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Human Resource Planning
The excitement Clothing company has two stores in the same city approximately 5 km away from each other with store A selling in 2014 with 3 employees 1.000.000 $ worth of clothes and in-store B with 4 employees 1.200.000 $ worth of cloths. The company predicts that for store A sales will climb by 20% in 2015. For store B it predicts that the sales will increase by 10% in the same year.
Question: Assuming productivity per employee remains the same in-store A while the productivity of employees in-store B climbs to the level of store A does Excitement Clothing company need to hire new FT employees? (Note: potential factors like turnover and absenteeism are to be neglected and 0.5 indicates ½ FTE).
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