Business Finance Homework Help

Please read the case and answer the questions at the end. Please respond to two of your peers. Do you agree or disagree?

Technology Consultants is a company started by a computer science professor. Five years ago, the professor hired three graduate students and began offering computer and technology services to local companies. The company grew rapidly and currently employs 30 consulting specialists. The typical specialist recently graduated from college with a degree in information management or computer science. Each specialist is assigned to work as part of a team that focuses on servicing the needs of specific customers. To date, Technology Consultants have not felt a need to formalize personnel practices. The professor spends most of his time hiring and training new consulting specialists. He also has a part-time administrative assistant who helps with personnel activities such as payroll.

Some customers complain about the high turnover of consulting specialists. It seems that most consultants leave within a year after being hired. From the customers’ perspective, specialists leave just when they are beginning to understand how to provide quality service. The professor knows this is a problem, and she worries that such turnover may eventually lead customers to cancel their contracts for service. In the past, she and a few key employees were able to form long-term relationships with most clients, but this is becoming increasingly difficult as the company grows.

Technology Consultants recruits at two local universities. This practice seems to be effective, as most graduates from the programs have the technical skills needed to serve clients. The hiring process consists of a series of interviews. The professor and two other employees conduct informal interviews and then offer jobs to individuals they feel will be successful. They don’t worry much about personality traits or past achievements; they simply focus on assessing technical skills. The performance of each consulting specialist is measured against the performance of peers, and only a few employees receive the highest ratings. Since most employees are expected to possess the technical skills they need when they are hired, Technology Consultants does not offer opportunities for training and development. Compensation has been a difficult issue for the company’s founder. She wants to encourage teamwork, so she has chosen to structure pay so that most employees receive similar wages. She doesn’t want to have some employees earning a lot more than others. New hires are paid approximately the same as other consulting specialists. So far, the company has found it difficult to offer employee benefits. The professor feels that the cost of the benefits is too high.

Questions:

1. Which human resource practices would you recommend that Technology Consultants change?
2. How well do the company’s human resources practices align with one another?
3. How would you approach human resource management if you were starting a company like Technology Consultants?

   Reply:

First peer below

Hello everyone,

Which human resource practices would you recommend that Technology Consultants change?

The first think that I would recommend would be for Technology Consultants to hire a human resource specialist. Then from there I would have that specialist that would create a plan on how to obtain and hire loyal employees that would be willing to stay with the company long term. I would have them start with figuring out why they are leaving. I think that they will find that the way she pays her new employees the same as the employees that have been there longer the same will be one of the first problems. The specialist will also need to develop a form of training to better equip the employees with helping the clients.

How well do the company’s human resources practices align with one another?

They do not align at all. This company doesn’t put any effort into their personnel and that is why they are struggling with a high turnover rate. Which hurts the productivity because instead of the professor being able to focus on making the company better she is having to focus on constantly hiring and training new people.

How would you approach human resource management if you were starting a company like Technology Consultants?

If I was starting a company like Technology Consultants I would start with a human resource plan. What are the needs, goals, and priorities of that company. I would evaluate how much I would be able to afford to pay the employees and to see what benefits I am able to give them. Then I would develop a training plan so that those employees are able to feel confident in their work and the clients will be happy. If I start to see the problems that Technology Consultants is having then I would try to identify the problem.

Reply:

Second peer below

First of all, I would hire a full-time HR professional who can manage the hiring process, payroll, and training. Companies with more than 30 employees need an HR specialist. I think Technology Consultants’ problems are the lack of benefits, pay structure, and carrier opportunities. Employees are always looking for a good compensation package, and the company is not offering one, they will leave sooner or later. After one year of experience, graduate students can look for another job with a better chance of getting better benefits from another company since they are no longer fresh graduates. Another issue with Technology Consultants company is that no matter how much effort employees put to work, there is no pay or another compensation difference and growing opportunity. The company needs to establish a training program and a better pay structure.

Technology Consultant does not have any HR practices align with one another. They have to focus on reducing employee turnovers. HR professionals can help develop training programs and focus on hiring people who do not just have the technical knowledge but also team players.

I would hire an HR specialist full-time and let him do the hiring. I would emphasize hiring besides the technology knowledge people who are team players. However, the most vital part is offering an outstanding compensation package even if it is expensive. Without great benefits, employees will leave the company, and HR can not focus on employee development, training. Moreover, the business will suffer long-term because the clientele likes to deal with the same people.