QUESTION ONE [25] Study the case study and complete the questions that follow: The Human Resource Function of Harrison Brothers Corporation Harrison Brothers Corporation was founded in upstate New York on September 15, 1898, by Aubrey and William Harrison. Harrison Brothers is a multi-line traditional department store that carries mainly men`s, women`s, and children`s clothing. In recent years, the store has expanded to include household furnishings and other items for the home. The long-term goal of the company is to become the leading chain of department stores in the Northeast, selling moderate - to higher priced merchandise to middle-class, fashion-conscious customers. Harrison Brothers is one of the largest privately owned retail stores in the United States. A majority of its twenty stores are located in the Northeast. Its largest store is located in a major urban center and has 950 employees. The company is highly decentralised and maintains a very small corporate office. Traditional department stores like Harrison Brothers are beginning to experience the effects of a number of changes in the retail industry. Not long ago, major department stores succeeded by being all things to all customers. However, today`s customer is looking for both value and specialisation. Superstores and giant discounters are also popping up. At the same time, the industry faces the challenge of keeping a well-trained, highly motivated sales staff and management team. James Harrison, CEO of Harrison Brothers, describes the company`s strategic challenges for the next five year: We can no longer continue to do the same old things that gave us a reputation for fair value. We must reposition ourselves floor to floor offering exciting brand names, excellent sales help, and frequent sales. We need a sales staff that knows the merchandise and understands customer preferences. Buying expertise is also critical because fashions and consumer tastes never stay the same. We have five strategic goals that runs with the new strategies of cost cutting, employee development and customer satisfaction. 1. Convert non-selling space into revenue-generating selling space. 2. Build up underdeveloped merchandise categories. 3. Invest aggressively in private brands like Polo, Nautica, and Tommy Hilfiger. 4. Reduce costs through the use of advanced computer systems to project sales and manage inventory. 5. Improve productivity of sales associates, buyers, and department heads. 6. To start with e-business William Harrison wants to create a culture - that has to be understood by all - customer is king and respect and hard work pays off. (1) Harrison felt the employee quality and performance would be one of the keys to the future. He is concerned about the high staff turnover and poor customer service of the staff despite continuous training. (1)

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Brenda McCain has been the human resource manager for the past four years. The human resource department consists of five people. The 950 employees includes salespeople, sales support employees (dock, marking room, clerical, and accounting), maintenance, security, and management. During the peak holiday season, a number of people are hired as floating sales staff. These temporary workers may number close to 100. Brenda McCain think it is important to keep abreast of the performance of workers and to observe their work habits regularly. There is a heavy turnover on the sales floor. The average sales person at Harrison Brothers is either part-time, an older employee, or one who is in-between jobs if a better job came along, they would snap it up immediately. Of the 119 part-time people hired in the last four months, 65 have left. Training of new sales people occurs every two weeks and every week during the holiday season. Brenda McCain is totally responsible for all disciplinary actions. Any employee who receives three disciplinary actions is eligible for dismissal. Sales people are hired at the minimum wage, and they perform an annual evaluation of the employees` performance to determine merit increases. Sales productivity is the major criterion. Performance is evaluated on average sales per hour. William Harrison wants to make changes to the compensation and remuneration structure linked to the new business strategies by cost cutting, employee development and customer satisfaction. Source: Nkomo, s.m, Fottler, m.d, McAfee, R.B 2011. Human Resource Management Applications: Cases. Exercises, Incidents, and Skill Builders. International edition. South-Western Cengace Learning. Questions:

1.1. William Harrison is now aware that a company`s workforce is far more valuable than ever before. He therefore needs to measure the workforce, the HR function, and the company`s leadership with respect to their impact on the workforce and, ultimately, the company`s strategic success. Briefly discuss the four perspectives of the Balanced Scorecard with William Harrison. (15) 1.2. Harrison Brothers Corporation seems to have an ethical culture. Brenda McCAin as the HR manager deals with all the HRM activities of recruitment, selection, training and performance management that are important vehicles for promulgating an ethical culture. Explain to Brenda McCain, the performance management steps.