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Human Resource

Assignment 1

Submitted to Fahd Zia

Submitted by Mehwish Shams

BBA 2k8 (A)


Case: Phillips Furniture

Ten years ago Albert Phillips opened his own retail store and sold unpainted
furniture. His store was located in Lakeside, a small city in the southeastern part of
the United States. Although his business was somewhat slow first, it grew steadily.
Many more sales, stock, and clerical personnel were hired. However, it soon
became evident that Mr. Phillips was not able to effectively service all potential
customers. Warehouse space was also badly needed.
Phillips Furniture Store was situated in a central location, and Mr. Phillips was
hesitant about relocating. As an alternative to relocating, Mr. Phillips opened a
satellite store in an outlying district to attract a new source of customers, as well as
to provide better service to his current customers. Mr. Phillip eventually expanded
his business into several neighboring towns until he had a total of six stores. When
Martin Furniture, a small manufacturing firm that supplied some of the furniture for
Phillips, became financially unstable, Mr. Phillips was able to gain control of the
manufacturing plant.
At the end of last week, you were called into Mr. Phillips’ office, and Mr.
Phillips said, to you, “I have been pleased with your progress with us as a
management trainee since you graduated six months ago.” He explained that he felt
that the company had gotten large enough to need a personnel manager.
Previously, all managers handled most of their own personnel activities, usually on a
“casual” basis. Mr. Phillips told you that with the acquisition of the manufacturing
firm, “It’s time for us to get our personnel activities organized, and you’re the person
to do it.”
When asked why, he said, “I reviewed your personal file and noticed you had
some courses in human resource management listed on your transcript.” Also you
have good people skills. Faced with both the challenge and the promotion, you
accepted. Now you are trying to decide, “What am I to do now that I’m the HR
1. On what activities would you tell Mr. Phillips you intended to focus? Why?

Mr. Philips will have to focus on the following issues and activities

• Mission/goal of Philips furniture

By vision or mission statement Philips Furniture will define the purpose and reason of
its existence. Also they will have to develop a proper goal and objective of the
company through which it will tell its employees where they see organization in
future and how do they want to grow.

• Implementation of state laws regarding employees and industry relations:

As a HR manager my foremost responsibility will be to understand and ensure

adherence to the state laws and regulations governing the workforce. (Like working
hours, minimum wage, safety, work environment etc). This will help in making rules
and regulation according to standards.

• Organizational structure Reporting Hierarchy:

As Philip furniture is growing and expanding so it is time that they create

organizational structure so that everyone knows the proper hierarchy and that who is
accountable to whom and who is responsible for what. This will help in delegating
responsibility to ensure efficient and effective management.

• Develop HR policy:

As an HR manager I will also ask Mr. Phillips to focus on making an HR manual.

This will include attendance system, leave criteria, work ethics, compensation policy,
discipline, job rotation, staffing, wellness program and how to deal with graveness

• Job Description:

Job description is necessary now as the retailer is growing. It will help in letting each
employee know what is expected from him/her. This will also give a sense of
responsibility to employees.

• Training need assessment- TNA:

Also now it is very important for Phillip Furniture to develop training programs for its
employee. In this case they will first have to found out the areas where they need
training. Also Phillips Furniture will have to focus on following trainings

• Training for manufacturing department

• Training for Management

• Training for customer care

• Performance appraisal system:

This is needed to evaluate the performance of employees.

• Performance goals/Targets:

Also Phillips furniture will have to define sales targets and other such targets as future
growth rate. This will help employees to know how much they are expected to
perform and where is company heading.

• Employee Database:

Phillips Furniture also needs to develop an employee database keeping a record of all
its employees to cater to growing number of employees in different locations.

1. What would be your first action, and why?

As an HR manager my first action would be to create an organization structure for

Phillips furniture which is very necessary right now for every employee to know the
chain of command. It is also necessary because the company is growing and it has
stores in various locations so now each employee should know to who report. Also it
is very important at this stage to clearly define job description of each employee so
that everyone knows what is expected from them and what they are suppose to do.