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HRPD 412 Assignment: 1

Submission Date: February 1, 2012

Submitted to : Nadira Singh Submitted by: Ankit Gandhi Student ID : 300674795

Human Resource Strategy

Low cost strategy A pricing strategy in which a company offers a relatively low price to stimulate demand and gain market shares. Example McDonalds McCafe. Differentiation strategy Approach under which a firm aims to develop and market unique products for different customer segments Example: Starbucks 1. Recruitment and Selection At McDonalds McCafe: McDonalds scripts an interview guide that helps the company predict how an applicants past behavior is likely to influence future performance. First stage interview and is On Job Experience. This is a 2-day assessment in a restaurant. Successful completion at OJE will lead to a final interview, after which the manager decides whether or not to hire the applicant. Over 60% of crew are aged 20 or under and for the majority of applicants, a job with McDonald's would be their first experience of employment. At Starbucks: Every employee received classes in the Starbucks Coffee School in San Francisco on coffee history, drink preparation, coffee knowledge, customer service and retail skills. Management trainees attended classes for 8 to 12 weeks 85 percent had some education beyond high school, and the average age was 26.

2. Orientation and Training At McDonalds McCafe: A comprehensive development programme for crew and operation management, and career progression that enables a first job employee to progress to a senior management position. The majority of the training is floor based or on-the-job training, as they believe people learn more and are more likely to retain information if they are able to practise while they learn. A training curriculum is available to office based employees that combines online learning, IT training and soft-skills development to help individuals further develop and progress in their roles.

At Starbucks: Management trainees attended classes for 8 to 12 weeks. Their training went much deeper, covering not only the information imparted to baristas but also the details of store operations, practices and procedures as set forth in the company's operating manual, information systems, and the basics of managing people. The most basic purpose of training and development is to provide new or current employees with the skills they need to perform their jobs Starbucks training focuses on uniformity amongst individual stores, there are times where practices can vary and transferred/borrowed partners have difficulty adapting to the new location. Additional training also occurs during promotional periods or when new products are introduced, or when a standards change occurs

3. Performance appraisal At McDonalds McCafe: It is based on what gets done and how it gets done. Ethics Team work and communication skills.

At Starbucks: All employees at Starbucks are evaluated by their store manager every six months. Semi-annual evaluation results in an increase in pay or promotion depending on employee performance. They have customer comment cards, where the customer gives feedback about the employee.

4. Compensation At McDonalds McCafe: McDonalds compensation program is designed to attract, retain and engage talented people who delivers strong performance and help them achieve their goals and objectives. Types of compensation are base pay, incentive pay, company care program, recognition program and long term incentives. Entry level positions start at minimum wage with possibility of a raise every six months.

At Starbucks: Pay is slightly above the regular wages provided by the competitors. Gives every employee a free pound of coffee every week. Provides health insurance and stock options for every employee

Q2 - Write 2 SMART objectives for each of the following company mission statements 1. Product quality is our number one priority First and foremost, a company should provide its customer safe products. Safety should be their number one priority, it should be integrated into every facet of their business, from raw material production to customer service operation. Quality is a cornerstone at McDonalds, and defines as From Farm to Customer process. Animal welfare is a critical component of their quality strategy.

2. Every customer will be a satisfied customer To believes customer satisfaction is crucial for success of the brand and must perform to standards expected in three areas: quality, service and cleanliness. McDonalds also specifically measures customer satisfaction through a Mystery Shopper initiative which looks at customers experiences within the restaurant.

3. On-time delivery is our commitment to our customers Delivery of the orders on time for that a company should always have innovative offers where they deliver the orders in the stipulated time, or else they should offer a complementary service for the delay. The convenience, efficiency and accessibility of 24/7 McDonalds delivery service can really make a customer satisfied and say Im lovin it.

Q3 - Conduct a SWOT analysis for a company that you would like to work for after graduation. Assess the company against the strengths, weaknesses, threats and opportunities contained in the SWOT matrix SWOT analysis of Wal-Mart Strength Strong Brand portfolio Weakness Sluggish performance in few geographic areas Strong focus on research and development Robust production capabilities Poor accounts and cash flows Growth potential in India and China Environmental protection regulation Relatively low employee productivity Increasing demand for hybrid electric vehicles Weakening of global automotive industry Opportunities Accelerating global demand for busses Threats Recession in 2009

SWOT Matrix 1. Weaknesses and Threats (WT) A company that has excessive weakness should have a survival strategy. VW could have considered the option to join Chrysler, another option was to withdraw from American market in all. Even with the difficulties, VW did not have to adopt the survival strategy. Consequently, a more suitable strategy was to try to overcome the weaknesses and develop them into strengths. The strategy was to reduce the competitive danger by creating a more flexible innovative product line that would put up the requirements and desires of the car-buying public. 2. Weaknesses and Opportunities (WO) The growing prosperity of customers has resulted into more comfortable cars. Yet, VW had in actual fact followed a one-model policy which presented a difficult situation when the design of the Beetle had turned into obsolete. A new model line had to be announced to reach a varied range of buyers. This allowed using the same parts for different models that ranged from the relatively low-priced Rabbit to the higher priced Audi line. 3. Strengths and Threats (ST) The oil crisis in 1973-1974 not only produced a fuel scarcity, but also price upswings. To meet this threat, VW used its technological proficiencies not only to progress its engines (the use of fuel injection, for example), but as well to develop the very fuel-efficient Diesel engine. This method, which was compatible with its over-all strategy and assisted to improve the position of the firm in the market.

4. Strengths and Opportunities (SO) Valuable firms shape on their strengths to take benefit of opportunities. VW's strengths in research, development, engineering, and its experience production technology became apparent. These strengths, allowed the company to grow a product line that met market demands for an economical car, as well as more luxurious cars with many available option. In the end the same company's strengths allowed VW to plan and build the assembly facility in New Stanton, Pennsylvania. Thus, VW could benefit from considerable businesses granted by the state government to attract VW which, in turn, provided many employment opportunities. Internal Strength 1. Strong R & D Internal Weaknesses 1.Heavy reliance on one product

2. Strong scale and service network 2. Rising cost in Germany 3. Efficient production capabilities 3. Less experience with labor outside Europe External Opportunities 1. Growing market demand 2. Attractive offers to build an assembly plan in U.S SO: 1. Develop and produce multiproduct with many options in different price class. 2. Build assembly plant using R&D and engineering 3. Build engines for Chrysler External Threats 1. Exchange Rate 2. Competition from Japan and US 3. Fuel shortage and price ST: 1. Reduce exchange rate by building a plant in the US 2. Meet competition with advanced design technology 3. Improve fuel consumption through fuel injection and develop fuel efficient diesel engines WO: 1. Develop compatible models for different price level. 2. To cope with rising cost in Germany, build plants in US, hiring US managers and dealing with US labor WT: 1. Reduce threat of competition by developing flexible product line. 2. Can possibly work with Chrysler in joint operations.

Q4 (A) - Discuss 5 possible reasons why HR WOULD be considered a strategic contributor to an organization.

1. Preventive approach: HR has a preventive approach rather than corrective to problems, it is progressive in coordination. HR functions implements honesty and protects corporate assets. It considers employees as resource not to be wasted. HR aims to create a working environment

favourable for employees to do things right the first time. It aims to prevent mistakes rather than punish them

2. Financial and technological changes: Several changes and fluctuations have occurred economically that have altered employment and occupational patterns. The role of HR is a major revolution in the transformation of jobs from manufacturing and agriculture to service industries. By this, there was a huge amount of reduction in employment, retention of employees with different capabilities and attracting employees were seen was a major challenge for the employer. Global completion has forced many employers to adapt management practices, increase productivity and decrease labor cost to become more competitive. HR formulates the practices according to the change, the explosive growth of information technology forced many changes throughout the organizations of all types. The policies are reformed and to maintain the position HR is considered strategic contributor.

3. Workforce Availability and Quality: Presently, there is a substantial workforce scarcity due to a scarce supply of workers with the skills needed to accomplish the jobs being added. Many companies and industries are facing deficiency of qualified, skilled, experienced and expert workers. Consequently, HR professional faces greater pressures to recruit and train workers. The number of jobs requiring advanced knowledge is expected to grow at much more rapid rate than the number of other jobs. This growth means that people without appropriate competencies, increasingly will be at a disadvantage as their employment opportunities are confirmed to the lowest paying service jobs. To survive this phase, employer requires an HR specialist to constantly look over adoptions and implementations of various changes. HR personnel would assess accurately the knowledge and skills of existing employee, and the required need of the job. Training for future jobs and skills available employees at all levels.

4. Demographics and diversity: The workforce has been changing dramatically all over the world. It is more diverse racially, women are in the labor force in much greater numbers than ever before, and the average age of the workforce is now considerably older than before. As a result of these demographic shifts, HR management in organizations has had to adapt to a more varied labor force both externally and internally. For many workers, balancing the demands of family and work is a significant challenge.

5. HR is output oriented: HR is driven by the output than input oriented. For example, training results are not dignified in context to training hours, but in terms of improvement in the performance of the trainee. Improvement in performance can be measured in terms of productivity, efficiency, work quality and satisfaction of customer. HR aims to find ways and

means to directly and indirectly measure the outputs more accurately for its success and effectiveness Q4 (B) - Discuss 5 possible reasons why HR might NOT be considered a strategic contributor to an organization. 1. Poor HR personal Competencies: HR is often unproductive, incompetent and exorbitant. To contribute in a strategic mode, HR must earn respect. HR must measure its success in terms of business competitiveness, rather than employees good feelings. HR should pay more attention towards organisations culture, rather than merging, or downsizing in order to add value to the organization. To be measured as a strategic function, HR must discharge its perception of an incompetent support staff.

2. HR is not measured in dollars: HR lacks accountability as often organizations do not pay much attention to it. Outside the administrative functions running smoothly, there is no strategic accountability. The HR department will not ever attain its complete potential up until it can prove the role it plays in making organizational value and its return on investment. Usually, HRs value is described from cost savings in the HR process, rather than on what HR accomplishes from a business return on investment. It is this major lack of business measures to determine what HR brings to the bottom line that is visibly missing.

3. Too Focused on Administrative aspects: There are two different purposes of HR, one is HR strategic effectiveness, which is the HR function and growth of an organizations employees to support objectives. Nevertheless, it is the second HR function of administrative effectiveness on which most HR departments spend their time. These administrative functions are the actions conventionally associated with HR, such as, recruitment, selection, training, performance appraisal, and compensation plans HR administrative functions are the straightforward building blocks that keep order with the function of HR and, when done appropriately, preserve a level of creditability within the organization. It is not so much that HR is known for a good administrative job, as it is important not to be known for doing a poor administrative job. 4. HR lacks alignment with other departmental goal: To be involved with the over-all strategy, HR needs to be associated with the organization. HR needs to take an inclusive approach that aligns its activities with the entire organizational strategy. The eventual goal of HR is to support an organization through the management of human capital, which is the major subset of the broader organizations strategy.

5. Basic service provider: HR is a basic service organization that meets the requirements of the business, but makes no meaningful contribution to company strategies. They just help us hire, fire and administer benefits. In this scenario, HR is not strategic.

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