National Audio Clubs ,CAST STUDY  solution

 Read the case gkten below and answer the questions giaen at the end :

 The following is a memorandum from the Managing Director of National Audio Clubs Limited (NAC) to the Chairman of the Planning Committee of which the Personnel Manager is a member.

There is d need for NAC to adopt a more formal approach to manpower planning. We have been going through a period of explosive growth and this shows no real sign of slackening. The problem we have always faced and are still facing is the difficulty of making accurate forecasts in the fluid, indeed volatile, environment in which we operate. But we must find a way of overcoming this problem in order to achieve four main aims :

(i) to obtain forecasts of manpower costs for budgeting purposes;

(ii) to determine, as accurately as we can, future requirements so that we can plan the necessary recruitment and training programmes to fulfil them;

(iii)to ensure that we are making the most effective and economical use of our key resource - manPower;

 (iv)to provide information on future space and requirements.

In order to help you consider our requirements,I set out below information pertaining to :

 (a) ratio/trends i.e., relationships between activity levels and number of staff in the main employment areas of customer services (clerical staff) and the warehouse (operatives)

 (b) forecast activity levels over the next five years derived from the five-year plans

(c) anticipated developments in systems that may affect manpower plans

 (d) anticipated labour tumover rates.

Ratio Trend : The best index of activity levels is the number of record club members. This determines the number of orders to be processed and number of records to be stored and despatched. It, therefore, affects the large bulk of employees in the customer service department and the warehouse.

 The following is an analysis of membership levels against staff numbers in the customer service department and the warehouse over the last five years as at 30 June

Anticipated Systems Developments : are

(a) the introduction of optical character readers in the customer service department in june 1990 which will save approximately 12 per cent of clerical staff in the following year ;

(b) the introduction of computerized order picking in the warehouse in june 1991 which will save approximately 18 per cent of warehouse staff in the following year

Action Required :

The planning committee is asked to consider the information contained in this paper and prepare for the board an estimate.of future manpower requirements in the customer service department and warehouse over the next five years, together with comments on the manpower considerations revealed by this analysis.

 Questions :

 (a) What are the main contents of the memorandum empha sized ?

 (b) \A/hat indicators are highlighted in the data provided by the MD ?

(c) Discuss the justification of the action required.

(d) As HR Manager, what advice would you give to the planningcommittee on how to tackle this manpower planning task ?