Additional Case 9.1

question 17

Multiple Choice

Additional Case 9.1
Ron, the CEO at CableNet, wants to invest in career development because he is concerned that the firm is not prepared to meet future needs and challenges. Rudy, the operations manager, states that CableNet has already invested significantly in employee training, and a career development program would be a costly duplication. Rudy produces a recent productivity and quality study that shows significant improvement among employees to support his assertion that a development program is unnecessary. Charles, an IT manager, states that most supervisors currently discuss career options with their subordinates as part of the management process. Charles asserts that managers are taking care of their employees well enough and that nothing else is necessary. Tanya, the HR director, suggests that assigning employees to various jobs would give them a wider base of skills at a minimal expense. She asserts that an active career development program would help the company with EEO-related matters, which are a concern to her. The workforce is about 30% female and 45% minority, but upper management is 100% Asian-American male.

-Refer to Additional Case 9.1.Tanya's comments show that the company is most likely facing the challenge of:

Definitions:

Sustainable Growth Rate

The maximum rate at which a company can grow its earnings without needing to increase external financing.

Capital Intensity Ratio

refers to a financial ratio that measures the amount of fixed assets a company uses to generate its sales revenue, indicating the level of investment needed to maintain current sales levels.

Profit Margin

A financial metric expressing the ratio of net income to sales, showing the percentage of revenue that remains as profit after all expenses are paid.

Population Average

The mean value of a particular characteristic for the entire population being studied.