Please answer question #2 ONLY, using table 5.3 which is attached in the photos below.

(Human Resource Management)

OPTION SPEED REVOCABILITY Table 5.3 Options for Avoiding an Expected Labor Shortage 1. Overtime 2. Temporary employees 3. Outsourcing 4. Retrained transfers 5. Turnover reductions 6. New external hires 7. Technological innovation Fast Fast Fast Slow Slow Slow Slow High High High High Moderate Low Low HR IN SMALL BUSINESS For Personal Financial Advisors, a Small Staffing Plan with a Big Impact Robert J. Reed has been a financial planner since 1978 and Reed realized that the part he excelled at and loved most was received his certified financial planner designation in 1981. managing the investments, not the presentations to clients, In 1999. he hired Lucy Banquer, a former legal secretary, to and that he wanted the firm to grow in a way that would free work as his assistant and the only employee at his firm. more time for him to spend with his family, not expand his Personal Financial Advisors LLC in Covington, Louisiana. hours to supervise others. As Reed defined the scope of his At that point, human resource planning wasn't on Reed's own desired job, he clarified what he wanted from his next radar at all employee: a certified financial planner who had experience But around 2005. Reed began to act on a desire to have a plus an interest in all the planning and advising tasks except more complete plan for his firm's growth. He determined investment management. that he wanted the business to grow from about $400,000 in With that strategy in mind, Reed began the search for annual revenues to become a million-dollar firm by 2012 another planner to work with him. After about eight months That was a realistic goal, but not one he could achieve with of recruiting. Reed met Lauren Gadkowski, who was run. only the support of Banquer. Although Banquer does an ex. ning her own advisory firm in Boston but preparing to relo- cellent job of fielding client phone calls and answering ques. cate to Baton Rouge to be with her future husband. Lee tions, Reed needed to bring in more financial expertise to Lindsay. Reed wanted his new financial planner to operate serve more clients independently, so he agreed to the idea of her office being Typically, a financial planning firm like Reed's expands by in Baton Rouge, about a 45-minute drive from his, and he hiring an entry-level advisor to handle routine tasks while let her determine how often she would need to visit the Cov- learning on the job until he or she can take on clients inde ington office. pendently. But Reed didn't simply take the usual path; he con Reed stuck to his plan: Lauren Lindsay quickly began sidered what role he wanted for himself in his firm as it grew. working with Reed's larger clients and introduced herself as their main contact with the firm. After sitting in on a few meetings to satisfy himself that he had made a good hiring decision. Reed shifted his efforts to managing the invest ments. About 10% of the clients indicated they would prefer to maintain their working relationship with Reed. Lindsay took over the remaining 90% as well as the new clients she has brought into the firm since joining it. Reed's decision to focus on investment management has paid off for Personal Financial Advisors, giving the firm better-than-average performance on its investments even as revenues have climbed. And with Lindsay on board to handle client contact, Reed became able to follow the more tradi- tional path to further growth by hiring an associate financial planner, David Hutchinson, in 2008. In contrast to Lindsay. Hutchinson is still preparing to become a certified financial planner, but he has an educational background in financial planning and experience as an investment broker. QUESTIONS 1. Is a company ever too small to need to engage in human resource planning? Why or why not? Discuss whether you think Robert Reed planned his hiring strategy at an appropriate time in the firm's growth. 2. Using Table 5.3. review the options for avoiding a labor shortage, and discuss how well the options besides new hires could have worked as ways for Reed to reach his goals for growth. As you do so, consider qualities of a financial planning business that might be relevant (for example, direct client contact and the need for confidentiality). 3. Suppose that when Reed was seeking to hire a certified financial planner, he asked you for advice on where to recruit this person. Which sources would you suggest, and why? SOURCES: Anpie Herbers, "Letting Go, Investment Advisor, June 2009, pp. 96-97: Personal Financial Advisors, "Why Choose Us?", corporate website, http://www.mypla.com