The issues in Human Resource Planning


For many years, the issue of human resource planning has emerged as one of the most critical organizational processes ever to become a major factor in achieving corporate success or suffering business failure. For reasons that are clearly evident and transforming into best practices, human resource planning has contributed largely to become a new favorite area for effective human resource management. Managing the human resource component may have possibly become one of the most interesting as well as the most urgently needed process in an organization. Here, the company that was chosen for this review is one that is involved in providing value-added services to clients with business solutions strongly oriented along information technology systems and solutions that leverage information technology. These solutions include providing clients with ready-made business processes software, system design, implementation services and infrastructure financing.

It is therefore the aim of this research paper to increase awareness of the importance of the process of human resource planning and the different critical components of the entire human resource management system to prepare the company towards higher level of effectiveness. It is likewise the objectives of this study to analyze its own unique system of operations conduct a detailed process of human resource planning in the entire IT organization as a way for the company to embark on competing in the global market and take advantage of the opportunity of expanding through every diverse means - either in terms of product and services as well as people and spheres of operations.

Research Problems

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Achieving the aims and objectives of the human resource planning process of ABC Company is dependent on addressing the following sub-problems: (1) What are the strategic drivers of ABC Company in terms of human resources that enables it to adopt and maintain its uniqueness and competitive advantage as a global IT company? (2) What are its strength, weaknesses, opportunities and threats? (3) What strategic human resource planning recommendation template can be designed to strengthen its global competitive advantage?

Research Methodology

ABC Company has been in operation for the last ten (10) years fueling prospects and expectations of its global operations. Hence, aiming to take off into more challenging and more mature markets, ABC Company undertook a research assessment of its own resource capability as an initial strategy.

An analysis of the human resource planning depth of the ABC Company was made through an exploratory and descriptive approach. These were intended to initially look into the tasks that drive the need for human resource planning and administration and explains the status, constraints, best practices and prospects of the ABC Company insofar as its current human resource practices are made. Secondarily, as soon as the exploratory results to meaningful area for study, a formal descriptive research is conducted.

Primary data for the research was provided by the responses made by employees and administrators scaled and measured by a certain degree through which the survey instrument provided. Open-ended questions integrated into the interview guide made possible the analytical depth in support of the remarks provided in the survey form. Additionally, the responses explained the category as well as the rationale for the choice of the answers. These represented the human resource strategic drivers that enabled the company to become a global enterprise. The strengths, weaknesses, opportunities and threats of the company as outlined by the respondents added depth and breadth to the primary data.

Secondary data were likewise provided by corporate documents in support of the human resource processes of ABC Company. These data validates and confirms the phenomena of the drivers and the SWOT factors and combined with the primary data produced the human resource development template needed by the company.

Thus, in addition to the survey instrument deployed to various respondents composed of employees and administrators, primary data were likewise generated through a focus group discussion (FGD) of all administrators and selected employees as separately conducted. This to determine their participation in the human resource planning processes in the company.

A qualitative discussion of the policies and practices of the company taken from the key informant interviews of management executives were made and formed part of the rationale for the prevailing philosophy, goals and objectives as well as documented accomplishments of the firm. These data also formed part of the primary information analyzed representing the strength, weaknesses, opportunities as well as the threats for the company. The quantitative analysis was likewise conducted to accentuate the qualitative discussion of the human resource planning components as well as the other organizational processes relevant to the human resource strategic planning system.

Organizational Background

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This section illustrates the company profile and background, the mission, vision products and services market as well as the business unit levels relative to the human resource planning operational template. The various levels of business processes are likewise described in this section.

Organization Description

ABC Company is an information technology corporation registered in and based in Silicon Valley, California with manufacturing and distribution facilities in Zechuan, China. It is primarily a manufacturing company engaged in the production of electronic parts and circuits for computers as well as enterprise resource packages (ERP) for small and medium enterprises. It holds patents to more than 5,000 items actively used in various electronic gadgets from LCD and touch screen, subscriber information module cards for mobile phones. Starting as a subcontractor for small electronic parts for laptops and desktops, the company acquired three other local firms engaged in the manufacture of electronic circuits. From a simple $10 million firm in 1995, the company has grown a hundred times to become a $1 billion global IT provider with offices in over 80 countries comprising both developed and developing areas. (ABC Company Annual Report/Product Profile, 2009, p. 10)


ABC Company's mission and vision are focused along:

…"Involvement in providing value-added services to clients with business solutions strongly oriented along information technology systems and solutions that leverage information technology. These solutions include providing clients with ready-made business processes software, system design, implementation services and infrastructure financing under an atmosphere of a balanced learning organization, shareholder value system, business processes and customer orientation".

(ABC Company Annual Report/Philosophy, p.5)

This set of philosophy has made the company reasonably aggressive in the market and is expected to make the company more innovative, quality-driven, cost effective and globally competitive. Among the factors that have made the company standout in the market is its committed human resource component which has contributed an exceptional element of motivation to work in the most collaborative way possible. The high degree of job satisfaction among its people has led the company into unprecedented rate of productivity with almost zero turnover rates during the last five years, an above industry return on investment and a market made lively by the most diversified line of products and services as well as quality-driven production at the most reasonable pricing. (ABC Company Annual Report/Learning & Growth, p. 15)

Products/Services & Market

The company's line of products and services are among the world's most diversified research, development and production line generating US grade type quality in every aspect. This line of products and services are ranged as follows:

a. Small electronic parts such as flash disks and computer accessories;

b. Hard drives;

c. Assembly components mostly IT connectivity plug and play items;

d. Enterprise packages for local and wide area networks;

e. Electronic accessories for all gadgets, appliances, computers and telecommunications systems; and,

Presently, the company is the only integrated production area of this type in the world with two thirds of the world's market in an industry that has reached $10 billion in 2009.


ABC Company is almost a flat organization composed of five major departments aptly coded as marketing and distribution, human resources development management, finance and control, production and technical management and research, development and planning. Each is headed by an executive vice president with an equally flat organizational setup composed of cross teams and professional experts in the field. The cross functional teams is pervasive in all

ABC Company

Figure 0

Organizational Setup - Global Operations

(As of December 31, 2009)



Human Resources




Research DeProduction





Cross Functional Teams

the departments and acts in consultation and collaboration with every department. Relationships between departments have been ideal with zero conflicts and irritants arising from professional jealousy, envy or any form of unprofessional conduct. Efficiency and effectiveness have been very high in all departments owing to a high job satisfaction and careful selection of employee providers as well as intensive training in both technical and personal aspects.


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The role of a department head is extensive as he is in charge of a global department that transcends countries of operations. The EVP for marketing and distribution management is also in charge for international operations in his area of responsibility in the same way that each of the department heads does. Every department head also handles the international operations of that department with an assigned country vice president depending on the size of the market and where his operating department is established. For example, while the marketing and distribution is located in 80 countries for reasons that global marketing is likewise conducted in those countries, the production department is strategically located only in California and China with the distribution hub located in Chicago for the American market including Canada, Central and South America while the China production supplies the Asian, Middle East, European and African including Australia and New Zealand.

Thus, there is a human resource development department in all areas, with the number of staff maintained depending on the size of the market. The presence of the HRDO is consistent with the continuous training and coaching of every employee and the nature of the cross functional team adopted by the company. Here, each staff is based on a specific department but has secondary responsibility as a cross-functional team member in other departments. These are the result of a carefully crafted human resource planning based on the need of each corporate employee.

Organization Strategy & HRP

The overall organizational strategy of ABC Company is moving towards becoming a strong learning organization, a lean but productive manpower capable of being self-supervised, multi-tasking and flexible, adequately compensated, autonomous and collaborative. ABC Company is a team-oriented organization that is primarily concerned with the growth and development of its people and their families and aligning the needs of its people with that of the enterprise. Job satisfaction is paramount and of primary concern to the shareholders and management. Accredited institutions must possess this dimension. Thus, human resource planning is based on the above principles and these are constantly communicated to every employee and their strong participation solicited and their motivation sustained through a constant dialogue and team-oriented activities on a periodic basis.

Human Resource Planning (HRP) & Strategic importance of HRP

Human resource planning is a strategic activity concerned with aligning the operations of the company with the nature, capability and potential of its human resource component to enable the company to optimize and maximize its manpower and achieve the most productive output possible in the market. Planning in this area is considered strategic as this requires the conceptualization of objectives and goals based on the purpose of the corporate existence. Motivation is the pervasive character of the planning process combined with a strong performance management system and evaluation processes. The target of human resource planning is the creation of a learning organization that can adapt to the growing complexities of global operations and the sensitivity of the environment.

Strategic Plans & Objectives.

The strategic plan of ABC Company is focused on the accomplishment of key targets during the next three to five years considering the internal and external constraints impacting the company based on the SWOT analysis. The key targets of the strategic plan are as follows:

Increase the market share from 67 per cent to 80 per cent of the global market.


Opening of production plants in key areas in Eastern Europe to supply the growing needs of the markets in the Middle East, Europe and the Middle East relying less on the supply chain emanating from China which will now be tasked with addressing the growing market in the Asian and Australian areas;

Intensify the research and development in the electronics area to address the obsolescence and anticipate the surge of new technology in the market.

Linkages and tie ups with electronics and telecommunication firms in the area of component parts and product assemblies;

Hire technical people with high innovative thinking to increase product patents held by the company;

Evaluate product profiling to anticipate emerging technology and technical expertise in all areas;

Explore forward and vertical integration with the intent of merging and/or acquiring companies in the same or similar businesses;

Increase the capability and technical expertise of the manpower complement to enable job satisfaction and productivity as a parallel strategy to strengthen and sustain the competence of the human component.


Hire only competent people in relation to the expertise needed by the company;

Conduct intensive training for all positions in all levels from the executive level to the rank and file category to enhance competence, skills and work attitudes;

Acquire facilities and operating systems to correspond to the competitive level necessary to succeed.

Intensify research and development activities in the technology area to sustain cutting-edge production of electronics parts and accessories;

Periodic upgrade of the compensation packages of key personnel as means to motivate and retain people in the organization;

Adopt an objective performance-based work system to ensure impartiality and fairness in the evaluation, succession and promotions system.

Consider the company as a fine showcase of technology and the concept it aims to adopt as philosophy.


Strongly inculcate quality as a process and not as an end;

The company should be the showroom of technology developed by its own people;

Adoption of a cutting-edge systems and processes in all areas of operations;

Invite current and prospective customers and other stakeholders to company premises to showcase utilization of technology;

Ensure a good return on investments and value for shareholders.


Adopt and communicate cost reduction and management systems to all employees to solicit their active and full participation in the program;

Encourage all employees to suggest revenue and expenses measures and provide incentives for the best adopted suggestions;

Encourage productivity to ensure success in cost management measures;

Conduct periodic brainstorming with consumers and users to extract new ideas and potential innovations and revenues in the technology area;

Adopt waste reduction programs to ensure additional income for the company;

Declare and distribute dividends periodically to sustain investor interest in the company.

(5) Provide initiatives to adopt and participate in environmental advocacies as its corporate social responsibility such as recycling, clean air, compliant waste management systems, community employment and livelihood services.


Mobilize manpower towards appreciation of corporate social responsibility activities in their communities;

Structure the company as a showcase of environmental compliance along recycling, waste management with its own disposal and landfill system;

Provide assistance to nearby communities and families with technical education for future lifetime employment with the company.

Participate in local and global advocacies that uphold the youth, gender equality, senior citizens, handicapped and other marginalized sectors.

Be at the forefront of assistance to victims of calamities, natural disasters,

Link of HRP to achieve the organization's strategic plan

The company's strategic plan contains a number of links to the human resource planning component. The four-point strategic plan highlights the areas of the learning organization which focuses on the growth and development of the employees; the internal business processes which aim to showcase technology in the area of actual application within the company premises; the shareholder value aspect which ensures a fair return on the investments of the owners; and, customer relations management which will ensure optimum satisfaction of customers through ethical practices.

HRP links further includes the conduct of sustained training and development of the company's manpower complement to enhance knowledge, skills and work attitude as means to increase job satisfaction levels which will in turn increase productivity and high morale in the workplace. Likewise, compensation packages are encouraged to be adopted at a motivating level to ensure loyalty and sense of equity in the company.

In addition, career and succession issues, promotions, performance management systems and active participation in corporate operations are parts and components of the human resource planning processes that should be actively pursued by the company.

ABC Company

Matrix of Strategic Plan



Strategic Aims/Goals


Relevant Activities

Link/s to

Human Resources



Increase market share to 80 per cent

Expand into global production;

Intensify research &development;

Links with industry players;

Hire competent technical staff;

Market research and product profiling.

Open production branches in Europe and enhance supply chain in Asia;

Introduce new products through research and development and distribution through linkages.

Global recruitment of competent manpower towards better diversity. Training and development of manpower towards better production, marketing and distribution.


Manpower learning and growth

Hire competent people;

Intensive people training;

Provide support facilities;

Involve people in

R &D;

Enhance compensation;

Adopt performance management system.

Adopt a package of training and performance-based compensation through intensive employee participation and support.

Tight screening of manpower to ensure competence and commitment according to corporate philosophy.

Compensation is tied to productivity.


Showcase the company as IT model

Quality focus;

Showcase of IT model;

Integrate IT into systems;

Showcase system to public.

Adopt quality focus right the first time in all products and services with company as model of its product line.

Train and orient manpower to showcase company products and services in their offices, homes and be advocates of corporate patronage.


Enhance shareholder value

Adopt cost management system;

Employee citizenship in productivity goals;

Declare and distribute dividends.

Identify areas for improvement to reduce cost, eliminate wastes and increase income through productive endeavors.

Orient people on need for balance in profits, compensation and systems efficiency. Motivate employees to showcase HR value;


Corporate social responsibility initiatives

Community CSR activities for employees;

Environmental compliance;

Education for nearby communities;

Advocacy participation;

Disaster preparedness.

Plowback part of profits into communities and advocacies that improve and appreciate social responsibility.

Encourage volunteerism of its people into self-help and community-oriented advocacies.

Contribution of staff

In the adopted Human Resource Planning (HRP) program of ABC Company, the manpower components are considered major contributors to the effective and efficient operations of the organization in the following aspects:

Competence, loyalty and productivity are key virtues of the employees that add value to the human resource component in terms of quality and sustainability;

Participation in terms of new innovative ideas, suggestions in terms of cost reduction systems, revenue generating measures to supplement income and participation in terms of marketing and patronage of company products and services;

Participation in training and development for employees as means of developing a learning organization as a way to ensure sustainability of efficient operations.

Identify the best practices of the HR industry in general and relate such practices/features of HR policy of ABC Company in general.

The following can be considered best practices in the area of human resource planning processes for the industry that are pervasive in ABC Company operations:

a, A large number of areas where the employees can be significant contributors to innovations;

b. An innovative means of performance management system that encourages performance targeting and objective evaluation system;

c. A clear organizational communications systems that manifests transparency and accountability and good governance system;

d. A responsive compensation package that recognizes the fundamental tasks, semi-variable benefits based on the need of the job and a variable component that encourages salary payments based on performance;

e. A clear succession system to encourage strong employee morale and opportunities for all employees.

These best practices have become effective motivators and drivers of performance for ABC Company. With a high job satisfaction level, the employees have become highly productive and quality conscious. The multiplier effect of an exceptional human resource management is perhaps the best solution for fledgling companies that seemed to be detached from opportunities of provided by a unique set of human capital which\ABC Company considers to be partners rather than employees.

Deployment of manpower in the company's branches all over the world showcase the exceptional human resource concern accorded all employees. Their active participation in the management and operations of the firm is evidence of commitment and loyalty to a responsive organization.

Write about your Organization's HR Policies/Procedures for ABC Company

The company's HR Policies and Procedures as practiced are outlined below:

A pre-planning session is conducted by key company officers to determine how the strategic plan is to be operationalized during the oncoming fiscal year. The results of the pre-planning session will determine how the company will translate the broad plans into specific agenda to be implemented before the start of the reference year. Among the key results of the pre-planning session will be an estimate of how many employees will require accomplishment of the goals and objectives as outlined in terms of revenues, expenditures, capital funds and other operating requirements. Here, the SWOT factors are carefully detailed and discussed. Key informants from the industry is sought for insights and visionary inputs;

The results of the pre-planning session will be disseminated to the key departments for suggestions and recommendations as well as inputs. Participation of all elements in the company is enjoined to encourage ownership to the measures to be adopted after the formal planning session. The formal planning session is later conducted to integrate the inputs provided by the key officers and his staff. In the formal planning session, the planners will attempt to finalize the tentative list of manpower to act as the team for the next period's strategic operations. A budget for this requirement is to be formulated to determine whether the operating cost of the company can be sustained and supported by the expected revenues. Otherwise, the plan is either modified to match the resources available to achieve the objectives during the year.

A final manpower plan is developed for purposes of analysis including setting of manpower standards and qualifications vis-a-vis the jobs and tasks available during the year. Here, the plan will include retirements, retrenchments, rehiring, promotions, lateral transfers, terminations, upgrading or new hires specific for each position. Identification of employees by name is disclosed at this point. Full justification is provided for specific unclear positions and appointments;

A compensation and fringe benefit plan is designed to attract applicants to the position and bid for the post. The package is deemed to be attractive enough to motivate all competent applicants;

The scope of duties and responsibilities as well as accountabilities are analyzed and clarified to ensure that there are no overlapping or redundant functions as well as assurance that the scope is specific enough to accomplish the tasks in the timeline considered;

A final meeting is conducted to assess the prospects and risks of the Human Resource Plan (HRP) and thereby apply modifications as means to respond better while providing contingencies in case unavoidable or unanticipated changes occur along the way. The draft HRP is to be communicated down the hierarchy to generate further comments, suggestions and recommendations before this is submitted to the top management and Board of Directors for approval.

Final approval is sought on the Human Resource Plan (HRP) by the top management including the Board of Directors which will mandate the adoption of implementing guidelines for the Plan.

Final approval is posted to inform all employees of the plan soliciting their cooperation and collaboration in successfully implementing the HRP.

Details of the HR policies on recruitment and selection, training, promotions, vacation and sick leaves, retirement and separation;

9.1 Recruitment and Selection.

The recruitment and selection process starts at the conceptualization of a position and establishment of job analysis to justify the position. Here, the job requirements and qualifications are determined and communicated;

Selection of the qualified applicant is finalized by a committee tasked to decide on the competence and commitment of the employee.

9.2. Training.

An appropriate training module is prepared for the employee and monitoring is conducted to ensure competence at the appointed timetable after which the candidate is subjected to a panel interview. If the candidate passes, he is deployed in the department of assignment. Otherwise, he is sent back for further training.

9.3 Promotions

Promotions to regular appointment or higher rank are purely based on merits and performance on the job.

9.4 Vacation/Sick leaves.

Employees are entitled to 15 days vacation and 15 days sick leave per year subject to monetization if not availed.


Retirement age is voluntary at 60 with mandatory retirement at 60 years old.


Other forms of separation include resignation, termination and retrenchment in which all employees are required to apply 30 days before except termination where the company is given a broader authority to initiate.

Summarize the difference in your HR policy as compared to the best practices in the industry: The Gap

The HR policies of ABC Company and the best practices in the industry can be considered as a close match in terms of benchmarking and standard and precedent setting status. ABC Company is a pacesetter in the IT practices both in terms of product diversity and services. The company has in fact adopted many of the best practices in the industry while innovating its own number of best practices which were adopted by the industry itself.

Henceforth, the gap is represented are in the area of voluntary participation of every employee, the compensation package which is better than the industry average, the working conditions which are considered cutting-edge and trend-setting. Likewise, the quality orientation of employees is considered its main competitive edge as these results in cost effectiveness and competitive pricing policy. These differentiation drivers are considered unique for ABC Company and are likely to be its strategic drivers for sustainable competitive advantage.

HR Planning Process

The HR Planning process is a complex system that is characterized with a number of sensitive variables such as corporate culture, budget system, personality constraints, attitudes, beliefs and values as well as such issues of envy, professional jealousy, and similar emotional variables. However, in ABC Company, the HR Planning process is an event eagerly anticipated by every employee as this is regarded as a very objective manifestation of recognizing potentials, tests of performance, fair recognition and motivating atmosphere.

The HR planning process is an opportunity for every employee to be judged strictly according to the merits and strengths after due training and development is conducted among all employees. As a result of the HR planning process, communication between and among personnel has been raised to the level of effectiveness and strong sense of mutual respect. Here, participation is very often full and voluntary making the entire process an activity owned by almost every one. Clearly, the process of sincere recognition of everyone's role in the corporate organization is explicitly appreciated and rewarded.

For the ABC Company, the HR planning process is an exhaustive series of sessions participated in by cross functional teams based in their respective areas of responsibilities tasked to address a corporate issue with implications and impact on the other units in the organization. Very seldom does this human resource management atmosphere more compelling and invigorating than the case of the ABC Company.

External Environmental Analysis using PESTEL & its impact on HRP

As a result of the pestel analysis, the company's HRP is impacted along several areas, to wit: the political and legal aspects are considered strengths for the company considering a strong compliance with the legal requirement for labor and employment with wages and salaries way above industry including issues of 401k and other benefits under superannuation. Fringe benefits are extensive putting the company's benchmark above the rest.

In the area of economic issues, HRP is considered a strength as this requires a relatively fair compensation scheme able to cope with the rigors of daily living. The social perspective is a strong enabling driver to developing harmonious relationship among employees and the immediate society they belong to. On the technological side, HRP is impacted along the use of modern methods of human resource planning, evaluation systems and utilization of data base systems in aid of human resource management. Likewise, on the environmental aspect, the HRP is positively impacted in terms of adopting an advocacy as criteria for value-added implementation of HRP. Table 2 illustrates the PESTEL factors:

Table 2

PESTEL Analysis & Impact on HRP

PESTEL Factors


Impact on HRP

Political &Legal

This represents the regulatory compliance factor and the legal risks being confronted in every area of operations globally.

Intensive orientation, training and development of the human capital in this area, among others, minimize and eliminate the risks. This is considered a strength.


This comprises the compensation and fringe benefits system in response to the economic condition confronting the employees.

The volatile global economic scenario is likely to affect the job security, job satisfaction and tenure of employees. This is likewise considered a strength.


This area represents the development of harmonious social and working relationships among employees and the community where they belong.

The social, communication and interpersonal skills developed among employees represent the enabling driver of the company's marketing strength making its human capital is best resource.


This area represents the use and showcasing of technological processes in the company using its product line in an integrated system.

The human capital training and development leading to its learning and growth perspective and strong orientation and awareness of its own products and services are strengths for ABC Company.


This represents the various advocacy issues supported by the company along recycling, clean air, waste management, etc.

Employees are trained and developed to conceptualize and share their voluntary commitment to advocacies to the community where they belong.

Internal Environmental analyses using 7s frame work.

In terms of the 7s framework, an analysis of the internal environment indicates a strong parallelism with the internal factors of success which are factors that may help improve the performance of a company; or determining the likely effects of future changes in the organization; or a system of aligning the departments and processes during mergers or acquisitions or in terms of determining the best approach to implementing a strategy. Figure 1 (Mindtools, 2005) below illustrates the relationships of the various factors of the 7s framework.


Table 3

Analysis of 7s framework factors on HRP


7s Framework Factor

Internal Analysis on HRP



The organizational setup of ABC company represents the template from where the enterprise is to base its internal efficiency system.



The short, medium and long-term plans of the company determine the totality of how the firm envisions itself to play in the competitive environment.



The internal business processes dictates the tempo of efficiency and effectiveness in the overall operations.



This represents the uniqueness of products and services delivery that addresses the differentiation strategy of the company.



The learning and growth perspective of the human capital in terms of knowledge, skills and attitude is considered a critical factor in the management of quality and productivity in the corporate operations.



The quality of staff and its efficient team-oriented with the management are factors that deliver quality systems.


Shared values

Congruence among employees philosophy of work, relationship and personal and corporate goals are necessary to channel efforts to common noble purposes and intents.

SWOT analyses for the HR activities.

With the adoption of the various unique HR activities, the prevailing organizational culture of ABC Company is a boon and advantage to the implementation of an HRP as there appears to be a positive correlation in terms of attitudes, beliefs and practices contributory to the strength of the company. The harmonious relationships among people are driven by pragmatic character of the corporate core values. Objectivity, fairness, collaborative and team-oriented decision making through the cross functional teams help every employee efficiently discharge their scope of responsibilities. Manpower is highly flexible and is achievement-oriented enabling work to be characterized with quality at the outset. Thus, the company is not expected to experience a tight labor market as it has created a buyer's market because of its HRP practices. to ensure compliance and sustainability of the HRP.

A staff audit matrix to complement the human resource plan compliance system is shown below. The objective of an audit matrix is to provide a tool to assess and confirm the commitment and effectiveness of a human resources operators and management system. The audit ascertains how the criteria is documented and reviewed, what action has been taken and what input the drivers have had into the process (e.g. through training services or via a manual). Here, there is a need for the auditor to establish the knowledge and understanding of such procedures through periodic discussions with a selected group of employees chosen at random.

Table 3

Staff Audit Matrix

Learning and Growth Monitoring





Compliance Remarks


Knowledge Component: Training &Development

Document what training and development plan is needed as per TNA.

Review of training plan and activities scheduled and conducted.


Skills development: technical, interpersonal, intrapersonal and conceptual.

Document what skills training are planned under the technical, interpersonal, intrapersonal and conceptual aspects.

Review of training requirements ensuring that training modules match manpower needs as identified and planned.


Behavioral and attitudinal modifications.

Document what series of workshops, on-the- job training, immersions are critical to behavior modifications.

Review results of performance targeting system to determine variances.


Organizational responsiveness.

Document what job circumstances and tasks require team-oriented focus.

Conduct 360-degree assessment to appreciate impact on co-workers and organization as a whole.


Intervention systems.

Document what intervention systems were undertaken to keep efforts on target.

Monitor and document intervention needs and assess actual outcome.


While the HR budget may appear to be significant in an era of good HRP practices, the ABC Company is in a better position to benefit from the labor market gaps as the company leads the industry in terms of preference in terms of employment. Here, the company is a key leader in acquiring the best people in the market for its highly competitive compensation package.

Thus, devising an HR plan based on demand and availability (supply) forecast factors can hardly be an issue for ABC Company due to its close linkage with the academe in terms of identifying and developing manpower skills among students and graduates.

The aspect of demand & availability forecast is a component of the HRP system of the company as it is able to identify vacancies, numbers, capabilities, skills and knowledge through intensive job analysis processes that details prospective job descriptions and specifications for all its positions in the hierarchy. Together with this strategy, ABC Company aims to focus production and distribution systems in areas with favorable labor atmosphere such as China and Southeast Asia where multi-sourcing of manpower can be undertaken. Distribution areas in Asia, Europe and the United States likewise are targets for appropriate supply chain requirements. Clearly, matching of personnel requirements with area competencies are a result of the suitability analysis for the labor needs, unless repatriation is necessary. Thus, the demand and availability needs are equally addressed by matching the geographical area with the available labor competences.

Here, the need for additional technical people for the research and development areas along software and electronic accessories are identified. Similarly, other manpower needs are to be sourced through the business process outsourcing market (BPO) such as accountants and other administrative positions.

Recruitment & Selection Strategy

For ABC Company, recruitment and selection represent the process of identifying the appropriate competent manpower based on the needs of the tasks and the organization. Recruitment includes documentation of the entry of new manpower into the fold of the corporate workforce. Selection is a process of identifying the most qualified applicant to a position. Some of the methods of recruitment and selection include direct hiring which is a system that is the company undertakes for itself without agency intervention who charge fees. Another method is outsourcing which is a recruitment and selection method based on a short contract to address non-recurring tasks. On the other hand, project-based recruitment is a temporary help for seasonal requirements which are contractual and non-tenured.

For purposes of ABC Company, recruitment and selection remains on the traditional system that entails regularization. The learning and growth perspective needs faithful compliance to motivate the manpower to achieve their career worth providing themselves the needed work-life balance. Each method of recruitment and selection differ in terms of layers of agencies and temporary or permanent nature of the job.

Currently, this best practice is already undertaken by ABC Company which has adopted the labor-market matching approach. This system has produced encouraging results and need not be replaced as yet except for minor enhancements like a more focused training system and a more objective process of evaluating final selection which is proposed to be the collegial approach. .

Because of its sustained best practices in the HR sector, ABC Company is able to design and adopt an effective recruitment and selection strategy based on current needs. In general, the recruitment and selection methods in the company have traditionally been conservative. However, new and emerging trends in the R & S system indicate the following approaches: (1) linking with universities in identifying and collaborating with prospective employees with appropriate capabilities and trained under a dual training system that ensures employment for ABC Company; (2) adoption of a supervisory and management development program for new employees to immediately bring them into key entry positions at the same time providing career pathing as means to anchor and stabilize manpower supply of expert people; (3) intensified training and development in the key areas of interests of the employees to optimize job satisfaction and productivity; (4) encouraging key executives to partner with universities to help train and teach students along industry practices and help prepare these students to be recruited before they graduate, thereby assuring the company with the best minds and technical expertise available. Here, access to the best people is moot and academic.

The reliability and validity factors primarily refer to the ultimate testing and selection of employees from the standpoint of risk and organizational responsiveness as well as the other criteria for which a battery of tests is available to ensure that the hiring process addresses the need of the company. The reliability and validity factor is expressed both in terms of quantitative rating and qualitative remarks representing the plus and minus factors of hiring the person.

Devising a recruitment and selection plan & describe the stages in it provide flow diagram

In devising recruitment and selection plan using a flow diagram, the need for a detailed job analysis is needed to identify the best candidate against the available manpower. A form of reliability and validity test for the identified selection method is utilized to assure that the best candidate is chosen and eventually hired. Here, the testing system is expected to identify the candidate and ensure locking him up for employment through attractive compensation schemes.

Here, the HR director is usually in the best position to coordinate these activities and assure a smooth flow of recruitment and selection process through its documented best practices in the HR practice. Initially charged with designing the selection system, the HR practitioner must be in a proactive mode to sustain the motivation of new hires to anchor their interests with the attractive compensation package available. The role of the HR director here is additionally charged with an effective way of advising and counseling people that create value, trust and confidence among employees and new hires. For the technical and administrative positions in the operations section, the urgent need is to match the job requirements as indicated in the job analysis sheet and the subject the new applicant to undertake training under a formal development program. Considering the need for technical and administrative employees to fill existing vacancies, ABC Company must fat track the recruitment process by seeking tentative help from existing manpower while strongly providing all forms of support for the positions?

Evaluation of the Process

For the ABC Company, the recruitment and selection process has been found to be almost ideal representing the best practices available in the area of human resource management. Except for the relatively high cost of the recruitment and selection process in the style of the company, the advantage has been considered a recurring edge for the company and thus is able to recover whatever cost is spent. What could then be improved is the conversion of this process into a simulated way that establishes the system in universities to give each prospective employee and employer a key collaborative outcome. For the ABC Company, creating an implementation plan is moot and academic with its best practices available.

Implementation Plan

An implementation plan for the HRP for ABC Company is to be contained in a corporate document that outlines the whole processes from the job analysis, recruitment and selection, compensation management, training and development, career pathing, lateral and vertical movements and promotions system,. identification of succession processes, participation in cross functional teams, ranking, rehabilitation stages, intervention systems and retirement and separation. Implementation plan commences with the periodic annual strategic planning review and is sustained throughout the year as means of continuous process improvement.


In this regard, the ABC Company can be made to adopt enhancements in its line of best HRP practices already providing benefits to the company. These recommendations are based on the issues and possible weaknesses and risks which may occur considering the key sensitive variables earlier mentioned. Among these recommendations include; (1) treating people as partners rather than as employees; (2) open communications and transparency in terms of formulating and implementing human resource policies applicable to all employees regardless of rank; (3) a key principle is correcting behavior rather than punishing them; (4) adoption of an objective performance management system; (5) imposing discipline regardless of rank; (6) creating a budget based on objectives and activities planned; (7) adopting a responsive compensation and benefits plan that creates allies among key people; (8) strengthening the ethical communication practices within.


The adoption of an effective human resource plan as outlined earlier, remains the most sensitive and complex tasks for a human resource practitioner. Nonetheless, once appropriately managed, it ensures the creation of best practices in the area of professional human resource management (HRM). In the case of the ABC Company, its noble philosophy raises the issue several notches higher in the area of personnel management. It has ventured into practices that not many firms, global or local, may enter and excel at the same time. The emerging HR practices of the company are eye openers for the industry. This indicates that best HRP practices remains a strong possibility for any company worth its people and desirous of providing a balance among its key stakeholders such as the customers, shareholders, its systems and the people behind the learning organization.