MBA 533 – Human

Resource in Management - HR Project 1

MOTORS AND MORE, INC.

A Progressive HR Case Study
HR Forecast

February 23, 2020

Saint Leo University
MBA-533 Human Resources in Business
Professor Lewis

Group 3
Nikole Lionelli
Carlos Moncayo
Crystal Munday
Daynarine Ramkissoon
Amanda Ryals
Christopher Steger
Tracy Sysk
 MBA 533 – Human
Resource in Management - HR Project 2

Table of Contents

Executive Summary 3

Labor supply/demand 3

2. Demand for Motors and More products will continue to increase. 6

3. Motors and More’s workforce will become more diverse as the company hires more

Hispanics, Kurds and persons from alternative workforces. 6

4. The president will start another company and will hire someone to manage the daily

operations of Motors and More while he takes on more of an overseeing role. 7

5. Motors and More will decide to develop an additional product to broaden its portfolio. 9

References 9

References 11
 MBA 533 – Human
Resource in Management - HR Project 3

Executive Summary

As we have learned from the previous development of this comprehensive plan, we are

finally to the point of implementation concerning the HR Planning process. As the complexity of

business increases, to be successful, an organization must be able to reach quickly to

opportunities that arise. With the digital transformation taking place throughout the country,

organizations must have accurate information that they can rapidly access. The ultimate goal of

the HR Plan is to identify and eliminate any gaps that may exist between supply and demand. In

the following HR Forecast, we will determine the number and types of employees to be recruited

into the Motors and More Organization that is undergoing radical expansion opportunities. HR

Planning requires that we utilize strategy planning.

As Becker points out, “strategic planning refers to an organization’s decision about what

it wants to accomplish (its mission) and how it wants to go about accomplishing it” (Becker &

Becker, 2006, page 903). For Motor’s and More to complete the development of their Human

Resource Planning, the organization must complete four phases that make up the HR forecasting

process. (Ivancevich & Konopaske, 2013) In the following HR Forecast, we will examine the

four stages including (1) situational analysis and environmental scanning, (2) forecasting demand

for human resources, (3) analysis of the supply of human resources, (4) and the development of a

plan of action (Ivancevich & Konopaske, 2013). Motors and More recognizes that there is no

shortage of Human Resource experts that are calling for a more strategic job function. For

Human Resources to become more strategic, which is our ultimate goal, the HR team at Motors

and More must pursue the following processes aggressively. This includes focus on the future

and developing creative and unique ways to prepare for the transition. Also, HR needs to ensure
 MBA 533 – Human
Resource in Management - HR Project 4

employees have the capabilities necessary to do the job effectively with the ultimate objective to

develop and support the overall organizational goals. (Becton & Schraeder, 2015)

The overall purpose of the HR Forecast is to: (1) ensure the organization has adequate

human resources to meet its goals and operational plans, (2) allow the organization to stay on top

of the current social, economic, legislative and technological trends that affect human resources,

and (3) allow the organization to remain flexible to the dynamic changes in the environment.

Labor Supply/demand

1. Labor supply/demand will become more rigorous (demand for workers will increase, but
the labor pool will remain the same or shrink). Labor costs will increase.
Motor’s and More has realized a 96% growth in production orders. As a result, the

company needs to hire new employees to keep up with product demands. At the current time,

there is a shortage of workers available. Motors and More will have to make a difficult choice

and incur an increase in overall labor costs. Technological advances will help Motor’s and More

to deal with the labor shortage by automating certain tasks that employees would normally

handle.

Furthermore, the organization must learn to adapt to future objectives and workforce

planning goals. Motor’s and More must be cognizant of this increase in demand; the organization

must first look to use technological change to rapidly identify and bring on employees that

previously may not have been needed by the organization. Secondly, Motors and More will

invest in an HRIS system to begin the process of eventually replacing labor with technology. The

Human Resources function is experiencing a digital transformation, and Motor’s and More wants

to effectively and efficiently managed large amounts of employee data.

 MBA 533 – Human
Resource in Management - HR Project 5

Assessing the current human resource capacity

Based on the organization’s strategic plan, the first step is to evaluate the existing human

resource capacity of the organization. The knowledge, skills, and abilities of current employees

need to be identified. This identification can be made by developing a skills inventory for each

employee. The skills inventory must go beyond the skills required for a particular position.

Instead, it should list all the skills each person has demonstrated. For example, community or

volunteer activities may involve special skills that could be relevant to the organization.

Education levels and certificates or additional training should also be included. Once a

performance assessment has been completed, it can be reviewed to determine if the person is

ready and willing to take on more responsibility and to look at the person’s current development

plans.

Forecasting human resource requirements

The second step is to predict human resource needs for the future based on the strategic goals of

the organization. A realistic forecast of human resources contains the estimation of both supply

and demand. When forecasting the possible demand for human resources, it is also vital to assess

the challenges the organization will have in meeting its staffing needs based on the external

environment. This assessment must focus on how the external environment may impact human

resource needs.

“Modeling and forecasting can give management important information about the

implications of different human resource strategies that can be used to support the goals of the

organization” (Bechet, 2002)

 MBA 533 – Human
Resource in Management - HR Project 6

The modeling techniques can range from the relatively simple to the substantially complex. “ It

is important that the model was chosen to be straightforward enough so that it will be better

understood by management, and the results will be more likely accepted” (Bechet, 2002, p. 210).

Motors and More can also consider outsourcing some of the organizations nonskilled

work functions; this is sometimes called “staff sourcing” in which the organization pays a fee to

an employee leasing company or professional employer (PEO) that handles job functions such as

payroll, employee benefits, and administrative HR functions. Since Motors and More is a small

to medium-sized business, they should utilize an outsourcing firm to save the Capex expense of

hiring a large number of employees internally at one time. By utilizing employees on a leased

basis from a reputable temporary employee provider, the total cost of hire ranges from $750-

$2,000 which is significantly less than hiring internally (Ivancevich, J. M., & Konopaske,

R.,2013)

Outsourcing strategies

Using external individuals or organizations to do some tasks, many organizations look

outside their human resource pool and contract for certain skills. This is particularly helpful for

accomplishing specific, specialized tasks that don't require ongoing full-time work. Some

organizations outsource human resource activities. As mentioned in an article by Recruitment

Enhancement Services, “a solution to the problem posed by the significant expenses associated

with traditional recruitment is Recruitment Process Outsourcing (RPO)” (Siegel, 2005) RPO is

the transfer of the talent hiring process from an organization’s Human Resource department to a

supplier/partner whose core competency lies in that very area. RPO can result in several benefits

to an organization, including the reason Motors and More will use temporary, or part-time

employees are the low relative cost for labor and access to an experienced labor pool that
 MBA 533 – Human
Resource in Management - HR Project 7

maintains flexibility in changes to the business and demand for workers. The reason for the cost

advantage in using temporary staffing help is that Motors and More will not have to provide

benefits for these employees.

Furthermore, the organization does not have to train, compensate, or promise a specified

career path for the temporary employee; this is done through the temporary organization. The

ability to move workers in an out of different positions as the business needs change is one of the

significant positive reasons for utilizing an outsourced or temporary employment firm. Motors

and More should seek a firm that can provide workers for non-crucial positions such as

maintenance, cleaning, and temporary labor.

Another option that Motor’s and More needs to explore is its existing employee base and

offer additional shifts, including overtime opportunities to reduce the extra workforce required to

keep up with production. With the necessary increase in product output estimated to be at 96%,

Motors and More should seek the President’s approval for adding a second work site for specific

defined tasks. By adding worksite with production equipment, the organization will effectively

be able to use existing employees to increase output immediately. This second location will need

to be located close to the current site as the President has made it clear he does not intend on

moving for the corporation outside of the United States.

Another massive opportunity for Motors and More is the expansion of the salesforce. By

training customer service employees on sales skills and the ability to upsell, you can increase the

customer service job into an inside sales position as well, thus increasing the ability to sell more

products. Customer service agents can also serve the inside sales function and present buying

opportunities for the customer through the customer service line. With an increased output of the

product, it requires an increased sales ability of the employee base.

 MBA 533 – Human
Resource in Management - HR Project 8

2. Demand for Motors and More products will continue to increase.

Based on the fact that the labor pool has decreased significantly, production defects will

also continue to increase. When mistakes are made, and a production defect is a result, there is a

high cost to the organization. An analysis should be conducted to determine the root cause of the

increasing defect rate. It is appealing to assume that the lack of training with temporary

employees is the problem and therefore training is the solution. We cannot pinpoint an exact

cause of the defective product, so a needs analysis will be completed to get to the root of the

issue. Given the increased output demand, there could be machine maintenance issues. By

placing a focus only on speed may cause carelessness within the business unit. A unit-produced

incentive might be providing a bonus based on output and quality together to avoid the majority

of defects in quality. We need to recognize that not all employees maybe want to work an

overtime shift and maybe tired of working overtime house or perhaps don’t care about quality.

The other possibility is that the organization needs to purchase a higher quality of raw materials.

The root cause must be determined and then addressed. Adding staff in quality control will

increase costs but will not address the issue of growing defects. Quality control catches mistakes

after production and is not a solution to reducing errors.

Once the root cause of product defects is established, leadership will develop a tailored

training program that will address the issue at hand. The company will also create a monthly

spiff where employees who complete their work without defect will be rewarded with an extra

$200 bonus per month. This will provide the necessary motivation to reduce defects in quality as

well as provide employees the opportunities to earn additional income just by doing their job.
 MBA 533 – Human
Resource in Management - HR Project 9

3. Motors and More’s workforce will become more diverse as the company hires more

Hispanics, Kurds, and persons from alternative workforces.

At present, the labor shortage will require Motors and More to hire a more diverse

workforce. As a result, a formal community program will be enacted to welcome the new

community groups to the area with the ultimate goal of bringing them into the organization and

retaining their employment. For Motors and More to remain productive and meet customer

needs, the organization must actively manage diversity. Motors and More must portray the

culture and image that diversity is valued within the organizations and that all new employees

will be trained to have the necessary skills to do their jobs. Motors and More may want to

consider an outside training vendor if needed.

Government policies are one of the most important factors in planning. Requirements for

an equal employment opportunity and promotion call for more HR planning initiatives for

women and other employees in minority groups. Finally, the types of people employed and the

tasks they perform are important in determining the type of planning that is necessary. Since the

organization is planning for executive-level replacement, the planning process could require the

company to anticipate needs ten or more years into the future. (Bartech, 2009)

Motors and More will ensure that HR encourages the diversity of the workforce due to

increased staff retention and productivity. The concept of embracing a diverse culture refers to

“a comprehensive organizational and managerial process for developing an environment that

maximizes the potential of all employees by valuing diversity” (Whitlock, 2020, pg. 1). When

we refer to diversity, we are alluding to human abilities that are different from our own and

separate from the groups to which we belong. However, the real advantage of a diverse

workforce is manifested in other individuals and groups. The layers of diversity include age,
 MBA 533 – Human
Resource in Management - HR Project 10

ethnicity, gender, physical abilities/qualities, race, sexual orientation, educational background,

geographic location, income, marital or partner status, military experience, parental status,

religious beliefs, work experience, and job classification. (Whitlock, 2020)

By creating a diverse culture, it enhances our organization's responsiveness to an

increasingly diverse world of customers, improves relations with the surrounding community,

increases our ability to cope with change, and expands the creativity of our organization. Also,

Motors and More will offering cultural training as our organizational forecast predicts that since

increased employment is necessary immediately. The company will need to utilize the town's

new population of new cultures, including the Kurds and the Hispanic population that live close

to the community. The company needs a strong message on ethical considerations and how to

manage and value diversity. Management modeling and coaching may also be important. If the

work environment is a team-based structure, team training will support productivity. Because of

the current lack of diversity among the management team (there is just one female supervisor

while all the other managers are men), HR should utilize the HRIS system to conduct a job

analysis to determine if the difference in titles is justified.

Based on this assumption, the pay grade would be higher, and the organization needs to

see if this would be the best strategy moving forward or if changing to a pay for performance

system would work better for the organization as a whole. If customer service expands to include

outbound responsibilities, a job reevaluation would be required. HR will want to increase

minority hiring to provide a more balanced workforce and better reflect the local population. The

practice of seniority-based promotions should change to the practice of hiring the best, most

qualified person for the job. Changing these practices should improve employee relations and

reduce the chances of ending up in a courtroom for a discrimination case.

 MBA 533 – Human
Resource in Management - HR Project 11

4. The president will start another company and will hire someone to manage the daily

operations of Motors and More while he takes on more of an overseeing role.

President of Motors and More has decided to diversify the companies capabilities and

will be leaving to focus on opening a second business. Due to the absence of our leader, Motors

and More must have a succession plan that will provide the most talented replacement to carry

out the company’s mission and meet organizational goals. Succession planning is defined as

“the process where an organization ensures that employees are recruited and developed to fill

each key role within the company” (Heathfield, 2019)

Organizations change and grow daily, and leadership positions are constantly being filled

by the experienced talent and are normally taken positively, especially with regards to the vision,

skill, and enthusiasm of the people who lead and manage them. Over time you will see that the

organizations slowly starts to manifest the Presidents “embodiment of their judgment, values,

and decisions” (Seymour, 2008, p. 3) If they retire or leave for other reasons, the attitude and

dynamics of the business will be likely to change without a strong handoff from the current

leader to the one who will be taking over. If the value of the business is to be maintained or

enhanced, these changes must be carefully controlled.

The first action item is to decide what type of effect the President’s departure will make

on the organization and the remaining staff members. Once we gain a better understanding of the

President's primary responsibility, whether it be in sales motivation, financial controls, or the

management of key account relationships, we can identify possible sources of talent to succeed

in his position. It is my recommendation that the current company CFO take over the Presidents

duties while he is working at his other company. The CFO will undergo a complete training plan

that will help the organization train a current high-level executive to assume the Presidents role
 MBA 533 – Human
Resource in Management - HR Project 12

while he is out of town. This training program will be conducted, and performance will be

monitored through the use of the HRIS system. Coaching, job rotation, work assignments, and

outside development are all training opportunities. The organization will be diligent in

considering that existing managers have the only departmental area experience, and some may

have managed more than one function. If Motors and More decide to hire from outside of the

organization, a head hunter will be utilized to find the appropriate person with the requisite

amount of experience, especially with a candidate with a history of leading organizations that

have increased demand for the product and a shrinking talent pool. The perfect candidate for this

role should have comprehensive management experience, be comfortable with the organization’s

culture and initiatives. Eventually, Motors and More would like to find a professional that works

with the existing President to take the proper steps to change the organization’s culture

progressively. Also, the candidate must be willing to relocate to a small town, and a relocation

packet will be available if we decide to use an external hire for this position.

5. Motors and More will decide to develop an additional product to broaden its portfolio.

To increase market share and the overall success of the organization, the company has

decided to promote a team that will handle research and development. The goal is to create

additional products to help level the current product demand and increase overall sales. Currenly,

the organization has not identified a new product to introduce to the market. However, since

Motors and More is a company that has a strong prospector strategy, the organization will benefit

from being the first to market, and we plan to develop and produce an upgraded version of our

best-selling motor. The new product will require a new production line and more staff. We will

utilize existing employees, and add overtime opportunities to help staff requirements. We will
 MBA 533 – Human
Resource in Management - HR Project 13

also utilize an outsourcing firm for administrative and labor tasks. The current facility is at max

production capacity and is unable to accommodate an expansion on site. The availability of

employees will be crucial to the success of this operations, as there are more jobs than there are

available workers. Based on these assumptions, we have decided that this is a good opportunity

to establish a second manufacturing facility. Motor’s and More recognizes that the President is

committed to the local area and will plan to develop a new plant within a 20 mile proximity to

the current location, and of course it will be located within the southern United States so that the

company can stay true to its roots. In addition, we have decided to stay in the South because of

the lower wage threshold and lack of union representation. This expansion will require additional

labor forecasting, as the current and new operations must be taken into consideration. The

current facility cannot hold the expansion; therefore, the president of the company decided to

open a second manufacturing facility based in the USA. According to previous assessment, the

South is the best option for the expansion because lower wages and fewer unions. Motors and

More will conduct a further labor forecasting assessment taking into consideration current and

new operations (McCain).

Forecasting Demand:

In conducting the assessment, Motors and More will utilize different metrics, such as

expert estimates, trend projections, statistical modeling, and unit demand forecasting. Under the

expert estimate, the organization designates one or more subject matter experts to provide

Motors and More with demand estimates based on “experiences, guesses, intuition, and

subjective assessments of available economic and labor force indicators” (Ivancevich &

Konopaske, 2013, p. 132).

 MBA 533 – Human
Resource in Management - HR Project 14

Trend Projection

Utilization of the trend analysis assessment develops a forecast based on a past

relationship with the employer, taking into account patterns in the industry to predict the

organization’s future talent needs. Within this analysis, Motors and More will seek to develop

additional position types, gain a better understanding of the turnover rate, and also provides

information with regards to salary. Through the use of trend projection, Motors and More can

measure the percentage of growth to develop a plan for success in the new company and to

determine staff needed to satisfy customers ’ demands. It assists in determining factors such as

competition, the economic environment, and technology to improve productivity, the primary

drivers of Motors and More labor demands

Judgmental Forecast:

The final forecast that Motors and More will employ is called a judgmental forecast. This

type of forecast relies significantly on the manager’s ability to foresee future talent needed.

Managers have a better understanding of the organization's objectives and understand what is

required daily since they deal with the operations and customer management functions. Motors

and More will utilize front line managers to help assist in deciding a quantitative prediction of

staff and skill levels needed. A major component that is used to assess the current supply of

employees is the skills inventory.

Furthermore, Motors and More will develop a specific management inventory. The point

of these inventories is to gain a better understanding of the types of skills, abilities, experience,

and training that employees currently possess. Within the skills inventory, our HRIS system will

provide a distinct inventory for managerial employees. In the most basic form, Motors and More

will establish a database of employee names, characteristics, and the skill sets of employees
 MBA 533 – Human
Resource in Management - HR Project 15

currently employed. Finally, within the skills inventory, Motors and More will keep tracking of

three key categories, including (1) data that summarizes the employee's past, (2) data the

summarizes the employee's current skills, and (3) focus points for the future.

By utilizing the third party employee leasing company, also known as co-employment,

the company would operate the same as it currently does, and current staffers still do their day-

to-day jobs. However, the main benefit to Motors and More is that officially they work for

another company called a professional employer organization. These firms operate as the HR

department for tons of small business that exist, and are responsible for payroll, managing

employee-related taxes and

Conclusion:

The various methods discussed in the HR Forecast is designed to show that there is no one best

method for conducting HR Planning. The amount of time required for HR planning, which

forecasting techniques will work the best, and how far in the future should the HR team estimate

their planning activities are all different and will be specific to the given organization. Our text

indicates that a majority of companies do not devote enough time and energy to this process.

(Ivancevich & Konopaske, 2013) The other situation arises where organizations are not yet

aware of the solutions that exist to help close the gap between the supply and demand of labor.

Human resource planning can be an integral part of the HRM program. It is directly related to

recruitment, selection, training, and promotion. By matching supply and demand, the

organization can know how many people of what type it needs to fill positions from within (by

promotion or training) and how many it must acquire from outside (by recruitment and

selection).
 MBA 533 – Human
Resource in Management - HR Project 16

References

Bartech, K. (2009, November). The Employment Projections for 2008-2018. Monthly Labor
Review.

Bechet, T. a.-2. (2002). “Modeling and Forecasting: Focusing on People as a Strategic

Resource,”. Human Resource Planning, 10(4), 209-217.

Becker, B. &., & Becker, B. (2006). Strategic Human Resources Management: Where Do We Go
from Here? Journal of Management, 899-902.

Becton, J. B., & Schraeder, M. (2015). Are we there yet? What's next for HR? Human Resource
Management Review, 25(2), 188-204. doi:https://doi.org/10.1016/j.hrmr.2015.01.004

Ivancevich, J. M., & Konopaske, R. (2013). Human Resource Management (12 ed.). New York,
New York: McGraw-Hill Irwin.

Seymour, S. (2008). Boost your business value with succession planning. Human Resource
Management International Digest, 16(4), 3-5.
doi:https://doi.org/10.1108/09670730810878385

Siegel, B. (2005). The Business Case for Recruitment Process Outsourcing. Recruitment
Enhancement Services , 6-24.

Sunoo, B. P. (2007). Are Temporary Executives the Wave of the Future? HR Focus, 84(9), 10-11.