Summary:
planning for a new company
Introduction
Toto Company was established in 2002, they provided logistic service for domestic company. Headquarter of Toto company is Shanghai; they have more than ten branches in important trade cities. Nowadays, they have totally 450 people working in Toto Company. In first operation year, they have got a million RMB net profits. But last year, their net profits decreased to 300,000 RMB, although their total profit has increased more than 40%. From the annual report, the CEO of Toto Company found their administration cost and other cost increase more than 100%. So in order to solve the new threats, Toto Company has decided to plan a new human resource planning for next year company developing.
Background information
China has entry into the World Trade Organization (WTO), more and more foreign corporations have decided to invest money to China, and they believe China has a large potential market. From the government report, we can find the domestic and international trade has increased slightly. Under these environments, Toto Company decided to provide a perfect logistic service from domestic market. In logistic area, on time and safety is the most important. Also, new company face many challenges, such as find new customers, recruit experiential manager, competition with strong competitors. There are three main competitors. COSCO, which provided logistic service for companies; FedEx and UPS, they provided service for both companies and individuals.
According to the research result, 95% customers' satisfied FedEx and UPS services, 42% companies satisfied UPS, 34% companies satisfied COSCO, and 17% companies satisfied FedEx. Although there have many other competitors in domestic logistics, they only hold 5% market shares totally.
Strategic planning
The purpose of Toto is to provide a vase services for company and to become a strong logistic company for business customer (company). In order to achieve goal, Toto should have at least 10% market share in domestic market.
In order to achieve10% market share, company should establish a good reputation in society, and pass the ISO standards; also, we should let more than 80% companies know our brand and services. For future strategic planning, Toto also decide to establish more local agencies in different cities, especially in western of China. Moreover, to let more stakeholders join is also an important task for future developing.
Human Resource Planning
Identify needs
From beginning we have found that Toto Company has face a new problem from internal area, on the other hand, for company future developing, Toto human resource department has do a new plans for next year.
According to the company annual report last year, next year, Toto Company should reduce administration cost. Toto Company is not a manufacture company; they needn't any raw materials for company, so all the costs are made by staffs. Only two reasons to explain why the administration costs increases faster, which are resources wasting and staff working inefficiency.
In 2005 human resource planning, Toto Company will fire some staffs, who working inefficiency and recruit more people from university in order to instead of fired people. On the other hand, seven departments will remix into four departments. The Finance department responsible for company daily expense and financial evaluation. The Human Resources department responsible for position exchange and some conflicts. Also, the Customer Service department and Marketing department will still remain, but company will cancel Computer department and Transportation department.
Evaluate needs
The main reason to cancel the Computer department is this department's daily expense is the highest, and it is not useful for company's main business. Transportation department has the similar task with Customer service, so from 2005, Customer service will also responsible for keep touch with transport company.
After combine each other, the company structure in 2005 become above picture
For 2005 human planning, Human Resource department has divided into two areas to plan, one is from external recruitment, and another is from internal supervising.
Objective of 2005 human resource planning
For 2005 planning, we should have more efficiency staffs, which came from university or other logistic companies, also, to establish an internal supervising system for all the people. To get high-degree people can influence other staff work more efficiency, to establish an internal supervising system is for reduce administration costs and resources wasting.
Part One: Recruit new staff
The main purpose of recruitment and training is to deliver a competent workforce. This section deals with all aspects of the recruitment of staff and support staff from the placing of external advertisements and the organizing of recruitment drives, to the management of the staff selection process. The head of this section is also responsible for managing the Training Centre, which delivers classroom based training under the two broad headings of negotiation skill, communication skill.
Recruitment process
The recruitment task will be an important planning for next year. Therefore, we have planned the recruitment from four aspects: search plan, selection techniques, timetable and recruitment budget.
Search plan: in order to let the suitable people know our company and be interested in the job position, we plan to use society media to make advertisement. In addition, we will make advertisement on some big job exhibitions and university in order to catch our suitable staff and managers.
Selection techniques: after advertisement for two months, we will begin selection stage and finish our search plan. In order to find suitable people, we will design the selection techniques. First are the Shortlist candidates, and then we will have interview, presentation and test for the applications. Then, we will conduct referee checks. After that, we will recommend successful candidates and give thanks to unsuccessful candidates. Attention is that, the selection decision will come from area manager, only the mangers agree, that we can select.
Timetable: we plan this recruitment process into five months.
January: prepare for recruitment.
January to February: make advertisement.
March: select suitable candidates and let the successful candidates sign the contract with our company.
April: write final report to top manager.
Recruitment budget:
- advertising on public media(100,000-120,000RMB)
- employment interviews(2,000-5,000RMB)
- assessing employment applications(500-1,200RMB)
- applicant reference checking(800-2,200RMB)
Total cost of recruitment will be 103,300-128,400RMB.
Part Two: Training current staff
From last two years result, we found that staff does not have enough professional knowledge on logistic, so present staff will have an opportunity to increase their competition power; the training courses will give them more knowledge that is professional.
Select trainer: The trainer is select by the exam-failed staff, which means all the failed staff in the knowledge test will train in 2005.
Training process
Next year, our human resource department will design a professional knowledge test; all the staff allows to take part in. the exam results prepare give to every one at the end of January. If the mark of exam is lower than 60, the staff should join to have a training course. The teacher will come from the university; company will provide free books and equipment. The training course will begin from February, finish at March. During training time, no staff wills loss their salary. At the end of March, the course exam will be hold. If staff still not passes the exam, he wills loss his job opportunity and sacked. The purpose to train staff is want to every staff have more knowledge that is professional, company not want to see any staff sacked in the end.
Training budget
- recruit teachers (1,500-3,000RMB)
- necessary equipment, such as books and classroom(2,000-4,000RMB)
- other cost, such as lunch (1,500-3,500RMB)
Total cost of training will be 5000-10,500RMB
Part Three: Establish internal supervising system
This supervising system will focus on the resources wasting. Toto Company does not have any products to production, so all the costs are from the administration costs. For example, some people like carry company printer paper to his house, also, pens, books, folders, are disappeared all the time. In 2003, we bought 4000 folders from outside, but at the end of year, plus 1500 folders we have not use, the company only have 2300 folders, other 1700 folders disappeared in company. So for supervising system, the supervisors will focus on the official resources. All the supervisors will come from human resource department, and the department managers will supervise human resource department. all departments will give a budget administration cost based on the number of people.
Part Four:Allocate budget
Official resource will depend on the staff number in every department.
Top management: each people will have 2,000RMB budget administration cost, it will get 20,000RMB for administration budget (10 people)
HR department: each staff will have 500RMB budget administration cost, the department will get 25,000RMB. (50 people)
Finance department: each people will have 500RMB budget administration cost, the department will get 35,000RMB (70 people)
Customer Service department: each people will have 500RMB budget administration cost, the department will get 82,500RMB f (165 people)
Marketing department: each people will have 500RMB budget administration cost, the department will get 87,500RMB (175 people)
Part Five:Other human resource planning
- Reducing sickness absence
- Staff retention
- Measures to improve leadership
- The Gender Agenda
- Implementation of Pay Reforms
Human Resource Policy
Staffs not allow commit and replace other employee to record the working card, if this kind of action find, the company will reduce 30RMB in salary.
If the staff absent more than five days in one month, the company will discharge the staff.
Staff not allows disclosing any company information to the media.
Manager should turn off all communication tools (e.g., mobile phone etc), also not allow shouting and whisper in the meeting time.
Staff must take care of company property, equipment and production facilities.
The company not allowed the staff to do the part-time job if the staff is not approved.
Conclusion
Toto company operation business only two years, many challenges we will face to the future. For 2005 human resources plan, the purpose is to find more suitable staff and mangers to help company to be stronger. In addition, to establish an internal supervising system for company is an important task in 2005. After design a systematic human resource plan, we believe our company can get a higher net profit in 2005.
Reference
1.http://www.southyorks.police.uk/local_polplan/hrstrat.htm
South Yorkshire Local Policing Plan 2003 - 2004
2.http://adtimes.nstp.com.my/jobstory/2001/nov18.htm
New face of human resource
- http://www.365hr.com.cn/qyzx/xnoffice/ygsc/10/010918.htm
- http://www.foxlawson.com/privateSector/articles/compensation.cfm
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