JVA Corporation: Human Resource Management

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How permanent or temporary is the change? The change is necessary because of the external economic conditions. These conditions are really out of the company's control. Once the economy begins to stabilize then it is reasonable to suspect that the HR strategy can be revisited once the company returns to its former profitability. How much will employees lose by the change? Some employees will lose an opportunity for pay increases plus access to various amenities and benefits. There will undoubtedly be some resistance to the measures. However, if the employees can look at the big picture then they might realize that such sacrifices could possibly prevent any layoffs and be good for the company and the employees in the long run. How much will JVA Corp. save by the change? JVA Corp will save somewhere in the ballpark of two to three percent of their total net income through the proposed HR reductions. This amount will not offset their total losses however in this position every bit counts and it could put the company in a much better position to weather the storm. How will it affect the employees? Hopefully the majority of the employees will be able to understand what is driving the proposal and accept it as a necessary measure that will help stabilize the company. It is likely that not everyone will be open to the proposal and it could foster some resentment from various employees. This may be a necessary evil given the situation but it is believed that on the

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