MARKOV ANALYSIS AND FORCASTING 2Markov Analysis and ForecastingThe Doortodoor Sports Equipment Company, the only company in the nation that goes door-to-door selling sport equipment and clothing for light sports enthusiasts, has a sales function that contains full-time and part-time salespeople (level 1), assistant sales managers (level 2), and regional sales managers (level 3) (Heneman, Judge, & Kammeyer-Mueller, 2015, p.143). In an effort for the company to study the internal movement patterns of the positions in the sales function and forecast their availabilities in the future, the HR department created a probability matrix using data collected for 2013 and 2014 (Heneman et al., 2015, p.143). The matrix also included the number of employees for 2015 in each category. The matrix was then to be used to forecast availabilities for 2016. DiscussionA thorough glance at the transition probability matrix reveals the job stability, promotion paths and rates, transfer path and rates, demotion paths and rates, and turnover rates for the internal labor market of the company (Heneman et al., 2015, p.143). The full-time salespeople have a 50% job stability rate. The promotion paths in which full-time salespeople can take are to assistant sales managers (ASM) and regional sales manager (RSM). The full-time salespeople have a 5% promotion rate to the ASM position and a 0% promotion rate to the RSM position. There is a 10% demotion rate to the part-time sales position, and a 35% turnover rate.
Nguyen 1 Nick Nguyen MGMT_4203-01 Dr. Karen Jacobs Application 3 Markov Analysis and Forecasting 1. Describe the internal labor market of the company in terms of job stability (staying in same job), promotion paths and rates, transfer paths and rates, demotion paths and rates, and turnover (exit) rates. Sales, Full-time: 50% stayed the same, 10% transferred to part-time status,5% were promoted to Asst. Sales Mgr, 0% were promoted to Regional Sales Mgr, and 35% left the organization. Sales, Part-time: 5% transferred to full-time status, 60% stayed the same, 10% were promoted to Asst. Sales Mgr, 0% were promoted to Regional Sales Mgr, and 25% left the organization. Ass’t. Sales Mgr: 5% were demoted to full-time sales, 0% were demoted to part-time sales, 80% stayed the same, 10% were promoted to Regional Sales Mgr, and 5% left the organization. Region. Sales Mgr.: 0% transferred to another position, 70% stayed the same, and 30% left the organization. 2. Forecast the numbers available in each job category in 2013 2012 2013 Forecasts Job Category Employees SF SP ASM