Friendly Financial Works
- Friendly Financial Works is a fictional provider that sells accounting, payroll, and financial services to small
businesses. The company uses an integrated software platform to help small businesses better manage their
financial assets. Based on the assumption that small business owners often lack the expertise and time to
manage financial assets effectively, Friendly Financial seeks to provide a relatively inexpensive “one-stop
solution” for financial planning and control.
Friendly Financial’s business model calls for providing services at the lowest cost rather than giving customized
service to each client. To be successful, Friendly Financial needs to lower its costs by continually increasing
the number of small businesses that use its services. The success of Friendly Financial thus depends largely
on its sales force.
The sales force is divided into geographic territories, with a territory manager having exclusive responsibility for
all sales activity within a specific area. Territories are organized into sales districts. The average number of
territories in each district is 20. Each district is led by a district sales manager who oversees all personnel
activities, such as hiring and training, in the territories within his or her district.
Territory managers are paid on a commission basis. They generate most of their sales by cold calling on
potential businesses. A typical day consists of 10 to 15 unannounced visits to small businesses. The territory
manager seeks an appointment with the owner or manager of each firm he or she visits. When an appointment
is granted, the territory manager makes a presentation and tries to develop a contract between the small
business and Friendly Financial. As with most unannounced sales calls, a large majority of visits end without a
contract to provide services.
A major concern for Friendly Financial Works is identifying and keeping enough territory managers. The
turnover rate is approximately 200 percent each year. This means that a district sales manager must usually
hire about 40 new employees in a given year. In most cases, when a job vacancy occurs, the district sales
manager travels to the sales territory to begin recruiting. The district sales manager places an advertisement in
the local newspaper and includes a telephone number for potential recruits to call. The manager then spends
three to four days at a local hotel answering phone inquiries and conducting interviews. The territory manager
position is usually offered to the best available candidate on the final day that the district sales manager is in
District sales managers pride themselves on being able to land the sales representatives they like best. Many
district sales managers boast that they can sell anything to anybody, and this is how they approach employee
recruiting activities. Because they are talented sales representatives, district sales managers generally do a
great job of touting the benefits of the position.
What aspects of the recruiting process increase the likelihood that territory managers will leave once they have
Should Friendly Financial use other methods to recruit territory managers? Which methods?
Is the recruiting process at Friendly Financial efficient? What are some things that might be done to reduce
- Stringtown Iron Works is a small fictional shipyard on the East Coast dedicated to shipping overhaul. It
focuses on obtaining government contracts for overhauling naval ships. These overhauls require Stringtown to
maintain a quality workforce that is capable of rapid production. The position of pipefitter is particularly critical
Pipefitters are responsible for repairing and installing the piping systems onboard the vessels. Employees in
the pipefitter classification may also be called on to work in the shop, building pipe pieces that are ultimately
installed on the ships. Like most union jobs in the yard, pipefitters are predominantly white men between the
ages of 30 and 45. As part of the most recent bargaining agreement, work is primarily done in cross-functional
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Pay: $12.00 to $20.00 per hour
A pipefitter must:
Read and interpret blueprints and/or sketches to fabricate and install pipes per specifications.
Perform joint preparation and fit-up to fabricate and install brazed and welded piping systems.
Perform layout and calculations to fabricate and install the pipe.
Fabricate pipe pieces up to 10” in diameter and up to 10′ long to support shipboard pipe installation.
Install ship’s piping, such as water, drains, hydraulics, lube oil, fuel oil, high-temperature air, etc. on location
and within tolerances per design.
Inspect and hydro test completed piping systems to ensure compliance with the ship’s specifications.
Use a variety of hand and power tools to perform joint preparation, assembly bolt-up, and positioning during
fabrication and installation.
Utilize welding equipment to tack-weld pipe joints and to secure pipe supports to ship’s structure.
Completion of the above tasks requires pipefitters to do the following:
Frequent lifting and carrying of 25–50 pounds
Occasional lifting and carrying of over 50 pounds
Occasional to frequent crawling, kneeling, and stair climbing
Frequent pushing, pulling, hammering, and reaching
Frequent bending, stooping, squatting, and crouching
Occasional twisting in awkward positions
Occasional fume exposure
Which of the overall HR strategies would be best for Stringtown Iron Works?
Should Stringtown focus on job fit or organization fit?
Should Stringtown hire based on achievement or potential?
What selection methods would you recommend for Stringtown? Why?
- County General Hospital is a 200-bed facility located approximately 150 miles outside Chicago. It is a
regional hospital that draws patients from surrounding farm communities. Like most hospitals, County General
faces the difficult task of providing high-quality care at a reasonable cost.
One of the most difficult obstacles encountered by the hospital is finding and retaining qualified nurses. The
annual turnover rate among nurses is nearly 100 percent. A few of the nurses are long-term employees who
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are either committed to County General or attached to the community. Employment patterns suggest that many
of the nurses who are hired stay for only about six months. In fact, County General often appears to be a quick
stop between graduation from college and a better job.
Many who leave acknowledge that they were contacted by another hospital that offered them more money. Exit
interviews with nurses who are leaving similarly suggest that low pay is a concern. Another concern is the lack
of social atmosphere for young nurses. Nurses just finishing college, who are usually not married, complain
that the community does not provide them enough opportunity to meet and socialize with others their age.
Hospital administrators are afraid that paying higher wages will cause a financial disaster. Big insurance
companies and Medicaid make it difficult for them to increase the amount they charge patients. However, the
lack of stability in the nursing staff has caused some noticeable problems. Nurses sometimes appear to be
ignorant of important hospital procedures. Doctors also complain that they spend a great deal of time training
nurses to perform procedures, only to see those nurses take their new skills someplace else.