Case OverviewAlthough PAC Resources is a fictional organization, it experiences many of thedifficulties common in today’s business climate. In response to declining sales, PACResources must transform itself from a strategy of expansion and high profit to oneof cost containment and staff reductions.The case is presented in two parts. Part I lays the groundwork for the case, withdiscussion of the organization and details of the human resource department. PartII is presented in e-mails from various staff members. The e-mails identify specificproblems that need to be addressed by the HR department and give the reader anunderstanding of PAC’s overall culture. You may find the tone of some e-mails to becolloquial and unprofessional. This is a good opportunity to remind students that asmuch as we enjoy informality in the workplace, all documents and correspondence—including e-mails—can be retained and are discoverable in the case of litigation.Managers must be cautious in their writing because inappropriate language may beimpossible to defend in court.AUDIENCEThis case is appropriate for upper-level undergraduate or graduate students in ahuman resource (HR) management or business management degree program. At aminimum, students should have previously completed lower-division classes in HRmanagement, introduction to business and principles of management.LEARNING OBJECTIVESIndentify problem areas of each of these five functional areas of HR Management:1. Recognize the link between organization strategy and human resource activities.2. Conduct a SWOT analysis of the organization with emphasis onthe HR department.3. Identify problem areas in each of these five functional areas of HR management:nnHuman resource development.nnSafety and security.nnStaffing.nnCompensation and benefits.nnEmployee relations.© 2011 Society for Human Resource Management. Myrna L. Gusdorf, MBA, SPHR 14. Design solutions to the strategic problems identified in the five functionalHR areas.5. Develop solutions to the policy and people management problems identified inthe e-mails.6. Present their solutions to the class and lead discussions of the issues involved intheir assigned functional area of HR.