MBA 410 Strategic Human Resource Managment

Strategic Human Resource Management/ University of Gloucestershire&Academy of Finance

TABLE OF CONTENTS

I. Introduction …………………………………………………......... 03

II. Theory...............………………………………………………....... 03

1. Definition..........................………………………………….....03

2. The Aims of SHRM……...…………………………………....03

3. Managing Employment Relationship...……………………..... 04

4. Recruitment and Selection………………………………….....05

III. Case study: Apple Inc.....................................................................06

1. Apple Inc Information............................................................... 06

2. Apple Inc Human Resource Management.................................06

3. Apple Inc Managing Employment Relationships......................08

4. Apple Inc Recruitment and Selection........................................10

IV. Hanoitourist Travel Company: SHRM…………………………...12

IV. Conclusion………………………………………………………..13

IV. References...................................................................................... 14

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There are many factors to create the success of companies and strategic human

resource management is one of the most important one to make their companies

stronger and more developed.

First of all, human resource like workforce or employees is defined as the labor pool

in employment; however it describes better about the role, skills, competencies and

potential of employees.

From the definition of Human resource, the term of human resource management is

known as the way employees are recruited, organized, developed, appraised,

motivated, and retained (1) . Additionally, strategic human resource is used as a new

method of many companies to treat their employees. By this way, they approve the

importance of human resource in the companies instead of machines or technologies.

Hence, human resource is evaluated as the most valuable property of companies and

their employees becomes the main element to make advantages, success and

competencies to companies.

Strategic human resource management is assessed an effective tool in organizing and

controlling the employees. The companies apply appropriate measures to manage

their workforce by using their own strategies.

There are various ways to analysis the aims of strategic human resource management.

In 2000, strategic human resource management aims at the improvement of the way

human resources are managed strategically within organizations, with the definitive

goal of improving organizational performance, as judged by its impact on the

organization’s declared corporate strategy, the customer or shareholders. Besides,

strategic human resource management involves the linking of HRM with the strategic

goals and objectives of the organization in order to achieve a progressive business

performance and achieve an organizational structure that promotes innovation and

flexibility (1991) (2)

As a result, strategic human resource management seems to be a bridge to connect

workforce with different skills, abilities in company’s standard. Amstrong said that

the aim of strategic human resource management is to ensure that the culture, style

and structure of the organization, and the quality, commitment and motivation of its

employees, contribute fully to the achievement of business objectives. Hence, by

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using this method, companies find easy to put their business in a coherent and

practical policies and programs.

Following to the program of this subject, the professor has already lectured about

different point of strategic human resource management; for example managing

employment relationship, strategic recruitment and selection, strategic international

human resource management, and terminating the employment relationship and

performance management. In this assignment, I want to focus my explanation on two

first modules: managing employment relationship; and strategic recruitment and

selection.

Firstly, managing employment relationships is simply managing the relationship

between the employers and the employees. The relationship between the company and

the workforce seems more complex than customer relationships management. If

customer relationships management is only indirect way, employment relationships

management is return way; both direct and indirect one. It shows the interaction from

two sides: employer and employees. The employers have to control their workforce

then they can know how to place and design a suitable position per each person.

While the employees need a good and comfortable to do their job well. That is the

reason why the organizers need the help of technologies in managing their human

resources. In the past, telephone and fax were two popular tools to improve the

workforce relationship. Nowadays, besides traditional style interpersonal skills and

conflict resolution techniques, many companies apply new technologies in managing

their employee. Thank for technique development like human resource system, work

flow system; it will not be difficult to control and manage the operation of companies.

Salary can be paid correctly and on time, managers are assisted to follow their

employees’ work, results and timetable. Moreover, they find easy to make daily

reports, update information or inform new knowledge to all the staffs in companies by

the help of knowledge and business information management technologies, email,

company portal and electric calendars. However, technique cannot decide

employment relationship; managing employment relationships is only effective if

there is a reciprocal exchange of value between employers and employees. Hence,

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each part know their rights as well as their responsibilities in that relationship, then

they do best for their work and contribute that relationship better and better.

The next module in this assignment that I am interested in is recruitment and

selection. Recruitment and selection are important steps in the process of managing

human resource. Recruitment is defined as vacancy, refers to the process of attracting,

screening, and selecting qualified people for a job (3) to choose relevant applicants.

While selection is understand as the chain of actions: assess and narrow candidates,

finally give the decision. Companies can use staffs existing in their employees to

upgrade the higher positions that called internal recruitment or recruit outside to

choose the most suitable candidates for their wanted position called external

recruitment. (4)

As the diagram, there are many elements in the strategic recruitment and selection; so

to do well this module maybe cause costly expense, short-term pressures, lack of

coherent corporate strategy. For all reasons, if these steps are prepared well, the

companies will catch the right people in the right place at the right time.

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The next part of my assignment, I would like to analysis the human resource

management of Apple Inc. which is famous for designs and markets consumer

electronics, computer software, and personal computers such as Macbook, Iphone, Ipad

and Ipod. It is Established on April 1, 1976 in Cupertino, California, and incorporated

January 3, 1977. The first name of the company is Apple Computer, Inc., but on January 9,

2007 they made the name change by removing the letter “computer” and now, Apple Inc.

becomes the popular name that there are a lot of people want to work for.

One of the reasons that make Apple Inc. becomes more and more successful in the business

is their strategic human resource management.

“Provide company with the necessary personal to assure superior performance. Employees

should at all times strive for the highest quality in all they do. Ensure proactive internal

career progression” (5)

Apple Inc. applies a different method from other companies by recruiting people who

admire their products and services. By this way, Apple believes that they can own

enthusiastic and faithful workforce. However, to become Apple employee, every

applicant has to pass at less two interviews. The interviewers will ask applicants every

field such as leadership skills, problem solutions, as well as their passion on Apple’s

products. Thank for the hard and strict entrance examination, Apple are always proud

of their professional, creative, competitive and responsive, innovative workforce.

The best employees with the biggest passion on Apple’s products create the huge

source of workforce when application letters sent to Apple Inc. daily become more

and more plentiful.

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This diagram shows the fact that 45% of candidates admiring products and services;

that is three times bigger than the next position – candidates who interest or challenge

work on Apple Inc. (15%). In addition, Apple Inc. is always flexible with the change

of external environmental forces when customers tend to love online shopping. There

is an important increase of employees in web and interactive content field (27%).

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With Apple’s statement that “The company’s success depends largely on its ability to

attract and retain key personnel”; Apple human resource department always continue

to employ experienced personnel, which especially in the information technology

industry is in high demand and competition for its talents is intense, where the

majority of the high tech company’s are located, is also key objective of the HRM

department (6).

To strengthen the relationship between employers and employees, Apple Inc. builds

their own standard of mission, vision, values and culture. It is different from other

companies; Apple Inc. does not apply the unique architecture for all of their branches

or stores. Each branch can utilize the style for their business environment and that

makes them become special image. Employees feel comfortable and enthusiastic

when working in a professional company. Moreover, to motivate the spirit of staffs,

Apple Inc. carries out staff appraisals; so both the appraisers and appraised can

understand better about themselves as well as their work’s results. Based on the

feedback of staff appraisals, Apple Inc. can pay merit salary for each staff at each

position. Thus, it creates a fair environment in which the boss can know what are

advantages or disadvantages of their staffs to put them in the most suitable position.

This system is an important key of human resource department.

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Additionally, staff appraisal system is not only a part of human resource management

but also a part of recruitment and selection. Apple’s workforce can get the promotion

to higher position or the company can inform the additional recruitment. Besides a

good knowledge of staffs’ abilities, qualities, Apple is successful in finding their own

workforce who is always mastery in the area of web development and interactive

content. Apple can base on the result of staff appraisals to know much how shortage

their employees have to face to their skills and experience. For example, Apple

lacking operational efficiency was in a terrible need to hire an expert on this particular

topic, through a functioning HRM department Apple therefore was able to win

Timothy D. Cook a highly skilled operational Manager (and Vice president,

Materials) from Compaq, one of its main competitors, 141 because of attractive work

conditions, which are embedded in the staff appraisal system. A combination of

lifelong learning, management development, and reward policy convinced him to

become a part of Apple’s culture. (7) Balancing with the customer preference, Apple

Inc. now narrows traditional ways like advertise on newspaper to cut costs and then

utilize this savings to make the relevance between online and offline application

formats.

The objectives of Human resource department are guaranteeing that all of their

employees are aware of business, especially Apple’s products and service. That is the

reasons why Apple’s workforce has to join the training and development class after

passing the entrance interview. Hence recruitment and selection keeps an essential

role in human resource plan. In order to meet requirement on skills and knowledge to

function effectively, Human resource department divides organizational structure

intro four categories: offer or efficiency program, business driven needs training,

personal development category and general awareness education.

The offer or efficiency program is carried out with all staffs at all departments from

sales, marketing manager to web and interactive content. The aim of this category is

improve the efficiency of staff productivity.

The second program aims to help the workforce improve their progress in business

especially in e-market which is becoming more and more popular.

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The next module which Apple applies to their employees is developing

personalization to get the assertiveness training.

The forth one is educating staff’s general awareness. This module mainly focuses on

individual; by that way employees are aware of business environment to do their job

best.

What makes Apple different from other companies is their training and development

course. “The evaluation compares the objectives of the training with the learning

process that actually occurred. The bottom line of the training provision is a work

force that not only feels that it can effectively adapt to and adapt within an

environment that is in a constant change, but also increase their internal mobility,

giving Apple the possibility of redeploying employees” (8)

Apple was successful in recruiting talent people enlisting into their corporation. Steve

Jobs is now known as a genius CEO who was successful in applying sell retail. His

first attempt was to build a private showroom in the big retail store like CompUSA

however it did not work as what he wanted. Thus his idea which was to open a private

showroom in separated area was big success to bring a different image of Apple. That

is the reason why Apple has become an architectural simple with glass, wooden,

stone, else, designs. Moreover, Apple distinguishes from other companies because

they only sell their own products; so it is very necessary to train the staffs to master in

all kinds of Apple’s products. Besides Steve Jobs, in 1999, the Gap chairman –

Millard Drexler enlisted in the board of management of Apple Inc to consultant retail

scheme. Then, Ron Johnson who was working as furniture director of Targer also

became a leader of Apple Inc. Ron Johnson is a person who succeeded in building the

chain of technique assistants as well as customer service. As the result, Apple is now

famous for a talent workforce who had many experiences in other famous corporation

especially Gap Corporation.

As discussion above, Apple’s recruitment and selection steps seem very professional

and masterstroke. The first lesson which every staffs need to learn by heart is to

impress their customer on their enthusiasm and friendliness; and never to say “sorry

or pity”. There is a rule in Apple Inc that makes them stronger and stronger is that

Apple’s employees cannot say nothing about Apple’s rumors, web and interactive

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content is forbidden to admit any mistakes about their products or if anyone talks

anything about Apple Inc they also have to leave their job.

It is not easy to recruit in Apple Inc. however it is much more difficult to continue

their job in Apple Inc. An ex- staff of Apple talks that if someone is six minutes later

in a shift three times in six months they also have to be out of work. Additionally, sale

staffs in Apple Inc don not get pressure to sell as much as products they can but their

duty is trying their best to sell the other sub application or package going with that

product for customer. If they cannot sell enough the quantity requested, they have to

re-train or move to another departure.

There are few people who know the meaning of Apple’s name. It does not mean the

simple of a missing apple. APPLE is the abbreviation of approach –probe – present –

listen and end. They are five basic steps that any staff has to satisfy when they sell or

talk to customer.

On the other hand, Apple holds annually events such as the Apple design awards to

recruit genius to join their corporation, and then the winner are automatically to an

internship position with the company. With the great strategy, Apple can assure that

they seldom lack of creative minds; so they can generate a competitive advantage if

the HRM activities support them through their work life at Apple.(8)

Finally, Apple is successful in linking corporate strategy and human man resource

strategy which firstly creates a competitive advantage in Apple Inc. Apple’s

workforce find their passion, enthusiasm and creativeness when working in

professional environment. Following to a survey, there are only 3% staffs claim that

they are not paid enough to work in Apple Inc. On the other hand, Apple shows their

success in recruitment by combining recruitment events and online services which by

far exceed content wise the services offered by other players in the market

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Besides the sample of a very famous corporation – Apple Inc, I would like to explain

more about strategic human resource management in my company.

I have been now working in Hanoitourist Company which belongs to Hanoitourist

Corporation. My company’s core business is travel and tourism in inbound, outbound

and domestic markets. To recruit in my company, every staff has to pass the first

entrance exam about application form and then written test and interview one. After

passing all examinations, human resource department holds a short class to train

newcomers, when this course finishes we also have to pass a small test. With this

strategy, every employee will master in travel field; so we can serve and answer any

questions about tourism not only in our department but also in other ones. Because of

our job characteristic which focuses on service, we learn how to give the guest the

best comfort and pleasure. Our objective is making the guest remember Hanoitourist

first whenever and wherever they want to travel. That is about recruitment and

selection, the relationship between employers and employees is also paid attention.

Besides weekly, monthly reports; our human resource department carries out a

strategy which name is voting the best staff of the month. Thank for a good plan, we

find more passion to work and strive to mastery, moreover it make the distance

between the leaders and staffs closer. On the other hand, on special occasion, we often

hold parties for all staffs to have chance to exchange not only knowledge but also our

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relationship; or annual trips in summer holiday, lunar year festival are gifted for

employees. From some descriptions about my company’s strategic human resource, I

think that my company needs to some other strategies human resource besides the old.

In conclusion, when human resource management department combines with the

workforce, they will become a great competitive source of human capital to any

company. From my point of view, I love a quotation of Steve Jobs about the

importance of human resource management practices that “to be the best is just good

enough”

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REFERENCES

1. “Getting to Know the Strategic Human Resource Definition and Related

Terms”, July 2011, http://www.strategic-human-resource.com/strategic-

human-resource-definition.html

2. “Dissertation on Creative Management and Human Resource Management

at Apple Daily Hong Kong”, July 2011,

http://www.managementparadise.com/forums/human-resources-

management-h-r/213854-human-resource-management-ann-taylor.html

3. “Recruitment”, Wikipedia.org July 2011

http://en.wikipedia.org/wiki/Recruitment

4. “ Recruitment & Selection and the Management of Change”, Robin.S,

www.ln.edu.hk/mgt/staff/robin/Change/EMBA%20Thornhill%204b.ppt

5 – 8. Valentin.I, A.Lindinger, and G.Poettler, “Apple Computer Inc.”, Dublin

Institute of Technology, FT351, Business & Management, Year 4, Strategic

Management and Business Policy, February, 23 2004, p.88 – p.98,

http://www.andreaslindinger.net/downloads/strategicmgmts-lindingeretal.pdf

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http://www.andreaslindinger.net/downloads/strategicmgmts-lindingeretal.pdf

http://www.ln.edu.hk/mgt/staff/robin/Change/EMBA%20Thornhill%204b.ppt

http://www.ln.edu.hk/mgt/staff/robin/Change/EMBA%20Thornhill%204b.ppt

http://en.wikipedia.org/wiki/Recruitment

http://www.managementparadise.com/forums/human-resources-management-h-r/213854-human-resource-management-ann-taylor.html

http://www.managementparadise.com/forums/human-resources-management-h-r/213854-human-resource-management-ann-taylor.html

http://www.strategic-human-resource.com/strategic-human-resource-definition.html

http://www.strategic-human-resource.com/strategic-human-resource-definition.html

MBA 410 Strategic Human Resource Managment

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