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`HRM 360. Section: 2

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CONSIDERATIONS

Product/ServicesDemand

Technology

FinancialResources Absenteeism/

turnover

OrganizationalGrowth

ManagementPhilosophy

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Demand forecasting determines how manypeople need to be working and in what jobs toimplement organizational strategies and attainfirm objective. It refers to the number and

characteristics (skills, characteristics, abilities andpay level) of people needed for particular jobs ata given point in time and at particular place.

Considerations:

1.Product/ Service demand:

Demand is defined as the quantity of a good orservice consumers are willing and able to buy at agiven price in a given time period. It is the desire and ability to pay for goodsand services. In a word, the essence of demand is the willingness to

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exchange value goods or services. Creation of demand for any particularneed is totally psychological.

Information Provided in the Case:

There is a huge demand for olive oil in the market of Greece. People inGreece love to use olive oil. They have a good buying tendency to buy thingsfor their house-hold things. There is also demand for different kind of oil inthe international market.During the early 1990s, olive oil consumptionskyrocketed on reports of its positive health benefits. From 1992 to 1995,

olive oil consumption increased 20% in the US, 15% in Australia, and 10% inNorthern Europe. Growing demand led to rising prices: from 1992 to 1995,world olive oil prices increased almost 40%.

Justification:

Minerva brandishes the olive oil and sell. There is also a high demand forthese products in the international as well as European market. This makesthe business of olive oil a very promising business.

2. Technology:

Technology is the making, usage, and knowledge oftools, machines, techniques, crafts, systems ormethods of organization in order to solve a problem orperform a specific function. It can also refer to thecollection of such tools, machinery, and procedures. Atthe centre of technology lies design. It assists in thedesign of any product or even human resource in anyorganization. The motivating factor behind all

technological activity is the desire to fulfill a need.


In terms of technology Minerva is much backdated. Minerva is still using theold machines to refine and packing the oil. The Oil packaging is one of themost important parts of selling branded olive oil sell. Due to their badmachineries they are facing problems with their packaged goods.

Justification:

Minerva is currently changing its computer systems and has just adopted thesame UNIX based system used by Cussons International. The software

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works fine for manufacturing, sales, and distribution. Minerva will begintraining in the factory in six months. Minerva is very supportive of the new

equipment. But there is some resistance to change here.Oil manufacturing isa very crucial thing. Minerva takes oil form the famers then brands them. If itis needed they will refine they use different traditional and modern system torefine and package. Without proper packing it is almost impossible to carrythe product form one place to another.

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Financial resource is the monetary support required to launch a business as

well as to maintain all the operations of a company. Financial resource is theonly driving force for any corporation. This world is competitive and in order

to survive here nothing is moreimportant than the financial backup. Amajor portion of this resource isexpensed for the purpose of payingbills and compensation of humanresource employed in theorganization. There are varioussources of financial resources butindiscriminate choosing of these

resources may bring devastatingresult for the company


There is information about financial resource in this case. The Minerva oliveoil is valued $1.5 million. We have many different types of financial relatedexhibits in the case which supports this point.

Justification:

Minerva was sold in the in the year 1978. At that time the value of thecompany was $1.5 million. As days past by their income also increased. Inmany places of the case many different information was given regarding thefinical stability of Minerva.

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4.Absenteeism:

Absenteeism is a habitual pattern of absence from a duty or obligation.

Traditionally, absenteeism has been vie Minerva as an indicator of poorindividual performance, as Minerva as a breach of an implicit contractbetween employee and employer; it was seen as a management problem,and framed in economic or quasi-economic terms. More recent scholarshipseeks to understand absenteeism as an indicator of psychological, medical,or social adjustment to work.


Absenteeism is mostly built into the system. In Greece workers get up tothree days of full pay with a doctors certificate. Its easy to get a doctor tosign anything here. Workers can get up to 25 days off sick per year with fullpay according to the law. They seem to take it and there is nothing Minervacan do. Very few people are fired. Those who are fired want to get fired sothey get extra compensation before going on government assistance.

Justification:

Minerva had only 132 employees in their factory to run a factory properly theyneed some man power if they do not have this much support forms heemployees it will be hard. The information that has been provided in the caseis really very negative for the organization.

5.Organizational growth:

Growth is something for which most companies strive, regardless of theirsize. Small firms want to get big, big firms want to get bigger. Indeed,companies have to grow at least a bit every year in order to accommodate

the increased expenses that develop over time. With the passage of time,salaries increase and the costs of employment benefits rise as Minerva. Evenif no other company expenses rise, these two cost areas almost alwaysincrease over time. It is not always possible to pass along these increasedcosts to customers and clients in the form of higher prices. Consequently,growth must occur if the business wishes to keep up.


Organizational growth has the potential to provide small businesses with amyriad of benefits, including things like greater efficiencies from economies

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of scale, increased power, a greater ability to withstand market fluctuations,an increased survival rate, greater profits, and increased prestige for

organizational members. Many small firms desire growth because it is seengenerally as a sign of success, progress. Organizational growth is, in fact,used as one indicator of effectiveness for small businesses and is afundamental concern of many practicing managers.

Justification

Organizational growth does not only mean the financial growth of thecompany but also maturity and advancement in all level. Minerva was provingitself as a company growing internally and outwardly also.Organizationalgrowth, however, means different things to different organizations. There aremany parameters a company may use to measure its growth. Since theultimate goal of most companies is profitability, most companies will measuretheir growth in terms of net profit, revenue, and other financial data. Otherbusiness owners may use one of the following criteria for assessing theirgrowth: sales, number of employees, physical expansion, success of aproduct line, or increased market share. Ultimately, success and growth willbe gauged by how Minerva a firm does relative to the goals it has set for itself.

6. Management philosophy:

Set of beliefs as used by an individual in a management position to guide thedecision making process.Management philosophy means the options(judgments) of the top executive as well as the bottom line executive andother knowledgeable persons about the organizations overall strategy. It isthe inner emotion and standard that the management holds in its mind whileoperating activities


In Africa Minerva retire at an early age, maybe 53 years old. Minerva aretypically offered a job back in England. But many dont want to go. I returnedto Greece. Paterson Zochonis always takes care of its people. Those thatremain with the company over the years, as I did, get hooked to the company.When they asked me to come back as Managing Director, I agreed. Mymission at Minerva was to professionalize the management and move thecompany forward.

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Justification

The whole management philosophy of Minerva was they will not compromisewith process and quality of the product rather they will do that with deliverytime.

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Techniques:

1. Trend Analysis

Forecasting labor demand based on an organizational index such as sales.Select a business factor that best predicts human resources needs. Plot thebusiness factor in relation to the number of employees to determine the laborproductivity ratio. Compute the productivity ratio for the past five years.Calculate human resources demand by multiplying the business factor by theproductivity ratio. Project human resources demand out to the target year(s).

Information:

There is no information provided about the trend analysis in this case.

2.Management estimates

The opinions (judgments) of supervisors, department managers, experts, orothers knowledgeable about the organizations future employment needs.

Information:

There is no information provided about the Management estimates in thiscase.

3.Delphi Technique

An attempt to decrease the subjectivity of forecasts by soliciting andsummarizing the judgments of a preselected group of individuals. The finalforecast represents a composite group judgment.

Information:

There is no information provided about the Delphi Technique in this case.

TECHNIQUES

Trend Analysis Managerial Estimates Delphi Technique

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Techniques:

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Supply forecast can be derived from both internal and external sources ofinformation. However, internal sources are most available and more crucial.Present performance level, ages and information about the loyalty of currentemployees can be used to predict future vacancies caused by raids of toptalent, involuntary turnover, retirement and employee initiated job changes.The accuracy of statistical techniques for forecasting future supply levels

depends entirely on the accuracy of the user supplied figures about howemployees are likely to flow through the organization.

1.Staffing tables

Staffing tables are graphic representations of all organizational jobs, alongwith the numbers of employees currently occupying those jobs and future(monthly or yearly) employment requirements, which can be derived fromdemand forecasts.

Information:There is no information provided about the staffing table in this case.

2.Markov analysis

A method for tracking the pattern of employee movements through variousjobs.

TECHNIQUES

Staffing Tables Markov Analysis Skills Inventories Management Inventories Replacement Charts Succession Planning


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Information

There is information provided about the Markov analysis. According to thedefinition we find that after the accusation many staffs who have worked in theAfrica region came to Greece to work in Minerva.

Justification:

Markov analysis provides a means of analyzing the reliability and availabilityof systems whose components exhibit strong dependencies. Other systemsanalysis methods) generally assume component independence that may leadto optimistic predictions for the system availability and reliability parameters

3.Skills inventories

Files of personnel education,experience, interests, skills, etc., thatallow managers to quickly match jobopenings with employee backgrounds.Listing of abilities, capacities,qualifications, and career goals of theemployees to identify suitable

candidates for internal recruitment orpromotions.

Information:

There is no information provided about Skill inventories in this particular case.

4.Management inventories

Definition: Comprehensive catalog of the capabilities found in anorganization's management team. It is based on the understanding gainedfrom a manager's employment records, formal and informal education andtraining obtained, immediate supervisor's report, and the results of appraisaltests.

Information: there is no information provided about management inventoriesin this particular case.
http://www.businessdictionary.com/definition/qualification.htmlhttp://www.businessdictionary.com/definition/goal.htmlhttp://www.businessdictionary.com/definition/candidate.htmlhttp://www.businessdictionary.com/definition/internal-recruitment.htmlhttp://www.businessdictionary.com/definition/report.htmlhttp://www.businessdictionary.com/definition/test.htmlhttp://www.businessdictionary.com/definition/test.htmlhttp://www.businessdictionary.com/definition/report.htmlhttp://www.businessdictionary.com/definition/internal-recruitment.htmlhttp://www.businessdictionary.com/definition/candidate.htmlhttp://www.businessdictionary.com/definition/goal.htmlhttp://www.businessdictionary.com/definition/qualification.html

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5.Replacement charts

Listings of current jobholders and persons who are potential replacements if

an opening occurs. A summarization in visual form the numbers ofincumbents in each job or family of jobs, the number of current vacancies perjob and the projected future vacancies.

Information:

There is no information provided about Replacement charts inthis particular case.

6.Succession Planning

The process of identifying, developing, and tracking key individuals forexecutive positions. Succession planning is a process whereby anorganization ensures that employees are recruited and developed to fill eachkey role within the company. Through the succession planning process anorganization retains superior employees because they appreciate the time,attention, and development that the company is investing in them.

Information: there is no information provided about succession planning in thisparticular case.

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External Considerations

1.Demographic changes

Demographics changes are the most recent statistical characteristics of apopulation.. Commonly examined demographics include gender, race, age,disabilities, mobility, home ownership, employment status, and even location.Demographic trends describe the historical changes in demographics in apopulation over time (for example, the average age of a population mayincrease or decrease over time). Both distributions and trends of values withina demographic variable are of interest. Demographics are about thepopulation of a region and the culture of the people there.


There is information provided about demographic changes. At the first of thebusiness the branded olive was not a very favorite product for the customers.They were interested to buy olive oil form the farmers directly. But as theurbanization touched the Greek people they were more into the branded oliveoil.

Justification

The product was widely used but the collection process was really verydifferent. One decade ago they wanted to buy it from the farmers. Due tourbanization the connection lost day by day. So the people were into brandedproducts.

2.Education of the workforce

Workforce education includes the development of clusters of knowledge,skills, attitudes, and behaviors. These clusters include basic literacy and job-specific knowledge and skills. In addition, the clusters include broad

knowledge, skills, attitudes, and behaviors important to the success ofworkers in all jobs. Workforce education also addresses competency in

EXTERNAL CONSIDERATIONS

Demographic Changes Education of the Workforce Labour Mobility Government Policies Unemployment Rate


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learning how to learn and to reflect on ones career is important to jobsuccess.

How is it related with the case:

There is information provided about Education of the workforce. They aredirectly and indirectly many people are associated in o this business..Thesales group was by far the largest group in the Commercial Department.Sales activities Minerva organized around fits regions in Greece: Athens,central Greece including the Greek Isles, Greece and Northern Greece.

Justification:

The education of the workforce is one of the biggest issues of theorganization. The educated workforce can make a company successful. In thecase of Minerva it was not possible.

3.Unemployment rate

The percentage of the total labor

force that is unemployed but activelyseeking employment and willing to work.Unemployment rate means the percentageof the total labor force that is jobless butactively seeking employment and is willingto work. Side by side with the number ofunemployed people, the unemploymentrate is affected by the number of peopleentering the workforce. The unemployment

rate is found through dividing the number of unemployed workers by the totalcivilian labor force. Though it is a simple math, it may contribute greatly in

forecasting labor supply precisely.

Information:

There is no information provided about unemployment rate in this particularcase.

4.Labor Mobility

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Labor mobility or worker mobility is the geographical and occupationalmovement of workers. Worker mobility is best gauged by the lack of

impediments to such mobility.

How is it related?

The distance to the new plant is a major issue for its workers. They areworried about the longer hits on the road. For some it will mean two hitss ofadditional travel time. Most dont have cars. Many of its older people wouldlike an early retirement package. I think the majority of its workers will not beable to adapt and develop the new skills required for the new equipment

planned. While they know they cant stop technology they feel the company.Should look after them with guaranteed jobs.

Justification:

Impediments to mobility are easily divided into two distinct classes with onebeing personal and the other being systemic. Personal impediments includephysical location, and physical and mental ability. The systemic impedimentsinclude educational opportunities as Minervall as various laws and politicalcontrivances and even barriers and hurdles arising from historical

happenstance. Increasing and maintaining a high level of labor mobility allowsa more efficient allocation of resources. Labor mobility has proven to be aforceful driver of innovations.

5.Government policies

Government actions designed to affect economic, political or organizationalactivity and pursue one or more long term or short term goals. The fitscommon types of government policies are: fiscal, monetary, regulatory, and

judicial. Government policy is a deliberate plan of action to guide decisionsand achieve rational outcome. Government policies differ from rules or law.While law can compel or prohibit behaviours policy merely guides actionstoward those that are most likely to achieve a desired outcome.
http://www.answers.com/topic/location-geographyhttp://www.answers.com/topic/educationhttp://www.answers.com/topic/labour-economicshttp://www.answers.com/topic/economic-efficiency-2http://www.answers.com/topic/economic-efficiency-2http://www.answers.com/topic/labour-economicshttp://www.answers.com/topic/educationhttp://www.answers.com/topic/location-geography

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How is it related?

Absenteeism is mostly built into the system. In Greeceworkers get up to three

days of full pay with a doctors certificate. Its easy to get a doctor to signanything here. Workers can get upto 25 days off sick per year with full payaccording to the law. They seem to take it and there is nothing Minerva cando. Very few people are fired. Those who are fired want to get fired so theyget extra compensation.Justification: As i told before Government policyusually influences important organizational decisions, including theidentification of different alternatives such as programs or spending priorities,and choosing among them on the basis of the impact they will have on thenation or to its public. The government policy of Greece was negative for themanagement of Minerva.

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Balancing Supply and Demand:

The demand for Minervas product is very high and it is growing all the time.But when it comes to technology Minerva lags behind. Lagging behind in thisaspect might result into overall downfall of the Organization and its goals. Butfew steps that they have taken to improve their current technology arepraiseworthy. Financially Minerva is in a great shape, which might help themto support all other growth activities necessary. Absenteeism has been aproblem for Minerva and they need to get out of this and the government rulesthat are worsening this situation should be addressed to proper authority.

Minerva should stick to the points of their management philosophy that isapplicable for present days and should get rid of the things that comes in theway of modernizing the system. Demographic changes are unavoidable whenwe are concerned about a company which has a potential of going global, soMinerva should come up with strategies that might help them to cope withsuch changes. Education of the workforce is one of the biggest issues of theorganization. The educated workforce can make a company successful .Labormobility is also a matter of concern as whenever the company goes out to

setting up an Factory or production house , this problem will be addressed.

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Identified Problem-1:

When the entire world is advancing towards process automation &modern liberal management styles Minerva is still going withbackdated production process and management approacheswhich is damaging to both competitive advantage and marketimage for a brand like Minerva.

Recommended Solution:

Simultaneous improvement of technology of production process

and skills of manpower both is needed to get over this situation.The old school employees that are resistant to change shouldattend workshops and month long on-going training programs tochange their outlook on management approaches and workenvironment.

Justification:

With the advent of globalization every business scenario in the world ischanging. If people are resistant to change it will only harm their competitiveedge as others will adjust responding to the modified situation. As a result ofwhich they would be better suited for the demand of the market. To staycompetitive in the market Minerva must comply itself to the changes and keepon up-to-date about both production process and efficiency increasingmanagement approaches.

The reason why the employees resist change is the perspective that thechanges and new things will make them obsolete and encourage theemployers to hire younger people to run the company. To nip this suspicion inthe bud we suggest training & development of all the employees bothmanagerial and non-managerial. This way the employees would feel involvedin the changing environment rather than feel left out. It is believed that thenthey would not be as resistant as helpful for the changes believing those willenhance their efficiency rather than making them obsolete.

How to implement it?

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Firstly, the employees of Minerva are to be participating in team buildingactivities along with the management. There should be some amount of

bonding there so that the employees trust their bosses properly during theperiod of organizational change. Proper relation of trust is needed to undergosuch a massive revolution. They should be made to believe that the newthings would not mean their lay off. Those are tools to make them moreefficient.

Secondly, training & development should start even before the technologiesare there to run the factories. The employees should be made familiar with theidea of those so that they do not feel out dated and threatened or intimidatedwhen those are finally there. Some amount of acceptance and familiarity

should be there beforehand.

Thirdly, massive investment is needed to bring up-to-date technology of oilextraction along with technical experts and trainers who would be there 24x7to assist the machines and train the employees first hand to operate those.

Who would implement it?A number of Human resource experts along with technical experts on oilextraction are to implement this recommendation. The HR experts are tohandle the relationship issues during these crucial times of change. Thetechnical experts are to conduct the training and development of employeeswith the help of HR department.

Where would it be implemented?The recommendation is likely to be implemented in the facilities of the

Minerva Company. The training for the employees can take place in thefactory grounds and the training for the managers can take place in the officecompounds.

When would it be implemented?This recommendation should be implemented as soon as possible atstrategically suitable time when both investments and opportunities ofexpansion are available. But it should be soon as competition is rising.


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In the era of globalization, Minerva is running their coremarketing department irresponsive to changing demand of

technology, computer skills and other HR developmentrequired for companies marketing and sales activities.


Minerva needs a proper Marketing Department, which willcontrol the processes such as companys sales andmarketing, sales culture employ sales representatives whocan fulfill his/her specific targets for accounts and brand ofMinerva this are vital to the companys success in the longrun.

Justification:

Minerva is one of the major players in the world market for edible oils. But tobe competitive, to sustain in themarket with the same position itmust have to adopt new marketingstrategy. Therefore, skilled andresponsible marketing departmentplay a key role in helping companiesdeal with a fast-changingcompetitive environment. Though,without any effective Marketingdepartment Minerva is operating, butif they want to boom their business,then they have no other choice but

to establish a skilled and knowledgeable Marketing department. The reason

why the employees resist change is the perspective that the changes and newthings will make them obsolete and encourage the employers to hire youngerpeople to run the company. To nip this suspicion in the bud we suggesttraining & development of all the employees both managerial and non-managerial and non-managerial. This way the employees would feel involvedin the changing environment rather than feel left out. It is believed that thenthey would not be as resistant as helpful for the changes believing those willenhance their efficiency rather than making them obsolete.

How to implement it?Firstly, Minerva should create a potential marketing department. Under thecontrol of the marketing department Minerva, a Recruitment and Selection

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Committee should be created consisting of some experienced people as wellas professional marketing managers or line managers who will maintain the

whole process. They have to have a written criterion following which therecruitment committee members will hire the new employees so that they canidentify the right person for their company. However, the Executive managersof marketing department should take the final decisions.

Secondly, Minerva should provide training to its new as well as its existingemployees according to the employees knowledge level. Therefore, therewould be also some proper planning for train them effectively so that theirefficiency in service providing increases more. At first, the company has tohire a trainer who will be recruited and mentored firstly by the experiencedmanagers, who are currently involved with Minerva. After giving the trainersproper information about the company, a proper T&D plan would be madewith the help of both the trainer and the top marketing managers. So in thisway employees will be trained effectively in a systematic way and from theright trainers.

Who would implement it?The current CEO of the marketing department will implement these plans. Inaddition, after designating the newly hired marketing in theright position in the department, then, they would recruitother sales representatives by using the Recruitment &Selection Committee. After that, the committee will hiresome trainers from outside who has or will have the keenknowledge about Minerva to train their existing and newemployees and also to create a proper T&D plan for thecompany.

Where would it be implemented?The recommendation is likely to be implemented in the facilities of theMinerva Company. The training for the marketing employees, salesrepresentatives and managers can take place in the office compounds underthe supervision of the Top-Management.

When would it be implemented?This recommendation should be implemented as soon as possibleatstrategically suitable time when both investments and opportunities ofexpansion are available. But it should be soon as competition is rising.\


A lack of a good use of HR department has been one of themain reasons the companys employees has not been

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motivated. With employees succumbing to management beinglaid back and relaxed about the use of technology,

performance appraisal and managements keen involvement,the employees motivation seems to be at their lowest.


Minerva needs a restructuring of its HR Department, whichwill help motivate its employees about achieving thecompanys attainable goals and prosperthrough maintaining

a clean and transparent performance appraisal system to helpemployees gain confidence and thus push the company intoprofit in the long run.

Justification:

Establishing a proper HR department would have benefited the company withessential know how of managing people. This would not only help them ineffectively using their employees but also enhance their ability to overcome

this catastrophe through personal dealings. Human resource departments aredefinitely needed in every organization in order to make sure everything inrunning correctly. Whether everybody is properly compensated or not,whether everything is handled and managed properly, and whether everythingis actually being carried out the way it is supposed to be carried out is all apart of the HR department. We have found that Minerva was facing problemsdue to intense competition and also took steps in horizontal expansionregardless of a proper strategic plan to begin with. One of their respond to thechallenge was hiring and maintaining sales staff with industry experience andvast consumer contracts based out of the warehouse. But they do not havethe perfect methods for hiring and most importantly, maintaining the work

force.

The best solution for this problem is to build an effective and efficient HumanResource Department. An active human resource management team will helpthe organization to sort their work and build the path for the companysuccess. So not only the Minerva but also every international company musthave Human Resource Department. By making a HR department available, itwould also enhance and motivate the workforce and the sales people, as theywould have a feel of safety. An HR department always means being properlycompensated, and being rewarded for their performance, and therefore thepeople would feel a sense of safety once the HR team is implemented.

In addition, it would enhance the productivity and the profitability of the whole

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organization. It would make sure that all the employees and the salesrepresentatives are properly taken care of, which would mean that the

employees would be convinced more of staying with this organization, andwould feel a sense of security. This sense of security would prevail, as theemployees would know that their performance would be compensated byrewards that would give them internal satisfaction of working with thisorganization.

The HR department would also play a critical and very important role indetermining the companys success and thereby it would be possible to attainthe heights by reaching out into more secure markets. As well as for thepossibility of work force diversity, so a well-established HR department ismandatory for Minerva.

Implementation:

The employees of an organization are the most valued assets than anorganization owns. The fact that the employees are the most importantresources for any organization cannot be stressed enough. An efficient andmotivated workforce is central and integral to the purpose and prosperity ofany organization. Therefore the employees of a firm need sufficientinvestment and attention which can only be provided by a properly designedHuman Resources department.

Human Resources Management department of any organization is

responsible for all issues related to the acquiring, management, retention anddisposal of employees of the Organization. Human Resource Management istherefore seen to have long-term implications and be integral to the coreperformance of the business. HRM is of strategic importance to a companyand there are several important characteristics of HRM, including stress onflexibility, consultation and participation, team-based structure, individualrewards and benefits, loosely defined jobs, nurturing of employees anddevising and controlling their compensation methods.

How to implement it?A well-designed Human Resources Management with properly trained andeducated Human Resources personnel should be existent in Minerva to dealwith the various HR issues. The Human Resources Management departmentof Minerva should be formed with trained and experienced managers andpersonnel who have the ability to deal tactfully with employees. It is preferablethat these executives should be educated in the area of Human ResourcesManagement, as this will give them the knowledge, skill and knack needed tohandle the various HR issues efficiently and correctly. The HR personnel alsoneed to have the charisma and charm that can help them to appear asempathetic to their colleagues so employees will have a certain level of trustand confidence on them, which is extremely necessary in any organization.

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Where would it be implemented?It is to be implemented in the whole organization with Minerva consideringthese subcategories under their consideration for a Human ResourceDepartment:

Recruitment and Selection of potential employees Employment Policies and Procedures that will be followed throughout

the company Employee compensation policies and mediums Methods of communication among the employees in the organization Ensuring that employment laws are complied with Training and development of employees

Conducting performance appraisal for the employees only the trained andeducated Human Resources Managers should be made responsible formaking the various crucial decisions regarding the hiring of employees,compensation structure for the MPCs and sales staff and the training anddevelopment of the sales staff so that they can efficient and coherently worktowards achieving the goal of the organization.

Who would implement it?Implementation is to be done by the top management and It should also be

ensured that the restructured HR department is given the freedom andflexibility to allocate resources and put them into use in whatever way theyfeel is right for the company. The establishment of a Human ResourcesDepartment is a major decision requiring a lot of thought and experience.Therefore such a crucial decision as this should only be taken by the topmostexecutives of the organization. The Chief Executive Officer (CEO) of any firmis responsible for looking over the overall operations of the firm, so the CEOshould definitely play an important part in establishing the Human ResourcesDepartment.

When would it be implemented?The establishment of an organization-wide Human Resources Department isnot minor issue and will give rise to a lot of rethought and debates regardingthis decision. It can have long term strategic implications for America WestAirlines; therefore adequate time should be allocated to the implementation ofthis strategy. It is estimated that the establishment of a strong and proficientHRM department could take anything from 8 to 18 months. Moreover,sufficient time should also be given so that the overall operations of theorganization can be properly adjusted.

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Thank You

360 case 2 full

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