Homework PD2 2.1 Functions and Evolution of HR management 001-04-09-17

HOMEWORK

DP YEAR 2 BUSINESS MANAGEMENT

The functions and evolution of human resource management 001-04-09-2017

Deadline: 05/09/17

QUESTIONS

1.      Define human resource management? Define human resource planning? How are they different?

2.     Human resource planning is important in all sectors of the economy. However, it’s critical in tertiary and quaternary sectors. Please explain why would that be the case? Tertiary and Quaternary sectors demand highly skilled professionals, which are limited in number.  In highly sensitive businesses that provide services and/or generate knowledge, or engage in research and development, planning and timing are important to increase the probability of recruiting the right employee to match the need of specific job descriptions. If not properly planned, the company might face a reduced pool of applicants and increased labor costs, that might hinder growth opportunities. 

3.      How can a high labor turnover rate affect productivity in a manufacturing company? Extended down time and increased costs of recruiting. In a service company? Low morale of employees might cause deficient customer service, and this can erode client loyalty. Explain one main consequence and a secondary consequence in each case?
Manufacturing company: Low product quality and high returns due to malfunction. Decreased sales, higher administrative and handling costs.  
Service company: Deficient after-sale-service. Company's reputation and image is damaged due to word of mouth. 

4.     Describe what CLAMPS stands for. Provide an example for each reason and suggest possible actions to mitigate people leaving a company.
Challenge - offer the employees greater responsibilities.
Location - provide higher safety standards
Advancement - define a career path
Money - establish a variable bonus based on productivity, or provide them with non-financial rewards such as in-house training. 
Prestige - communicate goal achievements within the company. Personal or individual achievements. 
Security - be honest and transparent about company objectives and how to secure them. Communicate them, and make the employees understand they are important in order to achieve those goals.

5.     Answer Question 2.1.1 (page 111)

(a) Labour turnover - the percentage of the workforce that leaves the organization in a given time period (one year). 
(b) Although we don't know how big is Balmedie, it's difficult for any city to provide 6.000 jobs in the hospitality industry from one day to another. A golf development might need a variety of workers, and the Trump Organization might have them within the organization, however, it faces a critical issue - labor mobility. Geographical and occupational mobility can reduce the pool of in-house workers, and therefore, the TO might need to contract new employees. 
(c) Labour turnover is a good indicator of how stable a company is, and how motivated its employees are. Job satisfaction is an important factor to boost productivity and must be properly monitored. High turnover rates might signal problems within the company. HR managers must identify these internal factors early on and correct effectively.  

6.     The country’s economy is recovering from an economic slowdown and you – as a businessperson- would like to hope on this opportunity. It’s the end of 2017 and sales forecasts show a 15% increase in sales (revenue) for 2018. You are expecting to close 2017 with $2.304.000 in sales. In 2017, you started the year with 24 people in your store and ended up with 26 in December. Considering that 2 employees left in 2017, calculate your labor turnover rate for 2017. What is the staffing need for next year?