Motor and More Case Study

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Recruitment and retention plan: a case study of Motor and More Inc.
Case facts
Motor and More Inc is a Company that is increasingly enjoying economics of scale. It’s a big corporation in a small southern town. The firm has recently entered into a new market. With these new developments of increasing demand, product output must be amplified by 98%. The president of the company, a patriotic ex-military decides to absorb an additional 166 workers to boost operations and output which were strained. Before the recruitment, a human resource department was instituted to carry out the hiring.
Every organization requires a recruitment plan. Unplanned staffing is very dangerous; employees dictate the success or failure of any business. Therefore, it is very vital to examine and plan the human resource aspect of a company. Planning human resources or recruitment reduces costly hiring mistakes, increases the quality of recruitment and ensures that the corporation is well-equipped in the future. A recruitment plan is not that different from a business plan, in fact, a recruitment plan is a subset of a business plan. It’s the only way of analyzing people and their skills and identifying skill gaps in a business (Thomas, 2011).
The way Motor and More Inc. recruits will affect their business and operation hence there is need for a recruitment and retention plan. There are two definite recruitment options that are viable in this scenario. To cut the cost of recruiting new workers, the H.R manager can implement overtime and second-shift strategies. However, these will only solve short-term constraints. In the long-run, hiring new workers will be compulsory.
Rationale for the proposed hiring
The increased demand necessitates additional staff. A 96% increase in product demand will require a proportionate increase in the number of workers.100% increase would be appropriate. The manufacturing unit should be given the highest priority. Not all departments require additional staff. For instance, additional staffing is completely unnecessary in the finance, accounting, H.R or marketing and sales units (Mooth, 2010). Production and quality control departments are the ones directly associated with the products; hence more staff should be directed towards these. The operations department will definitely need more personnel but not so with the cleaning and maintenance departments. Customer care relations department is also a candidate for more staff though not needed immediately.
The turnover rate
Generally, there are two types of turnover; internal and external turnovers. Internal turnover is as a result of employees moving from one department to another in the same organization while external turnover is attributed to employee’s leaving the company to join another company. Transition matrix is the best tool for monitoring labor turnovers. It identifies and analyzes employee movement in an organization and also marks the point where people ditch the company. Turnover can also be voluntary or involuntary (Thomas, 2011). Voluntary turnover occurs when workers leave the company at their own wish and involuntary occurs when they do not leave at their own wish, for instance on events such as layoff...