HUMAN RESOURCES MANAGEMENT (MGMT_453_C400_U2018) Heldi Narua

HRManagement

Case Discussion

The HRManagement case provides the background you need to take over management of the
human resources department in a medium-sized firm. In the case, you learn about your
responsibilities and the budgeting process. Below are a few questions to consider when
reading the case. Answer the questions, and be prepared to discuss your responses.

1. How many employees does your firm have?

Over 600 employees
2. What is the state of hr in the firm at the start of the simulation?
The workforce has both skilled and semi-skilled workers which include about 500
employees. The firm has no policy on promotions and has hired into the upper levels of
management from the outside as well as promoted from within. To guide the employees,
the firm does not provide any formal instruction.
3. What is the starting budget for the hr department? How much can you spend each
quarter?
The starting budget for the HR department is $ 1,4 million. In each quarter, the
department can spend 25% of the total budget which is equal to $350,000.
4. What expenses will be charged against the budget?
The yearly budget will cover expenses for hiring, wages, benefits, training, and HR
programs.
5. How many different job levels are you required to staff? What options do you have
for filling open positions?
There are five different job level in the firm. To fill the positions, the hr department
applies two methods; the first is by hiring from outside and the second is by promoting
the employees from within.
6. What is the productivity level as you take over? How much can it be improved?
Now, each employees handles 200 units. It can be improved if the number of employees
are reduced or those employees are replaced. There is about 10–20% improvements can
be made.
7. What compensation decisions will you need to make?
Regarding the improvement of productivity, i am going to make compensation decision
by reducing number of new employees and increasing the wages to reduce the turnover.
HUMAN RESOURCES MANAGEMENT (MGMT_453_C400_U2018) Heldi Narua

8. Identify the training programs available in the simulation. What other programs are
available?
Other program available may include training for level 1 and 2 workers. Since, those
workers are pormoted from within,they should guided by trainer from outside.
9. What do you see as your most important task in the first two quarters?
Strategy can be started by reducing number of new recruited workers, while it also
reduces the cost of staffing while lowering the unit cost of your product or service