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Guidelines for Case 2
To be successful with this case you will need to review it and the text reading assignment
carefully – do not just scan it and expect to go right to the questions. Be sure you
understand what your goal is before you begin.
The format to be used is to number each answer for each question. You can insert after
the number of the question all input you elect to provide. It is sometimes helpful for
students to put the question at the beginning of their answer to keep focus on answering
the entire question and not forgetting important parts of the question. When the question
asks for a memo you are to create a business communication in the form of an official
memo.
At the beginning of the case there are some key points that will be covered. Do NOT be
mistaken to think that those are your questions for the case. Your questions are to be
found at the conclusion of the case under Specific Detailed Instructions.
This case contains some quantitative challenges, and requires students to accurately
perform basic calculations involving human resources data.
The case begins with the Markov Analysis. You will be able to copy and paste the form
into a word document and then enter your calculations.
Step One: You are given the percent of people who stayed or were retained in the current
position. Example: 53 percent remain as Store associates, while 6 percent were promoted
to (2) Shift leader. So that means you take .53 X 8,500 = 4505 and .06 X 8,500 = 510.
Proceed with the calculations using the example as shown above for each percent given
applying it to the position affected. That will give you correct figures in your Forecast of
Availabilities for the next year projections. Do not skip any of the percentages given.
The figures give in the ‘Exit’ column are simply that – How many in each position left
the company. This is NOT the figure used in the Markov Analysis because it does not
consider those who were promoted to the next position level or demoted, if that is the
case.

Step Two: Once you have the correct figures entered in the middle table, add up those
figures for each column. Then take the sum and subtract it from the current workforce
figure as given in the table. For example Take 8,500 – 4,505 for Store associates and that
means that of the 8,500 you will need for next year, 4,505 remain in the position meaning
you will have a gap of 3,995. Do the same calculations, only extrapolate the figures from
the calculations you have performed for each position. This will provide the Gap
analysis you seek to provide to Tanglewood for planning purposes for the year to come.
Doing this successfully you have completed the Markov Analysis correctly for the
company. This is a handy method to project what positions will need to be
recruited/filled for the following year. If a company were in a growth spurt, the current
year figures might be adapted to include projected increases in that position and then
figure into the calculations accordingly.
NOTE that 1e of the question for Case two Question 1, requires a memo to be generated
from you explaining the hiring goals. (The text will give you a good idea of what this
question requires in line with a corporate communications and will required that you have
read and understood Case one which lays the ground work for strategic staffing levels
issues. This review was to have been accomplished in Week one. If you did not do that,
than now is a great time to review Case one.
Question 2 requires you do some research. The link is provided for the Census EEO Data
tool. The internal data for the current workforce is explained and provided for you in the
case. The text will also provide helpful guidance in understanding how to calculate and
understand any deficiency in the available workforce compared to the current workforce.
Do your best to evaluate these figures and determine where, if any, deficiencies exist.
You need not show your calculations, but you do need to arrive at several of the trends
you can determine from the data to accurately address this question.
Question 3: Here you need to think about internal versus external hires to correct any
noted discrepancies for the affirmative action plan. What time line should be followed, a
speedy approach or a consistent slower approach and why would one be better over
another. Be sure to read the question carefully and address all the questions posed in the
case.
Question 4: This question again required a new memo to be developed. Be aware of the
culture of Tanglewood as you prepare to let managers in other stores know what has been
discovered at the Washington Store. Managers are encouraged to be autonomous while
also feeling as though they are participating fully in the ownership and management of
Tangelwood operations. It is important at Tanglewood that all employees feel a sense of
satisfaction. The goal is to encourage managers to address local shortfalls in EEO areas
successfully. Not only must EEO goals be held as key to hiring, but simultaneous
attention MUST be paid to qualifications for each position as well.

TANGLEWOOD
CASEBOOK
for use with
STAFFING
ORGANIZATIONS

9th Ed.
Kammeyer-Mueller
1
Case 2: Planning
CASE TWO:
PLANNING
Section Objectives
The planning process in staffing involves making forecasts of an organization’s future
hiring needs and developing methods the organization can use to meet these needs. The
process of planning involves a combination of forecasting labor needs, comparing these
needs to the labor availabilities, and determining where gaps exist. After these gaps are
identified, general plans for filling these gaps are enacted.
Beyond the process of developing objectives for the number of individuals to be hired,
planning activities often take the demographic composition of the workforce into
consideration. Attending to the demographic breakdown of the workforce is important for
a number of reasons. One is to ensure that the company has employees who can understand
the perspective of the populations the company serves. The second reason is to minimize
concerns about Equal Employment Opportunity violations2. For both purposes, the current
workforce can be compared to the demographic characteristics of other individuals who
work in similar jobs.
Planning for the State of Washington: Forecasting Requirements and Availabilities
The Staffing Services Director, Daryl Perrone, has requested your assistance in the
completion of an HR planning analysis for the 50 stores in two regional divisions in the
state of Washington. After these overall goals are developed for the state, the policy will
be disseminated across all 50 individual stores. Data from the individual stores will then
be sent to the corporate offices for analysis and re-evaluation.
The basic model for planning includes (1) forecasting labor requirements, (2) forecasting
labor availabilities, (3) conducting environmental scans, (4) determining gaps, and (5)
developing action plans. These steps are described in Staffing Organizations. Conducting
an adequate human resources selection plan will require you to take all of these steps.
Historical data from these two divisions have been presented in the transition probability
matrix. Information on how to read transition matrices is provided in Staffing
Organizations. The transition probability matrix was developed based on the historical
staffing pattern for Washington over the past five years. A first stage of investigating
staffing is to use the previous years’ staffing patterns as a preliminary forecast of labor
requirements, the internal availability based on retention, internal promotions, transfers and
demotions, and a determination of gaps by subtracting forecasted availabilities from future
requirements.
It is important to note that a discrepancy between the current workforce and the available workforce is not
sufficient to demonstrate an EEO violation.
Tanglewood Casebook to Accompany Staffing Organizations, 9e
1
consent of McGraw-Hill Education.
2
Case 2: Planning
Table 1.1 Markov Analysis Information
Transition probability matrix
Previous
year
(1) Store associate
(3) Department manager
(4) Assistant store manager
(5) Store manager
Forecast of availabilities
Previous
year
(1) Store associate
(3) Department manager
(4) Assistant store manager
(5) Store manager
(2)
0.06
0.50
0.00
0.00
0.00
(5)
0.00
0.00
0.00
0.08
0.66
Exit
0.41
0.34
0.30
0.40
0.34
(1)
Next year (projected)
(2)
(3)
(4)
(5)
Exit
510
3485
Current Workforce
8,500
4505
1,200
0
850
0
150
0
50
0
Gap analysis
Year end total
(column sum)
External hires needed
(current workforce-total)
Current year
(3)
(4)
0.00 0.00
0.16 0.00
0.58 0.12
0.06 0.46
0.00 0.00
(1)
0.53
0.00
0.00
0.00
0.00
0
0
0
Next year (projected)
(1)
(2)
(3)
(4)
(5)
4505
3995
Forecasting Labor Requirements
The Washington market is very stable for Tanglewood. Most stores have been in existence
for 10 or more years, and were indirectly managed by either Emerson or Wood when they
were first established. Because of this stability, the estimate for the coming year’s labor
requirements is identical to the current year. So, for example, they currently have 1,200
individuals working as shift leader, and expect to need 1,200 individuals to work as shift
leaders for the coming year as well.
Forecasting Labor Availabilities
One primary source of information for immediate labor availability at Tanglewood is their
internal labor market. Table 1.1 shows that Tanglewood has used internal promotions to
fill many openings for the department manager, assistant store manager, and store manager
positions. For example, it is projected that 16% of shift leaders will be promoted to the
rank of department manager, 12% of department managers will be promoted to be assistant
store managers, and 8% of assistant store managers will be promoted to be store managers.
However, it also appears that there will need to be considerable external hiring as well,
since only 46%-66% of employees stay in the same position over a one year period.
To estimate a labor forecast, the proportion (percentage) of individuals for the next year is
multiplied by the current workforce number. For the shift leader, there are 1,200
2
Prepared by John Kammeyer-Mueller
consent of McGraw-Hill Education.
Case 2: Planning
individuals in the position, of which, 50% will remain for the next year. This means that
the projected availability is 1,200 × 50% = 600. Similarly, 16% of the shift leaders will be
promoted to be department managers, so 1,200 × 16% = 192.
Conducting Environmental Scans
The environment for staffing managerial employees at Tanglewood in the state of
Washington is fairly complex. Externally, there is a consistent supply of qualified
individuals in the urban markets of Seattle and Spokane. Individuals from these urban areas
often are transferred to small towns as they move up the promotion chain. However, retail
is often seen as an undesirable market for recent college graduates. Many know of retail
work experience, and see it (partially correctly) as requiring long hours, low pay, and
frequent conflict with lower-level employees. While these factors lessen as individuals
move up the hierarchy, many individuals are reluctant to put in several years in the shift
leader and department manager positions to be promoted.
The labor market in the Pacific Northwest has been relatively “soft” in recent years,
meaning that unemployment rates are high and it is usually difficult for individuals to find
new jobs. This weakness in the labor market has made it somewhat easier for Tanglewood
to find new candidates for the managerial positions, but recent forecasts suggest that
expansion in the professional and managerial sectors of the labor market may reduce the
number of individuals available for these jobs.
Internally, Tanglewood has relied on its experienced employees as a major source of talent.
As noted earlier, the company promotes extensively from within. As a result, managerial
employees often have significant experience with the company’s social environment and
culture. This internal staffing strategy is seen as a real strength for the company, because
the possibility of being promoted is believed to increase retention of lower level employees.
Determining Gaps
The current focus of staffing is to fill the vacant positions, although the organization would
like to take steps to reduce the turnover rate for many of these jobs as well. During the
planning phase targets are set for the number of individuals who need to be hired. The
process of turning these estimates into actual employees will be covered in the recruiting
phase. There are 1,200 shift leaders currently, so if 600 individuals stay, Tanglewood will
need to hire 600 more. The calculation of gaps is demonstrated in Exhibit 3.9 in Staffing
Organizations; refer to this when you are determining gaps for Tanglewood.
Developing Action Plans
Having developed a picture of the number of individuals Tanglewood will need to fill their
positions in the coming year, there are several important decisions to be made regarding
how to fill these gaps. The company’s philosophy for filling vacancies is a combination of
tactics. Tanglewood has one managerial track that promotes sales associates to be shift
leaders, then promotes shift leaders to be department managers, and so on up the
Tanglewood Casebook to Accompany Staffing Organizations, 9e
3
consent of McGraw-Hill Education.
Case 2: Planning
managerial hierarchy. An alternative managerial track is bringing in either recent college
graduates or individuals who have extensive experience in another store chain directly into
the assistant store managerial position.
Regardless of where employees come from, the corporate staffing function endorses a
strong commitment to developing long-range relationships with its workers. Many
employees initially have difficulty adapting to the unique culture of Tanglewood, so the
company is not happy to see experienced employees who have been socialized leave. There
are also concerns that having too many employees come and go will dilute the company’s
strong culture.
There are reasons why the company may consider alternative perspectives on the
employment relationship in the near future. First, fluctuations in the economy have meant
that the company carries excess employees during some periods of the year, and has a
deficit of employees during other periods. There is some seasonal hiring for store associates
(e.g., hiring temporary employees for the holiday season in December), but the managerial
workforce numbers are typically fixed. Second, to preserve the company’s culture, some
have suggested having all new managerial employees spend at least a little time in the
Washington stores to get a sense of how the stores originally worked. These assignments
would be short term in nature and would probably require a more contingent outlook for
the employees they supervise.
Representation Concerns for the Flagship Store in Spokane
The problem of selection planning is made considerably more complex because of Equal
Employment Opportunity (EEO) requirements that fall on organizations that do business
with the federal government. Because several Tanglewood locations are near military bases
or government offices which have expense accounts for general merchandise items at
Tanglewood, all staffing must be done consistent with the OFCCP affirmative action
requirements. In the current case, Tanglewood needs to use information from their staffing
records to examine whether the company has a disparity in outcomes for different groups
of employees. When the proportion of protected classes being hired or currently employed
falls below the proportion in the labor market, this may indicate intentional or unintentional
discrimination in hiring and promotions that will need to be addressed through affirmative
action planning. There are also growing concerns within the organization that a
combination of rapid growth and high turnover threaten to create real problems in terms of
the demographic breakdown of employees at the organization.
Acting as part of a team of staffing professionals, you have been asked to analyze the hiring
and promotion activities of Tanglewood as they relate to the issue of disparate impact. The
first level of disparate impact analyses for the purposes of OFCCP reporting and
affirmative action planning are always done at the establishment level. An establishment,
for Tanglewood, is a single store.
This analysis will concern the corporate flagship store in Spokane, Washington. This is the
largest location within the Tanglewood chain and serves as an example for all other
4
Prepared by John Kammeyer-Mueller
consent of McGraw-Hill Education.
Case 2: Planning
locations. The store has approximately 75% more employees than an average location,
making for a total of 30 department managers, 42 shift leaders, and 300 store associates.
There are five assistant store managers and one store manager. The primary concern for
representation data is in the groups of department managers, shift leaders, and store
associates.
To assess the problem of discrimination, data from the previous year’s employees stocks
in Spokane were assembled. The data on the next page are broken into two tables. The first
shows the company’s current employee availability data, and the second provides a
template for comparing incumbency to availability.
Analyzing utilization of protected classes from the labor market requires comparing the
availability of protected classes (i.e., the proportion of the available work force who are
members of protected classes) to the utilization of protected classes (i.e., the proportion of
those hired or employed who are members of protected classes) for each job. You can find
additional information on this topic in Staffing Organizations.
In a stock analysis, data from EEO-1 reports conducted by the Equal Employment
Opportunity Commission are used to determine how many people in a certain region are
available to do the job (including those currently employed in similar jobs). The data for
the current analysis comes from the job patterns for minorities and women in private
industry tables, which were specifically designed by the government for the purpose of
conducting EEO analyses. The most recent website for this information is below:
http://www1.eeoc.gov/eeoc/statistics/employment/jobpat-eeo1/
The appropriate data can be found through the following steps:
1) Go to the website above
2) Indicate that you want the 2015 tables
3) Indicate that you want data for States, by NAICS-2
4) Indicate that you want data for Washington
5) Indicate that you will select the industry of Retail Trade
6) The appropriate table should be displayed.
Store associates and shift leaders are considered, for the present analysis, as sales workers,
while department managers are first/mid-level officials and managers.
The Procedure for Developing an Affirmative Action Plan
Tanglewood’s internal staffing policy as recently articulated from central management is
to retain as close a correspondence between their current representation and the available
workforce. The primary goal for this year is to focus attention on achieving …