Analysis of business processes


Labour Efficiency

Response to the following problem:

The Recruitment Department of a major company has 13 staff members: a manager, seven recruiters, and five 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 fill 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. An average of 45 vacan- cies per month require recruitment action, although there are seasonal fluctuations in this workload.

What steps could the department take to overcome its difficulties?

 

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Cost Accounting: Analysis of business processes
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