HR Chapter 1 2 Eng Finalised 0901

7/30/2019 HR Chapter 1 2 Eng Finalised 0901

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NSS BAFS: Human Resources Management 1 Pearson Education Asia Limited 2010Answers to textbook exercises

Chapter 1 Human Resources Planning and Staffing

Think It Over (p. 2)

1 I would recruit chefs directly from Japan for the expertise and specialised skills they would

bring to the restaurant. As the restaurant targets high-income customers, recruiting chefs from

Japan may help build a more professional corporate image among its target customers.

2 Human resources planning plays an important role in this case. It can forecast the number

(quantity) and types (quality) of employees Sushi Yama needs in order to achieve its objective

(i.e., opening five outlets in Hong Kong). It also helps determine and predict the restaurants

manpower needs. Moreover, it provides a necessary basis for designing and implementing

other human resources management functions.

3 Mr Tanaka should recruit waiters by posting job advertisements at government employment

agencies (e.g., Labour Department), and in the print media (e.g., newspapers, magazines etc.).

He could also advertise job vacancies on job hunting websites such as JobsDB.com and

Recruit Online.

Teachers Guide

This case gives students an opportunity to think about the essential functions involved in human

resources planning and staffing:

1 How a companys strategies (e.g., its chosen target market) may affect the type of personnel ithas to recruit (e.g., native Japanese chef vs. Hong Kong chef)?

2 What are the issues relating to human resources planning (e.g., number of waiters/waitresses

required)?

3 In what different ways can the needed employees be acquired?

p. 3

TeachersGuide

Remind students of the concept and importance of human resources management learnt in the

compulsory part (Chapter 7 ofBusiness Environment and Introduction to Management).

p.4

Check Your Progress

Q1 HRM functions that are important for a company include:

Human resources planning Staffing Performance management


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Compensation and benefit management Training and development Maintaining a harmonious employee relationship Motivating employees to work together as a team(Any three of the above)

Q2 For example, HSBC wants to expand its personal investment banking business in the coming

year. In its human resources planning, it forecasts the number and type of employees it needs

in order to achieve this objective. It then decides that it needs more financial planners (e.g.,

100 financial planners). As a result, it starts recruiting graduates from local universities and

posts its job openings on campuses at Student Affairs Offices.

(Any other reasonable answers)

Q3 For example, my school would like to enhance the English proficiency of its students. It will

forecast the number (quantity) and type (quality) of employees it needs in order to achieve its

objective in human resources planning. It may then recruit native English speakers as English

teachers.

p.6

Teachers Guide

Teachers can use more examples to show how a company can match its human resourcesrequirements with environmental changes.

Check Your Progress

Q4 For example, in the banking industry in Hong Kong, the use of online banking and ATM

machines has led to a decrease in demand for over-the-counter retail banking services.

Consequently, banks may employ fewer bank tellers.


Q5 Real estate agencies need to consider the governments employment regulations when hiring

real estate agents. Under the Estate Agents Ordinance, any individual engaged in estate

agency work in Hong Kong must hold a valid estate agents or salespersons licence.

Therefore, real estate agencies must ensure that their agents hold the relevant licences. They

should also provide the necessary training to help new recruits acquire their licence.

p.10

Check Your Progress


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Q6 For example, during exhibitions and trade fairs, the Hong Kong Trade Development Council

may need more employees to serve exhibitors. It then hires many temporary employees to

work at the exhibition hall.


Q7 San Miguel outsources its logistics operations to Kerry Logistics in order to focus on its core

business. It can then invest more time in research and development to produce better products

to achieve its company objectives.


Additional Information

A company that uses an outsourcing arrangement needs to pay a contracting fee to its contractor.

This arrangement can help a company save costs as the contracting fee is usually lower than the

costs incurred in performing the jobs internally.


Factors affecting the choice of permanent hire, temporary hire and outsourcing include:

Whether the companys demand for additional employees is permanent or temporary. The financial resources the company has. The degree of control the company wants to have over its employees. The degree of employee commitment the company wants to develop.

p.11


Companies should take several factors into consideration when choosing downsizing methods.

These factors are:

the possible impact on the firms corporate image the financial resources that the company possesses the possible impact on employees morale and loyalty


Although this method cannot help the company reduce a large number of employees within a short

period, it creates the least negative impacts on the morale and well-being of existing employees.


Employees who leave the company under this arrangement usually receive additional compensation


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on top of the amount required by law.

p.12

Teachers Guide

It is hard to draw any conclusion as to whether such a decision is right or wrong. What students are

expected to discuss are views from different perspectives. For example, they may discuss the firms

responsibility to maximise profits for its shareholders (thus justifying the layoff). They may also

discuss the social responsibility (including that which is staff-related) the firm should bear when

making business decisions.

Q8 Caf de Coral should recruit permanent employees to perform front-line operations at its new

outlets. Hiring employees as permanent staff can provide them with more job security. Its

service quality can thus be maintained. However, since fast food operations are subject to

daily fluctuations in demand, the company may also consider hiring a small number of

part-time front-line employees to help out during peak hours.

p.14


This explains why companies need to offer more attractive remuneration packages (e.g., higher

salaries, travel allowances) to attract job applicants when the economy is booming (i.e., when theunemployment rate is low).

p.15

Check Your Progress

Q9 The major factors include:

Government policies, regulations and lawsThe governments policies, regulations and laws (e.g.,requirements to become a

recognised accounting professional in Hong Kong, policies regarding training accounting

professionals in Hong Kong)have a significant impact on the external supply of

accounting managers for the trading company.

Size and composition of the labour forceThe total number of accounting professionals available in the job market definitely affects

the supply of accounting professionals.

Skill shortagesIf there are skill shortages in the labour market (i.e., the number of people who possess


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accounting skills is decreasing), the trading company will find it difficult to recruit

employees. This may lower the companys external supply of suitable candidates.

Recently, there seems to be a shortage of accounting professionals in the market. The

shortage is even more serious if companies want to hire accounting professionals who also

have managerial and/or trading experience. This may further lower the companys external

supply of suitable candidates.

Ageing of the workforceThe average age of the workforce reflects the amount of external labour supply in the near

future. An ageing workforce indicates a decrease in the labour supply of accounting

managers in future.

Unemployment rateIf the unemployment rate is low, the trading company will find it difficult to recruit a

sufficient number of quality employees.

Competition and geographic considerationsIf the trading company operates in an area with many large competitors, it will probably

find it difficult to recruit a suitable number of employees. Similarly, if the trading

company is located in a remote area, it may have difficulty attracting employees because

transportation time and costs are higher.(Any three of the above)

Q10 A skills inventory consolidates information about the companys human resources. It provides

information about all employees basic characteristics, skills, qualifications and experience

relevant to promotion and transfer decisions.

A skills inventory for a school usually comprises the following information:

Personal data of the teachers and other administrative/clerical staff: age, gender, maritalstatus

Skills of the teachers and other administrative/clerical staff: educational and professionalqualifications, working experience, training received

Salary and employment history of the teachers and other administrative/clerical staff:present and past salaries, dates of salary increases, positions held before, previous

employment history

More detailed information with their present school: benefit plan data, retirementinformation, seniority, appraisal results, etc.

Capacity of the teachers and other administrative/clerical staff: test scores on aptitudeand/or psychological tests (if any), health information


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Specific preferences of teachers and other administrative/clerical staff: work location, typeof job

p.17

Teachers Guide

Teachers can quote more examples on how the use of information may affect the choice of the data

collection method.

Teachers Guide

Remind students about the concept of the organisation chart mentioned in Chapter 5 ofBusiness

Environment and Introduction to Management.

p.18


Using questionnaires to collect information is a quick and efficient means of obtaining information

from a large number of employees. It is also less costly than interviewing a lot of employees.

However, developing the questionnaire and testing it can be expensive and time-consuming.

HR managers often use both direct observation and interviews to collect information. First, they

directly observe all of the job activities performed by employees. Then, they interview theemployees to obtain some clarification and ask them to explain what other duties they perform.


Conducting interviews provides an opportunity for HR managers to explain the need for and

functions of job analysis. Employees can also air frustrations that might have gone unnoticed by

management.

The main problem in conducting interviews is distortion of information. As job analysis is often

used to change a jobs pay rate, employees may tend to exaggerate certain responsibilities while

minimising others. Obtaining valid information can thus be a slow process. HR managers may get

multiple inputs from different interviewees.

p.21

Check Your Progress

Q11 Ajob specification of a schoolteacher is as follows:

Knowledge:

Certified in relevant subject area (Bachelors Degree or higher, Masters Degree preferred)


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Skill:

At least two years experience as a schoolteacher Fluent written and oral communication in Cantonese and English

Effort factors:

Physical requirements: Physically fit to perform day-to-day teaching work

Other requirements:

Possess strong organisational and communication skills Demonstrate strong work ethic to achieve academy goals Display effective multi-tasking and time management skills

Q12 A job description is a written statement that lists a jobs duties, responsibilities, reporting

relationships and working conditions.

The job description of a schoolteacher is as follows:

Job title: Schoolteacher Reports to: Principal

Department: BAFS panel Job Family: Teaching

Job Summary: This position carries responsibility for developing schemes of work and lesson

plans in line with curriculum objectives. It also involves developing and fostering appropriateskills and social abilities to enable students optimum development, according to their age,

ability and aptitude.

Responsibilities and duties:

Organise learning resources and modify them to meet students needs Implement instructional activities in accordance with lesson plans Facilitate learning by establishing a relationship with students and cultivating a positive

classroom learning environment

Plan and organise extracurricular activities for students Communicate effectively with students, parents and other professionals

Authority of the jobholder: Supervisory authority: one teaching assistant as subordinate

Working conditions: mainly work at Tung Chung School

Q13 The methods used in collecting data for job analysis for the position of production supervisor

of a garment manufacturing company are:

Observation: Observe what duties and responsibilities are usually performed by a typical


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production supervisor at the garment manufacturing company.

Interviews: Gather job-related details by interviewing production supervisors at thegarment manufacturing company.

Questionnaires: Gather job-related details by using questionnaires to collect the neededdata from production supervisors at the garment manufacturing company.

Q14 (a) The job description of the shop manager is as follows:

Job title: Shop Manager Reports to: Division Manager

Department: Operations Department Job family: Restaurant management

Job summary: This position is responsible for overseeing operations at the restaurant in

order to maintain high quality standards and customer service. The shop manager will

also be responsible for staff management, quality and inventory control and execution of

the companys sales and marketing strategies.

Responsibilities and Duties:

Drive sales and increase revenues at the restaurant by promoting the store, motivateemployees to increase sales and provide excellent customer service

Hire, train, schedule and motivate employees for all work shifts Supervise and manage the workforce to ensure smooth operations at the restaurant Ensure the proper types and amounts of food and drink merchandise are ordered and

stocked to maintain an appropriate inventory level Provide courteous service to customers and respond promptly to customers

enquiries, complaints and requests

Authority of the jobholder: Supervisory authority: 20 front-line staff, four chefs and

other kitchen helpers as subordinates

Working conditions: mainly work at the Kowloon Bay outlet, with occasional shift duty

required

(b) The job specification of the shop manager is as follows:

Job title: Shop Manager

Knowledge:

F.5 standard or above Knowledge of restaurants operations in the fast food industrySkill: Minimum of three years solid management experience in the catering industry


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Effort factors:

Physical requirements:Physically fit to perform day-to-day management work in a

restaurant

Other requirements:

Strong interpersonal, communication and leadership skills Customer-oriented and able to work under pressure

p.23

Teachers Guide

Highlight the advantages and disadvantages of the two manpower sources.

Check Your ProgressQ15 Companies want to fill their positions with external candidates as this can provide the

company with new insights and skills. This can also save on the costs of training existing

employees for new posts. The unavailability of sufficient candidates inside the company is

another reason to seek external candidates.

p.24

Teachers GuideRemind students about the concept of the intranet mentioned in Chapter 9 ofBusiness Environment

and Introduction to Management.

p.25


Campus recruitment is an important tool for a company to develop its long-term human capital.

Nowadays, many companies use campus recruitment to acquire management trainees, young

professionals (e.g., accountants) and technical employees (e.g., engineers).

However, it is often expensive (in terms of administrative costs) and time consuming (e.g., six

months to one year) to acquire the right employees by this method. Newly recruited graduates also

need to receive extensive training before they can become productive.


Companies post their job openings through commercial employment agencies for several reasons.

The following are some circumstances under which a company may turn to commercial

employment agencies for help:


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The company does not have its own HR department and is not geared to recruiting andscreening.

The company has found it difficult in the past to generate a pool of qualified applicants. The company must fill an opening quickly. There is a perceived need to attract a greater number of minority or female applicants. The company wants to reach currently employed individuals who might feel more comfortable

dealing with agencies than with competing companies.

The company wants to cut down on the time devoted to recruiting.

p.26


As a usual practice, the annual conferences of professional institutions/trade unions also provide a

good forum for employers and members to meet and explore opportunities to establish employment

relationships.

p.27

Teachers Guide

Highlight the advantages and disadvantages of different job posting methods.

p.28

Check Your Progress

Q16 The multinational company should not post its job opening through the Labour Department as

the jobs posted there are normally entry level. Managerial personnel are not commonly

recruited through the Labour Department. Besides, human resources professional will not

likely go to the Labour Department to find jobs.

Q17 Commercial employment agencies are not appropriate places to post job openings formanagement trainees. Since candidates for management trainee positions are usually fresh

university graduates, companies should advertise job openings through the student affairs

offices of local universities. As posting jobs there is often free of charge, this practice helps

save agency fees to the commercial employment agencies. The company can also reach

potential applicants more directly.

p.29


Some large companies may develop in-house tests that meet their selection requirements. On the


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other hand, some companies may ask HR consultancy firms to develop the tests for them.

p.30


The main problem with any of these tests is ensuring that they are relevant to the job for which the

candidate has applied. A work sampling technique measures actual on-the-job tasks. As these tasks

are clearly closely related to a job, it is considered a fairer method of assessing applicants ability. It

is also hard for applicants to fake answers. If designed properly, a work sampling technique can be

more valid than other tests designed to predict job performance.

p.31

Additional InformationIn a structured interview, the questions are usually developed from a thorough job analysis. This

limits the freedom of interviewers to ask other questions. However, the same kind of information

can be gathered on all interviewees and this allows for systematic collection of information

important to the company.


An unstructured interview allows individual interviewers to exercise their own judgement in askingquestions and evaluating applicants. The atmosphere of the interview may also be more relaxing.

However, an unstructured interview may fall short of a systematic collection of information. The

interview may also be affected by the personal biases of individual interviewers.


A panel interview requires applicants to handle various questions raised by different interviewers. It

is a good way to assess the applicants responsiveness and ability to handle diverse questions. The

use of more than one interviewer may also reduce the personal biases of a particular interviewer.

p.32


A group interview enables interviewers to assess the different abilities of each applicant (e.g.,

communication skills, presentation skills, and the ability to work with others to solve problems).

However, its major weakness is that one or a few applicants who are more aggressive will dominate

the group discussion.


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Recruitment: With a job description and a job specification, IBM can identify the type ofpeople it requires for the position of marketing manager. For example, it may want to

recruit a person with marketing experiences in a related industry. It may then attract

potential candidates to apply for the position by advertising in newspapers. It may also put

the job advertisement on its intranet and corporate website.

Teachers Guide

Other job posting methods (e.g., advertising through employment agencies, Internet ads

and job fairs, etc) are also acceptable.

Selection: IBM then compares the relevant characteristics of each job applicant against thejob requirements. It can start the preliminary screening and select potential candidates for

further assessment. The assessment may be in the form of a personality test and group

interview. Reference checks should also be done to verify the accuracy of the information

provided by the job applicants. After evaluating all the job applicants, IBM will choose the

candidate who best fits the job of marketing manager.

Employment:IBM then needs to make an offer to the selected candidate and convey thedetails of the offer. It also needs to sign the employment contract with the candidate. It

should also inform the failed candidates of the result in a polite and sincere manner so as

to preserve its corporate image.

p.35

Discussion Questions

1 Human resources planning may help solve the problem in terms of determining and predicting

future manpower needs. It also helps the company identify when Jimmy will retire so that the

bank will be well prepared for a smooth succession. In other words, it should find suitable

successors (i.e., Martin or recruiting someone from outside) so that it can have sufficient

qualified employees to continuously achieve its objectives (i.e., expanding its business in

China).

2 (a) The job specification of the new marketing manager is as follows:

Job title: Marketing Manager

Knowledge:

A Bachelors Degree in Marketing or equivalent, MBA preferred Knowledge of the Mainland banking marketSkills:

At least three years experience as a marketing manager or other positions in the banking


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field

Extensive experience in marketing financial products in the Mainland Excellent written and oral communication in Cantonese, English and Putonghua Experience in liaising with Chinese officials responsible for overseeing banking

operations in the Mainland

Effort Factors:

Physical requirements: Physically fit to perform day-to-day office work and can handle

frequent travel

Other requirements:

Highly analytical and creative Able to lead and manage employees with diverse backgrounds Possess strong negotiation skills in order to communicate with authorities and business

partners


(b) The bank can publicise this job opening through commercial employment agencies. As

commercial employment agencies are experienced in acquiring managerial personnel, this

will save the bank a lot of time in screening suitable applicants for the job position.


Teachers Guide

Other job posting methods such as employee referrals, advertising in the mass media (e.g.

Classified Post) or on the Internet and advertising through professional institutions (e.g., the

Hong Kong Institute of Marketing) can also be appropriate as long as students can give a

reason for their choice.

(c) After a preliminary screening, the bank may shortlist applicants for subsequent interviews

and assessment sessions. A personality test and an unstructured interview might be used as

tools for assessing the suitability of candidates for the position. Reference checks can also

be used to verify if the information supplied by the applicant is accurate or not.


3 I would recruit a Marketing Manager from outside the bank to take over the manager position

on temporary hire terms (e.g., one-year or two-year contract). At the same time, I would

provide Martin with one to two years of extensive training regarding the Mainland banking

market. This could help Martins career development in the foreseeable future. If Martin

performs well, I would promote him to marketing manager.


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On the other hand, if Jimmys health is good, I may consider extending his service for a year

or more. With this arrangement, the bank can have more time to train Martin to take over the

manager position in future.

ASSESSMENT

Short Questions

1.1 Human resources planning is the process of deciding what positions a company needs to fill

and how they are to be filled. It is aimed at forecasting the number (quantity) and type (quality)

of employees a company needs in order to achieve its objectives.

For example, assume PARKnSHOP wants to open outlets in a new town in order to maintain

its position as a market leader. It should first decide what positions (shop managers,

warehouse keepers and cashiers, etc.) it needs to fill and how they are to be filled in its human

resources planning. Then, PARKnSHOP can forecast the number (quantity) and type (quality)

of employees it needs to achieve its company objective (i.e., business expansion).


1.2 Human resources planning can help a hotel determine and predict its future manpower needs.

This helps the hotel ensure that it has sufficient qualified employees to achieve its objectives.

For example, if the hotel wants to upgrade itself to a five-star hotel (i.e., company objective),it should forecast the number and type of employees (e.g., managerial, front-line,

catering-related staff) required through human resources planning.

Human resources planning can also provide a necessary basis for the hotel to perform other

important HRM functions, such as recruitment and selection.


1.3 (a) Employer and employee(b) Elements in an employment contract may include:

Working days Working hours Employment position Pay rate (salary) Leave conditions (e.g., annual leave, sick leave)(Any two of the above)


1.4 PCCW may consider:


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using natural attrition to reduce the number of employees, i.e., a natural and gradualreduction in the number of employees through retirement, resignation or death.

laying off or terminating its employment relationships with its employees. not renewing the contracts of contractual staff upon the expiry of their contracts. launching early retirement or voluntary resignation schemes to induce current employees

to opt for resignation or early retirement.

(Any two of the above)


1.5 Job analysis is a procedure used to determine the duties and skill requirements of a job and the

characteristics of the person who should be hired for it.

Job analysis is important in human resources management as it is an important input for HR

managers in performing other HRM activities (e.g., recruitment and selection, compensation,

performance appraisal, and training and career development).

1.6 Conducting an interview with an applicant may be subject to various interviewer biases

including:

The interviewer may have a tendency to recruit people similar to him. The interviewer may have a tendency to jump to a conclusion based on first impressions

only.

Some interviewers may over-focus on a particular strength or weakness of an applicant,thereby failing to assess the applicants suitability and capability in a more holistic and

objective manner.

1.7 A toy manufacturing company may use interview as the major selection method for the

position of a production manager. An interview is a means of collecting information from

people by asking them questions. Conducting interviews allows interviewers to evaluate job

applicants through face-to-face observation. The interviewers can thus project the

applicants job performance based on their responses to the questions being asked.

Essay Questions

1.8 In doing so, the HR manager can have a clear picture and updated records (including skills,

experience and qualifications, etc.) of all of the restaurants employees. He can then compare

its current manpower status with its forecasted manpower needs and determine the number

and types of employees required to run the restaurant. He can also determine whether internal

manpower resources are over-utilised, under-utilised or fully utilised.

Without such an assessment, the HR manager may not be able to accurately forecast the


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manpower needs for its operations. This would result in low productivity and a waste of

resources.

1.9 Staffing concerns the acquisition of a sufficient number of qualified employees to fill a

companys planned openings or vacancies. Staffing involves three stages: recruitment,

selection and employment.

For a bank, the three stages involved in the staffing process are outlined as follows:

Recruitment: Recruitment involves identifying and attracting potential candidates to applyfor openings. With a job description and a job specification, the bank can identify the type

of people it requires. It may then attract potential candidates to apply for the position

through various job posting methods (e.g., employment agencies, newspaper

advertisements, Internet advertisements and job fairs, etc.).

Selection: Selection refers to the banks assessment and evaluation procedures indetermining which job applicant is most suitable to be hired. In this stage, the bank

compares the relevant characteristics of each job applicant against the job requirements. It

can begin with screening written applications and then selecting potential candidates for

further assessment. The assessment may be in the form of a test, interview, reference

check, etc. After evaluating all of the job applicants, the bank will choose the candidate

who best fits the job.

Employment: Employment refers to the final decision the bank makes regarding to whomthe job will be offered and the terms of the offer. In this stage, the bank needs to make anoffer to the selected candidate, convey to him the details of the offer and sign an

employment contract with him. It should also inform failed candidates of the result in a

polite and sincere manner so as to preserve its corporate image.

1.10 HSBC may consider the following methods:

Internet advertising: As most applicants for these jobs are relatively young, the Internetrepresents a popular media for acquiring job information. The wide use of the Internet

among these younger jobseekers also means that it is a cost-effective job posting method.

Job fair: This is a quick way of attracting a large number of jobseekers. At the job fair,HSBC will be able to draw a large number of potential candidates to attend preliminary

screenings and on-site interviews. This helps speed up recruitment in a cost-effective

manner.

Teachers Guide

Other job posting methods such as employee referrals and advertising in the mass media can

also be appropriate as long as students can give a reason for their choice.

Students may propose advertising job vacancies in newspapers, which also represents a


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popular and cost-effective method for posting front-line service jobs.

1.11 (a) Questionnaire: The HR manager may use questionnaires to conduct a survey and collect

information about the tellers and his job. By using questionnaires, he can collect

information from a large number of employees to determine their expected level of pay.

Teachers Guide

Teachers may explain to students why interviews are not appropriate in this case. This is

because interviewees may provide untrue information or exaggerate their responsibilities

as they may think that their responses will affect their salaries.

(b) Interview: The HR manager can directly interview a sample of existing product

designers to better understand their duties and responsibilities. This method is quick and

inexpensive.

(c) Questionnaire: The HR manager may use questionnaires to find out the workers

expectations on compensation level. Assuming that the toy factory employs a large

number of packaging workers, the use of questionnaires can speed up the data collection

process from a large number of employees.

Or

Observation: The HR manager may engage in direct observation as the job of packaging

workers may mainly consist of physical activities. He can then directly understand their

duties and responsibilities.

1.12 Advantages of hiring temporary staff to fill job vacancies are as follows:

It gives the company the flexibility to employ workers when needed. The company can save on the costs of fringe benefits, e.g., medical insurance, retirement

benefits, etc.

Disadvantages of hiring temporary staff to fill job vacancies are as follows:

Temporary staff may require higher pay rates than permanent staff. The company will have a higher staff turnover rate. This might increase training costs for

the company.

Temporary staff may not feel a sense of belonging to the company. They will be lesscommitted to their job. This might affect their job performance and the companys

productivity as a whole.



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1.13 Advantages and disadvantages of using internal candidates to fill the vacancy of a school

principal are as follows:

Advantages:

Raise the morale of existing employees: This delivers a strong message to the existingteaching staff that they will be rewarded (i.e., promoted to the position of school principal)

if they perform well. They can thus foresee opportunities for career advancement. This

helps motivate them to improve their performance.

Minimise recruitment costs: The school may simply send an email to all staff and post thejob advertisement on its intranet without incurring any advertising costs from job postings.

Ensure a smooth transition of the principal: As an internal staff member is familiar withthe operations and culture of the school, he should not encounter any adaptation problems.

This helps smooth operations at the school amid the change in leadership.


Disadvantages:

Create unhealthy competition among existingteachers: At worst, this unhealthycompetition may trigger interpersonal conflicts and affect the service (teaching) quality of

the school.

Lack of new insights: The hiring of an existing employee as the school principal may alsoprevent the school from bringing in new insights, ideas and skills. This may adversely

affect its future development.

Advantages and disadvantages of using external candidates to fill the vacancy of a school

principal are as follows:

Advantages:

Bring in new insights, ideas and skills to the school: The school can gain a new vision forits further strategic development.

Save on training costs: As the internal employee might not be well prepared for the post ofprincipal, the school will need to provide training. The hiring of external candidates to be

the school principal will save the resources (e.g., money, time) required for internal

training.

Disadvantages:

Affect the morale of existing teaching staff: The hiring of an external candidate impliesthat the school management does not foster internal promotion. This will adversely affect

staff morale, as well as teaching quality.

Increase the staff turnover rate: As existing employees do not see a chance for promotion,they will leave the school.


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Create chaos during the transition: The new principal may have difficulty in adapting tothe schools operations and culture.


1.14 (a) The possible impacts on the company are:

By outsourcing the programming work to the Mainland, Dr Game can lower itscosts.

Dr Game can concentrate on other areas of business, e.g., research and development,branding, promotion and distribution, etc. Better products can be produced and the

company can also better market its products.

Since Dr Game does not own the software programming team, it will have moreflexibility in adjusting its production plan.


(b) (i) The major concerns of the human resources manager are:

Since the company has to terminate the employees who work in theprogramming department, the human resources manager needs to ensure that

the company fulfils its legal obligations. The company has to provide

severance pay to the workers.

Since a lot of workers are fired, the morale of the company will be adverselyaffected. The human resources manager should clearly explain to the remaining

staff why such layoffs are necessary. He may also need to reassure them abouttheir job security.

(Any one of the above)

(ii) The major concerns of the managerial staff are:

Managerial staff should consider factors other than costs when they choose theoutsourcing company, e.g., work ethics. They should be aware of the business

cultures and practices of the outsourcing company. If the outsourcing company

leaks product information to competitors, the company will suffer a great loss.

Managerial staff will have to manage change effectively. They have to monitorthe outsourcing companys quality of work on an ongoing basis.

(Any one of the above)

Case Analysis

1.15 (a) Tom should use interviews and questionnaires to conduct the job analysis.

Interview: Tom may conduct interviews with frontline salespeople and their supervisors

to gather useful information about the job nature of a salesperson. This method is quick


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(d) Tom can use the following selection methods to select suitable salespeople:

Screening written applications: This is the most effective way of selecting potentialcandidates with the relevant background and experience. This is also a quick way to

assess the candidates sincerity and interest in the position.

Personality tests: The job nature itself requires an outgoing and extrovertedpersonality. The use of personality tests can determine if job applicants possess these

required qualities.

Interview: Tom can collect in-depth information from the candidates and theirsuitability for the position. He can assess more accurately the candidates abilities

(e.g., interpersonal skills, communication skills, knowledge about the apparel

retailing industry) on a face-to-face basis.


1.16 (a) Staff turnover rate refers to the percentage of employees who left a company within a

specified period.

(b) Staff turnover rate = 500/10,000 100% = 5%

(c) (i) Human resources planning is important for BBA Bank as this decides what

positions BBA Bank has to fill and how they are to be filled. BBA Bank can

forecast its demand for human resources (the number and type of employees) forbusiness expansion. Based on this, it can then formulate its recruitment activities.

.

(ii) Maria can make use of the staff turnover rate to more accurately forecast the

number of employees the bank needs to recruit. If Maria does not take into account

how many existing employees will leave when she conducts her human resources

planning, she may end up underestimating the actual number of employees the

bank has to recruit.

(iii) Patricks suggestion may not be a wise decision as BBA bank is planning for

expansion. This expansion means the bank has to expand its employee numbers.

However, posting jobs on the intranet mainly attracts internal candidates who will

shift from one position to another without increasing the total employee size in

order to cope with the planned expansion.

HR Chapter 1 2 Eng Finalised 0901

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