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UNIVERSITI UTARA MALAYSIA

BSMH5143 COMPENSATION AND BENEFITS MANAGEMENT

CASE STUDY: COMPETITIVE STRATEGY AT SPORTSMAN SHOES

PREPARED BY: MOHAMAD FIRDAUS BIN ABD RAGIS (813417)

PREPARED FOR: DR. MD LAZIM BIN MOHD ZAIN

Competitive Strategy at Sportsman Shoes Questions 1 Following Sportsmans shift in competitive strategy, what are some considerations for the companys human resources management practices? Answer Based on the case, Sportsmans shift their competitive strategy from low-cost strategy to a different strategy. Therefore some changes will be need for the human resources management practices to meets the company requirement. We can see this aspect by two different sides. The first indicates the differentiation strategy to keep product unique with other product in the market, that often leads to an increased substitution of labor, the seconds refers the low-cost strategy that dislocate production away from high-wage locations in order to benefit from cheap labor resources. To meets this requirement, one of the human resources practices which is recruitment need to be done. Sportsman Company need to changes or improve their technology, management and system to shift their competitive strategy from low-cost to differentiation. It means that company need to recruit employee the meets the job description and job specification. The recruitment can be done either internal or external. Internal recruitment can be done within the organization; it can be done by promotion the employee from lower position to higher position. The external position can be done by recruiting the future employee to fit the position. Organizations can recruit the employee through interview, internship or sponsorship. So that organizations will get new idea that comes from the employee that recruited externally. Instead of that, Sportsman company need to train their employees to improve their performance and also to meets different requirement. Organization can train their existing employee to improve their performance and to help organization in the way changes the competitive strategy. In addition, to pursue differentiation strategy, organization needs to focus on cooperation and independence among employee. It is because differentiation strategy is more on long-term focus and thats mean the entire employee must co-operate with each other and at the same time can

work independently. Therefore, to pursue differentiation strategy, it take greater degree of risk taking, and this is what employee need to have within organization.

Questions 2 What kind of challenges will Sportsman face specifically in the area of compensation? Answer The challenges that Sportsman Company will face are on how to retain their employee. The organizations will do some restructuring and it will affect their employee. For example, if the restructure has been made, some of the employee will be moved to different department and this will change their working motivation and also will lead to turnover. So that, organizations need to retain their employee by giving them training before relocate them to another department so that the employee will motivated and it can reduce employee turnover. In fact, the organizations need to do recruit new staff to fit with new knowledge or position. Its because differentiation strategy use different technology and it need new knowledge and skill to meet the requirement. In addition, while recruiting, organization need to select the most creative behavior, long-term focus, and greater degree of risk taking because the successful of differentiation strategies depends on employee creativity, openness to novel work approaches, and willingness to take risks. In addition, differentiation strategies require longer time frames to provide sufficient opportunity to yield the benefits of these behaviors.