HR Planning Exercise





HR Planning Exercise

Section B (i)

The company will need to process 180 applications for the Assistant Manager posts while only 20 vacancies are available because of the success rate of new applicants for this post, which is 10%. 10% translates 18 new applicants, while the rest 2 vacancies will be filled through internal promotions.

Internal promotions     = 0.1 × 20

                                    = 2 promotions

New applicants           = 20 – 2

                                    = 18 applicants

The company plans to recruit only 88.06 junior chefs when there are 103.6 vacancies because the expected internal promotion is 15%. Therefore, the rest of the vacancies, 15.54 that represent 15%, will be filled through internal promotions.

= 103.60 – 88.06

= 15.54

As % of total vacancies          = (15.54 ÷ 103.6) ×100

                                                = 15%

The cost of training all the new recruits in the kitchen except Porters is as follows

Head chef                   = 2.88 × 2,000 =   5,760

Sous chef                    = 3.42 × 2,000 =   6,840

Chef de partie                         = 9.36 × 2,000 = 18,720

Junior chefs                 = 88.06 × 2,000 = 176,120

Total cost of                = 5,760 + 6,840 + 18,720 + 176,120

                                    = € 207,440

If the turnover rate of chefs reduced by 10%, the cost of training new kitchen staff would be reduced by 10% because this will mean ten percent of chefs that left their posts will be retained. Therefore, the reduced number of new recruits reduces training costs.

                                    = € 207,440 × 0.90

                                    = € 186,696

The three positions with the highest turnover rate include, laundry assistant with 145% turnover, Kitchen porter with 130% and bar staff with 125%.

Section B (ii)

One of the main reasons for a high turnover rate in the post of kitchen porters is lack of training. All the other kitchen staff is trained, while the kitchen porters are not trained. This portrays the post as one of the least important in the hotel. This reduces the morale of worker, thereby reducing their interest in long-term commitment to the organization. Another reason for increased turnover rate within these posts is lack of recognition. Being at the lowest levels, the hotel hardly recognizes them. In addition, the organization has not provided a good job description and design to motivate employees at these posts. Most of their functions entail taking orders, which makes them feel subordinated.

            Another cause of high turnover rater in the three posts is lack of proper communication with the management. Being at the lower level, the management is hardly concerned with two way communication of these posts. Communication allows employee to raise their issues and offer their comment on the place of work, as well as their attitude toward work. Without proper flow of information at all levels of the organization, high turnover rate in the most alienated posts in the communication chain occurs. In addition, lack of proper scrutinizing during recruitment contributes to the high turnover. As indicated in the spread sheet, the success rate of new applicants for the three posts is high compared to others. This is due to lack of adequate screening to match skills to the position. In many instances, the positions are filled out of desperation, which leads to poor matching of skills and the position.  

(267 words)

Section B (iii)

High turnover rate is one of the issues that cause an increased cost of maintaining human resource. It is proven that the cost of hiring and training a new recruit is almost double that of retaining an employee. Therefore, it is important for the hotel to use several strategies to retain employees within the three posts with highest turnover rate. The first strategy that the hotel can use is training and development to reduce the high turnover rate for kitchen porters. As indicated, lack of training and development within this post in one of the main causes of its high turnover. Training and developing workers allows the workers to feel valued and part of the organization. It also allows them to develop their career.

            Another way of reducing turnover rate is offering better rewards and reviewing employee salaries annually. High pay should be accompanied by rewards for consistent high performance in order to encourage the employee to perform higher. Considering pay is one of the main reasons that employee leave their jobs, increasing their salaries gives them less reason to quit. Another way of increasing retention is recognizing and rewarding employees for their jobs, as aforementioned, these posts are the lowliest recognized, which contributes to low morale. Therefore, recognizing these posts as equally important as others is crucial in maintaining a high morale that is necessary for job retention. Finally, the hotel should provide an opportunity for their advancement, in order to give the employees within these posts a chance to develop careers. (252 words)

Section B (IV)

Any organization requires having good people with the right skills in order to achieve its goals. Human resource planning comes in as the function charged with managing people, which is the most valued asset of any organization. It performs tasks such as recruiting people, developing their skills and trains them to serve the organization.   

            In return, the employees of the organization work towards achieving its goals, hence ensuring effectiveness. Without human resource planning, organizations would not have the right people at the required time to fulfill the duties necessary for achievement of goals. Without people in the organization, achievement of goals would be impossible. Even the most automated firms require people to undertake various functions such as serving the customers and utilizing the company resources in order to create value for the employees. Therefore, by managing people, human resource planning ensures availability of the most valued asset of the organization, which is necessary for effectiveness of business.

            It contributes to business effectiveness by ensuring quality workforce, which is one of its main functions. This is important in providing the company with a competitive advantage. The other function is reducing labor costs through a proper maintenance of balance between demand and supply of human resource. Thirdly, it facilitates increased skills through training and development. Fourthly, it maintains a highly motivated workforce through various strategies such as promotions and material gains. Finally, it ensures safety of health for employees to keep them highly productive. These functions ensure high production in employees, which contributes to the effectiveness of the business.

(257 words)

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