Human Resource Management and Real Estate Optimization

This assignment provides a comprehensive overview of human resource management (HRM) and real estate optimization. It includes a list of recommended readings, including books and articles on HRM theory and practice, as well as real estate optimization strategies. The assignment also covers business succession planning, performance auditing, and data protection for real estate. It is suitable for students in business, management, or related fields.

Running Head: Real Estate Business 1
Real Estate Business

Real Estate Business 2
Executive Summary
The business of Real Estate is growing day by day as many people hope to purchase their
home. But there are cultural barriers and shortage in affordable housing is key issues that can
prevent their dreams from materializing. This report will focus on the business practices of the
new company in the real estate sector. The report will include various factors of marketing,
human resource, technology, and succession planning. In the marketing, the report will include
various marketing techniques like marketing mix for the success of the company. Further, human
resource part will also include various selection and recruitment process in order to attract talent
for the pool for the business. Along with this, new trend in the technology and succession
planning will be analyzed for the success of the company in real estate industry.

Real Estate Business 3
Contents
Overview.....................................................................................................................................................3
Marketing....................................................................................................................................................3
Objectives................................................................................................................................................3
Vision......................................................................................................................................................3
Marketing mix.........................................................................................................................................3
Product................................................................................................................................................3
Price.....................................................................................................................................................3
Place....................................................................................................................................................4
Promotion............................................................................................................................................4
Human resource management......................................................................................................................4
Plan for staffing, training and managing the new business......................................................................4
Compensation methods............................................................................................................................5
Optimal strategy..................................................................................................................................6
Internal verses external recruitment.........................................................................................................6
Internal recruitment.............................................................................................................................6
External recruitment............................................................................................................................7
Contractor, term and agreements.............................................................................................................7
Plans........................................................................................................................................................8
Balanced approach to office rules............................................................................................................8
Technology..................................................................................................................................................9
Trends in technology...............................................................................................................................9
Optimization of information technology............................................................................................10
Business communication.......................................................................................................................10
Data protection......................................................................................................................................10
Succession planning..................................................................................................................................11
Potential exit strategies..........................................................................................................................11
Issues and constraints............................................................................................................................11
Estimated value.....................................................................................................................................12
Conclusion.................................................................................................................................................12
References.................................................................................................................................................14

Real Estate Business 4

Real Estate Business 5
Overview
This report will focus on comprehensive marketing plan of the new venture of Real
Estate Company. The name of the company will be ‘Titicus Realtors’ that will seek to make the
home of buyers comfortable and worry-free during the home buying. The marketing plan focuses
on the marketing programs and practices of the company which will lead to establish and
consolidate the reputation.
Marketing
Objectives
Titicus Realtors has objective to make the process of buying easy for the customers by
providing them effective services. The objective of the company is to provide emotional,
financial and psychological values to the clients as much as possible.
Vision
Vision of the company is to be the first choice of stakeholders i.e. employees, customers,
suppliers, trade contractors and society. Company is seeking to adopt process to compete with
the world leading businesses (Lynn et al, 2011).
Marketing mix
Product
The company will be involved in various activities of real estate sector. Massive expertise
and experience will be required in the development of high-quality lower cost living for upper
class and middle class people who are seeking for luxury apartment.
Price
The pricing decisions will be taken based on the profit margin and probable pricing
responses of the competitors and customers. The company will generally follow the pricing
policy in a standard way. The most elementary pricing method will be to add a standard mark-up
to the project cost. The company will use ‘competitive pricing’ strategy. Most of the time, the
prices of apartments and flats will be determined by the area or location. Along with this, the
prices of the flats will also be decided by the quality. Changes in the prices will be occurred
when the prices of raw material will increase (Kotler et al, 2012).

Real Estate Business 6
Place
The company will develop properties in major cities of Canada. Those properties will
include residential buildings such as gated communities and apartments. The company will do
partnership with major firms also in the industrial areas of country.
Promotion
The promotional activities of Titicus Realtors will focus on introducing the projects to the
customers. Promotional activities have huge impact on enhancing the sales volume of the
company. The promotional activities of the company will be done by various methods that
illustrate below:
Print media- In order to enhance the sales, the company will publish advertisements by
magazine, brochure, newspapers. These media tools will be helpful for the company to reach the
customers directly.
Electronic media- The Company will also use electronic media for the advertisements and
promotional activities like animation, DVD for some projects multimedia presentations, e-mail,
website etc (Baines, Fill & Page, 2011).
Human resource management
Plan for staffing, training and managing the new business
In Titicus Realtors, the selection and recruitment process of the candidates will be done
based on the available positions within the company. The hiring process will be done by
examining the merit and expertise of candidates. The HR department of the company will be for
conducting the selection and recruitment process for maintaining regularity in the staff position
and to get best services from them (Dessler, 2013).

Real Estate Business 7
The recruitment and selection process of the company is described in the figure. Human
resource manager will upload the type of job role, relevant information about the job
requirements, and attractive job requirements on various online systems of hiring and different
communication channels. In order to hire people for various positions in the company, internal as
well as external hiring process will be followed that will be helpful in hiring experienced and
skilled employees for the job roles. Along with this, company will follow a process including
registration and job advertisements, selection of candidates, first interview, psychometric test,
second interview, and placement.
Compensation methods
There are various techniques that can be used to provide compensation to the employees
in the company. Those strategies are as follows:
Basic pay- This is the simplest method that can be used for paying remuneration to the
employees. This is the basic remuneration package that to be paid to an employee. For instance,
an employee is getting $15 for every hour. If he works 20 hours every week then he will get

Real Estate Business 8
$300 every week along with the extra salary for those additional hours. This will be based on the
agreement between employee and employer.
Incentives- Company can also use incentive policy in order to retain the employees based on
their performance. This will be helpful in motivating the employees for working better in the
company. There can be various types of incentive techniques i.e. bonus and profit sharing
(D'hoedt & Bouckaert, 2011).
 Bonus- Company can provide bonus to the employees based on their performance done
by them. Bonus will be given to the employees when their efforts will provide benefits to
the company. This will be the suitable strategy for the company if an employee is
providing superior quality in his or her job role.
 Profit sharing- Company can also adopt profit sharing method for compensation in order
to share the profit with the employees. If the profit of the company increases, then the
incentives of the employees will ultimately increase (Oke, 2016).
Optimal strategy
In case of Titicus Realtors, the company will adopt competitive compensation program
for its employees to provide rewards, benefits and compensation. For this manner, company will
select profit sharing program to compensate and reward the employees. In this compensation
program, there will be minimum 10% increase in the salary and $1000 cash bonus will be
provided for holiday offers by the management for those employees who will perform better.
Along with this, stock ownership offers will be provided to the employees for compensating and
rewarding (Purce, 2014).
Internal verses external recruitment
Company can recruit people by two different ways i.e. internal recruitment and external
recruitment. By the internal recruitment, company can fill the vacancies within the existing
workforce. On the other hand, company can fill the vacancies from the suitable applicants
outside the business (Gatewood, Feild, & Barrick, 2015). The advantage and disadvantage of
internal and external recruitment are discussed below:
Internal recruitment
Advantage-

Real Estate Business 9
 Quick and cheap to recruit,
 Applicants are already familiar with the business process,
 Provides opportunities for the promotion within the company and can be inspiring, and
 Company already has knowledge about strength and weakness of the employees
Disadvantage-
 Restricts the number of applicants,
 Limits the new ideas within the company,
 May create offense among the employees who are not appointed,
 Generates another position that needs to be filled
External recruitment
Advantage-
 New ideas can be generated by the outside people,
 Larger pool of applicants from which company needs to find best candidate,
 People have wide range of experience
Disadvantage-
 It can be a longer process,
 It can be an expensive process because of promotion and interview required,
 Ineffective selection process to reveal the best candidate.
Contractor, term and agreements
There will be some terms, agreements and independent contractors while hiring the
employees for real estate business. Those terms will be helpful to make the employees aware
about the policies of the job role. The contractor form will include some sections i.e. term, early
termination, services, independent contractor, expenses, compensation information, insurance,
record keeping, confidential information, and conflict of interest.
Plans
In order to communicate with the employees for conflict resolution, performance
appraisal and discipline, there will be an effective plan that will include five steps (Rajhans,
2012) i.e.

Real Estate Business 10
 Who: The manager of the company,
 What: performance appraisal,
 Channel: Email,
 Whom: Employees of the company, and
 Effect: Based on employees readiness and adaptableness (Bratton & Gold, 2012).
Balanced approach to office rules
In order to maintain and balance the office rules and procedures, there are some
approaches that will be used by the managers in the company.
 Safety rules must be implemented,
 Absence and tardiness policy must be observed,
 Record of work timings,
 Overtime policy,
 Lunch period and break rules,
 Personal appearance rules and dress codes,
 Rules to cover the damaged employee’s policy,
 Rules to keep the sensitive information of employee confidential
Technology
In order to make the business of real estate successful, it is important to adopt new trends
in the technologies available in the market. There are various technological trends and changes
that are helpful in improving the business of real estate.

Real Estate Business 11
Trends in technology
There are six key trends of technology in real estate that are effective in the business
growth and development.
New and improve consumer goods- The development of new and innovative products are
helpful in providing new channels for the consumer demand. New goods such as telephone are
effective in providing communication and information completely as compared to the traditional
methods i.e. post and telegraph. New and improved goods are the creation of fund among the
creators of technology and organizations.
Transportation technology- The combination of comfortable and safer automobiles, cheap land
and gasoline, good highways has contributed in the growth and development of real estate
companies. It has observed that the transportation technologies are shaping the cities. With the
increment in the distance, there are improvements in driving comforts like adjustable seating, air
conditioning, power breakers and steering, mobile phones have made the distance more
tolerable. In real estate, employees are able to live in large houses due to telecommuting without
bearing full cost of commuting time. Further, technological advances have created large labor
force in manufacturing for employment in the real estate sector (PWC, 2018).
Construction technology- The innovation in technology has significant impact on the efficiency
of the production in the real estate sector. The technological changes in the building construction
include the elevator, steel frame construction, air conditioning and various methods of
construction. Along with this, the construction technology includes mass manufacturing
techniques including i.e. manufactured material and regularity.
Internet- This is the most important technological innovation that impact on the business of real
estate. The internet provides various levels of product to the real estate business. Internet
provides the information related to the project i.e. rents, property and submarket characteristics,
sales prices historical returns and mortgage characteristics (KPMG, 2017).
Optimization of information technology
There are some ways by which information technology systems can be optimized in order
to enhance the business of real estate.

Real Estate Business 12
 Company can use property database system in order to prepare estate accounts, monitor
of diary dates, accounting and service change management.
 Property maintenance systems and software including database systems, computers,
remote data capture and digital photography can also be used by the company.
 Further, there are various software for estate agents i.e. CRM systems, progress systems
and cloud based estate agency software etc. Company can use threes software in order to
stay competitive in the market (Deloitte, 2017).
 Next, there are systems for marketing and customer services i.e. digital marketing, direct
mail and telemarketing that can also be used by the company to enhance the performance
in the market (Gilbert, 2017).
 Technology of construction i.e. computer-aided designs and drafting, three-and four-
dimensions, cost estimating tools, visualization programs to design the building will also
be helpful to enhance the performance of the company.
Business communication
In order to communicate with the employees, there are various technologies available for
the company i.e. social media, emails, phones etc. The most suitable medium is online and social
media platforms i.e. FaceBook, YouTube, LinkedIn and Twitter that can be used to communicate
with the potential customers. Email can also be used by the company so that consumers can be
approached directly.
Data protection
In order to keep the consumers’ information safe, company will adopt some principles of
data protection. The personal data of consumer will be processed lawfully and fairly under
specific conditions. Company will focus on some law, policy and insurance considerations i.e.
 Cyber and data security policy,
 Document destruction and retention policy,
 Active antivirus software and firewalls,
 Use of two-factor authentication (Rose, 2018)

Real Estate Business 13
Succession planning
Potential exit strategies
There can be various exit strategies in the real estate business. The exit strategy in real
estate results in the highest profit margin. The exit strategies can be Fix and Flip, Buy and Hold,
Wholesaling, seller financing and Rent to own. In the situation of exit of the business, there is the
need of proper succession planning. There are five levels in the succession planning and those
are as follows:
First level- This level includes determining the long term goals and objectives for the real estate
business.
Second level- This level is to determine the financial needs of the business and develop
important plan to ensure the financial securities.
Third level- This level includes managing the business and developing the management team. It
is crucial to understand that management and ownership are different. Day to day management
of the business will ensure the success of the company in the market (Harter, 2008).
Forth level- This level determines the owner of the business and how to transfer the one owner’s
interest in the business to the new owner. The succession plan provides the way to transfer the
business to the new owner. The business owner will also assess the most effective mans to
transfer the ownership of the business.
Fifth level- This is the last level that minimizes the transfer taxes and develop a suitable estate
plan. Estate taxes can claim up to 45% of the value of the business. For minimizing the forced
liquidation or to pay the estate taxes, various strategies will be implemented by the business
owner (Federation of European accountants, 2016).
Issues and constraints
It is not easy to run the business in the real estate sector as there can be longer term
problems in succession planning. In order to make the business successful, daily activities are
needed. While planning for succession, number of challenges and issues can be raised. Those
issues have significant impact on the business operations. Some of the issues are as follows:

Real Estate Business 14
Business and family relationships- Despite of consistent in the management objectives and
long-term approach by family management, family relationship could be a weakness. At the time
of retirement of family member, the business or family priorities can clash despite of succession
issues have been planned carefully (Murray, 2015).
Legal issues- In some cases, the legal structure of the company may not be adequate in order to
prepare the transfer. Changing a legal form of the business and assuring the continuity of the
business can be challenging for the company (National Association of Retailers, 2012).
Taxes- The business has to pay the money to the government in taxes. If there is no any plan,
then government can take much of the value of the business and leave little for the new owners.
Company can face the issues in some cases like stamp duties, registration tax and many other
taxes. The taxes are charged on the sale of interest of business.
Estimated value
In order to run the real estate business, the principle is to invest $40,000 of equity funds.
Further, every property acquisition for the next two years will be gained from the debt financing
with 5.75% interest rate.
Conclusion
Based on the project 1 and project 2, it is observed that there can be some risks while
running a new real estate business. Those issues include legal issues, unfavorable taxation policy,
inadequate policy framework complex approval process, and unsold inventory. In order to deal
with these issues, Titicus Realtors needs to develop and implement succession planning in the
market. The succession planning will also be helpful in transferring the business to the new
owners.

Real Estate Business 15
References
Baines, P., Fill, C. & Page, K. (2011). Marketing. (2nd). New York: Oxford University Press

Real Estate Business 16
Baines, P., Fill, C. & Page, K. (2011). Marketing. (2nd). New York: Oxford University Press
Bratton, J., & Gold, J., (2012). Human resource management: theory and practice. Palgrave
Macmillan
Deloitte, (2017). Real Estate Optimization. Retrieved on 13th March 2018 from
https://www2.deloitte.com/content/dam/Deloitte/us/Documents/process-and-operations/
us-cons-real-estate-optimization.pdf
Dessler, G. (2013). Human resource Management. (13th). Boston, MA: Pearson Higher Ed
D'hoedt, B., & Bouckaert, G., (2011). Performance auditing – Een inleiding. Leuven: KU
Leuven
Federation of European accountants, (2016). Looking to the future – business succession for
family business. Retrieved on 13th March 2018 from
https://www.accountancyeurope.eu/wp-content/uploads/1610-Information-paper-SME-
Family-business-succession.pdf
Gatewood, R., Feild, H.S. and Barrick, M., (2015). Human resource selection. Nelson Education
Gilbert, E., (2017). The Five Technology Trends that will Impact Real Estate (and the World) in
2018. Retrieved on 13th March 2018 from
https://www.onboardinformatics.com/blog/2017/11/22/the-five-technology-trends-that-
will-impact-real-estate-and-the-world-in-201
Harter, L., (2008). Succession Planning Part II: Business Succession Is a Team Sport. Retrieved
on 13th March 2018 from
http://www.gscpa.org/Content/Files/111008_Succession_Planning_PartII.pdf
Kotler, P., Keller, K., Brady, M., Goodman, M., & Hansen, T. (2012). Marketing Management.
(2nd). Essex: Pearson Education Ltd
KPMG, (2017). Real Estate in the digital age. Retrieved on 13th March 2018 from
https://assets.kpmg.com/content/dam/kpmg/se/pdf/komm/2017/se-real-estate-in-the-
digital-age-2017.pdf
Lynn, David J, C.R.E., Wang, T., & Mehlum, C. (2011). Investing in emerging markets: China,
india and brazil: Real Estate Issues. 36(2). 21-26.
Murray, S., (2015). THE CHALLENGE OF SUCCESSION PLANNING. Retrieved on 13th March
2018 from https://www.realtrends.com/blog/the-challenge-of-succession-planning

Real Estate Business 17
National Association of Retailers, (2012). Top 10 Issues Affecting the Real Estate Industry.
Retrieved on 13th March 2018 from https://www.nar.realtor/commercial-connections/top-
10-issues-affecting-the-real-estate-industry
Oke, L., (2016). Human Resources Management: International Journal of Humanities and
Cultural Studies (IJHCS). 1(4). pp.376-387
Purce, J., (2014). The impact of corporate strategy on human resource management, New
Perspectives on Human Resource Management (Routledge Revivals). 67
PWC, (2018). Emerging Trends in Real Estate: United States and Canada. Retrieved on 13th
March 2018 from https://americas.uli.org/wp-content/uploads/sites/125/ULI-
Documents/EmergingTrendsInRealEstate2018.pdf
Rajhans, K., (2012). Effective Organizational Communication: a Key to Employee Motivation
and Performance: Inter-science Management Review. 2 (2). 81-85
Rose, A., (2018). Data protection for real estate. Retrieved on 13th March 2018 from
https://www.mishcon.com/news/articles/data-protection-for-real-estate