Human Resource .

Objective: To understand HR planning and its interrelation with organizational goals

Instructions: Smith Manufacturing is a company that manufactures and sells bikes. As an HR Manager at Smith Manufacturing, you have been asked by the president to develop a human resource plan for the next year to meet the new company objectives. Below is the relevant information:

• Current departmental personnel records:

Job Titles	Number of Employees
Foremen	100
Production Workers	500
Salespeople	50
Administrative and Office Staff	50

• Administrative and office staff has always remained constant. But turnover for production workers and salespeople have been 10 % per year on average, and 6% for foremen. Top 1% of production workers are usually promoted to foremen position.
• Due to the good market reaction, company plans to increase both production output and sales by 10% by next year (current production output = 10, 000 bikes and current sales = $25 million).
• Due to the introduction of new technological, productivity of production workers is expected to improve about 5% for the next year.
• VP of Marketing thinks increase in sales has to come from more salespeople due to the need for more territory coverage.

VP of Production wants to reduce numbers of foremen to one for every ten production workers for the next year.

1. First, calculate how many employees you are likely to have (for each job) for the next year. Please include your calculation steps.?

2. Second, calculate how many employees you need (for each job) to meet these objectives for the next year. Please include your calculation steps.?