Exam 20: Managing Human Resources
Having been in business for five years, Secondhand Treasures specializes in antique home and personal items made before 1960. The company has expanded into ten locations with 103 employees in part due to the recession having led to increased business. The company is having trouble maintaining employees for longer than three months, especially for positions requiring extensive knowledge of an item's value. What conditions in Secondhand Treasures would justify the owner's decision to hire a human resource manager?
Conditions that justify Secondhand Treasures hiring a HR manager would include:
-There are a substantial number of employees : Currently, the company has 103 employees and with the growth rate, that number is likely to increase.
-The labor turnover rate is high : The company has a difficult time keeping employees for longer than three months.
-The need for skilled or professional personnel creates problems in recruitment or selection : Due to the need for a highly skilled appraiser, these positions are difficult to fill.
-Supervisors or operative employees require considerable training: Again, the need for personnel who are specialized is known.
Other issues that support hiring a human resource manager would include:
-Employee morale is unsatisfactory: While not stated in the case, high turnovers can lead to problems with employee morale.
-Competition for personnel is keen: A logical assumption would be having difficulty finding a person with the specialized knowledge may be due to increased competition.
-Employees are represented by a union: Depending on future need, Secondhand Treasures may have the employees unionize requiring a human resource manager.
One of the largest expense categories for most businesses is
C
The use of temporary employees provides management with an introduction to individuals whose performance may justify an offer of permanent employment.
True
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