Read the case study:

As the Human Resource Manager for the North Island Division of NZ Milk Corporation, you have been informed that the Division’s economic situation is at a stage whereby costs are exceeding revenue. You have also been told that the milk products being sold from the Division have continued to lose market share. This has been occurring over the last 12 months of 2014.

The Human Resource Director has informed you that there is a need to conduct a radical restructure of the staffing in order to cut costs. This will mean the numbers of staff will reduce.

With the development of a new Division in the South Island, the Director has suggested that some staff could relocate to this Division. The South Island Division of NZ Milk Corporation is producing more milk products than the North Island Division and has the capacity to produce even more for exports to China and South East Asia. A fully equipped training facility has been established in the South Island Division to accommodate any staff wanting to relocate.

The Human Resource Director has informed you that approximately 40% of the 150 staff at the North Island Division will need to have their jobs disestablished and staff will be made redundant. He said to use the clause in the Employment Agreement to determine which staff will need to be made redundant. He has also said that if you can think of another option to use in the selection of staff – then use that. He wants to ensure that the very best people are NOT selected for redundancy.

The Staff Employment Agreements have a standard clause of LIFO (Last In / First Out. However the clause does have flexibility in determining which staff can be selected and this has been left at Management’s discretion.

As the Human Resource Manager, you need to resolve this problem to the best of your ability in order to reduce costs and to keep the North Island Division operating economically.

Define the Problem(s) by using 2 problem solving models.

Provide 2 solutions to the problem and justify why you believe these are good solutions

Decide which solution you will need to implement. Why?

Outline briefly 3 strategies on how you will implement the solution?

How will you resolve the issue of 40% of staff out of 150 have to have their job disestablished and made redundant? You need to do this in a ethically moral and legal manner by recommending 2 processes?

Describe a communication channel you would use to inform staff of the decision? Why did you choose these?

Staff will obviously need to be offered some support – particularly those affected by the decision to disestablish their jobs and be made redundant? Discuss 3 support measures you would put in place in this process?