Florivee G.

Erese Case Study:

JAMIESON DRUGS, INC.

I. Statement of the Problem:

Lack of employees
Sales operations become paralyzed because of the massive turnover of sales personnel.

II. Objectives
To maintain its position as one of the top pharmaceutical companies in the country
To cope with the demands of its customers
To satisfy the remuneration sought after by its employees
To prevent further closure of manufacturing plants due to union strikes
To operate its recruitment process fast and less costly

III.Areas of Consideration

The main areas of consideration are the Human Resources, Marketing, and Sales
Departments.

IV. Alternative Courses of Action (Advantages/Disadvantages)

1. Outsource the HR functions of recruitment, training, and payroll from Manpower

Magnate (MM)

Advantages:

a. Using third party to implement such functions will relieve some burden from the
HR department in interviewing shortlisted candidates
b. It may lessen the time consumed in the recruitment process
c. MM maintains confidentiality of its clients and has not revealed their identity

Disadvantages:

a. Sourcing out of sales representatives will oppose the operations of the Marketing
and Sales Department.
b. MM is relatively new in the outsourcing agency and their excellent record of
accomplishment is just their claim without justification from any customer
feedback.
c. Outsourcing recruitment process may result to ineffective employment of unfit
people because MM will not be as meticulous as the Marketing and Sales
Department managers will in choosing the employees.
d. Choosing human resources will be limited to MMs requirements. Specific and
rigid testing to ensure that candidates for employment are the right fit is
eliminated.
 2. Focus on satisfying the needs of the current employees to prevent their resignation.

Advantages:

a. Less costly
b. The company just needs to appropriate and utilize its assets or resources to solve
the issue
c. The risk is lower compared to outsourcing the HR functions from an unsure
venture because MM has not proved its establishment in recruitment industry yet.
d. The hiring process may be customized as to the needed experience and skills for
the job.

V. Conclusion

Outsourcing may be a convenient way to recruit but controlling the jeopardy internally
may be a more cost-effective and best way to deal with it.

VI. Recommendations

The company must realize the reason behind the resignation of employees, which is the
poor compensation, it provides to them.
The management must motivate the employees through benefits and remuneration
according to their performance.
The workloads must be distributed evenly to prevent demotivation of current employees
due to inequitableness.
There are many potential employees out there. The company may consider hiring fresh
graduates if they cannot raise their salary rate, or hire experienced personnel and raise the
pay rates accordingly up to the breakeven extent.