Question

1. What are the major staffing functions for each business and how do you plan on fulfilling each of these functions? Will you be offering prevailing wages or foresee offering alternatives in lieu of compensation? Will you be offering health insurance or other benefits? Explain why or why not offering prevailing wages or health insurance.

2. Why is it important to calculate an accurate approximation of start-up costs and what are the downsides of presenting an inaccurate approximation to lenders or investors?

Answer 1

The major staffing functions of a business involves the following stages :

Human Resource Planning - Analyse the level of human resource needed to match the planned level of productivity.

Job Role Analysis - Creating a detailed examination of what a job requires in order to avoid mistakes during selection process.

Recruitment - Notification of job vacancies through various social medias, promotion measures and employment agencies to cull out the best pool of aspirants

Selection - Through detailed process of examinations as per the job requirements

Placement - Joining of the employee in the business after agreeing to the terms and conditions of the business.

Orientation / Induction - getting comfortable with the business and other people to create a friendly working environment.

Training and Development - on the job and off the job trainings as per the job requirements. Perfect time to learn from mistakes.

Performance Appraisal- Evaluation of employee performance as to whether meeting the standards set by the job role.

Transfer, Promotion or Demotion - Motivational measures according to the appraisal report.

Employee Termination - If there is a breach of terms and conditions from the employee side.

It is necessary to match the prevailing pay scales but according to the nature of the jobs, it is suggestive to look for creative and promising compensation alternatives like bonuses and other allowances and perks to create a broad range of individual components in the CTC.

Again, the health insurance part will be dependent on the level of risk that a job requires. If it is a mining company, it will be necessary for the firms to provide health insurance to the workers in order to increase the confidence of the workers. On the other hand, if it is an accounting firm, health insurance will not be necessarily an allowance that the business should offer the employees.