HUMAN RESOURCE TASK 2

Human Resource Task 2 Name: Course: Instructor: Date: 1. Memo To : The CEO, Lego Toy Company From : John Doe, Elementary Division Manager Cc : Executive Team, Lego Toy Company Date : October 9, 2012 Subject : Lead Levels on Elementary Toys It has come to my attention that Lego Toys Company is manufacturing toys, which exceed the accepted lead levels. The Elementary toys are specifically designed for children below the age of 7 years, and it is imperative that Lego Toy Company sits down and discusses the way forward. The Quality Assurance Manager brought in the information on lead traces after performing several tests on some of our toys. The schools open in a matter of weeks and, therefore, it is important the Company comes up with a solution within the shortest time possible. As the head of Elementary Division of Lego Toy Company, I have come up with the following recommendations. Three possible decision alternatives Due to time and money constraints, I have come up with three possible decisions that can help the Company solve the issue of lead traces urgently. I was of the opinion that the Company can put the three choices into consideration: The Company can overlook the lead traces at the moment and deal with the repercussions later. The Company can decide to reproduce the whistles The Company can opt to subcontract the whistles a) Process and method for selecting the alternatives In addressing the present situation that the Company is facing, I used previous cases solved by the Company as the method for coming up with a solution. This is not the first time that the company has had to deal with issues regarding shipping delay and defective items. I went through the company records and I managed to come up with the following recommendations. In one of the cases, the company shipped the consignment to our customers when some of the toys even when the company realized that some of the toys had cracked. I therefore, decided that the Company sends the shipment immediately and if there are, any recalls or customer complains the company will have to apologize for that later. I also came up with the second alternative based on a prior case that the company had dealt with a couple of years back. In this case, the company had not manufactured the toys according to the customer’s specification and we could not ship the consignment. The company had decided to write off the toys as a bad debt and redo the entire order. It was from this precedent that I decided that the Company could write off the lead laced toys and write them off. Consequently, a new order would be done and this time the company would have to check the lead levels to avoid the same mistake. Therefore, in this alternative we will manufacture new toys. Finally, after coming up with the two alternatives I had exhausted my options and I decided to discuss with the quality manager of other alternatives that can be viable. After, a long discussion with the quality assurance manager, he came up with the idea of subcontracting. The assurance had worked for the company for a long time and before the company go into manufacturing the company subcontracted some of its toys. Therefore, after the discussion I feel that subcontracting may assist the company get the consignments ship on time given that schools are due to open soon. In addition, the company would not like to disappoint our customers. b) The advantages and disadvantages of the alternatives Each alternative has its pros and cons. For the first case, the Company risks losing its customers if it ships the toys without considering their harmful effects. Customers will question the Company’s credibility because the faulty products are harmful to consumer’s health. The customers will question the Company’s intention when it ships out toys with traces beyond the accepted 100 parts per million (Lead Exposure in Children Affects Brain and Behavior, 2012). This may also have other legal implications because the Company will have to prove its lack of negligence. According to the Center for Disease Control, accepted lead levels are 100 parts per million, which was a 2/3 reduction in lead levels (Gabler, 2011). Therefore, proving negligence may not be the best alibi and the Company may face some serious penalties. However, if well executed the first decision may woe customers into the Company. The main purpose for taking this decision will be to show off the Company’s public relations. The goods will be shipped in order to meet our customers need on time although the Company can recall the goods. This will go a long way to show that the Company is concerned about its customers. The only negative side to this decision is that the Company will lose some money in shipping the goods back and forth. In cases, where distribution has taken place, the Company will take on the treatment for lead exposure in the hope that the move will improve the Company’s image. Reproducing the whistles has some challenges. First, the Company will lose out money used in the manufacture of faulty toys. However, the good side of taking this decision is that the customer’s health will be in check. The effect of lead on children can have devastating effects especially when the levels of lead are high. High lead levels can lead to lower IQ in children (Hartocollis, 2012). The second option has more benefits as compared to the first option. Reproducing the goods to the required lead levels will guarantee our consumers safety and health. By taking a stand of not shipping the goods to our consumers also helps the Company abide by EPA rules (Lead and its harmful effects, 2012). Therefore, the Company will not have to deal with any fines due to negligence. However, elementary school kids may be unhappy with the Company’s delayed shipment. The Company will inform its customer’s of the reason for the delay. Subcontracting is the third option however, due to time constraints may be a plus for the Company because time constraints it may be costly. However, the consumers will get the whistles on time. On the other hand, the Company may have either lose money or have a hard time getting a subcontractor. As I had earlier mentioned, the issue of lead levels may have little to do with Lego Toy Company. The problem may have its root from a supplier. If this is the case, the Company may have a difficult time in finding the right suppliers. If this is not the case, the Company may have to find a subcontractor willing to deliver the whistles within a short stint. This urgency may cause the Company more money considering that the Company has the same machinery and equipment. c) Financial, Legal and Ethical considerations When it comes to the first option, negligence by the Company to ship defective products cannot be sufficient to exonerate the Company from legal implication. Not to mention, that the Company will incur some losses in shipping the products to consumers in the first place. Therefore, the Company will incur unnecessary shipping expenses, in addition to legal fines. Third, the first option does not take into consideration the Company’s social responsibility to the society. The decision is based on greed, looks at the ends, and justifies the means. This may have a negative impact on the Company’s image, and consequently it may lose its loyal customers. As far as finances are considered, the Company will lose at least $100,000 if the Company decides to reproduce the whistles. The good side of this decision is that the Company will not be starring at any legal fines. As far as ethical considerations are concerned, the Company will be engaging in a business transaction that will be a threat to the health of our clients. Shipping out toys that do not adhere to environmental stands shows that the Company is not socially responsible. The second option may be costly as compared to the first one but at least the company will be adhering to manufacturing standards. The Company will take time and order the required lead or manufacture the whistles using the accepted 0.009% lead levels (Total Lead Content, 2012). This decision takes into account the fact that the Company has a role to play as a manufacturer. The decision will auger well with consumers, and it will help shape the Company’s image. However, the company will also have to deal with the cost of writing off the unshipped toys, as they will be considered as bad debts. Therefore, $100,000 will be written off as bad debts. The decision of not shipping defective items and rather manufacturing new toys that adhere to environmental and health levels is a plus for the Company. This shows that the Company is ethical and social responsible to its customers. Finally, Subcontracting may offer additional expenses to the Company. First, the Company will have to incur a loss of $ 100,00...