TAXI SERVICE

A year ago, the owner-manager of a taxi service also moved into a new business area of fitting tires. This came about as a result of the experience of using unbranded tires on the fleet of ten taxis. Based on several years of use, the owner-manager found that the unbranded tires lasted almost as long as the branded tires, but had the advantage of being obtainable at half the price. The set-up costs of the tire-fitting business were relatively modest and the owner-manager initially fitted the tires himself. Demand picked up quickly, however, and he was forced to employ an experienced fitter. A few months later, demand accelerated again and he has just advertised for another fitter but, unfortunately, without success. The tire-fitting business has produced additional challenges and the owner-manager is finding it increasingly difficult to manage both the taxi service and the new business where he seems to be spending more and more of his time. He already employs one receptionist/taxi controller, but has realized that he now needs another.

As if this were not enough, he is in the middle of extending his operations still further.

Customers who buy tires frequently request that he check the wheel alignment on their car following the fitting of new tires. He has started to provide this service, but when done manually it is a slow process, so he has invested heavily in a new piece of electronic equipment. This new technology will speed the alignment operation considerably, but neither he nor his tire-fitter can operate the equipment. The owner feels that tire fitters should be able to operate the equipment, and an additional member of staff is not required just to operate it.

To add to all these problems, two of his taxi drivers have resigned unexpectedly. Past patterns suggest that of the ten drivers, normally one or two leave each year, generally in the summer months, though now it is winter. Given all these staffing difficulties, the owner-manager has made use of a relative who happens to have some HR expertise. She has advised the owner-manager on recruitment and selection, training and development. The relative also suggests that the business needs a well thought out human resource plan.

You are required to write a report to:

(a) Prepare an outline human resource plan for the business and explain each aspect of your plan.

(b) Discuss the important human resource activities to which attention should be paid in order to obtain the maximum contribution from the workforce.