Question 1: Tell me what's wrong with page 5 from the text book. Analysis of figure 1.1

Answer: There is not thing wrong with this figure; it is good enough for some kind of businesses such as the businesses or factories which have to produce only on seasonal period or hire people only when they need to produce the products which based on the seasonal factor and paid on hourly basis (less skill labors; whenever the season end they will layoff their staff or close the factory, so, they don’t need to set a strategy for employee retention, but for some businesses such as service organizations that need skill labors and continuous working period. They need more functions to increase the company performance such as "motivation" and "retention" programs to increase company productivity and decrease company turnover cost. For example, TISCO securities, the company that I work for has set a program to help keeping their staff as long as possible by providing a gold necklace for staff who works with them longer than 1 year. (The gold value will increase for each additional years of working). They also provide company mortgage for housing, and other family benefits which can help increasing employee retention. For the motivation program, they has created a program call “cross selling”; any staff who can sell any company products will receive a point to increase he/she KPI scores. This program is very successful. It help TISCO Securities to increase their sales revenue approximately 30% per (they can reduce number of sales staff- reduce cost of hiring sales people) and use all existing employees to generate more revenue to increase the company performance. So, from this example, we should add “motivation” and “retention” functions to the diagram and it would be like following;

Analysis and design of work > HR planning > Recruiting > Selection > Training and development > Motivation > Compensation > Performance management > Employ relation > Retention > Company Performance.