Question No.

1 PERCENTAGE OF BUDGET FOR HUMAN RESOURCE DEPARTMENT

There is not such fix percentage of budget for HR department organiztions create their budgeting by looking at the needs and requirements of the organizational goals. There is process for creating budget for HR department.

What is involved in developing an HR budget :

Budgeting involves the systematic collection of information and data so that the finances needed to support an organizations objectives can be projected. Most organizations have some sort of process for developing a budget. Two common methods are: Incremental budgeting: using the current budget, a new budget is developed by making adjustments upwards or downwards to each item based upon expectations. Zero-based budgeting: every item included in the budget must be justified before being included; therefore, the process begins with a clean slate. Budgeting requires the collection of many forms of data. From a human resource perspective, the data needed to create a new budget include the following:

Number of employees projected for next year. Benefits cost increases or projections. Projected turnover rate. Actual costs incurred in the current year. New benefits/programs planned. Other changes in policy, business strategy, law or regulation that may impact costs.

While there are many items that may or may not be included in an HR departments budget, below is a list of some of the most common ones to consider. Selection and Placement:

Recruitment advertising Agency fees Temporary help Employee referral program Skills testing Drug testing Background checks Recruitment-related travel College recruitment giveaways Printing costs--applications, recruiting brochures Web development/maintenance Applicant tracking system costs

Training and Development:

External programs Registration fees Travel expenses Certification exam costs Internal programs Consulting fees/trainers salary Program materials Food and beverages Supplies for attendees Audiovisual rentals

Compensation and Benefits:

Employee salaries Payroll costs Overtime Incentive compensation Health, dental, vision Life insurance Short- and long-term disability insurance/funding Pension/401(k)/profit sharing Cafeteria plan administration Telecommuting expenses Survey reports

Employee and Labor Relations:

Recognition program Service awards Attitude survey administration Performance appraisal software Attendance incentives Employment attorney fees Outplacement expenses Suggestion program awards Labor relations expenses (attorneys, consultants) Diversity management program administration

Health, Safety and Security:

Employee assistance program Smoking cessation Fitness facilities Safety training/promotion Workplace violence prevention/training Revenues

Other :

Strategic planning (data/consultants) Charitable donations HRIS administration HR databases/subscriptions/memberships/books Intranet design and maintenance

Question No.2 ANALYSE THE STRATEGIC MANAGEMENT PROCESS (SMP) OF MULTINATIONAL COMPANY (MNC) German multinational companies (MNCs)
Strategic management process in German multinational companies (MNCs). Whereas the emphasis of research in the field of strategic management has traditionally been laid on the investigation of the strategy content, the knowledge of the strategy process and how promising strategies can be shaped and implemented within firms still remains limited. First: They draw a distinction between different stages of the strategy process and empirically investigate tools and concepts applied by 122 firms to describe the status quo of strategic management in German MNCs. Second: based on findings, they highlight the major deficits in the current strategy processes of the surveyed firms. Third: They present some suggestions on how strategy processes should be designed in MNCs in order to have a positive impact on performance. Although there study focuses solely on German MNCs we consider the results to be helpful for firms from other national backgrounds. Figure 1 presents the strategy process model which serves as basis for our empirical study.

STAGE 1:
At the strategic analysis stage, on the basis of an investigation of internal resources, capabilities and core competencies as well as external environmental circumstances, strategic threats and opportunities are identified. Based on this information firms formulate mission values and set strategic objectives.

STAGE 2:
The strategy formulation stage focuses on the actual decision-making process in which strategic alternatives are determined and evaluated. The goal within this stage is to select promising strategic options and to formulate applicable strategies at the corporate, business, and functional levels.

STAGE 3:
At the implementation stage these strategies need to be translated into a number of concrete actions and linked to financial budgets. Within the strategic control stage, this actually impacts all three of the preceding stages, firms should monitor the underlying assumptions and measure progress towards the achievement of their strategic objectives.

STAGE 4:
Thus, strategic control is not conceived as the last step in a strategy process or the mere adjunct to the implementation step. Strategic control has to be understood as a counterbalancing activity to the other three steps and as an autonomous management function. Consequently, the four different stages do not constitute separate subjects and cannot be understood in isolation, rather they are continuously ongoing and thoroughly intertwined with one another.