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Interview with Jan Richter

While interviewing Jan Richter you find out that she has some quantitative data about the company that might help your diagnoses efforts (see below). The survey data was collected in 2015 (just a few months after the Austin site opened) but her predecessor was so busy with the expansion in Austin that the data has not been analyzed. The survey was part of larger effort to update the HR processes through the use of OB data. The first time data was gathered was in 2012.

Jan also tells you that in 2013 the decision was made to create a new product (attached server storage). Before this time the Engineering and R&D employees had traditionally been tasked with continuous improvement and updating of their tape storage products. A few of the Engineering and R&D employees were hand selected to work on the new attached server storage by the Engineering and R&D Manager. During the time the new product was being developed the manager suddenly left KTI for a more senior level position at a different tech firm. A very young individual with limited experience was hired to lead the Engineering and R&D department. Not only was this individual an external hire, his education was in business with an MBA from a non AACSB accredited school. He did however come very highly recommended from his father, a golfing buddy of Bob Cuellar.

When the Austin plant was opened KTI gave the department heads the opportunity to move to Austin with a raise and help with moving expenses. In addition, the top people in each department (and labor type except unskilled labor, the Sales Manager, and the Sales department) were also afforded the opportunity to transfer to Austin. KTI provided a raise and a modest moving expense budget for employees who transferred to Austin, although the total package was not nearly as lucrative as the department heads received. The process by which those individuals were chosen to get the opportunity to transfer was by department head recommendations.

Interview with Sales Manager

To gain a better understanding of how KTI’s products are sold, your team decides to speak to the Sales Manager. The sales manager tells you that the sales department has a total of 50 salesmen, but 12 of those are new salesmen hired in Austin in late 2014 to sell the new attached storage units. To help get the attached storage units selling, the new salesmen have been incentivized by being offered a 20% premium in their commission for the units. He also provides you the following revenue data:

2016 Tape Storage Revenue = $88,000,000 2016 Attached Storage Revenue = $22,000,000

Survey Data

After contracting with KTI your team discovers that the first thing Jan Richter did as VP of Human Resources was to put out a company-wide survey to ascertain the overall climate of the company. Jan has only summed and averaged the data, but has not done anything with it because of the decision by the top management team to reduce human capital. She does not fully realize that this data may provide the solution to their problems. Thus, some of the data captured may be promising to help your team diagnose KTI’s issues.

In addition, you have been able to get some salary and benefit information for the company. This should help you diagnose and ultimately decide if a RIF is needed, and more importantly, the extent of the RIF.

Data Captured by HR Survey

The HR survey data has been separated into the two geographic locations (San Jose, CA. & Austin, TX.).

Job Satisfaction = 5pt Likert scale ranging from 1) Very Unsatisfied to 5) Very Satisfied

Intention to Turnover = 7pt Likert scale ranging from 1) Very Unlikely to 7) Very Likely

Team Cohesiveness = 7pt Likert scale ranging from 1) Not at All to 7) Extremely

San Jose 2012 San Jose 2015 Austin 2015

Job Satisfaction of Skilled Labor 3.9 2.7 4.3

Job Satisfaction of Unskilled Labor 2.9 2.7 2.8

Job Satisfaction of Engineering and R&D 4.1 2.3 4.5

Job Satisfaction of Professional Labor 4.2 2.9 4.6

San Jose 2012 San Jose 2015 Austin 2015

Intention to Turnover of Skilled Labor 3.1 4.2 2.8

Intention to Turnover of Unskilled Labor 4.8 5.2 5.0

Intention to Turnover of Engineering and R&D 2.4 5.7 2.9

Intention to Turnover of Professional Labor 2.3 4.8 2.1

San Jose 2012 San Jose 2015 Austin 2015

Team Cohesiveness of Skilled Labor 5.7 5.6 4.8

Team Cohesiveness of Unskilled Labor 3.6 3.6 3.8

Team Cohesiveness of Engineering and R&D 6.5 6.1 4.6

Team Cohesiveness of Professional Labor 5.9 5.1 4.1