Samson Media is a publisher of several upmarket fashion magazines. It has strong links with several high-profile fashion houses whose products are featured in the magazines, and also provide a significant source of advertising revenue. Readers of the magazines are predominantly 35 – 54-year-old women.
Readership has fallen over the last two years. This is due in the most part to due to competition from a range of other fashion magazines and consumers switching to digital media. Due to the decline in readership, profits have also fallen by 20% and there has also been a decrease in the share price.
Therefore, the new CEO, Amir Johnson, has been appointed. Amir was the former Marketing Director for a well-known successful media business that included a national newspaper, magazines, and a subscription television channel. Those publications are focused mainly on sport and celebrity gossip. It is able to undercut its competitors with low prices, enabled by a ruthless approach to achieving high levels of efficiency.
Amir and his team of Managers have developed a Strategic Plan that includes the following objectives.
· Increase return on capital to 8% within 2 years
· Enact a transformational change of the company that will convert all magazines to a digital format.
· Close the printing and distribution site.
· Achieve cost efficiencies through relocating the head office to a smaller office.
· Restructure head office staff through moving to a smaller core of permanent staff and more contract staff.
It is intended that the new digital magazines will have the following features:
· Focus on health and beauty, fashion and celebrity gossip.
· Some free content but full access available only on a subscription basis.
· Additional features available to subscribers such as video clips, podcasts and discussion
Current staff information is as follows. All staff are full-time permanent staff and their total salary costs per annum to Samson Media are also included below.
· General Manager: $200,000
· Finance Manager: $150,000
· Marketing Manager: $150,000
· Customer service manager: $100,000
· Customer service assistant: $240,000 (total salary costs for each journalist is $80,000) (2) – $100,000 (total salary costs for each assistance is $50,000)
· Online Marketing Coordinator: $120,000
· Human Resources Manager: $110,000
· Editor: $85,000
· Art Editor: $80,000
· Journalists (3): $270,000 (total salary costs for each journalist is $90,000)
· Graphic designers (2): $240,000 (total salary costs for each journalist is $80,000)
· Editing Assistant (2): $120,000 (total salary costs for each assistance is $60,000)
· Photographer (2): $150,000 (total salary costs for each assistance is $75,000)
· Senior Designer (2): $260,000 (total salary costs for each journalist is $120,000)
· Senior Production Controller: $95,000
· Printing and distribution (20 staff): Total $1,000, 000
The cost of running the printing and distribution site, plus staff costs is currently approximately $1,500,000 per annum. It has been identified that, given the change to the new medium of publication, it will be an immediate priority to shut down the site and make all of the staff redundant.——————-
The current office rent is $500,000 per annum.
Employment contracts are in place for all staff members employed in Head Office. Printing and distribution workers are employed under an award. The CEO has indicated that he is interested in moving towards an enterprise agreement arrangement for all remaining staff and would like to have this reviewed as part of the change management process.
Current human resources policies and procedure include a recruitment, selection and induction policy and procedure and a termination policy and procedure. There is an ad-hoc performance review process in place, which occurs as issues arise. There are no formal processes for training needs analysis or professional development.
As the General Manager, you have been asked to lead the development and implementation of the change management plan, with the first step being to consult with an organisational change expert to discuss issues and strategies for change management for the company.
It is anticipated that, while there will be some cost savings in making the change, there will also be costs involved including:
• Redundancies: anticipated cost is $300,000
• Upskilling staff: $100,000
• Consulting with experts: $100,000
• Communication throughout change with key stakeholders: $100,000
The CEO has indicated that he is interested in moving towards an enterprise agreement arrangement for all remaining staff and would like to have this reviewed as part of the change management process.
Employee termination will be handled sensitively and with fairness.
This policy and procedure apply to all staff who undertake recruitment, selection, induction. This policy and procedure is supported by, and linked to the company’s Strategic Plan, and Staff Code of Conduct.
The following procedures will be followed for recruitment.
· Prior to the recruitment process commencing, HR to develop a position description or access an existing position description. Ensure all information in the position description is accurate and identifies the key responsibilities, key selection criteria and desirable skills and attributes.
· HR will advertise the position using the organisation’s preferred medium(s) and Ad templates. Ads will clearly specify the purpose of the role, key selection criteria, mandatory qualifications and a contact name and number,
· Following receipt of applications, HR and the responsible manager will develop a shortlist of applicants based on the applications provided and their suitability to the role. Ensure that all shortlisted applicants have mandatory qualifications required of the position or the ability to obtain them.
· Interview of shortlisted candidates will be completed with HR and the responsible manager at the interview. Standard questions will be used and accurate notes will be taken.
· Following the interview, HR and the responsible manager will agree on the selected applicant and referee checks will occur using the Reference Check form.
· Letter of offer to be sent out to successful candidate/s and rejection letters to unsuccessful candidates using standard letters.
· Letter of offer is developed using standard template
· At least 2 days prior to the probationary period lapsing, HR will hold a review and support session with the employee. This session is to be used as a feedback and review from both parties on the probationary period.
Termination Policy and Procedure
Samson Media is committed
– to providing clear guidelines about the termination of employees.
– to ensuring that where a staff member’s employment is terminated, this is completed in accordance with the law and with sensitivity.
This applies to all employees of Samson Media. Termination may be because of:
· Redundancy: the position is no longer needed.
· Retrenchment: there are reduced positions
· Employee resigns
· Serious misconduct investigated according to disciplinary procedure
· Unsatisfactory performance
Resignation or Dismissal
Notification of cessation of a staff member’s employment must be provided in writing.
The employee is to provide resignation notice outlining intention to resign and the final date of employment. Notice must be provided as per the employee’s employment contract or award.
Where Samson Media terminates employment due to redundancy, retrenchment, unsatisfactory performance or serious misconduct, a notice of termination will be provided, outlining final date of employment and reasons for termination.
Expectations about performance is included in each staff member’s contract, as well as in the staff code of conduct.
All employees will be entitled to an exit interview with their manager.
The purpose of the exit interview is to seek information from the employee as to their experience of employment with the organisation and to identify areas for improvement.
The exit interview is a confidential discussion.
Information provided during the exit interview is reviewed and incorporated into Samson Media’s ongoing quality improvement activities as required.
Employees with more than two (2) months service can be provided with a written reference on performance and service details, unless dismissed for serious misconduct.
Employees with less than two (2) months service or those who are dismissed due to serious misconduct may, upon request, be provided with a written statement of service containing the length and nature of the employment.
Return of Samson Media’s property.
On or before the employee’s final date of employment, the employee is to:
· Return all property of the organisation (including keys, documents, information technology equipment, intellectual property)
· Return or be reimbursed with outstanding petty cash
· Remove hard copy and electronic personal and confidential files
· Inform supervisor of any passwords/codes that may prevent access to computer files
Before the employee’s final date of employment, Samson Media will:
· Calculate remaining leave entitlements and final payments according to law
· Ensure forwarding contact details are provided by the employee
· Inform the employee’s superannuation fund of the employee’s final date of employment.
On or before the employee’s final date of employment, Samson Media will:
· Restrict computer network access: both office and remote
· Remove as a signatory to financial and other transactions.
The staff member’s resignation letter or a copy of Samson Media’s employment termination letter is filed in the employee’s personnel file.
The staff exit interview and checklist will be filed in the employee’s personnel file.