Reference no: EM133138997

HR Forecasting and Planning

In order to complete your assignment, your boss has told you to make a number of assumptions.  

1. You are making all projections for the entire year (e.g., Year 1 = all of 2013), and for subsequent years ending December 31.
2. With regard to old branches, assume...
   1. The 50 old branches employ 4 supervisors and 10 clerical personnel/tellers each.
   2. 30 teller machines are to be placed in operation on December 31, 2004, and replace 30 tellers
   3. The bank does not terminate any employees because of the new teller machines. Rather, as tellers quit throughout the year, 30 are not replaced.
   4. Turnover is 30 percent for tellers/clerical personnel, and 20 percent for supervisors.
3. With regard to the new branches, assume...
   1. New branches are added as follows: 
      1. 10 in Year 1
      2. 12 in Year 2
      3. 16 in Year 3.
   2. Each new branch employs 14 individuals (4 supervisors and 10 tellers/clerical).
   3. New branches are added evenly throughout the year. Thus, for the purpose of calculating turnover, on average, there are 5 new branches in Year 1 (50% x 10), 16 in Year 2 (10 in Year 1 plus 6 [50% x 12]), and 30 in Year 3 (22 plus 8 [50% x 16]).
   4. Turnover is 30 percent for tellers/clerical personnel, and 20 percent for supervisors.
4. With regard to the main office, assume that turnover will be 10 percent per year.

Scenario

You have been given the assignment of forecasting the human resource needs of the National Bank and Trust Company, which currently employs approximately 1,100 people.  The bank presently has 50 branch offices located throughout the area, each of which employs approximately 14 individuals.  The bank expects to add 38 branches over the next three years.  Branches with the bank differ considerably in size, so the figures given represent averages.

During the past month, the bank has placed an order for 30 automated teller machines to be placed in its old branch offices.  These machines are scheduled to be in operation December 31, one year from now.  The bank has found that for each new machine purchased, one less teller is needed, on average.  

A breakdown of the bank's current staffing is shown in Table 1 below:

Table 1.

Present Staff at National Bank & Trust Company

Total Employees                    1,100

Number of Branches                  50

Supervisors per Branch               4

Number of Supervisors           200

Tellers per Branch                     10

Number of Tellers                    500

Branch Employees                   700

Corp. Office Employees            400

                                                                                    

Assignment

The bank has asked you to perform three human resource-forecasting tasks. First, based on the assumptions given on the next page, you are asked to determine employee turnover from the main office, the old branches, and the new branches. Your boss would like to know this information for each of the next three years and for each of the major personnel categories (i.e., supervisors, tellers/clerical, and main office). Your job is to complete Table 2 shown below.

Table 2.  Turnover (in number of employees)

Employee Category	Year 1	Year 2	Year 3
Old Branch Supervisors
Old Branch Tellers
Main Office
New Branch Supervisors
New Branch Tellers
Totals

Next, your boss would like to know the number of new employees the bank will need to hire for each major personnel category for each of the next three years. Your job is to complete Table 3 shown below.  

Table 3.  Number of Employees to be Hired

Employee Category	Year 1	Year 2	Year 3
Old Branch Supervisors
Old Branch Tellers
Main Office
New Branch Supervisors
New Branch Tellers
Totals

Finally, your boss would like to know the total number of employees who will be working for the company as of the end of each of the next three years. You can figure this out using Table 4 below.

Table 4.  Year End Employment

Employee Category	Year 1	Year 2	Year 3
Old Branch Supervisors
Old Branch Tellers
Main Office
New Branch Supervisors
New Branch Tellers
Totals