12.1 Sly & Partners is a city law firm with 12 partners and 30 associates. Charge-out rates are based on the following calculations: Partners Associates Total employment costs 1,000,000 1,350,000 Target chargeable hours 16,000 60,000 Hourly labour cost (rounded) 62 22 Total cost per hour (Add 100% to cover fixed costs as these are 100% of total employment costs) 124 44 Charge-out rate (Add 50% profit margin on total cost base of firm) 186 66 At year end, the partners consider the profit report which shows: Budget Actual Revenue 6,936,000 6,036,000 Employment costs 2,350,000 2,250,000 Other fixed costs 2,350,000 2,300,000 Net profit 2,236,000 1,486,000 Due to a shortage of work only 14,000 partner hours and 52,000 associate hours have been billed. Partially to offset this, some costs were able to be contained, particularly through holding vacancies for associates who left the firm. On average there were 3 vacancies for the year. Provide some explanations for the profit shortfall. 12.2 The Recruitment department of a major company has 13 staff including a manager, 7 recruiters and 5 administrators. The department is continually exceeding its budget for expenses, particularly in relation to overtime payments. There have been some complaints against the department for poor recruitment decisions and the time taken to recruit into vacant positions. After holidays, training and non-recruitment activity, each recruiter has an average of 170 days to carry out recruitment activity, working 7 hours per day. An analysis of business processes has revealed that the average time spent by recruiters is 18 hours on each vacancy. There is an average of 45 vacancies per month requiring recruitment action, although there are seasonal fluctuations in this workload. How does a business process and activity-based approach help to understand the difficulties facing the Recruitment department? What steps could the department take to overcome its difficulties?

WEEK 7 Read Chapter 12-Human Resources Decisions Assignment 9:Email the answers to the followingquestions in an attached word document using the proper file name formatas follows: Last Name-BUS5502A-T32014-Assignment 9 12.1 Sly & Partners is a city law firm with 12 partners and 30 associates. Charge-out rates are based on the following calculations: Total employment costs Target chargeable hours Hourly labour cost (rounded) Total cost per hour (Add 100% to cover fixed costs as these are 100% of total employment costs) Charge-out rate (Add 50% profit margin on total cost base of firm) Partners 1,000,000 16,000 62 Associates 1,350,000 60,000 22 124 44 186 66 At year end, the partners consider the profit report which shows: Budget Actual Revenue 6,936,000 6,036,000 Employment costs Other fixed costs Net profit 2,350,000 2,350,000 2,236,000 2,250,000 2,300,000 1,486,000 Due to a shortage of work only 14,000 partner hours and 52,000 associate hours have been billed. Partially to offset this, some costs were able to be contained, particularly through holding vacancies for associates who left the firm. On average there were 3 vacancies for the year. Provide some explanations for the profit shortfall. 12.2 The Recruitment department of a major company has 13 staff including a manager, 7 recruiters and 5 administrators. The department is continually exceeding its budget for expenses, particularly in relation to overtime payments. There have been some complaints against the department for poor recruitment decisions and the time taken to recruit into vacant positions. After holidays, training and non-recruitment activity, each recruiter has an average of 170 days to carry out recruitment activity, working 7 hours per day. An analysis of business processes has revealed that the average time spent by recruiters is 18 hours on each vacancy. There is an average of 45 vacancies per month requiring recruitment action, although there are seasonal fluctuations in this workload. How does a business process and activity-based approach help to understand the difficulties facing the Recruitment department? What steps could the department take to overcome its difficulties