The Calleeta Corporation Case Study

Calleeta Corporation

The Calleeta Corporation Case Study

As Calleeta Corporation’s CEO, Jan is facing multiple business issues while trying to expand the business globally. While trying to be the leader in RFID products, there are business issues that Calleeta must address. Three key business issues include lack of support from board members/shareholders, increasing employee costs, and protests against Calleeta’s offshore facilities due to the growing concern of working conditions. First, board members and investors are not supporting Jan or her proposal due to a poor return on investment. Board members are concerned about the rapid increase of employee cost the company is incurring. Calletta is incurring a 12% cost increase annually compared to an industry average of just 4% (Kavanagh & Thite, 2009). There will continue to be a lack of support if Jan is unable to increase the company’s revenue and return on investment. Another key business issue is board members demanding that Jan seek ways to decrease employee cost before approving any future plans. Employee cost consists of things such as recruiting cost, income, training, and benefits. As a result, Jan is forced to choose between HR Vice-President John Nosmas practices or the board, both who affect her maneuvering power for future plans. John Nosmas defends his practice of paying higher wages along with providing expensive benefit programs because he believes in hiring the best employees. He feels that these practices help with recruitment and retention. Lastly, as CEO Jan is faced with the growing concerns over working conditions in their foreign facilities which are being targeted by activists accusing the company of inhumane working conditions. The key issues discussed are challenges that must be overcome if Jan hopes to become the leader in RFID products.

Calleeta’s HR operations greatly contributed to the company’s rapid success. Due to HR Vice-President John Nosmas and Jan’s human capital talent acquisition and retention plan, Calleeta has hired and retained the most highly skilled individuals in their industry. This gives the organization a competitive advantage because they were able to perfect several of their products and use innovation to separate themselves from the competition. John and Jan’s plan focused on matching the company’s core competences to recruits that possess the skills within Calleeta’s strategy. Without a strong recruiting and retention plan a company will constantly incur a high turnover rate along with inconsistency with the quality of their products. To keep turnover low, Calleeta offers HR support that is individualized. By having designated HR support representatives, employees receive prompt service. In addition to the large HR department, the company provides basic health, dental, life insurance, 6 weeks of vacation, complete elder care and child care allowances