The Doortodoor Sports Equipment Company sells sports clothing and equipment for

Question

The Doortodoor Sports Equipment Company sells sports clothing and equipment for amateur, light sport (running, tennis, walking, swimming, badminton, and golf) enthusiasts. It is the only company in the nation that does this door-to-door, seeking to bypass the retail sporting goods store and sell directly to the customer. Its salespeople have sales kits that include both sample products and a full-line catalog they can use to show the products and discuss them with customers. The sales function is composed of full-time and part-time salespeople (level 1), assistant sales managers (level 2), and regional sales managers (level 3). The company has decided to study the internal movement patterns of people in the sales function, as well as forecast their likely availabilities in future time periods. The results will be used to help identify staffing gaps (surpluses and shortages) and to develop staffing strategy and plans for future growth. To do this, the HR department first collected data for 2013 and 2014 to construct a transition probability matrix, as well as the number of employees for 2015 in each job category. It then wanted to use the matrix to forecast availabilities for 2016.

The following data were gathered:

Transition Probabilities

(2013 – 14) Current (2015)

Job Category Level SF SP ASM RSM Exit No. Employees

Sales, Full-Time (SF) 1 .50 .10 .05 .00 .35 500

Sales, Part-Time (SP) 1 .05 .60 .10 .00 .25 150

Ass’t. Sales Mgr. (ASM) 2 .05 .00 .80 .10 .05 50

Region. Sales Mgr (RSM) 3 .00 .00 .00 .70 .30 30

1. Describe the internal labor market of the company in terms of job stability (staying in same job), promotion paths and rates, transfer paths and rates, demotion paths and rates, and turnover (exit) rates.

2. Forecast the numbers available in each job category in 2016.

3. Indicate potential limitations to your forecasts.

The answers in the textbook solutions didnt seem like it was very descriptive per question it gives good data though

Explanation / Answer

(1)Solution

The transition probabilities of 2013 to 2014 provides the following data

For (SF) Sales Full Time

For (SP) Sales Part Time

For (ASM) Assistant Sales Manager

For (RSM) Regional Sales Manager

(2) Solution

Forecast for 2016 with numbers available in each job category

(3) Solution

Few Limitations according to the forecast

Job Category Employees of 2015 SF SP ASM RSM Total Exit SF 500 250 50 25 0 325 175 SP 150 7.5 90 15 0 112.5 37.5 ASM 50 2.5 0 40 5 47.5 2.5 RSM 30 0 0 0 21 21 9

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