...Explain how the human resource (HR) policies at Lincoln Electric are linked to its overall corporate strategy. Jeffery Pfeffer, The Human Equation, (1998), explains the idea of alignment between employment practices and strategy. He states that an organisation should do specific things to manage the employment relationship and these practices need to be first internally consistent and aligned to each other, and secondly, externally consistent in the sense that the organisations procedures produce the behaviors and competencies required for it to compete successfully given its chosen market place and way of differentiating itself from the market place. Going by this definition we need to consider if there is evidence of internal consistency of the HR policies pursued by Lincoln Electric. In order to achieve this objective to first identify what the key human resource management policies were are Lincoln Electric and their alignment to each other. The incentive system and the climate and the culture of open transparent performance management and gain sharing that was fostered by management are a primary example of internal alignment. The incentive system carried out at Lincoln electric could only have been successfully implemented within this open culture. The methods of measuring performance, the method of setting performance benchmarks (through work studies) and the subsequent involvement of all process owners in determining an employee’s rating is another example of internal...
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...“Linking Corporate Strategy and HR Strategy: Implications for HR Professionals,” In R. Padaki, N.M. Agrawal, C. Balaji and G. Mahapatra (eds.) Emerging Asia: An HR Agenda, New Delhi: Tata McGraw-Hill, 2005, pp. 215-223. Linking Corporate Strategy and HR Strategy Rishikesha T. Krishnan Associate Professor of Corporate Strategy Indian Institute of Management Bangalore Recognition of the link between corporate and business strategies and strategies related to the people function is not new. McKinsey’s 7-S framework that emphasised the need for the alignment of seven organisational variables (superordinate goals, strategy, structure, systems, staff, skills, and style) for organisational effectiveness is about twenty years old. But, during this time, the importance of people to organisational success has, if anything, only multiplied as businesses have become more knowledge- and technology-driven. As a result, even strategy gurus, who typically talk about esoteric topics like transnational corporations and integrated networks, today emphasise the importance of the “individualised corporation”. 1 In this paper, we attempt to integrate multiple perspectives on the links between corporate strategy and human resources strategy with the objective of giving HR professionals working within an organisational context some pointers on how they can contribute to better integration of corporate and business strategy with HR strategy. Corporate and Business Strategy Corporate strategy refers to...
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...Schuler and Walker define Human Resource Strategy (HRS) as “a set of processes and activities jointly shared by human resources and line managers to solve business-related problems”. I believe this definition assists on tackling the above question. However, Bamberger and Meshoulam “Conceptualise human resource strategy as an outcome: the pattern of decisions regarding the policies and practices associated with the HR system”. In my view, HRS is a set of ‘processes and activities’ that when implemented, result in an outcome. In aim to justify this statement by discussing the topic of human resource strategy in relation to the sub-headings listed above. By examining the reasons or ‘rationale’ for the emergence of human resource strategies in the modern business environment, the value, various strategy approaches, types and the concept of fit, I believe I can underline the importance of a well devised HRS to any overall business strategy or plan. Modern businesses and the economic environments in which they operate are very different from the organizations and economies examined by Chandler in his studies of ‘managerial capitalism’ (late 19th Century through to the 1970s). The development of technology, and the creation of global economies have resulted in a significant increase in efficient and effective competition within all industries operating in market economies. Firms con longer rely on competing aggressively simply on the reliable favorites of achieving economies of...
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...Cornell University ILR School DigitalCommons@ILR Visiting Fellow Working Papers International Programs 3-1-2005 The Role of Corporate HR Funcitons in MNCs: The Interplay Between Corporate, Regional/ National and Plant Level Elaine Farndale Erasmus University Rotterdam, farndale@few.eur.nl Jaap Paauwe Erasmus University Rotterdam, paauwe@few.eur.nl Follow this and additional works at: http://digitalcommons.ilr.cornell.edu/intlvf Part of the Human Resources Management Commons This Article is brought to you for free and open access by the International Programs at DigitalCommons@ILR. It has been accepted for inclusion in Visiting Fellow Working Papers by an authorized administrator of DigitalCommons@ILR. For more information, please contact jdd10@cornell.edu. The Role of Corporate HR Funcitons in MNCs: The Interplay Between Corporate, Regional/National and Plant Level Abstract The HR literature has been abundant in providing typologies of the roles of HR professionals in their organisation. These typologies are largely related to the changing nature of HRM over time, and the context in which empirical work was carried out. In this paper we focus on the context of the increasing internationalisation of firms and how this has an effect upon modern-day typologies of HR roles. We explore these roles by focusing on the way in which HRM practices come about. Especially in a MNC setting of increasing internationalisation of firms the issues of coordination, shared...
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...CASE STUDY 10 | SHRM Table of Contents EXECUTIVE SUMMARY ........................................................................................................................ 2 ANNEXURE ............................................................................................................................................ 3 INTRODUCTION ................................................................................................................................... 9 INTRODUCTION TO THE COMPANY ................................................................................................. 9 QUESTIONS ......................................................................................................................................... 10 QUESTION 01: ................................................................................................................................... 10 QUESTION 02 ................................................................................................................................... 12 QUESTION 03 ................................................................................................................................... 14 QUESTION 04 ................................................................................................................................... 16 CONCLUSION.....................................................................................................................................
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...------------------------------------------------- MODULE: HUMAN RESOURCE MANAGEMENT TABLE OF CONTENTS 2.1....................................................................Introduction 2.2....................................................................Corporate Strategy 2.3.....................................................................Strategic human resource management and human resource strategies 2.4.....................................................................Conclusion 2.5.....................................................................Recommendation 2.6......................................................................Bibliography LITERATURE REVIEW ON THE STRATEGIC FIT/INTEGRATION BETWEEN BUSINESS STRATEGIES AND HR STRATEGIES 2.1 INTRODUCTION This chapter presents a review of the relevant theoretical and empirical literature from books, referred journals, research projects and the internet. The achievement of any set of corporate objectives requires deployment of the two most important basic resources, namely, people and money. Deficiency in either of the two can reduce the best laid strategy to a valueless pipe dream. Organisations seem to find it more difficult to develop human resource strategies which are linked to business strategies despite a widespread recognition that this is important (Hussey, 2000). For Press Trust to achieve its strategic plans, it is only by having the right quantity and quality of management and non-management personnel on board. People...
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...1. Business-level Strategy Walmart uses a combination strategy of cost leadership and differentiation. They provide a wider variety of products and services with the same or better quality at a price that is cheaper than their competitors can provide. Walmart concentrates on finding ways to lower their costs by constantly rethinking how to complete their primary and support activities to reduce costs still further while maintaining competitive levels of differentiation. Their successful supply chain management is an important way helping them to implement the cost leadership strategy. They has effective inbound logistics by using just-in-time inventory. And they have cut costs from outbound logistics by creating better fuel efficiency in their trucks, getting more pallets on a load, and decreasing empty miles driven by their trucks (Dess, 2012). Walmart also reduces costs by buying in large blocks. Technology plays a key role in Walmart’s supply chain too, it allows Walmart to accurately forecast demand, track and predict inventory levels, create highly efficient transportation routes, and manage customer relationships and service response logistics (Walmart's Keys to Successful Supply Chain Management, 2013). In conclusion, Walmart's successful overall cost leadership/differentiation strategy leads to high entry barriers for competitors. • Corporate-level Strategy The major reason behind the success of Walmart lies in the fact that the company believes and concentrates...
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...Q. Critically analyse the article for the meaning of strategic human resource management and identify the factors impacting on strategic human resource management in contemporary organisations. Before an argument can be put in place about whether human resource management (HRM) can be strategic, we need to be aware that human resources (HR) is more then maintaining personal functions. Corporate and economic developments since the 1950Ў¦s have dictated that businesses, to remain competitive, need to view HRM as an evolutionary process which combines the HR functions with the HR policies and strategies, with the business strategies and management teams, with all stakeholders (Unions and Governments) and with the organisation and understanding of the actual employees themselves. Strategic HRM is about aligning the abilities and desires of the employee with the needs of the business so that the corporate objectives can be met. HRM can no longer afford to be viewed as simply an administrative task. Corporations need to have ÐŽÒproactiveЎ¦ policies to attract and retain the right type of people to their business and in this ever changing and uncertain economic climate the management of employees takes on an even greater role. Using the VIRO (value, rareness, imitability, and organisation) human resources can be proven to be strategic and therefore, provide firms with a competitive advantage through its people. The article by Barney and Wright (On becoming a strategic partner:...
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...organization in order to improve performance. ‘If a global company is to function successfully, strategies at different levels need to inter-relate.’ 1 ‘An organization’s [human resource management] policies and practices must fit with its strategy in its competitive environment and with the immediate business conditions that it faces.’ 2 ‘The [human resources–business strategy] alignment cannot necessarily be characterized in the logical and sequential way suggested by some writers; rather, the design of an HR system is a complex and iterative process.’ 3 Chapter outline Introduction p.38 Strategic management p.38 Strategic human resource management p.45 Human resource strategy models p.49 Evaluating strategic human resource management and models of human resources strategy p.56 Dimensions of strategic human resource management p.59 International and comparative strategic human resource management p.61 Chapter objectives After studying this chapter, you should be able to: 1. Explain the meaning of strategic management and give an overview of its conceptual framework 2. Describe the three levels of strategy formulation and comment on the links between business strategy and human resource management (HRM) 3. Explain three models of human resources (HR) strategy: control, resource and integrative 4. Comment on the various strategic HRM themes of the HR–performance link: re-engineering, leadership, work-based learning and trade unions 5. Outline...
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...objectives of the organization in order to improve performance. ‘If a global company is to function successfully, strategies at different levels need to inter-relate.’ 1 ‘An organization’s [human resource management] policies and practices must fit with its strategy in its competitive environment and with the immediate business conditions that it faces.’ 2 ‘The [human resources–business strategy] alignment cannot necessarily be characterized in the logical and sequential way suggested by some writers; rather, the design of an HR system is a complex and iterative process.’ 3 Chapter outline Introduction p.38 Strategic management p.38 Strategic human resource management p.45 Human resource strategy models p.49 Evaluating strategic human resource management and models of human resources strategy p.56 Dimensions of strategic human resource management p.59 International and comparative strategic human resource management p.61 Chapter objectives After studying this chapter, you should be able to: 1. Explain the meaning of strategic management and give an overview of its conceptual framework 2. Describe the three levels of strategy formulation and comment on the links between business strategy and human resource management (HRM) 3. Explain three models of human resources (HR) strategy: control, resource and integrative 4. Comment on the various strategic HRM themes of the HR–performance link: re-engineering, leadership, work-based learning and trade unions 5. Outline some key aspects...
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...organization’s personnel are managed has a tangible influence on the productivity of the employees, which ultimately acts upon the firm’s bottom line. Corporate success is dependent upon the integration of the human resource plan and the corporate strategic plan. It has become a prominent part of business management, that people provide organizations with an important source of sustainable competitive advantage and that the effective management of human capital, not physical capital, may be the ultimate determinant of organizational performance (Youndt, Snell, Dean, Jr, & Lepak, 1996). The relationship between the strategic planning of an organization’s people and the overall strategy is being increasingly recognized as one of great importance. A growing recognition of human resources as being a company’s most important asset has, and will continue to, changes the focus of strategic planning. It is no longer acceptable to exclusively plan for those assets that will appear on the balance sheet. A plan integrating human resource management and the overall strategic plan is necessary, such that the management of people is not a distinct function, but acts as a medium through which all other business strategies are implemented (Armstrong and Long, 1994: p. 42). In essence, the competitive, human resource, and structural strategies should all be linked in a systemic and dynamic fashion (Boxall, 1996: p. 61). The purpose of HRM is to anticipate changes within the employee framework...
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...best fit approaches in HRM of a multinational enterprise. The reader receives insight into Lincoln Electric's organization through a case-study analysis of practical HR approaches serving as a basis for developing practical managerial implications in the last part of the paper. 2. Critical evaluation of "best practice" and "best fit" practices in HRM 2.1 Best practice approach The best practice approach claims that certain bundles of HR activities exist which universally support companies in reaching a competitive advantage regardless of the organizational setting or industry (Redman and Wilkinson 2009). Best practice models imply a close connection between HR practices and organizational performance and are often associated with high commitment management (Paauwe & Boselie 2003). Empirical research in the best-practice field shows similar groups of HR polices which are especially suitable for maximizing performance irrespective of market and product strategies (Peffer 1998, Guest 2000). Best practice bundles of activities are characterized as mutually compatible HR activities which forge high levels of workforce competence, encourage motivation and introduce a workdesign boosting employee commitment (Maloney and Morris 2005). Based on concepts from expectancy theory (Vroom 1964, Lawler 1971) best practice HR will result in higher levels of quality, productivity and low rates of absenteeism and wastage (Guest 2000). yes no The best practice approach suffers...
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...explore the relationship between the corporate strategy and human resource management of the organisation and their effect on organisation performance outcome. A survey based approach is used to collect data from selected number or organisation. Overall we expected that the fit between corporate strategy and HRM practices will yield to a positive effect on organisation performance List of Contents Abstract ……………………………… 1 1. Introduction 1.1. Overview ………………………………. 3 1.2. Literature review and hypotheses ………………………………. 4 2. The research method and conceptual framework 2.1. Method ………………………………. 6 2.2. Measures ………………………………. 7 3. Results and conclusion ............................... 8 4. References ………………………………. 9 Appendix ………………………………. 10 1. Introduction: 1.1 Overview: Each organization has its particular strategy to fit its distinctive competencies, needs and circumstances. Strategy can be conceptualized into three levels: corporate level, business level and functional...
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...between corporate strategies and HRM and identify issues which organisations need to address that make such a link work effectively in aligning HRM and corporate goals Over the years, there has been increased recognition and awareness that business needs to match its business strategies according to the human resource functions and practices. The main reason behind this is that economy has changed from manufacturing based to knowledge based economy. Many organizations’ competitive advantage now stems more from their human assets (Bal et al., 2013). This concept of integrating business strategy and human resource management is called strategic human resource management where it gradually became well known in the 1980s (Azmi, 2011) This paper discusses evidences related to links between corporate strategies and human resource management and issues that needs to be identified for the link to work effectively. According to Liao (2005), “a strategy is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain competitive advantage”. Whereas, strategic human resource management involves creating and applying a set of internally consistent guidelines and practises that safeguard a firm’s human capital, which directly contributes to the achievement of its corporate goals (Baird & Meshoulam, 1988). Bal et al. (2013) describe this approach of linking business concept and HRM practices as “bridging” between business strategy and utilization...
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...lack of proper leadership skills within CCC. This is evident by way of all three divisions within the corporation operating individually with no cross communication. Project management process, methodologies and governance are not practiced which leads to unclear project approval processes as well as inadequate resource and budget allocation. All divisions have their own organisational structures therefore there is lack of HR leadership. Job profiling and matching seems to be non-existent and salary grades and earning ranges are different within the three divisions although in some cases, the job description is the same. Below are the recommendations for successful change within CCC which have been further detailed in Section 5 of this report: • CCC restructure process • Formulation of corporate business plan and strategy • Formulation of divisional business plans and strategies • Formulation of divisional operational strategies • Appoint HR leadership team • Develop talent management strategy • Develop incentive...
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