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HR Challenge: A Question of Ethics

The other internal employee is the best qualified young man with over eight years in the company. He holds multiple graduate degrees and has extensive professional experience.The announcement of a hiring selection has not been made, but company gossip has already started, reflecting upon the likelihood that the young woman will be chosen because the CEO has an innocent crush. While no allegations of impropriety of any type have been made, the perception of a form of favoritism is present.Your ChallengeThe SHRM code of ethics advises HR professionals to “advocate for the appropriate use and appreciation of human beings as employees.” Using this and other ethical guidelines, should you try to influence the CEO’s selection and recommend that the young man be hired over the young woman? Or should you remain silent? What, if anything, is the CEO doing incorrectly or substantively wrong in this hiring scenario if he selects the woman?InstructionsPrepare a 3–4-page plan that states your recommended course of action. Along with your recommendation, include the following: Analyze ethical challenges presented by an HR management situation. What are the ethical implications for the actions you would take in this scenario? What consequences could occur if you did nothing?Describe key ethical factors considered in the formulation of a proposed HR solution.What is your reasoning for making a recommendation or remaining silent within the context of the SHRM code of ethics? Use references to support your perspective and response to the SHRM code of ethics and this scenario.Explain any legal considerations for the selection function presented by an HR situation.Explain the role of the HR practitioner in advancing a proposed HR solution.Briefly explain the role you will take to influence the eventual outcome. Consider aspects of leadership, negotiation, and consultation. Discuss the application any SHRM behavioral competencies to the process of solving an HR challenge.Which SHRM behavioral competencies do you think are most directly applicable to a successful resolution of this challenge, and why?Additional Requirements

The deliverable for this assessment applies professional skills in HRM to workplace situations that you will likely encounter in your day-to-day work in HRM. As part of your learning, we focus on the development of effective professional communication skills for the workplace. Your assessment should meet the following additional requirements:Length: Your plan should be 3–4 typed, double-spaced pages, plus the cover and resources pages.The first page should be a cover sheet with your name, the course number, assessment title, and date. No other information is required on this page.The last page should be the reference list.Organization: Make sure that your assessment writing is well organized, using headings and subheadings to organize content for the reader.Font and font size: Times New Roman, 12 point. Resources: Use 2–8 references from both trade publications and peer-reviewed articles.Evidence: Support your assertions with data and/or in-text citations.APA formatting: Resources and in-text citations are formatted according to current APA style and formatting.Written communication:Support main points and recommendations with relevant and credible evidence. Address the appropriate audience, using familiar, discipline-specific language and terminology.Use spell-check and other tools to ensure correct spelling and grammar. Note: Faculty may use the Writing Feedback Tool when grading this assessment. The Writing Feedback Tool is designed to provide you with guidance and resources to develop your writing based on five core skills. You will find writing feedback in the Scoring Guide for the assessment, once your work has been evaluated.Portfolio Prompt: You may choose to save this learning activity to your ePortfolio.Competencies MeasuredBy successfully completing this assessment, you will demonstrate your proficiency in the following course competencies:Competency 1: Analyze the ways in which the human resource function contributes to individual and organizational performance. Discuss the application any SHRM behavioral competencies to the process of solving an HR challenge.

Competency 2: Analyze the impact of the legal environment of human resource management policies and practices. Explain any legal considerations for the selection function presented by an HR situation.Competency 4: Apply the ethical standards of the profession to human resource management policies and practices. Analyze ethical challenges presented by an HR management situation. Describe key ethical factors considered in the formulation of a proposed HR solution.Competency 5: Analyze the strategic and operational roles that a human resource practitioner plays within an organization.Explain the role of the HR practitioner in advancing a proposed HR solution.Competency 6: Communicate clearly, accurately, and professionally in the human resource management field.Support main points and recommendations with relevant and credible evidence.Address the appropriate audience, using familiar, discipline-specific language and terminology.ReferenceSociety for Human Resource Management. (n.d.). Bylaws & code of ethics. Retrieved from http://www.shrm.org/about/Pages/code-of-ethics.aspx

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Employing Capital Budgeting and Risk

Part A

 

Employing Capital Budgeting and Risk

These resources will help you to complete this discussion:

  • Nockolas, S. (2015). How do you calculate payback period using Excel? Retrieved from https://www.investopedia.com/ask/answers/051315/how-do-you-calculate-payback-period-using-excel.asp
  • Ross, S. A., Westerfield, R. W., Jaffe, J. F., & Jordan, B. D. (2018). Corporate finance: Core principles and applications (5th ed.). New York, NY: McGraw-Hill.
    • Chapter 9, “Risk Analysis, Real Options, and Capital Budgeting,” pages 262–286. The concept of risk is introduced in this chapter.
  • Sham, G. (n.d.). Capital budgeting: Wrapping it all up. Retrieved from https://www.investopedia.com/university/capital-budgeting/conclusion.asp

Risk is an important aspect of business and investment. The impact of risk needs to be measured on all capital projects and investments. In fact, most accomplished investors consider the measure and management of risk to be more important than the consideration of investment return. If risk is considered effectively, the returns will tend to take care of themselves.

To gain a full understanding of the impact of risk on the success or failure of capital projects, you can see the different views of risk and that all should be considered. For this discussion, you are a financial analyst of a mid-sized corporation, and the CFO has come to you with a pet investment project. The CEO has done a preliminary analysis using NPV, IRR, payback period, and PI, and it appears to be a worthy project that should add significant value to the firm. However, the CFO has a feeling that the CEO has failed to incorporate risk into the analysis. He has asked you do some risk analysis of the project to see if that will alter the final decision to invest or not.

Prepare a post that responds to these questions:

  • What type of risk analysis would you incorporate into your analysis?
  • How reliable are these analyses?

Make sure you provide examples and resources to support your statements.

Part B

Evaluation of Capital Projects

Introduction

This assignment is about one of the basic functions of the finance manager, which is allocating capital to areas that will increase shareholder value and add the most value to the company. This means forecasting the projected cash flows of the projects and employing capital budgeting metrics to determine which project, given the forecast cash flows, gives the firm the best chance to maximize shareholder value. As a finance professional, you are expected to:

  • Use capital budgeting tools to compute future project cash flows and compare them to upfront costs.
  • Evaluate capital projects and make appropriate decision recommendations.
  • Prepare reports and present the evaluation in a way that finance and non-finance stakeholders can understand.

Scenario

Senior leadership has now called upon you to analyze three capital project requests based on forecasted cash flow as they relate to maximizing shareholder value.

Your Role

You are one of Maria’s high-performing financial analyst managers at ABC Healthcare Corporation and she trusts your work and leadership. Senior leadership was impressed with your presentation in the Unit 2 assignment and they are tasking you with the analysis of these three proposed capital projects based on forecasted cash flow. You have completed forecasting the projected cash flows of the projects as reflected in the attached spreadsheets. You now need to conduct your analysis recommending which will provide the most shareholder value to the organization.

Requirements

  • Use capital budgeting tools to compute future project cash flows and compare them to upfront costs. Remember to only evaluate the incremental changes to cash flows.
  • Employing capital budgeting metrics, determine which project, given the forecast cash flows, gives the organization the best chance to maximize shareholder value.
  • Demonstrate knowledge of a variety of capital budgeting tools including net present value (NPV), internal rate of return (IRR), payback period, and profitability index (PI). The analysis of the capital projects will need to be correctly computed and the resulting decisions rational.
  • Evaluate capital projects and make appropriate decision recommendations. Accurately compare the indicated projects with correct computations of capital budgeting tools and then make rational decisions based on the findings.
  • Select the best capital project, based on data analysis and evaluation, that will add the most value for the company. Provide a rationale for your recommendations based on your financial analysis.
  • Prepare reports and present the evaluation in a way that finance and non-finance stakeholders can understand.

 

Project A: Major Equipment Purchase
  • A new major equipment purchase, which will cost $10 million; however, it is projected to reduce cost of sales by 5% per year for 8 years.
  • The equipment is projected to be sold for salvage value estimated to be $500,000 at the end of year 8.
  • Being a relatively safe investment, the required rate of return of the project is 8%.
  • The equipment will be depreciated at a MACRS 7-year schedule.
  • Annual sales for year 1 are projected at $20 million and should stay the same per year for 8 years.
  • Before this project, cost of sales has been 60%.
  • The marginal corporate tax rate is presumed to be 25%.