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SAMPLE STRATEGIC MANAGEMENT PAPER FOR HUMAN RESOURCE

MANAGEMENT

CAPSTONE

Title Page

 Title of the Paper: Strategic Human Resource Management in Matias Corporation

 Student’s Name: Juan Dela Cruz
 Course Name and Number: MBA HRM 4420
 Instructor’s Name: Dr. Ericson Z. Matias
 Date of Submission: December 25, 2024

Abstract
This paper explores strategic human resource management practices at Matias Corporation, a
leading local manufacturing firm in the Philippines. The analysis emphasizes the importance of
aligning HR strategies with the company's business objectives to enhance competitiveness,
employee engagement, and operational efficiency. Using PESTLE and SWOT frameworks, the
paper identifies gaps in the company’s talent management and compensation strategies. Key
findings suggest that implementing data-driven recruitment processes and restructuring
compensation plans can reduce employee turnover by 18% and boost productivity by 12% over
the next two years. Recommendations include the adoption of digital HR tools and the
establishment of a comprehensive employee development program.

1. Introduction

1.1 Background

Matias Corporation, a homegrown manufacturing company in the Philippines, specializes in

producing consumer electronics and has been operational for over 30 years. With annual revenues
reaching PHP 5 billion and a workforce of 2,500 employees, Matias Corporation is a significant
player in the local market. However, the company faces challenges such as increasing competition
from foreign brands, rapidly changing consumer preferences, and a need to adapt to new
technologies. Strategic human resource management is critical to navigating these challenges and
achieving long-term growth.

 Existing Vision-Mission: "To provide quality and affordable consumer electronics to

every Filipino household."
 Proposed Vision-Mission: "To be the leading innovator in the Philippine electronics
market, enriching lives through sustainable and cutting-edge technology."

1.2 Company’s Long-Term and Short-Term Objectives

 Existing Long-Term Objectives:

o Expand market presence in Southeast Asia by 2030.

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o Increase customer satisfaction ratings from 80% to 90% within five years.
 Proposed Long-Term Objectives:
o Achieve a 15% market share in Southeast Asia by 2030, with an annual growth
rate of 7%.
o Attain recognition as a top 5 employer in the Philippines by achieving an 85%
employee satisfaction score by 2027.
 Existing Short-Term Objectives:
o Launch three new product lines in the next two years.
o Reduce employee turnover from 15% to 10% by the end of 2025.
 Proposed Short-Term Objectives:
o Implement a digital HR management system by Q4 2024 to reduce recruitment
time from 35 days to 20 days.
o Improve employee engagement scores from 60% to 75% within 12 months.

1.3 Structure of the Paper

This paper is divided into six sections:

1. Introduction: Overview of the company, its objectives, and the role of strategic HR
management.
2. Statement of the Problem: Identification of major and specific problems within the
company's HR practices.
3. Literature Review: Discussion of relevant theories, past research, and current trends in
HR strategy.
4. Strategic Analysis: In-depth analysis of internal and external environments, including
PESTLE, SWOT, and competitive frameworks.
5. Strategic HR Management: Proposed strategies for HR planning, talent management,
performance, and compensation.
6. Evaluation, Conclusions, and Recommendations: Assessment of strategies,
recommendations, and an implementation matrix.

2. Statement of the Problem

2.1 Major/General Problem

Matias Corporation is facing difficulties aligning its HR practices with its strategic goals, leading
to high employee turnover (15% annually) and low engagement scores (60%).

2.2 Specific Problems

1. Inefficient Talent Acquisition: The current recruitment process is slow, with an average
time-to-hire of 35 days, hindering the company’s ability to attract top talent.
2. Inadequate Compensation Structures: Compensation packages are below market rates,
resulting in a 25% turnover rate among key employees.
3. Obsolete Performance Management Systems: The existing system lacks real-time
feedback and goal alignment, reducing employee motivation and performance.

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3. Literature Review

3.1 Theoretical Framework

Strategic human resource management at Matias Corporation is guided by the Resource-Based

View (RBV), which positions human capital as a source of sustained competitive advantage. The
Strategic Fit model also plays a role, highlighting the need for HR practices to align with overall
business strategy.

3.2 Previous Research (at least 20 RRL)

A study by Cruz et al. (2023) found that Philippine companies with integrated HR strategies saw
a 15% improvement in financial performance. Meanwhile, Garcia and Santos (2022) demonstrated
that firms with dynamic HR practices achieved a 20% increase in employee productivity.

3.3 Current Trends

Current HR trends in the Philippines include the adoption of digital tools for HR analytics, a
growing emphasis on mental health and well-being, and a shift towards hybrid work models.
According to a 2023 survey by the Philippine Association of Human Resources Managers
(PAHRM), 65% of companies using digital HR tools reduced hiring costs by 10% and cut
recruitment times by 20%.

4. Strategic Analysis: Internal and External Analysis

4.1 External Environment Analysis

 PESTLE Analysis:
o Political: Compliance with the new Philippine Data Privacy Act requires
investments of approximately PHP 10 million in data protection systems.
o Economic: Inflation rates of 4.1% (2024) impact consumer purchasing power and
demand for electronics.
o Social: Increasing preference for remote work, with 70% of employees in Metro
Manila expressing a desire for flexible work arrangements.
o Technological: Rapid advancements in AI and IoT necessitate continuous
upskilling, with Matias Corporation planning a PHP 20 million investment in
training over the next three years.
o Legal: Adherence to Philippine labor laws, particularly on fair compensation and
working conditions.
o Environmental: Rising demand for sustainable products; a goal to reduce carbon
emissions by 25% by 2026.

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4.2 Internal Environment Analysis (

 SWOT Analysis: (Table format)

o Strengths: Strong brand recognition in the local market (75% awareness), robust
supply chain, and a diverse product range.
o Weaknesses: High employee turnover (15%), low engagement scores (60%), and
outdated HR processes.
o Opportunities: Expansion into the ASEAN market (projected 8%), leveraging
digital HR tools, and developing new product lines.
o Threats: Increasing competition from both local and international brands, rapid
technological changes, and currency fluctuations affecting import costs.

4.3 Competitive Analysis

 Porter’s Five Forces:

o Competitive Rivalry: High, with several established local and international
competitors.
o Bargaining Power of Suppliers: Moderate, due to reliance on imported
components, leading to potential cost increases of up to 5%.
o Bargaining Power of Customers: High, as customers demand more innovative
and affordable products.
o Threat of New Entrants: Moderate, with new entrants leveraging e-commerce
platforms to reach consumers directly.
o Threat of Substitutes: Low, given the unique positioning of Matias Corporation
in the affordable electronics segment.

4.4 Analysis of Demand and Supply of Labor in the Company

 There is a high demand for skilled engineers and product developers, with a current
shortfall of 100 positions. The local supply is limited, leading to a 15% salary premium for
new hires.

5. Strategic HR Management

5.1 Strategic HR Planning

Align HR strategies with business objectives by streamlining talent acquisition, retention, and
fostering a culture of continuous learning. Target to reduce recruitment time from 35 days to 20
days by Q4 2024 and increase employee engagement to 75% within 12 months.

5.2 Talent Management

 Introduce digital recruitment tools that are projected to decrease recruitment costs by
10% and reduce hiring time by 40%.
 Develop comprehensive retention strategies, including mentorship programs and career
advancement opportunities, aiming to reduce turnover by 5% annually.

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5.3 Performance Management

 Implement a new performance management system based on continuous feedback, goal

alignment, and data analytics, targeting a 12% increase in productivity over two years.

5.4 Learning and Development

 Allocate PHP 15 million for training programs focused on digital skills, innovation, and
leadership, with a goal of upskilling 70% of the workforce by 2026.

5.5 Compensation and Benefits

 Revise compensation packages to include performance-based incentives, health benefits,

and flexible work options, aiming for a 25% increase in employee satisfaction and a 15%
reduction in turnover.

5.6 Diversity, Equity, and Inclusion (DEI) Initiatives

 Launch initiatives to increase gender diversity by 30%

over five years, focusing on leadership roles, with a budget of PHP 5 million.

5.7 Health and Safety Programs

 Invest PHP 10 million in workplace safety improvements and wellness programs to

reduce work-related injuries by 40% and absenteeism by 15%.

6. Evaluation, Conclusions, and Recommendations

6.1 Evaluation of Strategies

The proposed HR strategies are expected to achieve significant improvements in employee

engagement and retention. Projections suggest a 15% increase in productivity and a 20% reduction
in turnover by 2026.

6.2 Conclusions

Strategic HR management is essential for Matias Corporation to sustain its growth and enhance its
competitive advantage. The proposed strategies aim to align HR practices with the company's
long-term objectives, leading to a more engaged and productive workforce.

6.3 Recommendations

1. Implement digital recruitment tools and revise compensation structures by Q4 2024.

2. Launch training programs focusing on emerging technologies and leadership development
by Q1 2025.

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3. Regularly monitor HR metrics and adjust strategies to maintain alignment with
organizational goals.

PROPOSED STRATEGIC HUMAN RESOURCE PLAN

Description of the Proposed Strategic Human Resource Plan:

General Objectives: (1 general objective)

Specific Objectives: (at least 5 specific objectives)

Implementation Plan Matrix:

Focus of Specific Objectives Person/Department Targets Estimated Anticipated Proposed Timeline Expected
Consideration: Strategy/ Activity Involved Budget Problems Solutions Outcome
Program/Policy

Eg. 1. Hiring
and
Recruitment
2. People
Training and
Development

References

 Cruz, J., & Santos, M. (2023). "Human Resource Strategies in the Philippines".
Philippine Journal of Management Studies.
 Philippine Association of Human Resources Managers (2023). "Trends in HR Practices:
2023 Report". PAHRM Annual Review.
 Garcia, L., & Santos, R. (2022). "Enhancing Employee Engagement through Strategic
HR". Asian Business Review.

Alabang-Zapote Road, Pamplona Tres, Las Piñas City, 1740 Philippines *Tel. No.: (+632)8871.06.39
[Link]
Las Piñas Campus