[Short-Assignment] Case Analysis — Why HR is Risky.

Adel Alaali
3 min readJun 14, 2022


[ROUGH-DRAFT] Unlike software development, management and the application of HR therein are not binary in nature — a singular methodology cannot be applied with broad strokes. Therefore, one cannot simply conjecture Runners and Paradise’s workplace ethos harmonizes well with the rank-and-file of Active Leaks (the software company).

And for leadership to achieve precepts of what defines a successful organization, the organization (with few exceptions), must produce net-positive profitability and remain aligned to its vision, culture, and goals. Therefore, the Runners Paradise management-followership model may not be applicable to Active Leaks and the development of an HRM plan would necessary to mitigate complications found after merging the two organizations.

HR assume a lot of risk in their position, given the fine line they must straddle between management expectations and workman relations. Moreover, Human Recourses work includes potential employee recruitment and outreach — which in effect positions the department as the organization's defacto gatekeeper.’ As the organizational gatekeeper, human resources must delegate an egalitarian onboarding process, with pay structure, corporate mobility, and benefits diminutive to non-equal-opportunity circumstances.

Culture is defined by those who work within the organization. Therefore, in a transverse sense, the gatekeepers, or hr, serve as the organizational montreur de marionette (puppet master) and should create a database concerning an inventory of employee skills and prospective job requisites. Modeling the economic ebbs&flows of human capital would mitigate future financial risk by providing historical data when needed and serve as a beacon for navigation during economic headwinds.

Jennifer has presented me with a unique conundrum. The business owner is seemingly concerned with three workplace variables:

  1. Expected growth due to a bull-market economy. Average is 10% growth, with intra-quarters growth variability as high as 30%.
  2. 50% of the workforce, who are considered pillars of workplace culture, are expected to retire this half-decade.
  3. In addition to Jennifer being concerned with reducing business costs, such as shutting down the office’s physical presence in lieu of telecommuting, cutting workman benefits, and even shifting the employees to a contractual basis, she too has tasked me with the peculiarity of balancing workplace culture with the aforementioned.

As far as #1- if the average is 10% growth over the next three years, with a 30% potential increase per quarter business period, I too can also expect slow growth to occur if 10% growth is expected; therefore, I would advice Jennifer to perhaps be a bit more conservative with the cost-reducing initiatives. As stated earlier, over 50% of the workplace is expected to retire during a financially prosperious phase for the organization.

The organization will need ‘veteran’ employees to guide the new hires, assuming the business does indeed expand. A simultaneous cutback in employee benefits with a sudden workforce reduction would indeed impact workplace culture, affecting workman output.

I would advise Jennifer that an expected quarterly increase in sales should cover her financial concerns. I would implore her to seek a loan where the organization factors her receivables — I would surmise the organization should receive favorable terms, given the forcasted 10% increase in sales. Furthermore, I would argue that recuperating short-term financial losses — especially when long-term gains are expected- are not as arduous (or guaranteed) of a process as restaffing an organization and resetting the workplace ethos.

Thanks for reading,