Reference no: EM132961282

Taking over the reigns in horse country

John Hoskins was meeting with his son Brad this morning to begin planning a transition strategy for Brad to take over Sportco, the family's golf club manufacturing firm in Calgary that John had started in 1985. Brad would become CEO within the next two years as John phased out his involvement entirely, spending increasing amounts of time away from the business. At 25, with a fresh business degree from Queens, 4 summers spent working in the business, and a keen interest in manufacturing and golf, Brad was the ideal successor every father hopes for. John felt satisfied the company would be going into safe and capable hands. Annual sales at Sportco hovered at nearly $20 Million and with 85 employees drawing bi-weekly paycheques, the stakes were high. All the same, Sportco's growth had been slowing over the past five years and someone with high energy and strong business know-how would be needed to get sales headed skyward again. As the meeting got underway, Brad carefully presented his plans for the future of the company. After discussing various growth problems the company currently faced, he astonished John by saying that Sportco had huge potential to do business on a global scale, and that to support the next stages of growth, his first step would be to build a human resources department. John's reaction to this proposal was swift and fierce: "Human Resources Department? Why on earth would you add more expense into the business when our sales are stagnant? Our supervisors perform a good job of managing our people. I'm shocked you would even consider such a move!" No question Brad is on the "hot seat" and will need to provide convincing answers to implement this proposal. Answer the following questions to see what rationale this chapter holds that Brad can use to convince John he's on the right track.

(a) What current and future challenges might Brad argue are in store for Sportco that would point to the need for better management of human resources if the company wants to continue to grow?

(b) How could a strategic human resources department add value to the company's existing and future strategic plans?

(c) What services could be offered by human resources professionals that aren't already looked after by supervisors or managers at Sportco?