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Planning Process of Human Resource Management

In order to run a successful business, it is vital to take into account human resource planning. The reason for this is that a proper HR strategy provides the means through which companies can guarantee that they employ professional staff capable of completing tasks. Moreover, a good manager should also create a system where a worker would be compensated for accomplishing the company’s objectives. The company in question is a vehicle distributor, which means that the firm is heavily customer-oriented. It sells cars produced by Asian brands for buyers of the middle and upper-middle class. Conducting business in this industry brings its own challenges; the consumer base in this field is usually demanding and requires the best service. That is why having a motivated staff, which is eager to please customers and sell as many vehicles as possible, is essential to the firm’s success.

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Researchers indicate several generic strategies in business that can increase benefits. For example, Porter (2003) points out three of them: the tactic of cost leadership, differentiation, and focusing on a narrow market of customers. The first type of approach means that the company will position itself as a low-cost producer, which is not suitable for the firm in question since it provides a rather expensive product. On the other hand, strategies of differentiation and focus seem like working methods since concentrating on a small market of consumers will allow the organization to put all resources into advertising vehicles to a certain population. Moreover, providing a better unique product that differs from competitors would also help to promote the company and get more sales.

As for the planning an HR strategy, it would be important to note that compensational policies play an important role in conducting business. According to Gubman (2004), an “HR strategy and planning require skills that will ensure a positive outcome” (p. 14). Therefore, a management team is responsible for gathering a highly qualified staff. Moreover, aside from employing workers, keeping them motivated is vital for the firm’s success since it increases productivity and labor efficiency; thus, the quality of services also improves. Moreover, staff turnover decreases as well, and workers are stimulated to grow as professionals. In cases where the organization does not bother to compensate its employees for the hard work, it is unlikely that it can count on staff loyalty.

Researchers indicate several programs and compensation systems that are connected with business tactics. For instance, Gerhart and Newman (2020) note that there are three of them, including low-cost, innovator, and customer focus strategies. The first one does not seem to be a reliable option for this vehicle distributor since it depends on reducing labor costs and increasing productivity. The last two strategies appear to be appropriate for the company because the innovator tactic encourages employees to come up with new ideas of advertising vehicles and adjusting to the changing market conditions. Innovation will be financially compensated, which will motivate the staff to create new methods of promoting the product.

Focusing on customers is also crucial since such a business solely depends on their satisfaction. For this reason, it would be logical to financially reward workers for successful trades. Such a system is appropriate for the current market as it is flexible and capable of adapting to customer’s demands. While such a compensation system is demanding because it requires dedication and positive results from the employees, it provides an opportunity for them to earn way above their average wage.


Gerhart, B., & Newman, J. M. (2020) Compensation (13th ed.). McGraw-Hill.

Gubman, E. (2004). HR strategy and planning: From birth to business results. HR. Human Resource Planning, 27(1), 13-23.

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Porter, M. E. (2003). Competitive strategy: Techniques for analyzing industries and competitors. Simon & Schuster.

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