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Tuesday 11 February 2014

Just Deserts Ltd Homework Feedback




NTEBEKA’S MODEL ANSWER
Martha believes that “recruiting the right people is the best way to improve the effectiveness of Just Desserts Ltd workforce”. Do you agree?
Just Desserts
2.  Recruitment can be defined as the processes that take place  when a vacancy arises in a business, to when this vacancy is filled.  It includes advertising the job, identifying candidates and interviewing potential employees.
Martha’s statement is right to an extent as recruitment can prove to be an effective way to improve the workforce, given the fact that Just Desserts is growing rapidly.  In 2008 their workforce increased by 40 people (70 to 110).  Therefore, on the premise that the staff size will continue to grow, Martha’s idea to focus heavily on recruitment is a reasonable one.  Concentrating on recruiting skilled labour would improve the workforce as it may allow for more managers to be hired.  We know from the case study that because of its increasing workforce size, spans of control for managers have increased (making them overworked).  Recruiting more managers could spread work more evenly as Martha is not willing to delegate to junior staff. 
This decision is only reinforced by the fact that Just Desserts Ltd have experienced poor cash flow from 2007 onwards as stated in the case-study.  Just Desserts planned to use some funds on training for the junior staff.  The cash flow position has made this more difficult, and may warrant the use of recruitment instead.  Just Desserts has been producing a wider range of products and this, along with general training could be expensive for the company.  Even though recruitment is costly, it may be less so than training such a large workforce.  It would take time and various costs which may not be feasible to Just Desserts at the moment.
However there are reasons to side with the manager who is against the idea.  To begin with recruitment could prove even more costly than training staff.  The recruitment process involves advertising the jobs available, setting up interviews and contacting various applicants.  Costs of recruitment for a growing business like this tend to be high.  As Martha’s main incentive for avoiding the training programme is Just Desserts weak cash position, choosing an overall more costly option would do even more harm to their cash position.
So to conclude recruitment may be a very useful tool in improving the workforce.  It brings in new skills and people with fresh ideas and enthusiasm. In Just Desserts case it can help spread manager’s workload more evenly and could be less costly than training. But at the same time it can be a bad decision.  This is especially true for Just Desserts as they already have too large a staff for their managers to cope with.  More recruits would only aggravate the situation and make work harder for the current managers.  Because of this, and the fact that Just Desserts staff has already grown considerably I believe recruitment is not the best way to improve the workforce and Martha may wish to reconsider her attitude towards training the staff.