TABLES OF CONTENTS 1.0 Introduction 2.0 Literature Review 2.1 HRM Perspectives and definition 2.2 The importance of SHRM 3.0 Case Studies on Sears and Herman Miller 3.1 Analysis of HRM at Sears 3.2 Analysis of HRM at Herman Miller 3.3 Finding on the Case Study 4.0 Corporate Appraisal 4.1 Company history and background 4.2 HRM in SSCS 4.3 Recommendations for improvement 5.0 Conclusions APPENDIX REFERENCES
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TABLES OF CONTENTS
1.0 Introduction
2.0 Literature Review
2.1 HRM Perspectives and definition
2.2 The importance of SHRM
3.0 Case Studies on Sears and Herman Miller
3.1 Analysis of HRM at Sears
3.2 Analysis of HRM at Herman Miller
3.3 Finding on the Case Study
4.0 Corporate Appraisal
4.1 Company history and background
4.2 HRM in SSCS
4.3 Recommendations for improvement
5.0 Conclusions
APPENDIX
REFERENCES
Human Resource Management– Individual Coursework
05March2010
1.0 Introduction
The human resources functions constantly face problem for demonstrating its value to
the organization. Especially during economy crisis, the basic strategic of HRM
component (Figure 1) shall be the earliest cutbacks from expenditures list (Patrick et.
Al., 2001). Recently, there is a growing awareness that human capital is perhaps a
most critical asset for an organization, but it is a frustrating to measure the ROI for
their considerable expenditure on people. Mercer Human Resource Consulting and
CFO Research Services (2002) have conducted a survey to acknowledge the
importance and responsibility of managing human capital. The survey (Figure 2)
showed 92% think that human capital as a key driver for customer satisfaction, while
82% think it has great effect on profitability and 72% for innovation and new product
development. Many research literature and among practicing manager are coming to
see human capital as a source of value and competitive advantage.
Nowadays, most HR department implementing strategic human resource management
(SHRM) by integrating HRM into planning process, emphasizing HR activities that
support goal and building strong relationship with employees to accomplish
organization’s goal. This paper identifies the key challenges facing SHRM going
forward and new directions in scholarship and practice of SHRM. Secondly, it will
attempt to discuss, analyze and contrast the SHRM deployed by Sears and Herman
Miller. It also highlights the significant of a differentiated SHRM practice across the
firm but also within firms. Finally, we will assess the state of SHRM practice in SSCS,
both remarkable progress and the challenges facing.
2.0 Literature Review
Human Resource Management– Individual Coursework
05March2010
2.1 SHRM Perspective and Definition
Strategic human resource management (SHRM) cannot be discussed comprehensively
without understanding the concept of HRM. HRM mainly emphasis on planning,
monitoring, and control human resources to be provided and deployed at the
management needs (Torrington et. Al, 2002). Whereas, SHRM is about having a
department on top of the planning that deciding the human resource needed by the
company rather than react to the need of the company (McMahan et. Al., 1998). It
also an extension of HRM with depth insight of the environmental analysis and
organization direction for organizational strategy implementation and evaluation
(Bratton et. Al., 1999). Therefore, SHRM pursue an earlier involvement of HR
department in planning stages which allows to be adjusted to fit new or change of
company strategy (Van Donk, 2001)
Contemporary SHRM is the confluences between diverse streams of academic work
which systematically coordinate human resource policies and practices based upon the
context of the organization as well as the relevant external environment. The need of
this transformation was based upon the challenge in complexity of managing human
resource and Brain Drain phenomenon in global environment. Despite there are a lots
of SHRM literature, there still some struggling to identify the meaning of SHRM.
SHRM is more than just planning, monitoring and controlling human; it is also a
relationship management. Relationships which is well take care and nurturing may be
translated into loyalty, engagement and trust, thus create higher level of productivity
for the organization (Theresa, 2003). For example, the company listed in Fortune
Magazine’s “100 Best Companies to Work For” – Adobe Systems offers frequent job
Human Resource Management– Individual Coursework
05March2010
rotations and Friday night beer bashes to improve employee relationship. Good
relationship exhibit greater motivation to excel in work activities. Therefore, it must
be built among individuals and within groups of an organization.
2.2 SHRM Model
Many researchers have identified their best SHRM model that can support business
strategy and as sources of competitive advantages for the organization. MacDuffie
(1995) asserts that a successful organization should employ these six HR practices.
Firstly, there shall be a comprehensive employee selection system in deployment;
enhancement on training and development; follow by encouragement of employee
participation; information sharing throughout the organization; considerable job
rotation to adapt uncertainty and finally rewards and compensation system.
Ericksen et al. (2004) developed a behavioral model of SHRM by taking a closer look
at High reliability organization (HROs). The SHRM model inclusive of eight
principles of reliability-oriented employee behaviors (ROEBs) to foster organization
reliability and six principles of reliability-enhancing HR strategy (REHRS) to
facilitate the manifestation of reliability-oriented behaviors (Figure 3). Ericksen et al.
suggesting that ROEBs and REHRS is likely more beneficial for firm pursing
reliability under trying condition.
There are other similarly SHRM model been introduce which has summarized in
Figure 4. Apparently, the models are vary from study to study. However, best
Human Resource Management– Individual Coursework
05March2010
SHRM model may be differs between companies depending on factors such as type of
industry, country of ownership, company size and unionization (The Equality
Authority, 2008).
3.0 Case Studies on Sears and Herman Miller
3.1 Analysis of SHRM at Sear
Human Resource Management– Individual Coursework
05March2010
Sear, Roebuck, and Company is a leading retailer offers wide range of home
merchandise, apparel and automotive products and services throughout the United
States and Canada. In early of 1996, Arthur Martinez, CEO of Sears recognizes that
the company needs to re-organize and his people need to be re-educate in order to
remain competitive advantage in market share. Thus Sears developed “three Cs”
(inclusive of Compelling place to work, Compelling place to shop and Compelling
place to invest) - a conceptual model of firm performance linking employees,
customers and shareholders.
The first and most important step in HR function to facilitate the implementation of
3Cs is to create awareness of corporate mission, vision and goals to all level of
employees by using variety of communication tools. Assessment on 3Cs model will
be carry out on quarterly and annual basic. Measurement indicator for compelling
place to work is on employee associates’ satisfaction on the company and job; while
Compelling place to shop is on customer satisfaction and customer retention; lastly
Compelling place to invest measure on revenue growth, operating margin and ROI.
Secondly, HR has initiated a series of 12 leadership competencies throughout the firm
to all level of employee. This development significantly has motivated the employees’
potential or capability and to perform competently in the workplace. By the way,
other training, multiple perspective performance appraisal and even individual
attention also will be provided to ensure employee accountable for their behavior in
order to achieve 3Cs. Beside that, Learning Maps used to reinforce the economy
literacy on Sears’ strategy, mission and performance which helps to promoting self-
responsibility within employees and also workforce become engaged.
Human Resource Management– Individual Coursework
05March2010
Sears is introducing educational programs in Sear University to foster and develop the
abilities of individuals who play a prominent role in the company’s future. Sear
University offered extensive list of courses which integrated 3Cs and 12 leadership
dimensions to transmit its culture and strategy to the new and continuing workforce.
Sears also like many other organizations recognized the importance of performance
management and incentive compensation systems to facilitate 3Cs and 12 leadership
competencies. In order to increase corporate value and to retain good performers in
the company, Sears has reviewed and increased the percentage of incentive
compensation. Furthermore, HR also competently using advance computerized
system and extensive of structured interview for development and deployment. There
is no doubt that the HR has competently delivers a world-class manner of HR basic to
gains legitimacy with employees and others throughout the firm.
3.2 Analysis of SHRM at Herman Miller
Human Resource Management– Individual Coursework
05March2010
Herman Miller, Inc.(HMI) is one of the world’s largest manufacturer of office
furniture and equipment, as well as modern furniture for home. HMI has been
recognized as the "100 Best Companies to Work for in America" in the year of 2010,
2009, 2008, 1999, and 1998 in Fortune magazine (http://www.hermanmiller.com/).
HMI has adopted “Open Book Management” which creates employee ownership by
encouraging employee participation in decision making then share the financial gains
when goals are met. Therefore, HMI implemented Economic Value Added (EVA) to
update ongoing financial condition of the business throughout the organization. The
primary goals of HR comprise building employee capabilities, secondly is to built
employee commitment and finally to improve HR function itself; this move is
intended to facilitate corporate goals and strategy.
Firstly, HR has developed a competency model to identify workforce competencies,
and provide development and training required which helps to built employee
capabilities. HR also promotes Lean thinking throughout the organization in order to
create economic and customer value at HMI. Moreover, business literacy training on
EVA and meeting such as Monthly Business Exchange (MBX) will be held frequently
to update on corporate business condition which encourage participation in decision
making. Thus, participation has becomes an obligation and opportunities for everyone
in HMI.
Secondly, HR incorporates “Blueprint for Corporate Community” in to the
organization to become a good corporate citizen in the communities and as a service
to employee-owners and other stakeholder. The activities included contribution to