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MGMT 802 – Talent Management – Fall2014
Staffing Plan Assignment

The
final paper, the Staffing Plan assignment, for the course is based on the
Tanglewood case. The Tanglewood casebook
appears on Blackboard. You will notice
that the casebook is 83 pages long (the final 28 pages are appendices) and that
it contains 8 cases. You are required to
focus on only THREE cases in the casebook, and you will
not need to read the entire case book. The assignment must be submitted on by Dec
12th(11:55pm). I decided to give another week for this assignment.
This way, you can enjoy your thanksgiving holidays much better without worrying
about your assignment. There won’t be a debriefing for this assignment as the
syllabus indicates-FYI.

Your
assignment is to respond to the NINE questions given for the following cases:


Case 3: Recruiting. Read pages 20 to 31 of the casebook and
answer questions 2, 3, and 5 on page 26 under “Specific Assignment Details.” Note that your answers should refer to the
Store Associate position.

Case 6: Interview. Read pages 40 through 45 of the casebook and
answer questions 1, 2, and 3 on page 44 under “Specific Assignment
Details” NOTE: for question 3, develop 3
behavioral questions and 3 situational questions.

Case 7: Selection Decision Making. Read pages 45 through 47 of the casebook and
answer questions 1, 3, and 4 on page 47 under “Specific Assignments Details”
for the position of Manager of the flagship store in Spokane, WA.

In
order to be able to answer the questions, you will also need to read the
Introduction on page 2 and the Staffing Strategy section on pages 3 through 11
of the casebook. Be sure to note that
you will need to access some of the information contained in Appendices A
through E (pages 56 through 83) for the three required cases.

There
is no required page count for this assignment, but be sure to answer all nine
required questions completely. Be sure
to indicate which question you are answering.

EXTRA CREDIT: If you would like to
be considered for extra credit, you can write on an additional case (listed
below) and earn additional points on this paper. If you have not been participating in class
discussions, have been absent from class frequently, or would like to improve
on the grade from your earlier papers, you may want to consider this option.
This is the only extra credit opportunity for this
course-Don’t miss it if you need extra credit.

Extra
credit will be available for answering:

All 4 questions for Case 4 – Measurement
& Validation (pg 32)

TANGLEWOOD
CASEBOOK

for use
with

STAFFING
ORGANIZATIONS


7th Ed.

Kammeyer-Mueller

TANGLEWOOD CASEBOOK

To accompany Staffing
Organizations, seventh edition, 2012.

Prepared by John
Kammeyer-Mueller
Warrington College
of Business
University of
Florida
Gainesville, Florida

Telephone:
352-392-0108
E-mail: [email protected]

Copyright ©2012
Mendota House, Inc.
Herbert G. Heneman
III
President

Telephone:
608-233-4417
E-mail:[email protected]

INTRODUCTION
TO THE CASE CONCEPT

Rationale for the Tanglewood Case

Many of the most
important lessons in business education involve learning how to place academic
concepts in a work setting. For applied topics, like staffing, learning how
concepts are applied in the world of work also allow us see how the course is
relevant to our own lives. The use of these cases will serve as a bridge
between the major themes in the textbook Staffing
Organizationsand the problems faced by managers on a daily basis.

The Tanglewood
case is closely intertwined with textbook concepts. Most assignments in the
case require reference to specific tables and examples in the book. After
completing these cases, you will be much more able to understand and apply the
material in the textbook.

With this in
mind, it should be noted that the cases are designed to correspond with the
types of information found in work environments. This means that for many
important decisions, the right answers will not always be easy to detect, there
will be more than one correct solution, and often the very information that
would make decisions easy is missing. Remember that ambiguity in any case
corresponds to reality; although it may be frustrating at first, you should
remember that business problems are themselves often confusing and require
important judgment calls that don’t have any single “right” answer.

Successful Case Performance

Successful case
performance involves several key concepts. Each case should be prepared in the
form of a report to be given to the top management team at Tanglewood
department stores. The following guidelines for successful case performance are
useful for checking your work:

1.
Is the report easy to read?
a.
Correct grammatical errors and eliminate confusing
sentences.
b.
Break the text into subheadings so it is easy for the
reader to find relevant information.
c.
Explain your statistics in a way that an intelligent
reader who is not familiar with them could understand what is being reported.
d.
Present tables cleanly with relevant data highlighted
for the reader and with minimal extraneous information.
e.
Explainwhy
you chose to use information and data in the way that you did.

2.
Are your final recommendations and answers sensible?
a.
The final recommendations should be presented in a
clear, succinct manner.
b.
The recommendations should be feasible and directly
related to the information provided to the information provided in the case.
c.
Recommendation should take potential problems into
account.

CASE ONE:
TANGLEWOOD STORES AND STAFFING STRATEGY

Case one principles:

You will first
assess the current operating environment for Tanglewood in terms of it
competitors, structure, employees, culture, values, and human resources
function.

Then you will
then develop recommendations for how the organization should staff its operations,
focusing on strategic decisions pertaining to staffing levels and quality.

Section
Objectives

The goal of this
section is to help you learn more about the basic environmental concerns the
Tanglewood Department Store chain is facing. This information will help you to
understand how competition, strategy, and culture jointly inform the effective
development of a selection plan.

Organization
Overview and Mission

Tanglewood is a
chain of general retail stores featuring items such as clothing, appliances,
electronics, and home decor. The company operates in the moderate price niche,
targeting middle- and upper-income customers. Tanglewood’s strategic
distinction is an “outdoors” theme, with a large camping and outdoor living
section in every store. The store also distinguishes itself by its simple,
elegant, and uncluttered design concepts for the store and their in-house
products. The company’s mission statement is:

Tanglewood
will be the best department store for customers seeking quality, durability,
and value for all aspects of their active lives. We are committed as a
company to providing maximum value to our customers, shareholders, and
employees. We will accomplish this goal by adhering to the core values of
responsible financial management, clear and honest communication, and always
keeping performance and customer service in the forefront.

Tanglewood was
originally founded in 1975 by best friends Tanner Emerson and Thurston Wood.
The initial concept was a single store in Spokane Washington, named TannerWood,
which sold a combination of outdoor clothing and equipment that the pair had
designed themselves. The employee handbook notes that, “Tanner and Thurston financed
their early store plans with credit cards and personal loans from friends and
family. They had so little money that they slept in sleeping bags in the back
room and put every penny they made back into the stores.” The first store’s
unique merchandise offering and personable sales staff made them successful
quite rapidly, allowing Emerson and Wood to move out of the back room and add
several more stores during the late 1970’s. The merchandise offerings expanded
over time to incorporate more conventional retail items, while still retaining
the elegant, yet outdoors look for the stores overall.

Emerson and Wood
eventually decided to rename their store chain Tanglewood in 1984. Much more
rapid growth began around this time. As Emerson put it, “we worried for a long
time that expanding would compromise our vision of a small, personable shopping
experience. We had always wanted to run the type of store that we would love to
work and shop at. Around 1984, after we had 10 stores, we realized we had
developed a fairly successful blueprint for running stores with a strong base
of employee participation, customer satisfaction, and profitability. So we
decided to spread out to cover the northwest.”

During the
1990’s the expansion strategy really took root. Most of the expansion occurred
by purchasing other existing stores rather than building new stores. Emerson
and Wood had been heavily involved in the management of the stores, but found
that increasingly the corporate administration was a more pressing concern. The
company arrived at a regional structure for its operations. Emerson and Wood
took on the positions of CEO and President of the company, respectively, while
a team of regional managers more directly oversee day to day operations. The
company currently has a total of 243 stores open in the states of Washington,
Oregon, Northern California, Idaho, Montana, Wyoming, Colorado, Utah, Nevada,
New Mexico, and Arizona.

Prior to any
further expansion, however, the company needs to consolidate its current management
strategy. The process of growth has been very quick in the last 5 years, and
has involved buyouts of several smaller chains of department stores. While all
the stores under the Tanglewood name have the same basic look, the management
styles and human resource (HR) practices still reflect the historical
differences between stores. Wood noted in a recent interview with Business
Monthly, “Tanglewood really needs to slow down and take a hard look at our
corporate culture. Right now, we need to consolidate and make sure we’re as
close to the company’s original mission as we can be. Our success is due
entirely to our strong culture—this is something we need to hold on to.” These
concerns have lead Tanglewood to bring in external human resources consultants like
you to help centralize the organization’s practices.

Another major
concern for Tanglewood has been the westward expansion of companies like Kohl’s
and Target. The possibility of more direct competition has lead Tanglewood to
critically examine their HR policies and practices. For staffing, in
particular, the organization feels there absolutely must be a workforce of
committed, qualified individuals who will help carry the Tanglewood philosophy
into the future.

Competition and Industry[1]

The Tanglewood
Department Store chain operates in the nondurable general retail industry,
which fits into industry 45211 as classified by the North American Industry
Classification System (NAICS). This industry engages in the sale of consumer
goods including clothing, small appliances, electronics, and other housewares.
The retail industry accounts for over $4 trillion in annual sales. Recent
estimates indicate that the retail industry employs approximately 15 million
people.

A comparison of
several top retail stores is presented below. The operating revenues indicate
total sales for these organizations, and the compound growth rate tracks
changes in the sales for each retail chain. The financials show that Tanglewood
is a moderately sized organization with strong growth potential.

Operating
Revenues (in millions)

Revenue Growth
(1 yr)

Employment (in 1,000s)

Employment Growth
(1 yr)

Number of Stores

Dillard’s

6,250

0.4%

41

-5.81%

310

J.C. Penny

17,759

1.2%

154

4.80%

1,100

Kohl’s

9,120

4.8%

133

2.26%

1,050

Macy’s

25,003

6.4%

161

-3.59%

850

REI

1,460

2.1%

10

0.00%

110

Sears Holding Corp.

43,426

-1.6%

312

-3.11%

3,900

Tanglewood

7,200

4.2%

53

3.75%

243

Target

67,390

3.10%

351

1.14%

1,750

WalMart

421,849

3.30%

2,100

0.00%

8,400

Profit ratios

PM (%)

ROA (%)

ROE (%)

Dillard’s

2.87%

4.72%

8.18%

J.C. Penny

2.19%

4.06%

7.38%

Kohl’s

6.06%

8.95%

13.96%

Macy’s

3.39%

5.72%

16.56%

REI

1.82%

2.85%

5.66%

Sears Holding Corp.

0.31%

1.43%

1.66%

Tanglewood

3.54%

5.36%

14.97%

Target

4.33%

7.44%

18.94%

WalMart

3.89%

9.09%

22.03%

All three profit
ratio figures indicate corporate profitability.
PM is profit
margin = (net income for the past year)/(revenue)
ROA is return on
assets = (net income for the past year) / (average assets)
ROE is return on
equity = (net income for the past year) / (shareholder equity)

Competitive Response and Strategy

The company’s
specific niche is similar to that occupied by Kohl’s or Target, appealing to
middle- and upper-income consumers looking for convenience and reasonable
prices. This means that Tanglewood uses a layout and provides the same products
offered of general merchandise retailers. Tanglewood also focuses on stocking
quality products, providing customer service, and a more designer appearance
than discount stores. This strategy is further supplemented by the company’s
trademark “look” which involves an outdoors theme, complete with real wood
décor and use of natural colors.

Like its
competitors, Tanglewood has developed several proprietary brands of merchandise
which are designed to complement its look. While the actual products are made
by subcontractors, Emerson and Wood have personal responsibility for all
products that are produced. Their own brands include Burford Kitchen, which
includes wood-accented, rustic, sturdy kitchen utensils, and Wilderness
Outfitter clothing and camping goods lines. The stores also have emphasized
small home electronics, housewares, and bedding accessories.

Despite the
company’s effort to emphasize its western appearance and theme, there is no
shortage of high-technology innovations in the way that Tanglewood operates.
They have worked hard to ensure that their web portals provide a clear guide to
merchandise available in the stores. Through their “County Store” concept they
have also made their stores a pick-up location for items ordered online. This
allows them to utilize their low-cost shipping arrangements to the benefit of
customers. Emerson notes, “We have a lot of consumers in places like rural
Idaho, who don’t want to drive an hour to one of our stores and then find out
what they wanted isn’t available. The online County Store makes sure that if
they want something, we will have it in stock.” In addition, online shoppers
who visit bricks-and-mortar locations also often buy other merchandise in the
stores.

Organizational Structure

The structure of
most retail stores is relatively similar, and Tanglewood has essentially
evolved to have a structure that looks something like the familiar
organizational hierarchy. This appearance is deceptive, because employees at
all levels of the corporation are encouraged to make suggestions regarding
operations. More than one major operational change has come from an employee
suggestion.

Each store is
managed by a single individual who has three assistant store managers working
beneath him or her. The Assistant Manager for Softlines is in charge of all
areas related to clothing and jewelry. The Assistant Manager for Hardlines is
in charge of all non-clothing merchandise, including sporting goods, bath,
bedding, and home decor. Another way to think of the distinction is that
Softlines consists only of things that are worn, while Hardlines consists of
nothing that is worn. The Assistant Manager for Operations and Human Resources
is primarily responsible for activities, including security, clerical work,
merchandise loading and warehousing, cashiers, and human resources management.
Although the Assistant Manager for Operations is technically in charge of the
smallest number of employees, this tends to be a more powerful position because
it includes more managerial responsibilities, including staffing the store and
training new hires. Department managers are in charge of specific product
groups such as electronics, women’s clothing, or shoes. For each shift there is
also a designated shift leader who completes most of the same tasks as store associates,
but also has some administrative responsibility.

Overall, with 1
store manager, 3 assistant managers, 17 department managers, approximately 24
shift leaders, and approximately 170 associates, there are around 215 employees
per store. All employees, full or part time, are members of the core work
force. Tanglewood does not extensively use a flexible workforce, such as
temporary employees. A core workforce is viewed as essential for the
organizational values and culture, described below, that Tanglewood seeks to
develop and maintain.

Stores are
organized into 12 geographical regions, with approximately 20 stores per
region. Each region has a regional manager who oversees operations of the
stores. The store managers report directly to the regional managers. There is
considerable variation between regional managers in how they run their HR
practices. The tendency for some regional managers to encourage human resources
practices which are counter to the Tanglewood philosophy is a major reason that
an external consulting firm was brought in to centralize human resources.

The breakdown of
stores and employment by division is as follows:

Division

Area Covered

Stores

PCs

PCs/S

Employees

1

Eastern Washington

25

3,120,000

124,800

5,400

2

Western Washington

25

3,011,000

120,440

5,400

3

Northern Oregon

18

1,850,000

102,778

3,900

4

Southern Oregon

16

1,710,000

106,875

3,400

5

Northern California

23

3,000,000

130,435

4,900

6

Idaho

17

1,366,000

80,353

3,700

7

Montana and Wyoming

18

1,418,000

78,778

3,900

8

Colorado

23

4,550,000

197,826

4,900

9

Utah

19

2,351,000

123,737

4,100

10

Nevada

19

2,241,000

117,947

4,100

11

New Mexico

18

1,875,000

104,167

3,900

12

Arizona

22

5,580,000

253,636

4,700

Total

243

52,300

Note: PCs is the population of the area
covered; the abbreviation PC for Tanglewood means “potential customers.” The
PCs/S is the number of potential customers per store. Employee figures are
rounded to the nearest hundred.

Organizational Culture and Values

Whereas many
elements of the Tanglewood operational plan have been based on other firms
within the retail industry, the company’s culture and values are distinct from
most of its major competitors. From its inception, this company has emphasized
employee participation and teams. At orientation, every employee hears the
philosophy that Wood and Emerson proclaimed as their vision for employee
relations, “If you tell someone exactly what to do, you’re only getting half an
employee. If you give someone the space to make their own decisions, you’re getting
a whole person.”

Most retail
stores have a strict hierarchy with assistant store managers providing
directives to their subordinates, and most associates’ primarily follow orders.
Tanglewood, on the other hand, has allowed each department manager to formulate
distinct methods for running their departments in coordination with the
employees they supervise. There is still a well-defined ordering of job
responsibilities, but efforts are made to involve employees in the decision
process when possible.

One of the most
important cultural elements of the organization is an emphasis on “straight
talk” in all areas of the business. The company provides employees with
information on the company’s share price and overall profitability for each
quarter, along with other details about company activities. Profit-sharing for
all employees is part of the company’s push to encourage employees to think
like managers. In addition, mandatory weekly store meetings (one meeting for
each shift) give employees a specific time to voice their suggestions for
in-store improvements. Associates who make suggestions that are implemented by
management receive financial bonuses. Department managers are also given
financial incentives for successfully developing and implementing new policies
and procedures, further reinforcing the participatory management style of the
company.

Every shift is
run based on a team concept. While the most senior associate is designated as a
shift leader, the other members of the team are encouraged to provide ongoing
suggestions. All employees share all tasks, so there are no designated
“customer contact” or “display” employees. It is also expected that associates
will make themselves available to help the other members of the team. Quarterly
performance evaluations include several items specifically reflecting the
associates’ interactions with other team members and initiative to improve the
department.

Because of the
heavy emphasis on employee suggestions, Tanglewood’s upper managers have ample
opportunity to observe the leadership and decision making qualities of their
associates. This is one of the main portals through which promotion and
advancement are achieved. All new employees without retail experience, even
those with college degrees who are targeted as having management potential,
spend a period of time working in the store as an associate. This is seen as a
way of preserving the company’s unique culture and values over time.

Human Resources at Tanglewood

The basic
structure for human resources at Tanglewood involves both corporate and
store-level components. The corporate Staffing Services function, shown above,
is a division of the Human Resources Department. The Staffing Services Director
supervises three managers (for the areas of retention, recruiting, and
selection), plus an Equal Employment Opportunity Coordinator. The corporate
Staffing Services function performs data analysis and design of staffing
policies and programs. Data regarding recruiting practices, methods for
interviewing, testing and selecting employees, and employee turnover are sent
from the individual store to the corporate headquarters. At headquarters, the
data are collected and statistically analyzed. Based on these analyses,
specific recommendations are provided to the stores. For example, after data
suggested that newspaper advertising for new recruits was becoming less and
less cost effective, all stores were given a strong recommendation to switch to
an internet-based strategy. As another example, the employee selection
specialists in the corporate staffing function developed a format for
interviews that is now used as a part of the hiring process for nearly all
stores.

Each store is
responsible for implementing recommendations provided by corporate. The store
operations and human resources manager is responsible for overseeing each
store’s staffing, training, performance management, and equal employment
opportunity practices. As pertains to staffing, the manager of operations and
human resources is responsible for planning, recruitment, and initial
screening. Department managers interview finalists, then hiring decisions are
made in conjunction with the assistant store managers. Promotion decisions up
to the department manager level are made within the stores. Regional managers
conduct the hiring for store managers, and work with each store’s managers to
determine promotions to the assistant store manager.

Historically,
the corporate staffing function has not been strong. Because of the
participatory philosophy of the stores, the role of corporate HR was primarily
to act as an advisor to each regional manager. The company’s plans for
expansion have led to a change in this philosophy of late. Emerson’s directive
to HR for this year is, “help us to develop a plan, a way of using all our
human assets in the service of our philosophy, our customers, and our
employees.” As the company expands, the need for a central planning body in
staffing is seen as an important way to maintain the distinctive “flavor” of
the Tanglewood experience. In addition, the sheer number of stores means that
local leadership is becoming inefficient. Centralization will also serve to
create staffing operations efficiencies.

Your role

Your role within
Tanglewood is as an external consultant for staffing services. You will report
directly to Daryl Perrone, who is the Staffing Services Director, with final
oversight for your work coming from Marilyn Gonzalez, who is the Vice President
for Human Resources. Both of these individuals were recently hired personally
by Emerson and Wood as part of their plan to centralize and improve the human
resources function. Perrone has extensive experience in managing staffing for
department stores in New Jersey and New York, while Gonzalez has worked in a
variety of corporate positions in the Pacific Northwest.

The reports that
you produce will be given to Perrone and Gonzalez, who will disseminate them
throughout the organization. As such, although Perrone, Gonzalez, and other
members of the human resources team are generally well versed in the
terminology of staffing, the other individuals who read you reports will not be
so familiar with the specific staffing terminology. This means that your
reports should not contain excessive staffing terminology, and that when you do
use specific staffing terms you should provide a brief explanation.

Specific Assignment Details

In this
assignment you will be concentrating on staffing quantity and staffing quality
strategies for Tanglewood. To begin the assignment, refer to Exhibit 1.7 in the
textbook. You will see that the Exhibit indicates a series of strategic
staffing decisions: nine pertaining to staffing levels and four pertaining to
staffing quality. Daryl Perrone, the Director of Staffing Services, is
interested in your opinions about each of these decisions as each pertains to
Tanglewood.

Review the
textbook material that discusses these thirteen decisions, and the material you
have read about Tanglewood. Then consider each of the decisions and briefly
indicate which way you think Tanglewood should position itself along the
continuum and why. For example, the first decision is to develop or acquire
talent. Indicate whether you think it is best for Tanglewood to focus more on
acquiring talent internally or externally, and why? Repeat this process for
each of the staffing level and staffing quality dimensions.

CASE TWO:
PLANNING

Case requirements:

Conduct an
analysis of Tanglewood’s staffing data and determine if their current
staffing practices are sufficient to meet their ongoing needs, or if there
will be problems in adequately staffing the organization in the near
future.

Recommend how
Tanglewood should design its overall staffing mission and strategy based
on their upcoming needs.

Calculate
representation statistics for various jobs within a single Tanglewood
department store to determine where the most critical problems exist.

Recommend what
you would do in light of the information you obtain in the calculation of
various demographic statistics both for this specific store and for the
chain as a whole.

Section
Objectives

The planning
process in staffing involves making forecasts of an organization’s future
hiring needs and developing methods the organization can use to meet these
needs. The process of planning involves a combination of forecasting labor
needs, comparing these needs to the labor availabilities, and determining where
gaps exist. After these gaps are identified, general plans for filling these
gaps are enacted.

Beyond the
process of developing objectives for the number of individuals to be hired,
planning activities often take the demographic composition of the workforce
into consideration. Attending to the demographic breakdown of the workforce is
important for a number of reasons. One is to ensure that the company has
employees who can understand the perspective of the populations the company
serves. The second reason is to minimize concerns about Equal Employment
Opportunity violations[2]. For
both purposes, the current workforce can be compared to the demographic
characteristics of other individuals who work in similar jobs.

Planning
for the State of Washington: Forecasting Requirements and Availabilities

The Staffing
Services Director, Daryl Perrone, has requested your assistance in the
completion of an HR planning analysis for the 50 stores in two regional
divisions in the state of Washington. After these overall goals are developed
for the state, the policy will be disseminated across all 50 individual stores.
Data from the individual stores will then be sent to the corporate offices for
analysis and re-evaluation.

The basic model
for planning includes (1) forecasting labor requirements, (2) forecasting labor
availabilities, (3) conducting environmental scans, (4) determining gaps, and
(5) developing action plans. These steps
are described in your textbook. Conducting an adequate human resources
selection plan will require you to take all of these steps.

Historical data
from these two divisions have been presented in the transition probability
matrix. Information on how to read transition matrices is provided in your
textbook. The transition probability matrix was developed based on the
historical staffing pattern for Washington over the past five years. A first
stage of investigating staffing is to use the previous years’ staffing patterns
as a preliminary forecast of labor requirements, the internal availability
based on retention, internal promotions, transfers and demotions, and a
determination of gaps by subtracting forecasted availabilities from future
requirements.

Table 1.1 Markov Analysis Information

Transition probability
matrix

Current year

(1)

(2)

(3)

(4)

(5)

Exit

Previous year

(1) Store associate

0.53

0.06

0.00

0.00

0.00

0.41

(2) Shift leader

0.00

0.50

0.16

0.00

0.00

0.34

(3) Department manager

0.00

0.00

0.58

0.12

0.00

0.30

(4) Assistant store
manager

0.00

0.00

0.06

0.46

0.08

0.40

(5) Store manager

0.00

0.00

0.00

0.00

0.66

0.34

Forecast of
availabilities

Next year (projected)

(1)

(2)

(3)

(4)

(5)

Exit

Current Workforce

Previous year

(1) Store associate

8,500

4505

510

0

0

0

3485

(2) Shift leader

1,200

0

(3) Department manager

850

0

(4) Assistant store manager

150

0

(5) Store manager

50

0

Gap analysis

Next year (projected)

(1)

(2)

(3)

(4)

(5)

Year end total
(column sum)

4505

External hires needed
(current
workforce-total)

3995

Forecasting Labor Requirements

The Washington
market is very stable for Tanglewood. Most stores have been in existence for 10
or more years, and were indirectly managed by either Emerson or Wood when they
were first established. Because of this stability, the estimate for the coming
year’s labor requirements is identical to the current year. So, for example,
they currently have 1,200 individuals working as shift leader, and expect to
need 1,200 individuals to work as shift leaders for the coming year as well.

Forecasting Labor Availabilities

One primary
source of information for immediate labor availability at Tanglewood is their
internal labor market. Table 1.1 shows that Tanglewood has used internal
promotions to fill many openings for the department manager, assistant store
manager, and store manager positions. For example, it is projected that 16% of
shift leaders will be promoted to the rank of department manager, 12% of
department managers will be promoted to be assistant store managers, and 8% of
assistant store managers will be promoted to be store managers. However, it
also appears that there will need to be considerable external hiring as well,
since only 46%-66% of employees stay in the same position over a one year
period.

To estimate a
labor forecast, the proportion (percentage) of individuals for the next year is
multiplied by the current workforce number. For the shift leader, there are
1,200 individuals in the position, of which, 50% will remain for the next year.
This means that the projected availability is 1,200 × 50% = 600. Similarly, 16%
of the shift leaders will be promoted to be department managers, so 1,200 × 16% = 192.

Conducting Environmental Scans

The environment
for staffing managerial employees at Tanglewood in the state of Washington is
fairly complex. Externally, there is a consistent supply of qualified
individuals in the urban markets of Seattle and Spokane. Individuals from these
urban areas often are transferred to small towns as they move up the promotion
chain. However, retail is often seen as an undesirable market for recent
college graduates. Many know of retail work experience, and see it (partially
correctly) as requiring long hours, low pay, and frequent conflict with
lower-level employees. While these factors lessen as individuals move up the
hierarchy, many individuals are reluctant to put in several years in the shift
leader and department manager positions to be promoted.

The labor market
in the Pacific Northwest has been relatively “soft” in recent years, meaning
that unemployment rates are high and it is usually difficult for individuals to
find new jobs. This weakness in the labor market has made it somewhat easier
for Tanglewood to find new candidates for the managerial positions, but recent
forecasts suggest that expansion in the professional and managerial sectors of
the labor market may reduce the number of individuals available for these jobs.

Internally,
Tanglewood has relied on its experienced employees as a major source of talent.
As noted earlier, the company promotes extensively from within. As a result,
managerial employees often have significant experience with the company’s
social environment and culture. This internal staffing strategy is seen as a
real strength for the company, because the possibility of being promoted is
believed to increase retention of lower level employees.

Determining Gaps

The current
focus of staffing is to fill the vacant positions, although the organization
would like to take steps to reduce the turnover rate for many of these jobs as
well. During the planning phase targets are set for the number of individuals
who need to be hired. The process of turning these estimates into actual
employees will be covered in the recruiting phase. There are 1,200 shift
leaders currently, so if 600 individuals stay, Tanglewood will need to hire 600
more.The calculation of gaps is demonstrated in Exhibit 3.9 in the textbook;
refer to this when you are determining gaps for Tanglewood.

Developing Action Plans

Having developed
a picture of the number of individuals Tanglewood will need to fill their
positions in the coming year, there are several important decisions to be made
regarding how to fill these gaps. The company’s philosophy for filling
vacancies is a combination of tactics. Tanglewood has one managerial track that
promotes sales associates to be shift leaders, then promotes shift leaders to
be department managers, and so on up the managerial hierarchy. An alternative
managerial track is bringing in either recent college graduates or individuals
who have extensive experience in another store chain directly into the
assistant store managerial position.

Regardless of
where employees come from, the corporate staffing function endorses a strong
commitment to developing long-range relationships with its workers. Many
employees initially have difficulty adapting to the unique culture of
Tanglewood, so the company is not happy to see experienced employees who have
been socialized leave. There are also concerns that having too many employees
come and go will dilute the company’s strong culture.

There are
reasons why the company may consider alternative perspectives on the employment
relationship in the near future. First, fluctuations in the economy have meant
that the company carries excess employees during some periods of the year, and
has a deficit of employees during other periods. There is some seasonal hiring
for store associates (e.g., hiring temporary employees for the holiday season
in December), but the managerial workforce numbers are typically fixed. Second,
to preserve the company’s culture, some have suggested having all new
managerial employees spend at least a little time in the Washington stores to
get a sense of how the stores originally worked. These assignments would be
short term in nature and would probably require a more contingent outlook for
the employees they supervise.

Representation
Concerns for the Flagship Store in Spokane

The problem of
selection planning is made considerably more complex because of Equal
Employment Opportunity (EEO) requirements that fall on organizations that do
business with the federal government. Because several Tanglewood locations are
near military bases or government offices which have expense accounts for
general merchandise items at Tanglewood, all staffing must be done consistent
with the OFCCP affirmative action requirements. In the current case, Tanglewood
needs to use information from their staffing records to examine whether the
company has a disparity in outcomes for different groups of employees. When the
proportion of protected classes being hired or currently employed falls below
the proportion in the labor market, this may indicate intentional or
unintentional discrimination in hiring and promotions that will need to be
addressed through affirmative action planning. There are also growing concerns
within the organization that a combination of rapid growth and high turnover
threaten to create real problems in terms of the demographic breakdown of
employees at the organization.

Acting as part
of a team of staffing professionals, you have been asked to analyze the hiring
and promotion activities of Tanglewood as they relate to the issue of disparate
impact. The first level of disparate impact analyses for the purposes of OFCCP
reporting and affirmative action planning are always done at the establishment
level. An establishment, for Tanglewood, is a single store.

This analysis
will concern the corporate flagship store in Spokane, Washington. This is the
largest location within the Tanglewood chain and serves as an example for all
other locations. The store has approximately 75% more employees than an average
location, making for a total of 30 department managers, 42 shift leaders, and
300 store associates. There are five assistant store managers and one store
manager. The primary concern for representation data is in the groups of
department managers, shift leaders, and store associates.

To assess the
problem of discrimination, data from the previous year’s employees stocks in
Spokane were assembled. The data on the next page are broken into two tables.
The first shows the company’s current employee availability data, and the
second provides a template for comparing incumbency to availability.

Analyzing
utilization of protected classes from the labor market requires comparing the
availability of protected classes (i.e., the proportion of the available work
force who are members of protected classes) to the utilization of protected
classes (i.e., the proportion of those hired or employed who are members of
protected classes) for each job. You can find additional information on this
topic in your textbook.

In a stock
analysis, data from the Census are used to determine how many people in a
certain region are available to do the job (including those currently employed
in similar jobs). The census data for the current analysis comes from the
Bureau of the Census EEO data tool (http://www.census.gov/eeo2000/index.html),
which was specifically designed by the government for the purpose of conducting
EEO analyses.

The appropriate
data can be found through the following steps:
1)
Go to the website above
2)
Indicate that you want data from census occupation
codes and click “next”
3)
Indicate that you want data for metropolitan areas and
click “next”
4)
Indicate that you want data for Spokane, WA and click
“next”
5)
Find the appropriate occupation codes as described
below, and “Show Detailed Race/Ethnicity Categories”
6)
The appropriate table should be displayed.

Store associates
and shift leaders are considered for the present analysis, as retail
salespersons, while department managers are direct supervisors of retail
salespersons.

The Procedure for Developing an
Affirmative Action Plan

Tanglewood’s
internal staffing policy as recently articulated from central management is to
retain as close a correspondence between their current representation and the
available workforce. The primary goal for this year is to focus attention on
achieving better numbers for gender representation, but they would like to
examine other demographic groups in the future.

The source for
the external data in all cases is from the Census data described earlier. The
source for internal data is the current workforce of the flagship store.To
determine the availability for each job category, the raw statistics for
percentage of female and minority employees are multiplied by the value weight,
and then these weighted statistics are added together within each job category.

Table 1.2 Determining
Availability

Raw Statistics

Value
weight

Weighted Statistics

Female

Minority

Female

Minority

Store associates

External

53.1%

7.9%

100%

53.1%

7.9%

Shift

Internal

44.3%

6.7%

92.4%

41.0%

6.2%

Leaders

External

53.1%

7.9%

7.6%

4.0%

0.6%

Total

45.0%

6.8%

Department

Internal

31.0%

4.8%

65.7%

20.4%

3.2%

Manager

External

39.4%

6.7%

34.3%

13.5%

2.3%

Total

33.9%

5.5%

The availability
data are taken from Table 1.2 and then used for determining if some demographic
groups are underrepresented in the workforce of the flagship store, and also
for developing placement goals. A shortage exists if there is a discrepancy
between the current workforce and the available workforce as calculated by the
ratio of the current workforce divided by the current workforce. As shown in
Exhibit 3.18 in your textbook, if the incumbency percent is below 80%, the
organization will want to establish a goal of moving their demographic
representation in line with the available workforce. To estimate this
proportion, the incumbency for females is divided by the availability for
females, and the incumbency for minorities is divided by the availability for
minorities.

Table 1.3 Comparing Incumbency to Availability and Annual Placement
Goals

Female
Incumbency

Female Availability

Incumbency percent? Establish goal?

If Yes, Goal for Females

Minority
Incumbency

Minority Availability

Incumbency percent? Establish goal?

If Yes, Goal for Minorities

Store associates

41.6%

53.1%

78.3%
Set goal

53.1

5.2%

7.9%

65.8%
No goal

6.7%

Shift leaders

37.0%

45.0%

82.0%
No goal

4.8%

6.8%

70.6%
Set goal

6.8%

Department manager

24.3%

33.9%

71.7%
Set goal

33.9%

5.0%

5.5%

90.9%
No goal

Specific Assignment Details

For the store
manager group, you will analyze the information and prepare a report showing
the results of the Markov analysis and the EEO investigation. The Director
asked you to address these questions in your written report:

1.
Currently the organization expects that their forecast
for labor requirements is essentially constant from the previous year. Based on
this assumption complete the five stages of the planning process:
a.
Currently the organization expects that their forecast
for labor requirements is essentially constant from the previous year. This
means the forecast for next year will be taken as given.
b.
Fill in the empty cells in the forecast of labor
availabilities in Table 1.1.
c.
Conduct an environmental scan. Based on the
environmental data, what factors in the environment suggest Tanglewood might
have difficulty filling their vacancies in the future?
d.
Compute year end totals for each job in Table 1.1 and
do a gap analysis to determine where shortages will occur in the next year.
e.
Develop a preliminary statement of the action plan for
hiring for Washington next year. This should be an overview of the number of
individuals needed to meet projected staffing levels for various positions that
can be given to store managers. Make sure that your recommendations take the
strategic staffing levels issues from the introductory case into account.

2.
Examine the percentages of employee representation
across demographic categories for Tanglewood and the available labor market for
Table 1.3. Are there any particular classes or jobs where the representation
within Tanglewood appears to be out of line with the available workfor

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