Table of Contents

1. Executive Summary

2. Problem Identification and Analysis

2.1 No Human Resources Planning

2.2 High turnover rate among the youngest professional employees

2.3 Lack of communication

2.4 Lack of participation in the recruitment of Top Management

3. Recommendation

3.1 Human Resources Planning

3.2 Method for lowering turnover

3.3 Communication channel

3.4 Power Re-delegation

4. Conclusion

1. Executive Summary

The following report is based on a case study of Paper Manufacturing Firm. The main
problem that has been identified is no Human Resources Planning in this company.

A recommendation is that establishing Human Resources Planning in this company. The

management will likely find that once this problem is solved that other problems will
possibly disappear.

2. Problem Identification and Analysis

2.1 No Human Resources Planning

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There is much evidence pointing towards no human resources planning in this company
including recruiting, screening, training, rewarding, and appraising.

When two of vice presidents retired, no replacement was made until Mr. President hired
an external candidate to fill up one of the vacant position. This leads to one of the
department head discontent and resigned and she think that Mr. President never consider
promote internal staff to fill up those positions . It seems that there is no recruitment
policy (external or internal) within the firm.

Also, it is evident that there is a selection problem in the firm as Mr. President was a
mechanical engineer but don’t know why he can started as President. He is not proficient
in Human Resource Management.

Moreover, there is high turnover rate for youngest professional employees due to the lack
of motivation. In fact, the lack of achievement, recognition and responsibility means that
the motivating factors are not enough to satisfy the employees.

2.2 High turnover rate among the youngest professional employees

There is a high turnover rate (80%) during the past three years for the youngest profes-
sional employees in this company. It is because they don’t feel that they have a future
here. Also, employees greatly suffer from a lack of motivation. They do not possess the
initiative for growth and achievement of their potential. Moreover, they would like to
earn a promotion but find it hard to stay interested as a result of the company to promote
the wrong people to do the wrong position. For example, Mr. President was a mechanical
engineer but he started out in this company as President in human resources department.

2.3 Lack of communication

It is evident that there is a lack of communication in the firm. Mr. President does not
know one of the department head who wants the job as vice president for eight years and
had hired someone from the outside. It leads to the resignation of this department head.

The President seems unaware of why the employees are so unhappy in their position and
doesn't know what to do to keep them with the firm longer. This is because he does not
consult with the staff about the problems they may be having with the organization.

2.4 Lack of participation in the recruitment of Top Management

It is not appropriate that Mr. President to hire vice president as these positions are senior
level than him. Also, they don’t have any other senior management to participate in the
recruitment of vice president.

3. Recommendation

3.1 Human Resources Planning

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It would be required to establishing a human resource planning system in this company.

The effectiveness and efficiency of people within an organization is often dependent on

its operations. The goal of forecasting and planning is to keep and improve on the human
resource assets of the organization in order to meet their needs and objectives.

Planning involves being able to provide the different manpower, economic, social, and
business requirements of the organization in future situations. Planning provides a sense
of purpose and direction. The planning process forces organizations to make a thorough
analysis and study of the current situation in terms of internal resources and how these
resources are utilized. It is making a decision in advance on the different concerns and
future actions of the organization. It is related to how these aspects are organized and
controlled under certain conditions that may arise in the future.

Human resource planning considers the current state of manpower resources and how this
resource can be utilized for future adaptation to changes in the environment. It also
provides a more effective and efficient use of manpower skills and knowledge. A good
human resource plan creates more satisfied and more developed employees and provides
an effective equal employment opportunity. Human resource planning is the process of
systematically forecasting human resource requirements of an organization such as skills,
salaries, hiring needs, layoffs, and other human resources concerns. It also involves
finding ways and means to reduce the number of employees if a surplus is projected. If
there is a projected shortfall of skilled personnel because of the acquisition of new
equipment or changes in business processes, then the human resource plan should be able
to attract prospective employees from outside of the organization.

a) Human Resource Activities

Different human resource activities should be integrated in order to enhance the value of
human resources. Planning should help ensure the balance of all the human resource
activities of the organizations. These sets of activities are based on the recruitment and
selection of the right candidates, pay scale determinants, employee appraisal, and many
more.

b) Benefits of HRP

There are a lot of benefits associated with good human resource planning techniques.
These benefits are primarily centered on the work quality or output and the general
welfare of the workforce of the organization. It helps in the proper distribution and
assignment of jobs to the right personnel. It helps the organization manage variations in
staffing and recruitment. It also provides other relevant information about how the current
human resources of the organization are contributing to the successes or failures of key
business processes.

c) Steps in HRP

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The entire human resource planning process can be defined in the following steps

- Determine the impact of organizational objectives on specific organizational

units. By looking at the general objectives and how it affects the different entities
and departments of the organization, firms can start to identify the manpower
concerns and needs in different departments and set their priorities.
- Determine the skills required to meet objectives. Changing business processes
influenced by technological advances require new sets of skills in order to fulfill
some of the organization's objectives. It is important to determine which skills are
more appropriate for future HR expansions and utilizations.
- Determine additional human resource requirements in light of current
requirements. It is not only appropriate to determine the labour supply and
demand. There are intangible requirements for today's diverse workforce.
Workers demand new benefits and compensation packages. Businesses demand
new sets of skills and commitments from their employees. Determining these
requirements for the formulation of the HR plan needs to consider both sides of
the labour relationship. Trade unions demand new provisions in their collective
bargaining agreements.
- Develop action plans to meet the anticipated HR needs. Should there be
emergencies and unexpected disruptions, the HR plan should be able to provide
the appropriate actions to meet these crises as they arise. Organizations in general
are not complacent about events that might occur in the future. Workers should
be able to provide the immediate needs of the organization and the organization
should be able to provide the right remuneration packages to their workers.
- Develop succession planning to fills senior level openings. This is an ongoing
process of systematically identifying, assessing, and developing organizational
leadership to enhance performance.

3.2 Method for lowering turnover

Some solutions have been provided to solve these issues and they have been listed below.

a) Rewards

A reward program which consists of cash coupon when the employee done the great job.
It would increase in motivation for the employees. It gives them attainable goals, because
the employees are very capable of doing their job. It's just their lack of motivation which
results in the carelessness evident in their work. Also, it will result in job enrichment for
the employees and employees will be happier to work harder if they know that they will
gain from such efforts.

b) Recognition

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Require management to verbally recognize each employee's efforts and good work. It
improves the morale of employees and self-confidence. Moreover, it improves quality of
work as employees will be encouraged by the recognition, and the staff will be likely to
display this in an improvement in their work.

c) Attainable Goals

Create attainable goals which encourage employees to focus on their goals. It must
improve the quality of work and creates teamwork

d) Promotion

Whenever any vacancy occurs, management would direct appoint or promote potential
employees. It improves the morale of employee and gives them a sense of job security
and opportunities for advancement. The staff turnover rate can be lower.

e) Provide training and development

To keep employees learning how to perform their jobs, improve their performance and
prepare themselves for more senior positions. Training in various aspects of the business
could be given to the staff.

3.3 Communication channel

Three possible solutions the firm could use to improve communication between
management and employee:

a) Regular appraisals

Allows employees to meet with management and discuss their needs. Employee could
speak honestly and openly about how they think they are going. Also, management could
provide feedback to employee on how they are going. If needs cannot be met there and
then, ways have to be developed to meet those needs.

b) Regular company meetings

The regular meetings will ensure that the communication flow is constant. A meeting is a
chance for all staff that works in the firm to congregate and voice their concerns with all
levels of management. Meetings could be held weekly or every two weeks and all
employees will attend as well as management to encourage flow of information and so
employees can voice their concerns. It is vital too, that the meetings are conducted by the
same person, or persons so that some form of consistency is maintained.

c) Consultation

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Organize one-on-one consultations with Mr. President where employees can voice their
concerns in privacy and vice-versa, so that Mr. President aware of their situation. It could
increases feedback and creates open communication

3.4 Power Re-delegation

Re-delegation of Mr. President to another job and appoint a new President who is profi-
cient in Human Resource Management.

4. Conclusion

This paper has presented a variety of problems being experienced by the Paper
Manufacturing Firm in their organization, and several concepts and ideas regarding
Human Resource Planning have been used to evaluate the problems and present possible
solutions. With the problems presented, it is essential that a company must not only be
aware of it and its effects, but its solutions and the concepts that can be used to solve
them.

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