Context
Background
Assume we are Chow Tai Fook Jewellery Group Limited, a Hong Kong based jewellery retailer, and our company will reduce 60% manpower. Now, we are going to find out why we need to reduce about 60% manpower, what key positions we need to cut, and also how to cut them with specific methods.
Chow Tai Fook is classified as the top of the Hong Kong jewellery retail industry. We have 103 retail shops in Hong Kong at September 2016. In recent years, our performance record a fall of 46% .We need to have a HR planning to forecast on anticipation and develop an action plan.
Reason of reducing manpower (Step 1)
Cutting down manpower is due to the decreasing labor demand of our company, based on external and internal factors.
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Also, there is an overestimate of sale expectation. Because of the expansion of tourism in the year before, our company decided to extend the sales line. Now, we need to close up some branches because the difference between our expectation and real …show more content…
For year 2, we will restructure back office and cut manpower in each department, as those departments do a little effect on profit margin.
For year3, performance standard should be redesigned in order to cut down the salesmen with low job performance and replace them by hiring part-time employees in order to respond to the loss of profit.
Three years detail action plan (Step 4)
To reduce 60% of total manpower, we have designed a 3-year action plan to specify the appropriate methods of cutting them. Also, we will provide solutions about how to handle projects on hand during manpower reducing and how to motivate the employees.
Year 1
Restricted hiring
In year1, we will adopt restricted hiring, and assume there are 5% natural wastage that some employees may want to retire or resign.
Downsizing - rightsizing(sales)
Secondly, we will conduct downsizing action, which is rightsizing the front line sales department to reduce 15% manpower. Due to the negative future of retailing industry, we would like to close some branches to lower the marginal cost. Therefore, we expected fewer employees are needed in the front line. Eventually 15% target was setted up. Although it will combat the staff morale, it is necessary to respond to the trend more sensitive to establish a competitive
Peak Garage Door Inc. has set a goal to increase their sales for 2004. Garage door industry is expecting a growth of 2.4% while the management of Peak is looking to increase company’s sales 26.4%. The company currently has 50 exclusive dealers and 300 non-exclusive dealers. Management has three proposals in front of them. The first suggestion is to increase the number dealers in their existing markets. The second recommendation is to develop an exclusive franchise agreement with existing non-exclusive dealers. The third recommendation is to decrease the number of dealers and focus company’s resources on increasing support for the existing dealers. Of course there is an option for them to leave everything as it is. My suggestion is to go with the second recommendation due to the fact that exclusive dealers produced 70% of company’s sales and non-exclusive dealers contributed only 30%. In order for Peak Garage Doors Inc. to reach their sales goal for ‘04 they will have to gain more exclusive dealers since they contribute much more profit to the company.
Today, many health care organizations have been forced to reduce their workforce due to the downturn of the economy. Marshall and Broas (2009) state that whenever health care organizations conduct a reduction in force (RIF); there is the potential for legal risk. However, with proper planning and implementing, employers can minimize the risk of litigation (Marshall & Broas, 2009; Segal, 2001). Hence, before carrying out a 10% reduction in workforce, there are a number of steps that need to be taken to ensure it is successful.
• Deer adjusted its level of operations downward, cut costs where possible, increased emphasis on pushing decision making downward and restructured manufacturing processes.
Each of the company’s 82 stores is operated by a SM, who has a lot of autonomy. The 82 store are organized into 9 geographical regions. The RMs are responsible for providing oversight and advice to the SMs, whom had little formal education. On the top of these two manager levels are the CMs, who are responsible for a range of centralized functions including purchasing, human resources, marketing, real estate, and investor relations.
The strategic stand during the transformation change at the beginning was focused on downsizing its business core units by cutting employment by 10%. Cutting costs was also a priority as they moved to outsourcing of some of its business processes, especially in the IT area if it met its core function of the company or if there was value in it.
Length of service should play a role in making decisions for a reduction-in-force in a non-union organization but it should be taken into consideration along with skill level. An employee should not keep his or her job simply because they have been with the organization for several years. Each employee would need to be reviewed not only on how long they have been with the organization, but on his or her performance as well.
Organizational changes that reduce cost. The M&S reduced its management levels to reduce the cost.
Management experience will also play a large role in the success of the forecast. The current team is quite new and will gain some needed experience over the next year in the hopes of staying on track for success. The ability of management to ensure product is readily available for the client, their training techniques with new and seasoned associates, and general management style will ensure success or spell defeat for the store.
The willingness of companies to swiftly lay off workers to cope with changing business environments.
Employee turnover costs are very costly to a company. Turnover not only affects the bottom line but also affects the company’s morale. We are analyzing the problems within our company that are causing our employees to become unsatisfied with their job. Then we are going to find solutions. And then do the cost estimates of the turnover costs and the turnover savings after our solutions are implemented.
...ventory and operational expenses decrease. Once the constraint is determined, the five-step process is followed to find out how to fix or correct the restraint.
Right now, there is a low supply of workers leading to a shortage which means that instead of trying to hire full-time workers Ashok should try to look to different strategies in order to account for the shortage. He could do so by making opening positions for part-time workers, employ contract workers, outsource work and essentially try to reduce that gap. Ashok should have been prepared for this shortage by forecasting the firm’s demand for future employees. By looking at the market share growth of 8% in 2009 to 30% in 2015 Ashok should have predicted the need for more workers and arranged accordingly. This is a major problem because, with a high demand and low supply, it causes an influx of unqualified
We are facing a human resource crunch on our two fronts: The Engineers and designers i.e. the executive level staff as well as the Leaders who can efficiently manage the business. Improper use of good talent has led to high rate of attrition.
“For example, if the organisation decide to expand, fixed costs will definitely increase. Sometimes, organisations decide to reduce certain fixed costs to improve their cash flow, by moving to a less expensive workplace or reducing the number of employees”.
Over the past three months, department sales have declined an average of 15% versus the same three months last year. The purpose of this memo is to recommend a process for the company to implement in order reverse the sales decline.