Question

I need assistance in analyzing quarter 4 for my HR simulation report

Budget Report

	Company	Quarter	Spent	Balance	Year 1 Budget	Year 2 Budget	Year 3 Budget
	Company 03	1	$300,000	$1,000,000	$1,300,000	$1,000,000	$1,500,000
	Company 03	2	$322,000	$678,000	$1,300,000	$1,000,000	$1,500,000
	Company 03	3	$380,500	$297,500	$1,300,000	$1,000,000	$1,500,000
	Company 03	4	$300,185	($2,685)	$1,300,000	$1,000,000	$1,500,000
	Company 03	5	$284,000	$713,315	$1,300,000	$1,000,000	$1,500,000
	Company 03	6	$212,000	$501,315	$1,300,000	$1,000,000	$1,500,000

Decisions Report

Quarter 4	ICP	Stress Management	5	$10,000
			Suicide Attempt	4	$20,000
			Employee Layoff	4	$45,185
		Practice	Performance Appraisals	5	$45,000
			Work-Life Balance	2	$30,000
			Training	5	$25,000
			Talent Management	4	$25,000
			Compensation	2	$40,000
			Selection	8	$60,000

OUTCOME
Quarter 4

The Selection decision to use work sampling and assessment centers, in addition to testing knowledge of trends is reportedly yielding some excellent new hires. We are getting an excellent picture of each candidate's true KSAs and hiring managers as well as team members are very pleased with these results.

The Training decision to base more learning objectives on essential job functions is a reasonable choice. It has helped somewhat and employees report a slightly improved focus during training events.

The Talent Management decision to use a systematic job posting and selection process for transfers and promotions is helpful. Previously there was apparently some question about how fair and equitable this process was. Employees have responded that they feel a better sense of fairness and look forward to better results.

The Performance Appraisal decision to verify that employees are being evaluated fairly and objectively by comparing written appraisals with other measures of performance, is being well-received by employees. Managers have only complained mildly, questioning whether they are not already providing objective appraisals.

Your Compensation decision to focus on merit increases rather than any variable based pay is met with mixed reviews. Some employees like it because they figure they will get a regular increase no matter how well or poorly the company does. Other employees don't like it because they want a stake in the company's success. Some managers agree it makes costs predictable but others argue that it affords little actual "control" in down times.

The Work/Life Balance decision to sponsor a series of Dinners-For-Eight so employees and their partners can get to know others in eGS has been called "delightful" by those who participated this past quarter. Several employees commented that socializing with partners and family members of co-workers created a sense of closeness that was really quite nice.

The decision to create a task force to develop ways to make work at eGS more fun and/or to help employees to relax has been hugely successful. Ideas the task force came up with which have been implemented are Friday afternoon socials, creation of a volley-ball club team as well as a basketball club team. Surprisingly, the most well-attended new idea is the lunch-walkers! Several dozen people turned out to join in the first lunch walk! Employees are responding favorably to the decision to develop a training program to educate employees on how to identify possible employee crises, such as the one with Marty, and what the process would be for reporting and/or seeking help. Many have commented that the proactive approach is helpful so we can head off things like this before they occur.

The decision to layoff Erin Chilton, the co-founder’s nephew, and two other low performers in the support staff, has significantly reduced the feelings of stress around the office. eGS employees expressed that they were proud of the company for keeping Mike Lee as well, stating that this was the right thing to do. The project team has been restructured and a new team has emerged. Several team members have indicated that, aside from a little survivor guilt, things feel better already.

Answer 1

As we can see from the provided data that in quarter 4 the company’s cumulative actual spending overshot the budgeted amount. The budgeted amount for the year was $1,300,000 and the cumulative actual spending till the 4^th quarter of year 1 was $300,000+$322,000+$380,500+$300,185 = $1,302,685

Thus the deficit was 1,302,685-1,300,000 = $2,685

As indicated by the qualitative information the initiatives of performance appraisals, work-life balance, training etc. seems to have achieved good results for the company and this shows that the strategy being implemented by the HR department is working in the right direction and helping the company to achieve some of its objectives.