1) Identify the main HR issue in the case and provide a brief explanation on why you chose this  as the main HR issue , this should be identified to be the root cause of the current problem facing Paolo 2) How could this (the main HR issue) have been avoided? Provide details and a  clear explanation that is linked to the case.

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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1) Identify the main HR issue in the case and provide a brief explanation on why you chose this 
as the main HR issue , this should be identified to be the root cause of the
current problem facing Paolo

2) How could this (the main HR issue) have been avoided? Provide details and a 
clear explanation that is linked to the case.

 

Identify ten (10) HR elements in the case
These HR elements refer to any HR
concepts, theories, terms, topics etc that you can identify form the various HR topics
covered and discussed.
each HR element must contain a direct reference
from the case (using quotation marks) that relate to that HR element.
Transcribed Image Text:Identify ten (10) HR elements in the case These HR elements refer to any HR concepts, theories, terms, topics etc that you can identify form the various HR topics covered and discussed. each HR element must contain a direct reference from the case (using quotation marks) that relate to that HR element.
employees filling it. As Paolo said, "I was losing two to three employees a month." He also said,
"We're a high-volume store, and while we should have [to fill all the hours in a week] about six
employees per store, we were down to only three of four, so my managers and I were really under
the gun"
The problem was bad at the hourly employee level: "We were churning a lot at the hourly level,"
said Paolo. "Applicants would come in, my managers or I would hire them and not spend much
time preparing them for the roles and responsibilities associated with her new position, and the
good ones would leave in frustration after a few weeks, while often it was the bad ones who'd
stay behind." But in the last 2 years, Paolo's three company-owned stores also went through a
total of three store managers - "they were just blowing through the door," as Paolo put it, in part
because, without good employees, their workday was brutal. As a rule, when a small-business
owner or manager can't find enough employees (or an employee doesn't show up for work), about
80% of the time the owner or manager does the job him or herself. So, these managers often
ended up working 7 days a week, 10 to 12 hours a day, and many just burned out in the end. One
night, working three jobs himself with customers leaving in anger, Paolo decided he'd never just
hire someone because he was desperate again, but would start doing his hiring more rationally.
As a local business, Paolo recruits by placing help-wanted ads in two local newspapers, and he's
been "shocked" at some of the responses and experiences he's had in response to his help-
wanted ads. Many of the applicants left voice mail messages (Paolo or the other workers in the
store were too busy to answer), and some applicants Paolo "just axed" on the assumption that
people without good telephone manners wouldn't have very good manners in the store, either.
He also quickly learned that he had to throw out a very wide net, even if only hiring one or two
people. Many people, as noted, he just deleted because of the messages they left, and about half
of the people he scheduled to come in for interviews didn't show up. He'd taken courses in human
resource management, so (as he said) "I should know better," but he hired people based almost
exclusively on a single interview (he occasionally made a feeble attempt to check references). In
total, his HR approach was obviously not working. It wasn't producing enough good recruits, and
the people he did hire were often problematical.
Paolo knew that that he could identify many of the traits that his employees needed. As he said,
"It's much better to spend time up-front screening out candidates that don't fit than to hire them
and have to put up with their ineffectiveness." For example, he knew that not everyone has the
temperament to be a server (he has a small pizza/ Italian restaurant at the back of his main store).
As Paolo said, "I've seen personalities that were off the charts in assertiveness or overly
introverted, traits that obviously don't make a good fit for a waiter or waitress." What was he
looking for? Service-oriented courteous people, for one. For example, he'd hired one employee
who used profanity several times, including once in front of a customer. On that employee's third
day, Paolo had to tell her, "I think Paolo's isn't the right place for you," and he fired her. As Paolo
said, "I felt bad, but also knew that everything I have is on the line for this business, so I wasn't
going to let anyone run this business down." Paolo wants reliable people (who'll show up on time),
honest people, and people who are flexible about switching jobs and hours as required.
Paolo's pizza business has only the most rudimentary human resource management system.
Paolo bought several application forms at a local Office Depot, and rarely uses other forms of any
sort. He uses his personal accountant for reviewing the company's books, and Paolo himself
computes each employee's paycheck at the end of the week and writes the checks. Training is
entirely on-the-job. Paolo personally trained each of his employees. For those employees who go
on to be store managers, he assumes that they are training their own employees the way Paolo
trained them (for better or worse, as it turns out). Paolo pays "a bit above prevailing wage rates
(judging by other help-wanted ads), but he thinks it's not enough to make a significant difference
in the quality of employees that he attracts. If you asked Paolo what his reputation is as an
employer, Paolo, being a candid and forthright person, would probably tell you that he is a
supportive but hard-nosed employer who treats people fairly, but whose business reputation may
suffer from disorganization stemming from his HR issues. He approaches you to ask for advice.
Transcribed Image Text:employees filling it. As Paolo said, "I was losing two to three employees a month." He also said, "We're a high-volume store, and while we should have [to fill all the hours in a week] about six employees per store, we were down to only three of four, so my managers and I were really under the gun" The problem was bad at the hourly employee level: "We were churning a lot at the hourly level," said Paolo. "Applicants would come in, my managers or I would hire them and not spend much time preparing them for the roles and responsibilities associated with her new position, and the good ones would leave in frustration after a few weeks, while often it was the bad ones who'd stay behind." But in the last 2 years, Paolo's three company-owned stores also went through a total of three store managers - "they were just blowing through the door," as Paolo put it, in part because, without good employees, their workday was brutal. As a rule, when a small-business owner or manager can't find enough employees (or an employee doesn't show up for work), about 80% of the time the owner or manager does the job him or herself. So, these managers often ended up working 7 days a week, 10 to 12 hours a day, and many just burned out in the end. One night, working three jobs himself with customers leaving in anger, Paolo decided he'd never just hire someone because he was desperate again, but would start doing his hiring more rationally. As a local business, Paolo recruits by placing help-wanted ads in two local newspapers, and he's been "shocked" at some of the responses and experiences he's had in response to his help- wanted ads. Many of the applicants left voice mail messages (Paolo or the other workers in the store were too busy to answer), and some applicants Paolo "just axed" on the assumption that people without good telephone manners wouldn't have very good manners in the store, either. He also quickly learned that he had to throw out a very wide net, even if only hiring one or two people. Many people, as noted, he just deleted because of the messages they left, and about half of the people he scheduled to come in for interviews didn't show up. He'd taken courses in human resource management, so (as he said) "I should know better," but he hired people based almost exclusively on a single interview (he occasionally made a feeble attempt to check references). In total, his HR approach was obviously not working. It wasn't producing enough good recruits, and the people he did hire were often problematical. Paolo knew that that he could identify many of the traits that his employees needed. As he said, "It's much better to spend time up-front screening out candidates that don't fit than to hire them and have to put up with their ineffectiveness." For example, he knew that not everyone has the temperament to be a server (he has a small pizza/ Italian restaurant at the back of his main store). As Paolo said, "I've seen personalities that were off the charts in assertiveness or overly introverted, traits that obviously don't make a good fit for a waiter or waitress." What was he looking for? Service-oriented courteous people, for one. For example, he'd hired one employee who used profanity several times, including once in front of a customer. On that employee's third day, Paolo had to tell her, "I think Paolo's isn't the right place for you," and he fired her. As Paolo said, "I felt bad, but also knew that everything I have is on the line for this business, so I wasn't going to let anyone run this business down." Paolo wants reliable people (who'll show up on time), honest people, and people who are flexible about switching jobs and hours as required. Paolo's pizza business has only the most rudimentary human resource management system. Paolo bought several application forms at a local Office Depot, and rarely uses other forms of any sort. He uses his personal accountant for reviewing the company's books, and Paolo himself computes each employee's paycheck at the end of the week and writes the checks. Training is entirely on-the-job. Paolo personally trained each of his employees. For those employees who go on to be store managers, he assumes that they are training their own employees the way Paolo trained them (for better or worse, as it turns out). Paolo pays "a bit above prevailing wage rates (judging by other help-wanted ads), but he thinks it's not enough to make a significant difference in the quality of employees that he attracts. If you asked Paolo what his reputation is as an employer, Paolo, being a candid and forthright person, would probably tell you that he is a supportive but hard-nosed employer who treats people fairly, but whose business reputation may suffer from disorganization stemming from his HR issues. He approaches you to ask for advice.
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