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HRM 360. Section: 2 Group D

Case: 1: Minerva S.A.

Human Resource Planning Model Human Resource Planning Model

FORECASTING DEMAND FORECASTING DEMAND ORECASTING EMAND Demand forecasting determines how many people need to be working and in what jobs to implement organizational strategies and attain firm objective. It refers to the number and characteristics (skills, characteristics, abilities and pay level) of people needed for particular jobs at a given point in time and at particular place. Considerations: 1. Product/ Service demand:
CONSIDERATIONS

Product/Services Demand Technology Financial Resources Absenteeism/ turnover Organizational Growth Management Philosophy

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

HRM 360. Section: 2 Group D

Case: 1: Minerva S.A.

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

Information Provided in the Case: There is a huge demand for olive oil in the market of Greece. People in Greece love to use olive oil. They have a good buying tendency to buy things for their house-hold things. There is also demand for different kind of oil in the international market.During the early 1990s, olive oil consumption skyrocketed on reports of its positive health benefits. From 1992 to 1995, olive oil consumption increased 20% in the US, 15% in Australia, and 10% in Northern 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 for these products in the international as well as European market. This makes the business of olive oil a very promising business.

2. Technology: Technology is the making, usage, and knowledge of tools, machines, techniques, crafts, systems or methods of organization in order to solve a problem or perform a specific function. It can also refer to the collection of such tools, machinery, and procedures. At the centre of technology lies design. It assists in the design of any product or even human resource in any organization. The motivating factor behind all technological activity is the desire to fulfill a need. Information Provided in the Case: In terms of technology Minerva is much backdated. Minerva is still using the old machines to refine and packing the oil. The Oil packaging is one of the most important parts of selling branded olive oil sell. Due to their bad machineries they are facing problems with their packaged goods. Justification: Minerva is currently changing its computer systems and has just adopted the same UNIX based system used by Cussons International. The software

HRM 360. Section: 2 Group D

Case: 1: Minerva S.A.

works fine for manufacturing, sales, and distribution. Minerva will begin training in the factory in six months. Minerva is very supportive of the new equipment. But there is some resistance to change here.Oil manufacturing is a very crucial thing. Minerva takes oil form the famers then brands them. If it is needed they will refine they use different traditional and modern system to refine and package. Without proper packing it is almost impossible to carry the product form one place to another.

3. FINANCIAL RESOURCE: 3. FINANCIAL RESOURCE : INANCIAL ESOURCE 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 the only driving force for any corporation. This world is competitive and in order to survive here nothing is more important than the financial backup. A major portion of this resource is expensed for the purpose of paying bills and compensation of human resource employed in the organization. There are various sources of financial resources but indiscriminate choosing of these resources may bring devastating result for the company

Information Provided in the Case: There is information about financial resource in this case. The Minerva olive oil is valued $1.5 million. We have many different types of financial related exhibits in the case which supports this point.

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

HRM 360. Section: 2 Group D

Case: 1: Minerva S.A.

4. Absenteeism: Absenteeism is a habitual pattern of absence from a duty or obligation. Traditionally, absenteeism has been vie Minerva as an indicator of poor individual performance, as Minerva as a breach of an implicit contract between employee and employer; it was seen as a management problem, and framed in economic or quasi-economic terms. More recent scholarship seeks to understand absenteeism as an indicator of psychological, medical, or social adjustment to work.

Information Provided in the Case: Absenteeism is mostly built into the system. In Greece workers get up to three days of full pay with a doctors certificate. Its easy to get a doctor to sign anything here. Workers can get up to 25 days off sick per year with full pay according to the law. They seem to take it and there is nothing Minerva can do. Very few people are fired. Those who are fired want to get fired so they get extra compensation before going on government assistance.

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

5. Organizational growth: Growth is something for which most companies strive, regardless of their size. 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. Even if no other company expenses rise, these two cost areas almost always increase over time. It is not always possible to pass along these increased costs to customers and clients in the form of higher prices. Consequently, growth must occur if the business wishes to keep up.

Information Provided in the Case: Organizational growth has the potential to provide small businesses with a myriad of benefits, including things like greater efficiencies from economies

HRM 360. Section: 2 Group D

Case: 1: Minerva S.A.

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 seen generally as a sign of success, progress. Organizational growth is, in fact, used as one indicator of effectiveness for small businesses and is a fundamental concern of many practicing managers.

Justification Organizational growth does not only mean the financial growth of the company but also maturity and advancement in all level. Minerva was proving itself as a company growing internally and outwardly also. Organizational growth, however, means different things to different organizations. There are many parameters a company may use to measure its growth. Since the ultimate goal of most companies is profitability, most companies will measure their growth in terms of net profit, revenue, and other financial data. Other business owners may use one of the following criteria for assessing their growth: sales, number of employees, physical expansion, success of a product line, or increased market share. Ultimately, success and growth will be 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 the decision making process. Management philosophy means the options (judgments) of the top executive as well as the bottom line executive and other knowledgeable persons about the organizations overall strategy. It is the inner emotion and standard that the management holds in its mind while operating activities Information Provided in the Case: In Africa Minerva retire at an early age, maybe 53 years old. Minerva are typically offered a job back in England. But many dont want to go. I returned to Greece. Paterson Zochonis always takes care of its people. Those that remain 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. My mission at Minerva was to professionalize the management and move the company forward.

HRM 360. Section: 2 Group D

Case: 1: Minerva S.A.

Justification The whole management philosophy of Minerva was they will not compromise with process and quality of the product rather they will do that with delivery time.

HRM 360. Section: 2 Group D

Case: 1: Minerva S.A.

FORECASTIING DEMAND FORECAST NG DEMAND

TECHNIQUES

Trend Analysis Managerial Estimates Delphi Technique

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 the business factor in relation to the number of employees to determine the labor productivity ratio. Compute the productivity ratio for the past five years. Calculate human resources demand by multiplying the business factor by the productivity 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, or others knowledgeable about the organizations future employment needs. Information: There is no information provided about the Management estimates in this case.

3. Delphi Technique An attempt to decrease the subjectivity of forecasts by soliciting and summarizing the judgments of a preselected group of individuals. The final forecast represents a composite group judgment. Information: There is no information provided about the Delphi Technique in this case.

HRM 360. Section: 2 Group D

Case: 1: Minerva S.A.

TECHNIQUES

FORECASTIING SUPPLY FORECAST NG SUPPLY

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

Techniques:
FORECASTING SUPPLY FORECASTING SUPPLY ORECASTING UPPLY Supply forecast can be derived from both internal and external sources of information. However, internal sources are most available and more crucial. Present performance level, ages and information about the loyalty of current employees can be used to predict future vacancies caused by raids of top talent, 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 how employees are likely to flow through the organization. 1. Staffing tables Staffing tables are graphic representations of all organizational jobs, along with the numbers of employees currently occupying those jobs and future (monthly or yearly) employment requirements, which can be derived from demand 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 various jobs.

HRM 360. Section: 2 Group D

Case: 1: Minerva S.A.

Information There is information provided about the Markov analysis. According to the definition we find that after the accusation many staffs who have worked in the Africa region came to Greece to work in Minerva. Justification: Markov analysis provides a means of analyzing the reliability and availability of systems whose components exhibit strong dependencies. Other systems analysis methods) generally assume component independence that may lead to optimistic predictions for the system availability and reliability parameters

3. Skills inventories Files of personnel education, experience, interests, skills, etc., that allow managers to quickly match job openings with employee backgrounds. Listing of abilities, capacities, qualifications, and career goals of the employees to identify suitable candidates for internal recruitment or promotions.

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

4. Management inventories Definition: Comprehensive catalog of the capabilities found in an organization's management team. It is based on the understanding gained from a manager's employment records, formal and informal education and training obtained, immediate supervisor's report, and the results of appraisal tests. Information: there is no information provided about management inventories in this particular case.

HRM 360. Section: 2 Group D

Case: 1: Minerva S.A.

5. Replacement charts Listings of current jobholders and persons who are potential replacements if an opening occurs. A summarization in visual form the numbers of incumbents in each job or family of jobs, the number of current vacancies per job and the projected future vacancies.

Information: There is no information provided about Replacement charts in this particular case.

6. Succession Planning The process of identifying, developing, and tracking key individuals for executive positions. Succession planning is a process whereby an organization ensures that employees are recruited and developed to fill each key role within the company. Through the succession planning process an organization 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 this particular case.

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HRM 360. Section: 2 Group D

Case: 1: Minerva S.A.

EXTERNAL CONSIDERATIONS

FORECASTIING SUPPLY FORECAST NG SUPPLY

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

External Considerations 1. Demographic changes Demographics changes are the most recent statistical characteristics of a population.. 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 a population over time (for example, the average age of a population may increase or decrease over time). Both distributions and trends of values within a demographic variable are of interest. Demographics are about the population of a region and the culture of the people there. Information Provided in the Case: There is information provided about demographic changes. At the first of the business 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 the urbanization touched the Greek people they were more into the branded olive oil. Justification The product was widely used but the collection process was really very different. One decade ago they wanted to buy it from the farmers. Due to urbanization the connection lost day by day. So the people were into branded products. 2. Education of the workforce Workforce education includes the development of clusters of knowledge, skills, attitudes, and behaviors. These clusters include basic literacy and jobspecific knowledge and skills. In addition, the clusters include broad knowledge, skills, attitudes, and behaviors important to the success of workers in all jobs. Workforce education also addresses competency in

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HRM 360. Section: 2 Group D

Case: 1: Minerva S.A.

learning how to learn and to reflect on ones career is important to job success. How is it related with the case: There is information provided about Education of the workforce. They are directly and indirectly many people are associated in o this business..The sales 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 the organization. The educated workforce can make a company successful. In the case of Minerva it was not possible.

3. Unemployment rate The percentage of the total labor force that is unemployed but actively seeking employment and willing to work. Unemployment rate means the percentage of the total labor force that is jobless but actively seeking employment and is willing to work. Side by side with the number of unemployed people, the unemployment rate is affected by the number of people entering the workforce. The unemployment rate is found through dividing the number of unemployed workers by the total civilian 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 particular case.

4. Labor Mobility

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HRM 360. Section: 2 Group D

Case: 1: Minerva S.A.

Labor mobility or worker mobility is the geographical and occupational movement 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 are worried about the longer hits on the road. For some it will mean two hitss of additional travel time. Most dont have cars. Many of its older people would like an early retirement package. I think the majority of its workers will not be able 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 one being personal and the other being systemic. Personal impediments include physical location, and physical and mental ability. The systemic impediments include educational opportunities as Minervall as various laws and political contrivances and even barriers and hurdles arising from historical happenstance. Increasing and maintaining a high level of labor mobility allows a more efficient allocation of resources. Labor mobility has proven to be a forceful driver of innovations.

5. Government policies Government actions designed to affect economic, political or organizational activity and pursue one or more long term or short term goals. The fits common types of government policies are: fiscal, monetary, regulatory, and judicial. Government policy is a deliberate plan of action to guide decisions and achieve rational outcome. Government policies differ from rules or law. While law can compel or prohibit behaviours policy merely guides actions toward those that are most likely to achieve a desired outcome.

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HRM 360. Section: 2 Group D

Case: 1: Minerva S.A.

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 sign anything here. Workers can get upto 25 days off sick per year with full pay according to the law. They seem to take it and there is nothing Minerva can do. Very few people are fired. Those who are fired want to get fired so they get extra compensation.Justification: As i told before Government policy usually influences important organizational decisions, including the identification of different alternatives such as programs or spending priorities, and choosing among them on the basis of the impact they will have on the nation or to its public. The government policy of Greece was negative for the management of Minerva.

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HRM 360. Section: 2 Group D

Case: 1: Minerva S.A.

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 this aspect might result into overall downfall of the Organization and its goals. But few steps that they have taken to improve their current technology are praiseworthy. Financially Minerva is in a great shape, which might help them to support all other growth activities necessary. Absenteeism has been a problem for Minerva and they need to get out of this and the government rules that are worsening this situation should be addressed to proper authority.

Minerva should stick to the points of their management philosophy that is applicable for present days and should get rid of the things that comes in the way of modernizing the system. Demographic changes are unavoidable when we are concerned about a company which has a potential of going global, so Minerva should come up with strategies that might help them to cope with such changes. Education of the workforce is one of the biggest issues of the organization. The educated workforce can make a company successful .Labor mobility 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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HRM 360. Section: 2 Group D

Case: 1: Minerva S.A.

Identified Problem-1: When the entire world is advancing towards process automation & modern liberal management styles Minerva is still going with backdated production process and management approaches which is damaging to both competitive advantage and market image 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 should attend workshops and month long on-going training programs to change their outlook on management approaches and work environment. Justification:
With the advent of globalization every business scenario in the world is changing. If people are resistant to change it will only harm their competitive edge as others will adjust responding to the modified situation. As a result of which they would be better suited for the demand of the market. To stay competitive in the market Minerva must comply itself to the changes and keep on up-to-date about both production process and efficiency increasing management approaches. The reason why the employees resist change is the perspective that the changes and new things will make them obsolete and encourage the employers to hire younger people to run the company. To nip this suspicion in the bud we suggest training & development of all the employees both managerial and non-managerial. This way the employees would feel involved in the changing environment rather than feel left out. It is believed that then they would not be as resistant as helpful for the changes believing those will enhance their efficiency rather than making them obsolete.

How to implement it?

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HRM 360. Section: 2 Group D

Case: 1: Minerva S.A.

Firstly, the employees of Minerva are to be participating in team building activities along with the management. There should be some amount of bonding there so that the employees trust their bosses properly during the period of organizational change. Proper relation of trust is needed to undergo such a massive revolution. They should be made to believe that the new things would not mean their lay off. Those are tools to make them more efficient.

Secondly, training & development should start even before the technologies are there to run the factories. The employees should be made familiar with the idea of those so that they do not feel out dated and threatened or intimidated when 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 oil extraction along with technical experts and trainers who would be there 24x7 to 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 oil extraction are to implement this recommendation. The HR experts are to handle the relationship issues during these crucial times of change. The technical experts are to conduct the training and development of employees with 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 the factory grounds and the training for the managers can take place in the office compounds.

When would it be implemented?

This recommendation should be implemented as soon as possible at strategically suitable time when both investments and opportunities of expansion are available. But it should be soon as competition is rising.

Identified Problem-2:

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HRM 360. Section: 2 Group D

Case: 1: Minerva S.A.

In the era of globalization, Minerva is running their core marketing department irresponsive to changing demand of technology, computer skills and other HR development required for companies marketing and sales activities. Recommended Solution: Minerva needs a proper Marketing Department, which will control the processes such as companys sales and marketing, sales culture employ sales representatives who can fulfill his/her specific targets for accounts and brand of Minerva this are vital to the companys success in the long run.

Justification:
Minerva is one of the major players in the world market for edible oils. But to be competitive, to sustain in the market with the same position it must have to adopt new marketing strategy. Therefore, skilled and responsible marketing department play a key role in helping companies deal with a fast-changing competitive environment. Though, without any effective Marketing department Minerva is operating, but if 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 new things will make them obsolete and encourage the employers to hire younger people to run the company. To nip this suspicion in the bud we suggest training & development of all the employees both managerial and nonmanagerial and non-managerial. This way the employees would feel involved in the changing environment rather than feel left out. It is believed that then they would not be as resistant as helpful for the changes believing those will enhance their efficiency rather than making them obsolete.

How to implement it?

Firstly, Minerva should create a potential marketing department. Under the control of the marketing department Minerva, a Recruitment and Selection

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HRM 360. Section: 2 Group D

Case: 1: Minerva S.A.

Committee should be created consisting of some experienced people as well as professional marketing managers or line managers who will maintain the whole process. They have to have a written criterion following which the recruitment committee members will hire the new employees so that they can identify the right person for their company. However, the Executive managers of marketing department should take the final decisions. Secondly, Minerva should provide training to its new as well as its existing employees according to the employees knowledge level. Therefore, there would be also some proper planning for train them effectively so that their efficiency in service providing increases more. At first, the company has to hire a trainer who will be recruited and mentored firstly by the experienced managers, who are currently involved with Minerva. After giving the trainers proper information about the company, a proper T&D plan would be made with the help of both the trainer and the top marketing managers. So in this way employees will be trained effectively in a systematic way and from the right trainers.

Who would implement it?

The current CEO of the marketing department will implement these plans. In addition, after designating the newly hired marketing in the right position in the department, then, they would recruit other sales representatives by using the Recruitment & Selection Committee. After that, the committee will hire some trainers from outside who has or will have the keen knowledge about Minerva to train their existing and new employees and also to create a proper T&D plan for the company.

Where would it be implemented?

The recommendation is likely to be implemented in the facilities of the Minerva Company. The training for the marketing employees, sales representatives and managers can take place in the office compounds under the supervision of the Top-Management.

When would it be implemented?

This recommendation should be implemented as soon as possible atstrategically suitable time when both investments and opportunities of expansion are available. But it should be soon as competition is rising.\

Identified Problem-3: A lack of a good use of HR department has been one of the main reasons the companys employees has not been

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HRM 360. Section: 2 Group D

Case: 1: Minerva S.A.

motivated. With employees succumbing to management being laid back and relaxed about the use of technology, performance appraisal and managements keen involvement, the employees motivation seems to be at their lowest.

Recommended Solution: Minerva needs a restructuring of its HR Department, which will help motivate its employees about achieving the companys attainable goals and prosper through maintaining a clean and transparent performance appraisal system to help employees gain confidence and thus push the company into profit in the long run.

Justification:
Establishing a proper HR department would have benefited the company with essential know how of managing people. This would not only help them in effectively using their employees but also enhance their ability to overcome this catastrophe through personal dealings. Human resource departments are definitely needed in every organization in order to make sure everything in running correctly. Whether everybody is properly compensated or not, whether everything is handled and managed properly, and whether everything is actually being carried out the way it is supposed to be carried out is all a part of the HR department. We have found that Minerva was facing problems due to intense competition and also took steps in horizontal expansion regardless of a proper strategic plan to begin with. One of their respond to the challenge was hiring and maintaining sales staff with industry experience and vast consumer contracts based out of the warehouse. But they do not have the perfect methods for hiring and most importantly, maintaining the work force. The best solution for this problem is to build an effective and efficient Human Resource Department. An active human resource management team will help the organization to sort their work and build the path for the company success. So not only the Minerva but also every international company must have Human Resource Department. By making a HR department available, it would also enhance and motivate the workforce and the sales people, as they would have a feel of safety. An HR department always means being properly compensated, and being rewarded for their performance, and therefore the people 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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HRM 360. Section: 2 Group D

Case: 1: Minerva S.A.

organization. It would make sure that all the employees and the sales representatives are properly taken care of, which would mean that the employees would be convinced more of staying with this organization, and would feel a sense of security. This sense of security would prevail, as the employees would know that their performance would be compensated by rewards that would give them internal satisfaction of working with this organization. The HR department would also play a critical and very important role in determining the companys success and thereby it would be possible to attain the heights by reaching out into more secure markets. As well as for the possibility of work force diversity, so a well-established HR department is mandatory for Minerva.

Implementation:
The employees of an organization are the most valued assets than an organization owns. The fact that the employees are the most important resources for any organization cannot be stressed enough. An efficient and motivated workforce is central and integral to the purpose and prosperity of any organization. Therefore the employees of a firm need sufficient investment and attention which can only be provided by a properly designed Human Resources department. Human Resources Management department of any organization is responsible for all issues related to the acquiring, management, retention and disposal of employees of the Organization. Human Resource Management is therefore seen to have long-term implications and be integral to the core performance of the business. HRM is of strategic importance to a company and there are several important characteristics of HRM, including stress on flexibility, consultation and participation, team-based structure, individual rewards and benefits, loosely defined jobs, nurturing of employees and devising and controlling their compensation methods.

How to implement it?

A well-designed Human Resources Management with properly trained and educated Human Resources personnel should be existent in Minerva to deal with the various HR issues. The Human Resources Management department of Minerva should be formed with trained and experienced managers and personnel who have the ability to deal tactfully with employees. It is preferable that these executives should be educated in the area of Human Resources Management, as this will give them the knowledge, skill and knack needed to handle the various HR issues efficiently and correctly. The HR personnel also need to have the charisma and charm that can help them to appear as empathetic to their colleagues so employees will have a certain level of trust and confidence on them, which is extremely necessary in any organization.

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HRM 360. Section: 2 Group D

Case: 1: Minerva S.A.

Where would it be implemented?

It is to be implemented in the whole organization with Minerva considering these subcategories under their consideration for a Human Resource Department: 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 and educated Human Resources Managers should be made responsible for making the various crucial decisions regarding the hiring of employees, compensation structure for the MPCs and sales staff and the training and development of the sales staff so that they can efficient and coherently work towards 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 and flexibility to allocate resources and put them into use in whatever way they feel is right for the company. The establishment of a Human Resources Department is a major decision requiring a lot of thought and experience. Therefore such a crucial decision as this should only be taken by the topmost executives of the organization. The Chief Executive Officer (CEO) of any firm is responsible for looking over the overall operations of the firm, so the CEO should definitely play an important part in establishing the Human Resources Department.

When would it be implemented?

The establishment of an organization-wide Human Resources Department is not minor issue and will give rise to a lot of rethought and debates regarding this decision. It can have long term strategic implications for America West Airlines; therefore adequate time should be allocated to the implementation of this strategy. It is estimated that the establishment of a strong and proficient HRM department could take anything from 8 to 18 months. Moreover, sufficient time should also be given so that the overall operations of the organization can be properly adjusted.

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HRM 360. Section: 2 Group D

Case: 1: Minerva S.A.

Thank You

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