Hoshin Kanri planning process in human resource management: recruitment in a high-tech firm

Abstract

The Hoshin Kanri (HK) planning process is widely used in Japanese and Western companies for strategy planning and performance measurement in the manufacturing sector. Human resource management (HRM) plays an important role in business operations; HRM practices have a significant positive effect on implementing total quality management and on employee and customer satisfaction. However, HRM has always been considered reactive, uncoordinated, and unprofessional, delivering poor, slow, and ineffective services. This study presents the envision, identify, diagnose, prioritise, execute, and review (EIDPER) model, an extension of HK. EIDPER translates strategies into achievable actions to fulfil organisational objectives. We introduce a case study to illustrate applying EIDPER to the recruitment process of the HRM department in a high-tech manufacturing firm. The approach was successfully applied in the HRM department of the case company and effectively reduced hiring costs by US$360,000 in 5 years and improved recruitment cycle time by 40%. Managerial implications are also discussed at the end of the study.