HRM Plan Analysis: Service Organization Case Study and Recommendations

This report analyzes the human resource management (HRM) plan of a service organization operating tele profit centers. The case study focuses on a company expanding its operations and developing a "hire ahead" plan. The report examines the current hiring process, identifies process changes needed to address budget concerns, and determines the number of employees to be hired monthly. It also defines and analyzes the effects of vacancy and turnover rates, proposing strategies for improvement. The analysis includes a discussion of scenarios impacting the company's bottom line and concludes with recommendations for optimizing the HRM plan to achieve the company's strategic objectives. The report emphasizes the importance of efficient recruitment, employee satisfaction, and strategic management of human resources to ensure the success of the organization's expansion plans.

Running head: HUMAN RESOURCE MANAGEMENT
Human Resource Management
Name of the Student
Name of the University
Author’s Note:

2
HUMAN RESOURCE MANAGEMENT
Table of Contents
1. Introduction............................................................................................................................3
2. Discussion..............................................................................................................................3
2.1 Current Hiring Process affecting Successful filling of Current Position Vacancies........3
2.2 Process Changes to be done for Budget Concerns...........................................................4
2.3 Number of Employees to be hired every month for Objectives of Hire Ahead Plan.......5
2.4 Effect of Vacancy Rate....................................................................................................6
2.5 Definition of Vacancy Rate..............................................................................................6
2.6 Process to improve Vacancy Rate....................................................................................7
2.7 Process to understand Turnover Rate...............................................................................7
2.8 Process to improve Turnover Rate...................................................................................8
2.9 Scenario affecting Bottom Line of the Company............................................................8
3. Conclusion..............................................................................................................................9
References................................................................................................................................10

3
HUMAN RESOURCE MANAGEMENT
1. Introduction
HRM or human resource management is eventually referred to as the most significant
strategic approach towards the current management of individuals in any company, in such a
manner that they could easily help the entire business in obtaining major competitive benefits
(Noe et al., 2017). Recruitment and selection are the two most important and significant
processes in a company that are executed by the department of human resource management.
This report will be outlining a detailed discussion about the case study of a service
organization, which operates 5 tele profit centres that have 300 representatives each in every
city. Recently, the CEO wants to develop a HR plan for growing 2 more tele profit centres.
They have named this HR plan as hire ahead plan and several factors are needed to be
focused in this plan.
2. Discussion
2.1 Current Hiring Process affecting Successful filling of Current Position Vacancies
A popular service organization is operating 5 tele profit centres of three hundred
representatives in 5 cities in Florida, namely, Jacksonville, Orlando, Miami, Tampa and
Gainesville. The senior strategic team of this particular organization wants to develop a
human resource plan, which would enable the organization by growing 2 more tele profit
centres that would be located in Jacksonville (Mondy & Martocchio, 2016). For this purpose,
they have made a new plan called hire ahead that would be keeping every newly trained staff
in the business. This new plan would not allow over 3% of the employee base of every
centre. The major factors that are required to be considered for this particular case study
include recruitment cost getting increased by 30%, however budget of HR would not be
increased. Few web sites like Monster, CareerBuilder and Sologig would be conducting
recruitment and there would be four thousand five hundred applications received in every

4
HUMAN RESOURCE MANAGEMENT
month from recruitment efforts. The respective average turnover of these tele profit
representatives of the organization would be 7% in one month and that in Jacksonville is 5%
per month.
The current process of hiring is extremely advanced and is expected to fulfil all types
of requirements in these 2 centres. The selection process includes some of the most basic and
vital steps. The first and the foremost step is to pre-screen the human resource assistant and
selected on the basis of such screening (Noe et al., 2015). It is being checked that 95% of the
total applicants pre-screened are successful in passing the test. The second step is to interview
the pre-screened applicants. It is being completed by a recruiter and 50% of the total
applicants are highly successful and could be tested in the next stage. Testing of different
employees is managed by one specific HR assistant and 50% of the total tested become
successful and would be having a drug screening checking done. This type of screening of
drug test is being synchronised by a HR assistant for ensuring that no applicant is working
under influence of drugs (Bratton & Gold, 2017). Background checking of the employees is
also done by coordinating a HR assistant with a 3rd party contracted provider and finally
credit check is being conducted by the human resource assistant.
2.2 Process Changes to be done for Budget Concerns
The service organization will not be increasing the budget of human resources,
however the recruiting costs would be increased by 30%. Around 200000 dollars would be
dedicated for recruitment of employees in these 2 new centres (Cascio, 2015). Process
changing should be done for ensuring that the budget concerns are well resolved and they are
able to cope up with the changes successfully. It is needed for ensuring that under no
circumstance, cost or budget is getting exceeded. The total budget dedicated for human
resources in this particular plan is around 3.5 million dollars and these are about to bring out
changes in the organization. Moreover, there would be a training process of nine months and

5
HUMAN RESOURCE MANAGEMENT
all the new employees, recruited, would have to undergo this training process (DeCenzo,
Robbins & Verhulst, 2016). The average turn over of every tele profit representative within
the organization would be 7% in 1 month and the average turn over of every tele profit
representative within Jacksonville Florida centre would be 5% in 1 month.
For complete change in the process, they need to focus on the number of employees to
be recruited for the plan. For the concern of budget, they should involve a systematic
collection of data and information, so that their respective finances, required for supporting
organizational objectives could be projected. The CEO of the service company has decided to
include 3% of the total employee base for their 2 new centres in Florida. They would have to
calculate benefit costs and projected turnover rate (Brewster, 2017). Moreover, the actual
costs incurred in their current year are also needed to be considered properly and hence all
types of changes in policies, laws, regulations and business strategies might have impact on
their HR budgets. They should review their budget every month and evaluation of current
income as well as expenses. Moreover, the sources of other income should also be focused by
the company, so that they are able to resolve the budget concerns successfully.
2.3 Number of Employees to be hired every month for Objectives of Hire Ahead Plan
The new plan called hire ahead would allow no excess of 3 percent of the current
existing employee base within every of their new tele profit centre for consisting of newly
trained employees (Sparrow, Brewster & Chung, 2016). There would be around 4500 total of
applicants, who would apply in 1 month from recruitment efforts. Currently, there are 300
representatives in every 5 cities of Florida, which refers to the fact 3% of 300, i.e. 9
employees would be hired every month in these two new centres of Jacksonville, Florida for
fulfilling the objectives of the respective plan. Recruitment can promptly offer different
people for selection in their service company. It includes locating various sources of man
power for fulfilling the job requirements. The management of the company can easily search

6
HUMAN RESOURCE MANAGEMENT
for prospective employees and finally stimulate as well as encourage them to apply for these
two new centres in Jacksonville, Florida (Jackson, Schuler & Jiang, 2014). It is required to
complete the 5 distinctive stages of recruitment for recruiting these 9 employees every month
in 2 new centres in Jacksonville. The five stages of this recruitment process include planning,
development of strategies, searching, screening and proper evaluation. These tele profit
centres hence would be able to obtain various types of advantages and the respective plan of
hire ahead would be a successful one.
2.4 Effect of Vacancy Rate
Lower vacancy rates are eventually considered to be as positive, since it refers to
individuals are successfully working in the organization and have no intention of resigning
from their jobs (Storey, 2014). However, higher rates of vacancy are considered as negative,
since it refers to certain individuals are not working positively and are not happy with their
jobs. In this particular case study of the service company, the effect of vacancy rate is quite
low, as they have made an estimation of 4500 applications are considered to be received in
every month from their recruiting efforts. Although already 300 employees are working as
representatives in each of the 5 distinct cities of Florida, namely, Jacksonville, Orlando,
Miami, Tampa and Gainesville; the management has considered of new recruits in the 2 new
centres. The effect of vacancy rate is hence negative for the organization and the company
can be referred to as in extremely good position for employee recruitment (Kramar, 2014).
Moreover, the existing employees and representatives are highly satisfied with their jobs in
the 5 cities of Florida.
2.5 Definition of Vacancy Rate
Vacancy rate can be defined as the percentage of every available unit within an
organization, where previously existing employees have either resigned or have been
removed. Moreover, this vacancy rate is also calculated for checking whether employees are

7
HUMAN RESOURCE MANAGEMENT
satisfied working in the company or not (Purce, 2014). If the total vacancy rate is high, it is
likely that the existing employees are not satisfied with their jobs. However, if the total rate
of vacancy would be low, it is likely that the existing employees are highly satisfied with
their jobs and are getting job satisfaction. Vacancy rate can be easily calculated by the total
vacant positions, being divided by total positions in and finally multiplying by 100 measures
of the organizational rate of vacancy for resulting to employee turn over.
2.6 Process to improve Vacancy Rate
Vacancy rate could be improved by following a proper procedure in the company.
Improvement of vacancy rate solely depends on employees and the human resource
management (Tyson, 2014). The respective human resource management should ensure that
each and every employee is highly satisfied and is not working under immense pressure,
under any circumstance. Salaries or wages of the employees should be increased periodically
and it should be ensured that the employees are not dissatisfied at any cost. Moreover, proper
training should also be given to the employees, so that they do not have any doubt regarding
the work and become enthusiastic while working in the respective company. Lower vacancy
rates are ideal for any organization, as it implies that the existing employees are happy
working in their current working ambience.
2.7 Process to understand Turnover Rate
Turnover rate can be referred to as the total percent of staff leaving a company in a
specific time period. Higher turnover could be quite expensive to the company, as departure
of employees require to be successfully replaced as soon as possible. Hiring of managers or
employers could be extremely time consuming and it could leave critical positions open for
any type of negative effect on the company (Brewster et al., 2016). As a result, any company
should strive for avoiding higher turnover rates. Such rates could be easily reduced after

8
HUMAN RESOURCE MANAGEMENT
proper analysis of the reason that why turnover is taking place in the business. There are two
types of turn over rates, which are voluntary turnover and involuntary turnover.
2.8 Process to improve Turnover Rate
The average turn over of every respective tele profit representative within an
organization would be 7% in 1 month and the average turn over of every respective tele profit
representative within Jacksonville, Florida would be 5% in 1 month. The service company
has made the plan called hire ahead, after consideration of the success of hiring, learning
curve of the new employees as well as by considering the length of training for each new
employee (Berman et al., 2019). Although, the rate of turnover is quite low in this particular
organization, they could improve their turnover rate by involving few precautions, such as
hiring appropriate people, offering competitive pay and benefits, providing appreciation,
providing opportunities to the new employees and also allowing flexibility in work schedules.
2.9 Scenario affecting Bottom Line of the Company
HRM is being designed for maximized employee performance in services of various
strategic objectives of the employer. It is required to keep a strategic management team for
ensuring that the respective strategies are well executed without any type of issue or
complexity. They are responsible for dealing with several issues that are related to employees
like hiring, compensation, administration, motivation, development and many more. It
eventually ensures employee satisfaction and maximum contribution of staffs to overall
achievement of company goals (Albrecht et al., 2015). The scenario is same for the service
company as well. The entire plan of hire ahead is expected to impact the respective bottom
line of this particular company. They would be able to gain maximum advantages from this
plan and the existing issues related to lack of representatives in the 2 new centres in
Jacksonville, would be resolved. Moreover, since they have decided to provide proper
training to every employee, they would be highly efficient.

9
HUMAN RESOURCE MANAGEMENT
3. Conclusion
Therefore, conclusion can be drawn that HRM is the type of management
functionality that is concerned with recruitment, motivation as well as maintenance of work
force within any specific company. It is a strategic approach for acquiring, managing,
motivating as well as obtaining total commitment of organizational key resources or
employees. This above report has properly analysed the case scenario of an organization that
has started a hire ahead plan for involving more recruitment of employees after considering
the vacancy rate and turnover rate within their business.

10
HUMAN RESOURCE MANAGEMENT
References
Albrecht, S. L., Bakker, A. B., Gruman, J. A., Macey, W. H., & Saks, A. M. (2015).
Employee engagement, human resource management practices and
competitive advantage: An integrated approach. Journal of Organizational
Effectiveness: People and Performance, 2(1), 7-35.
Berman, E. M., Bowman, J. S., West, J. P., & Van Wart, M. R. (2019). Human resource
management in public service: Paradoxes, processes, and problems. CQ Press.
Bratton, J., & Gold, J. (2017). Human resource management: theory and practice. Palgrave.
Brewster, C. (2017). Policy and practice in european human resource management: The
Price Waterhouse Cranfield survey. Taylor & Francis.
Brewster, C., Vernon, G., Sparrow, P., & Houldsworth, E. (2016). International human
resource management. Kogan Page Publishers.
Cascio, W. F. (2015). Managing human resources. McGraw-Hill.
DeCenzo, D. A., Robbins, S. P., & Verhulst, S. L. (2016). Fundamentals of Human Resource
Management, Binder Ready Version. John Wiley & Sons.
Jackson, S. E., Schuler, R. S., & Jiang, K. (2014). An aspirational framework for strategic
human resource management. The Academy of Management Annals, 8(1), 1-
56.
Kramar, R. (2014). Beyond strategic human resource management: is sustainable human
resource management the next approach?. The International Journal of Human
Resource Management, 25(8), 1069-1089.
Mondy, R., & Martocchio, J. J. (2016). Human resource management. Pearson.

11
HUMAN RESOURCE MANAGEMENT
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2015). Human resources
management. Instructor, 2015.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017). Human resource
management: Gaining a competitive advantage. New York, NY: McGraw-Hill
Education.
Purce, J. (2014). The impact of corporate strategy on human resource management. New
Perspectives on Human Resource Management (Routledge Revivals), 67.
Sparrow, P., Brewster, C., & Chung, C. (2016). Globalizing human resource management.
Routledge.
Storey, J. (2014). New Perspectives on Human Resource Management (Routledge Revivals).
Routledge.
Tyson, S. (2014). Essentials of human resource management. Routledge.