not want to cut 10% of the
best employees in the workforce. Given clear organizational objectives the HRIS system will need to output clear
realistic date managers can use in daily reports. Eventually HR will construct from this data ROI vs. what HR costs
(Dresser, n.d.).
Outsourcing Transactional Costs: The goal is not just cutting costs, it is where HR’s value to the organization needs to
be. Given the current environment the entire organization needs to be “flatter” which will empower HR to break-down
the “Silos” and increase communication across the entire organization. Outsourcing may include staffing and using
more outside trainers, or increased use of technology when needed to enable HR to move away from administrative to a
strategic partner that adds value.
HR Change in Organizational Model: A “flatter” organizational model within HR strengthens the competencies of all
HR employees, and their focus as a team is on measurable business objectives of the organization. HR can add value
through providing the reliable and valid data required for all stakeholders. Identifying any gaps in HR staff
competencies, given the new focus of HR on HRIS metrics would be one-step in the early stages to perform.
(Hager, 2013).
(Google)

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PAC Resources
Summary and Conclusion
The effect on people, processes, and technology in a downsizing economic environment will force PAC
Resources to assess their capabilities as a manufacturing business.
The change-management process will be to assess, close gaps, decrease risk and build a coalition from where
credible leadership takes place. It will not be enough to just implement the processes but to anchor into the
corporate culture.
Organizational culture will be born from the leadership that creates change, it will follow the changes
implemented to create a flatter organizational model by identifying and aligning core metrics and employee
competencies. Lean processes will be implemented and a sense of urgency will emerge.
This sense of urgency can be championed by human resources to validate the established vision to all
stakeholders and that will motivate and inspire employees . But the credibility of the guiding coalition acting
as a team across the entire organization must make the necessary transformation in restructuring PAC
Resources into a sustainable organization (Kotter, 2012).
(Google)

8. 8
References
Brown, J. (2010). SHRM. A Governance Approach to Managing HR Vendors. Retrieved from
http://www.shrm.org/hrdisciplines/benefits/articles/pages/managinghrvendors.aspx
Dresser & Associates. (N.D.) What is an HRIS System? Retrieved from
http://www.dresserassociates.com/what-is-hris.php
Google (2014). Images. Retrieved from:
https://www.google.com/search?hl=en&site=imghp&tbm=isch&source
Hager, H. (2013). Human Resources IQ. Retrieved from:
http://www.slideshare.net/HumanResouceIQ/top-13-hr-metrics-for-2013
Kotter, J. (2012). Leading Change. Harvard Business Review Press.