Reference no: EM133161375

Strategic Human Resource Management

Tough economic periods deliver exciting HR opportunities as well as tough HR challenges. Well-managed company firms seize the opportunities and meet the challenges.

One company that prepares well for a slowdown is PriceSpective, a consulting firm. The company's four co-owners meet monthly with senior managers to determine whether their current staffing levels are appropriate for their coming needs. Whenever sales are slow, PriceSpective institutes a temporary hiring freeze. Because these actions are part of a regular planning process, employees don't worry: because they know managers are simply making course adjustments to keep the company efficient.

Also, even when clients are not signing up for their services, PriceSpective keeps a good relationship with prospective employees. For the firm's specialized pharmaceutical, it needs many employees with doctoral degrees, who would be difficult to find and hire quickly when business picks up. Of course, when interviewing during a hiring freeze, managers are careful to explain the company's situation and plan for the future.

On the other hand, other firms are able to hire during the recession and gaining access to a huge pool of talented candidate. For instance, the recession drove more shoppers to Family Dollar Stores, so the company opened more stores, and receiving applications from workers with better-than-usual credentials.

The company also needed specialists for its Information Technology Department: it found experienced IT workers who left Circuit City when that chain went out of business.

Source: Thomas S. Bateman (2011), Scott A. Snell Management: Leading & Collaborating in a Competitive World 9th edition., McGraw-Hill

Question.

Explain why PriceSpective should prepare the staffing quantity model table and how it will affect the optimum number of employees?