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Human Resource Decisions in MikesBikes Advanced

What is average salary and what impact does it have?

This is the average salary level for your factory staff. Increasing salaries comes at a financial cost to your company but attracts higher skilled workers and improves motivation, making your employees more productive and more likely to produce a higher quality product.

What is training and what impact does it have?

This decision sets the number of hours each year your factory staff spend training to become more productive and safer workers. Your factory operates for 2000 hours per year, so 200 hours of training per worker would use 10% of your factory capacity.

Training may reduce the number of hours factory staff are producing bikes, but over time it makes them more skillful and motivated, so you will need fewer staff to operate your factory. In addition, higher skilled workers decrease your product defect rate which improves quality.

How does my HR strategy relate to other areas of my company?

The HR performance indicators of Employee Happiness, Skill Rating, Productivity and Staff Turnover Rate impact other areas of your company’s performance.

Workers who are well paid and highly trained are far more productive than those that are not. This means you won’t need as many workers to produce your bikes compared to a factory workforce who are unhappy and poorly skilled.

Well trained workers are also a significant factor in improving your internal quality which is combined with your external quality decisions to achieve your product’s Quality Rating.

A high staff turnover rate also becomes expensive. It costs $6000 to replace a staff member and new workers arrive with a minimum level of training.

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