How Growth Industries

High Growth Industries

By Alan Cabelly, Ph.D.

StrateGIc Hr ManaGeMent Case study with teaChing notes

Project team

Author: Alan Cabelly, Ph.D.

SHR M project contributors: Bill Schaefer, SPHR Nancy A. Woolever, SPHR

External contributor: Sharon H. Leonard

Editor: Courtney J. Cornelius, copy editor

Design: Kellyn Lombardi, graphic designer

© 2009 Society for Human Resource Management. Alan Cabelly, Ph.D.

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© 2009 Society for Human resource Management. alan cabelly, Ph.D. 1

case Overview

High Growth Industries (HGI) is a regionally accredited chain of daycare centers in northern California with headquarters in San Francisco. HGI has established an excellent reputation during more than 30 years of service and has worked hard to achieve its motto to “foster high growth for your child”. It was recently awarded its largest contract ever; in just six months, HGI will be the sole provider of daycare services for all central and northern Cali fornia state agencies.

HGI currently operates 17 daycare centers, mostly near San Francisco, Sacramento and Napa Valley. These centers employ 163 teachers, childcare specialists and aides. Thirteen centers are more than 15 years old, and 60 percent of workers have been with HGI more than 10 years. Centers range in size from two to 19 employees.

You were recently hired as HGI’s first vice president of human resources. You left an HR director position in a major manufacturing organization out of boredom. With an HR degree and 20 years of progressive HR experience in various industries, you have seen it all. You have always been quite successful and eagerly anticipate the challenge that HGI’s president said would be yours, yet you cannot help feel somewhat uneasy at the enormity of your future tasks.

The HR function is in a shambles. You were unable to find an affirmative action plan, training documents or other basic personnel information, including I-9s. Although the company has been unionized for the better part of 20 years, labor contracts are available for only the past five years. The teachers’ union nearly struck two years ago over wages and conditions, although the specialists/aides union appears less militant. Each union is a union shop. Both contracts expire January 1 next year.

In the past, the president and each center’s managers performed all of the organization’s personnel functions by the seat of their pants. Recruiting was by word-of-mouth, performance appraisals rarely occurred, and the president was the chief union negotiator. “Management by walking around” is constantly practiced; the presi dent visits each childcare center every month. Most managers are happy with this manage ment style and the flexibility it provides them.

The data surrounding HGI’s upcoming expansion are astounding. You will be adding between 1,200 and 1,500 daycare workers, and a com mensurate number of support staff. There will be approximately 40 new daycare facilities, some as far as 350 miles away. You wonder if enough skilled and certified teachers are available.