Prior year (Y1)
1. Below is the transitional matrix for a firm that sells IT hardware. It has been estimated that next year,
the firm will need 1 less account manager and 2 more sales staff than the number the firm has this
year.
1. Sales directors
2. Account managers
3. Sales staff
4. Administrators
5. NOT IN ORGANIZATION
1.
3
2.
7
1
1
4
2
10
This year (Y2)
3.
4.
5.
1
1
20
2
2
4
1
24
3
4
Total
4
8
23
2
8
Assuming the same number of people leave next year and no promotions, what are the forecast labor
shortages and surpluses faced by the firm next year? (3 points)
a) Sales directors: shortage of 1, Account managers: no shortage/surplus, Sales staff: shortage of 4,
Administrators: no shortage/surplus (CORRECT ANSWER)
b) Sales directors: shortage of 1, Account managers: shortage of 1, Sales staff: shortage of 6,
Administrators: shortage of 1
c) Sales directors: shortage of 1, Account managers: surplus of 1, Sales staff: shortage of 2,
Administrators: no shortage/surplus
d) Sales directors: shortage of 1, Account managers: shortage of 1, Sales staff: shortage of 3,
Administrators: shortage of 1
Solution:
Demand: Sales directors = 4, Account managers = 9, Sales staff = 26, Administrators = 3
Supply: Sales directors = 3, Account managers = 9, Sales staff = 22, Administrators = 3
Shortage/surplus: Sales directors = shortage of 1, Account managers = 0, Sales staff = shortage of 4,
Administrators = 0