4. For each question, your justification and explanation are very important. I a

Question

4. For each question, your justification and explanation are very important. I am interested in seeing the answers to both “what and why” rather than just “what”. Your answers should be specific rather than generic. Your friend has started a medical billing outsourcing business. His clients are mainly doctors. After the patient gets treated, the doctor’s office sends your friend’s company the paperwork for each patient (e.g., the reason for the visit, diagnostic tests done, referrals made, complexity of the visit, nature of treatment given, details of patient’s insurance, etc.). Your friend’s company then files the insurance claim with the respective insurance companies, sends them the details of the claim, follows up with them for payments and clarifications, collects payments, and then makes the payment to the doctor. Thus, the main clientele are independent doctors who have outsourced the insurance work to your friend’s company. Hospitals and patients are not your friend’s customers. Your friend is interested in knowing the number of employees he needs to hire in the next three to four years (long-range HR planning). He has asked you for your assistance in identifying the appropriate method for forecasting HR supply and demand for his business. Discuss the methods you would suggest and the justification for the methods or methods.

Explanation / Answer

Answer: As per the description, this is a small venture which can be effectively run by the staff of 4 to five people who do not need any special skills as they only need to handle paperwork. If we take a long term, say about 3-4 years. As the job is not very complex therefore the attrition levels are expected to remain low (around 1-2 employee each year). The job is new but has a good potential for expansion in future so if new clients are added then nearly 2 employees will be required each year to be hired. On an average the company needs to recruit 4 new employees each year. So in 3-4 years the company needs to plan for hiring around 12-16 employees.

The best method for HR planning for this company will be by using the staffing table. The staffing table creates a visual understanding about the staffing levels in the organizations and based on the demand forecasting helps in establishing the future needs of the organization. This is a simple method which is suitable for small organizations.

Related Questions

Navigate

• Browse (All)
• Browse 4
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.