Human Resources Strategic Planning and Measurement Task Force

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Module 1 Overview

• Evaluate the sources of workplace conflict and determine appropriate techniques to resolve them that respect human differences.
• Create work redesign approaches to improve performance under differing assumptions of employee skill and education level, compensation and reward systems, and cultural expectations.
• Communicate the ethical implications of recommendations to change human resource and/or work flow systems given the presence of multiple cultural subgroups.

Click the graphic to view the profile of BANKS Industries.

BANKS Industries Overview

BANKS Industries is a manufacturing company located in Centervale. A US-based organization, BANKS's major product line is electronics components. BANKS has just over two hundred employees at its main plant in Centervale but recently acquired a new subsidiary in China. This acquisition added close to one hundred employees, and their expertise in a new line of personal computing devices. BANKS expected these devices to give it a competitive advantage in its market, and with the product line continuing to grow.

BANKS started out as a family-owned organization with a relatively flat organizational structure. After fifteen years of being in business, BANKS continues to be family owned and has acquired several small companies in the United States. The acquisition of the Chinese company, which has now been renamed BANKS Components, is the first acquisition outside US borders. The transition has resulted in some drastic changes in policy, staffing, and the organizational structure.

As covered in Module 2, firms have a need for capital infusion to support day-to-day operations as well as strategic objectives. To meet these needs, either short-term or long-term financing is considered. This module explores methods of securing capital funds through two mechanisms—debt and equity. Unlike short-term financing, long-term financing consists of debt and/or equity and is better known as the firm’s capital structure. Arriving at the right balance between using debt or equity is not an easy task. It requires evaluating factors such as the tax effect, cost, and the cost impact on the firm’s value. Each source with varying cost implications has advantages as well as disadvantages. Pure debt is incurred when the firm issues any type of corporate bonds or obtains funds from a lender. Bonds and loans provide necessary funds without equity claims and allow the firm to increase profitability by claiming incurred interest cost. On the other hand, when a firm decides to issue preferred stock as its long-term financing strategy, the firm not only incurs a debt but also relinquishes a claim to earnings, assets, and fixed dividends. Unlike both debt and preferred stock, issuing common stock for the exchange of capital funds creates an equity claim with voting rights as well as a claim on future income. Equity financing has advantages and disadvantages