Human Resource Bottle Necks at Hinopak Motors Limited Pakistan & Role of Mangers in Strategic Planning.

Abstract

Automotive Industry is one of the most significant industries in the world. It contributes a major share of global GDP and generates a large number of employment directly & indirectly. Auto company’s growth also complements other allied industries. Auto industry segments are based on Type of Fuel (Diesel, Petrol, biofuel, Solar, Electric, Hybrid, Battery operated) & a number of wheels (Two-wheeler. Three-Wheeler / Four-Wheeler etc.) Worldwide there are many automotive Companies some of the top ranking are (1) Toyota (2) Honda (3) Suzuki (4) GMC (5) Daimler & (6) Volkswagen. In Pakistan, till 2015 the Auto industry has main players like (1) Toyota (2) Honda (3) Suzuki (4) Hino (5) ISUZU. After 2015 strong emergence of Korean & Chinese players was observed. These companies have a different approach in terms of developing strategies for supply chain & HR Management as compared to Japanese automakers. Chinese & Korean brands came through an alliance with local partners in Pakistan so that Local Partners & MNC auto companies agreed to share Power Distribution. Whereas Japanese brands (Toyota / Honda / Hino) in Pakistan have more shareholding of Parent companies in Japan they have also influence over HR and Supply chain policies. In Pakistan due to the Lack of Core Technology and limited manufacturing capabilities of Local Suppliers all critical components are imported CKD Items. government Deletion program to improve the manufacturing of Auto Parts locally has been ineffective thorough years. Due to overreliance on the Parent company Top Line Management is also appointed by Parent companies from Japan based on the ratio of shareholding in Pakistan. Hinopak is a sister company of Toyota Japan with a major shareholding of Toyota & Hino Japan, it is top-ranked auto company in Pakistan with the highest number of shares by any Japanese Automakers in Pakistan. Hinopak has (1) An Assembling Plant (2) A Body Manufacturing Plant (3) A Head Office in Karachi, and regional offices in (1) Quetta (2) Multan (3) Lahore (4) Islamabad (5) Peshawar. As compared to Toyota, Honda, ISUZU & Master Motors, Toyota Japan a is major shareholder in Hinopak. On one hand that gives HPML a strategic advantage over other Brands due to the High stakes involved by the Parent company, but on the other side create HR Challenges concerning Local culture, Industrial relations & communication issues for stake Holders that are (1) Customer (2) Suppliers (3) Employees & (4) Dealers.Top Management including MD, DMD and other top positions are held by Hino Japan representatives on deputation for 3 years only, Long-term policies are based on the willingness of upcoming Management to continue or discontinue three years old initiatives. Traditionally decision-making is centralized where top management takes all key decisions, and mid-level & bottom-line Management follows it. Concerning Company Business Situation Hinopak & other Automotive companies are quite different than FMCG, Energy & other Industrial sectors. Traditionally demand for Automotive Products is always High whereas supply is limited due to imported parts requirements for assembling. Before 2018 Management was less concerned about the Problems in HRM System of Hinopak but since 2018 Hinopak faced a sharp decline in its sales due to (1) Political Instability (2) Volatile Fuel Prices & Forex rate (3) Supply chain crises due to COVID (4) Diversion of development Funds towards Flood relief activities etc. But a sense of urgency was also observed in the overall improvement of the HRM system since lost sale provides an opportunity for soul searching. The Goal of this BRP Project will revolve around the HRM System of Hinopak & the Lost sales. The Area of attention would be the company Introduction, Mission, Vision & Goals. Environmental scanning will evaluate the type of environment in which the company is operating, key partners, rival companies, challenges faced by the company and opportunities available. Sales Figure for the last few years will explain historical sales trends in past. Through Management Hierarchy current organizational structure of the company will be examined. After Presenting Introduction of the company, Industry & environment, the main issue that is HRM bottlenecks will be discussed, 3 major HRM Bottlenecks will be identified that cause lost strategic alignment. After Problem identification in the next sections of this report, possible solutions will be recommended that could mitigate HRM bottlenecks. At the end, challenges faced while implementing these solutions will be discussed and recommendations for Hinopak will be presented. This BRP document is an effort to identify gaps in the HRM system of Hinopak Motors Limited that have caused lost sales in the last few years.