Build your IB Business Management SL Human Resource Management foundation through questions on people, organization, motivation and workplace change.
Before the disaster, hopes had been high for PU for 2021/22. PU’s business plan for 2021/22 was originally based on an expected increase in student numbers. The plan included building a new lecture theatre and a new building for the Faculty of Music. The plan also included installation of renewable energy sources on the university campus and an improved pay structure for lecturers. However, it soon became clear that the plans were unrealistic. For the academic year 2022/23, student numbers are predicted to be much lower than originally expected. Many local students have decided to postpone their studies for a year, many international students will not return to complete their courses, and fewer new international students will enrol. International students pay higher fees to the university than the fees that the university receives from local students. In 2021/22 PU’s revenue fell, but PU still had to pay employees, maintain buildings and pay general expenses. Faced with a major cash-flow problem, PU had to find ways to reduce outflows. Reluctantly, Adriana made 10 % of teaching staff and support staff redundant, while 20 % of staff were moved to part-time employment. Other operating cost savings were made. However, Adriana decided to maintain PU’s aggressive marketing strategies in contrast to most other universities, which were cutting marketing budgets because of the economic recession. Adriana saw marketing expenditure as a worthwhile investment. The promotion emphasized PU’s achievements both in research and teaching, its services for students, its high levels of student satisfaction and its competitive fees.
Adriana thinks that, in the shorter term, PU needs to revise its employment contracts to try to restore morale to the teaching staff following redundancies. The IT training programmes need to continue and be expanded as new ways of working are introduced. She also thinks that the university cannot continue as it did in the past, with many facilities underused outside of term time, lecturers often travelling around the world to attend conferences, and PU relying so much on the higher fees paid by international students. Some faculties within the university would have to be reviewed. Research suggests that the number of students studying history and international languages has decreased in the last few years, and this trend is likely to continue. This decline at PU reflects falling interest in those subjects in schools. Some trustees have suggested no longer offering these subjects and using the subsequent savings to expand further provisions to the Faculties of Medicine and IT.
Jim Summerfield, head of the Faculty of History, has become controlling, rarely consults staff and is linked to allegations of bullying, low morale, sexist and racist attitudes and the unfair dismissal claim brought by Patricia Hughes. Before dismissal, Adriana should investigate the evidence, meet Jim and affected employees, follow PU's equality policies and a fair disciplinary procedure, give Jim a chance to respond, and consider support, training or a warning if appropriate. PU's cash-flow problem comes from recession, damaged facilities, lower student numbers and lost international-student fees while employees, buildings and general expenses still have to be paid. In addition to redundancies, PU could reduce hours or use part-time work, delay capital projects, reduce or control operating costs, negotiate payment terms, seek grants or finance, increase enrolment and fees, protect effective marketing, and commercialize or license successful medicine and AI research.
Outline two steps that Adriana should take if she decides to dismiss the head of the Faculty of History, Jim.
Wong Corporation (WC) manufactures clothes dryers.
Wong Corporation (WC) manufactures clothes dryers. WC pays tax at a rate of 20 %.
Wong Corporation (WC)
Wong Corporation (WC) manufactures clothes dryers. WC pays tax at a rate of 20 %. WC has a hierarchical organization structure. Table 3 shows selected forecasted financial information for the company for 2022, and Table 4 shows its annual cash flow forecast for 2022.
Table 3: Selected forecasted financial information for WC for 2022 (all figures in \$000s)
Table 4: Annual cash flow forecast for WC for 2022 (all figures in \$000s)
State two features of a hierarchical organizational structure.
Frez PLC (FR) has 6000 employees in its 100 supermarkets and 250 in its head office. FR operates a 360-degree feedback appraisal system for head office employees. FR’s directors believe that this system has improved retention and morale of head office employees. This year, to reduce head office costs, FR offered head office employees the option of teleworking, which 60 % accepted. They will work at the head office only one day per month.
Frez PLC (FR)
Frez PLC (FR) has 6000 employees in its 100 supermarkets and 250 in its head office. FR operates a 360-degree feedback appraisal system for head office employees. FR's directors believe that this system has improved retention and morale of head office employees. This year, to reduce head office costs, FR offered head office employees the option of teleworking, which 60 % accepted. They will work at the head office only one day per month.
Each FR supermarket has 10 departments. Departmental managers have concerns about their workload caused by their large span of control. Labour turnover at FR supermarkets is increasing each year because departmental managers are leaving. In January, FR increased its supermarket opening hours and hired an additional 1000 part-time employees. FR is considering extending its 360-degree feedback appraisal system to all supermarket employees.
Recently, demand from supermarket shoppers for a home delivery service increased, although industry experts disagree on whether this demand will continue. FR's main competitors already provide delivery services.
FR has decided to launch a home delivery service. It will require 500 vans, which would be replaced every five years. FR is considering two options:
- Option 1: purchase the vans at a unit cost of each, financed by a five-year bank loan at 3 % interest.
- Option 2: Lease the vans at a unit cost of per year per van. The minimum term for the lease will be 24 months.
FR already borrowed $50 million in 2019 to finance the modernization of its supermarkets.
Explain, with reference to Maslow's motivation theory, how teleworking may damage employee motivation at F R 's head office.
Explain one disadvantage for F R, other than the impact on employee motivation, of introducing teleworking.
Reading enables all People (RP)
RP is a non-profit and non-governmental organization (NGO) that teaches reading to financially disadvantaged children and teenagers. RP's mission statement is: "To educate those in need in order to foster social inclusion and change".
RP has 64 paid full-time staff and 350 part-time volunteers, mostly college students, who work in all areas of the city where RP is located. Volunteers do not work under contract. RP is experiencing communication problems. One young volunteer complained, "I often receive contradictory information. One person says one thing and another says something else". RP's organizational structure is tall. There are several formal methods of communication present at RP, but most of the information passes through informal communication channels.
RP is planning to extend its literacy program to rural areas. The program will last five years. RP's current sources of finance are insufficient to fund the new program. At present, RP is only financed by national businesses. Alice Lire, RP's Chief Executive Officer (CEO), has contacted the government for financial support. However, the state budget is limited and chances of government cooperation are low.
As part of its corporate social responsibility policy, McMikey, a multinational company that markets products to children, is willing to pay for the books for the program for two years. Alice is ready to accept the offer, but she would prefer McMikey to guarantee its support for five years. However, there is internal disagreement at McMikey. The Finance Manager believes that it would be too costly. However, the Marketing Manager argues that McMikey's brand image would be improved by a long-term association with RP's literacy program.
Explain one formal method of communication that might be used at R P.
Evaluate R P 's use of a very large number of part-time volunteers.