Portfolio Entries: Case Studies and Exercises

Portfolio Entries: Case Studies and Exercises

1. Human Resources at Nordstrom (Mello, 2013, p. 1)

Understanding the origin of an employee’s value helps an organization in creating an effective human resource management program in an organization. Characterization of employees represents one of the sources of employee’s competitiveness. The Nordstrom case describes how characterization plays a crucial role in strategic human resource. The organization describes its sales employees as associates” and consider them indispensable assets of the organization. Besides, the management encourages associates to behave like entrepreneurs by building strong ties and relationships with customers. Many clients only prefer to shop with Nordstrom through specific associates. Nordstrom invests heavily on associate through training and also higher pay. Also, the organization places associate at more advanced positions in the organization structure above departments and merchandizes managers. This characterization places sales associates at higher echelon and efforts by departmental and merchandise managers should support customer initiatives.

Effective management of an organization human resources has become an essential aspect of success.  Employees are representative of a company, and their decisions and behaviour determine the attractiveness of the firm. As a result, organizations have changed their approaches to HR by adopting strategic methods, which consider employees as critical assets. Therefore, management initiative programs and policies that aim at enhancing employee’s value (Ulrich, Brockbank & Ulrich, 2014). At Nordstrom, the designation of sales employees as associates differentiates it with competitors in the same line of business.

In this case, the employees become elements of value and worth by creating sustainable relationships with customers. However, the organization take the initiative to enhance the skills and ability of the employee to realize their potential. For that reason, strategic HR should place employees as assets of value, much like physical and capital assets. Employees’ decisions, ability, and knowledge help an organization identify new opportunities and ideas for growth. Thus, management should establish and support policies that enhance employees’ capacity to make a decision.

2. Diversity at Pricewaterhouse Coopers (PwC) (Mello, 2013, p. 45)

The changing demographic composition and diversity have created challenges for the effective management of human resources within an organization. The PwC case demonstrates the need for a robust system of managing issues of diversity. In 2003, the company established a permanent position of a chief diversity officer (CDO). Prior to its introduction, the function was confined within the HR unit, and the official reported to the head of the department. Under the new arrangement, a CDO would report directly to senior corporate partners and the chairperson of the bo0rad. The shift reflects PwC’s awareness about the significance of managing diversity in the realization of the firm’s goals.

Promoting diversity within an organization has emerged as a critical factor for organizational success. Implementation diversity programs enhance the competitiveness of an organization. Besides, Title VII of the Civil Rights Act (1964) introduced elements that require legal compliance related to diversity. The Act prohibits employers from establishing policies that promote discrimination to an employee based on colour, religion, race, origin or any other perspective of diversity. Numerous jurisdictions in the United States have enacted policies to protect employees from discrimination. Therefore, an organization should embrace diversity and accommodate the needs and interests of minority groups. Companies that voluntary initiative measures to manage diversity aim to fully integrate HR activities to strategy, equality, and fluid and adaptive program (Patrick & Kumar, 2012). The decision by PwC to install a CDO helps to divert matters of compliance as a matter of compliance by articulating its link to business outcomes and result. In that aspect, the CDO should create an environment and culture that ensure each employee can develop and reach their full potential. Hence, managing diversity represents an integral aspect of strategic human resource management.

3. Intrapreneurship at Intel (Mello, 2013, p. 56)

An organization should consider the implication of ethics on business outcomes and public opinions. The ethical approach adopted by an organization determines the relationship with employees. Workers contribute towards or learn about business secrets and ideas in the line of employment and may use them for personal gain. However, the Case of Intel demonstrates how strategic HR helps to enhance relationship and support creative ideas from employees. The New Business Initiative (NBI) was created to support employees with new business proposals.  The initiative helps to increase job satisfaction because it ensures that employees with new suggestions benefit from their contribution. This has helped to eliminate the antagonist consequences experienced where organizations require employees to sign non-disclosure contracts.

Ethical consideration has emerged as an integral factor in strategic human resource management. It pertains to the way employers treat their employees, which has a massive implication of policies and practice. One aspect of ethics relates to ownership of work. Currently, the organization involves the development of new ideas and technologies using the skills and knowledge of the employee. However, numerous concerns related to intellectual property rights have emerged between employers and employees who leave or establish competing firms. In most cases, an organization uses non-disclosure or noncompetition accords to prevent employees who leave the organization do not use the knowledge gained for profiteering. However, strategic human resource management may limit the conflict through corporate responsibility programs (Parkes & Davis, 2013). The intrapreneurship initiatives at Intel ensures that employees who introduce an idea become part of the ownership. This helps Intel to retain highly competent employees. It is also a strategy of balancing the dilemma by ensuring that employees receive fair compensation for their contributions.

4. Sarasota Memorial Hospital (Mello, 2013, p. 115)

This case demonstrates that strategic approaches promote human resource management. The Sarasota Memorial Hospital in Florida based its strategic view of five pillars of excellence, namely, people, fiancé, service, quality, and growth. Strategic management refers to the process of determining the needs and resources necessary to achieve corporate objectives. The resource-based view model focuses on the capacity and support of the firm as the determinant of competitiveness. The organization established a performance management system, where the human resource department was assigned the role of developing a strategic plan to promote the “people” pillar. The HR created cross-functional teams to encourage leadership, reward and recognition, and enhancing satisfaction. Under the hospital’s strategic model, the organization have experienced numerous positive outcomes, including a reduction in the level of turnover and customer satisfaction. The illustration explains why employees may by-pass highly paying job to work in environments similar to Sarasota Memorial Hospital.

The resource-based view strategic model recognizes HR organization as an integral asset of business success. The “people” pillar development by the hospital helped management to gain competitive advantages by acquiring values. The approach resonates with the investment perspective of HR management. HR represents a crucial factor that enhances the capabilities of the firm to accomplish its duties. Organizations that establish policies that promote the welfare of employees attract and retain skilled employees (Wright, Dunford & Snell, 2001). This case study also indicates that job satisfaction depends on various factors apart from wages and financial compensation. The performance management system developed by the hospital’s HR unit created an environment that promotes both customers and employees satisfaction. Therefore, such organizations help to align the HR needs to the organization’s strategic objectives.

5. Innovation at Whirpool (Mello, 2013, p. 126)

Organizations are always striving to change through innovations as a driver of a turnaround strategy. The innovation strategy adopted at Whirlpool has helped the organization to maintain leadership in the home appliances industry. Management has embraced a risk-taking and creative approach to customers’ engagement and human resource planning. Teams of employees are deplored to collect information from the filed by visiting customers in their homes. This enables them to observes and appreciate the various implication of their products on customers lives. These teams consist of different specialist including engineers, marketers and designers. As such, it enables Whirlpool to understand multiple opportunities and needs for product improvement to introduce a better solution to new designs. For that reason, all employees are expected to undergo training to meet company-certified competencies and proficiency in specific areas of innovations. The HR department plays a central role in developing and approval of competency programs.

Innovation is a strategic tool with numerous benefits in an organization. Firstly, it helps in identifying new processes, technologies, and means of production that reduce the cost of operations. Employees remain a central figure in facilitating creativity and innovation in business organizations. For that reason, strategic human resource planning should embrace capacity building and skill enhancement to ensure the firm remain relevant in the market (Do, Budhwar & Patel, 2018). Whirlpool has developed a system that places employees at the core of innovation and creativity. Visiting customers in their homes helps to conduct research on customers’ needs and preferences. The feedback gained from the field is incorporate in product design to introduce the variations. Change is an inevitable concept in organization growth, which should be embraced by all organization intending to remain competitive over time.

References

Do, H., Budhwar, P., & Patel, C. (2018). Relationship between innovation-led HR policy, strategy, and firm performance: A serial mediation investigation. Human Resource Management, 57(5), 1271-1284. doi: 10.1002/hrm.21903

Mello, J. (2013). Strategic human resource management. Florence, KY: Cengage.

Parkes, C., & Davis, A. (2013). Ethics and social responsibility – do HR professionals have the ‘courage to challenge’ or are they set to be permanent ‘bystanders?’ The International Journal of Human Resource Management, 24(12), 2411-2434. doi: 10.1080/09585192.2013.781437

Patrick, H., & Kumar, V. (2012). Managing Workplace Diversity. SAGE Open, 2(2), 1-17. doi: 10.1177/2158244012444615

Ulrich, D., Brockbank, W., & Ulrich, D. (2014). The HR value proposition. Boston: Harvard Business Review Press.

Wright, P., Dunford, B., & Snell, S. (2001). Human resources and the resource-based view of the firm. Journal of Management, 27(6), 701-721. doi: 10.1177/014920630102700607