Able Corporation is a diversified corporation which has production establishments in several states that are either horizontally or vertically integrated. Able is now one of the leading innovators of power tools and other home equipment.
When Able Corporation started its vision, everything then referred to technology. But its founders realised it has to be more than just technology: Apple has to survive as an organisation to meet the needs of its customers not just in technical ways.
The truth about Able Corporation may have already been laid open to the public, that it is not as successful as it used to be. Able’s fate lies somewhere not in the balance, and may be in the hands of the wrong people if things won’t go out how it should be.
The question now is, “Is there still a future for Able Corporation?” Will the company thrive under a new strategy and management? Let’s see how the company made its humble beginning.
Able Corporation sought to “change the way people behave” versus just competing in the market-place for traditional products. In doing so, it has been able to establish first mover advantages through radical concepts of power tools, and relatively perfect market timing to establish its advantage.
Others seem to compete in commodity businesses with incremental innovations, while Able Corporation created a new concept in the consumer’s mind. It is most likely for this reason that other executives see Able Corporation as a strong innovator in power tools using battery.
Able’s mission statement is to provide the best of power tools and other home equipment. This information can be sourced from the internet, provided by the website Business & Finance. Able is a company whose financial statement is terribly in trouble. It has no website, its strategic plans are in disarray, and the original founders or those who cared about the company are not anymore connected with it, in one or the other.
This means Able is going to dismantle itself, if nothing drastic is to be done now. However, there is one problem with the company’s corporate set up nowadays. This is because Able is now owned by Walden Inc. (Business & Finance website), and it seems Walden doesn’t know what to do with Able now. Walden’s financial quota has superseded its mark because of Able, and the latter is now earning ever since its acquisition by Walden.
Able has a pattern of success for its innovative products. Compare the past years with our futuristic data for the next five or six years, we can say that Able relies on its own strategies of innovations, captivating the customers’ way of looking at things. This age is an age of technological innovations, and Able seems to answer the call of the masses that are hungry for new things, and new innovations in technology.
For the immediate six months, Able Corporation will continue to introduce new power tools and lawn mowers. Strategic management processes can be introduced but the question is on management. Able is now owned by Walden Inc. However new management can save the company depends on the kind of dedication the people assigned to it has.
Able Corporation under Walden Inc. needs to penetrate the international market. First it has to build its own website. Able is not known to the world, and it can only do so by having a state-of-the-art website, where it can introduce its many innovations under new management. The company has yet to identify the market segment to penetrate. Able Corporation can still be saved. It’s unfortunate that its power tools are left ‘unattended’.
Discussion on Strategic Management
Many commentators would argue that in order for management to become strategic, there should be a link between human resource and the objectives of the organization. This is emphasized in many of the studies and researches in the literature: when we talk of strategic management, we refer to people and the organization. When these two are functionally and harmoniously working together, we should expect returns.
Strategic management is correctly handling the resources of human resource, which means people for the objectives of the organization.
The objectives of the organization can divert back to the people; meaning the working together is reciprocal or vice versa – the people work for the objectives and the objectives are meant for the people. This in a sense is unity in an organizational setting – business for people and people for business.
One of the main objectives of strategic management is maximizing human potentials, including skill, talents, or capabilities. When these qualities, or traits, or intangible asset of human resource, are maximized, again we expect results, positive results. And positive results also mean performance – positive performance of people all working for one goal, i.e. for the attainment of the goals of the organization.
There is a concept in HRM known as the traditional approach which focuses on the organization and environmental factors, and wherein almost all activities and events are geared towards the advancement of the business organization. Here the personnel are left behind. But the alternative method known as the contemporary approach focuses on competencies and the employees’ commitment to the organization.
Moreover, the contemporary approach is also focused on the employees or the workforce. The objectives of the organization should be of primary concern too. If the employees are happy, the organization progresses too. There is a link between the needs of the employees and the organization.
Talents and capabilities of the employees are maximized and linked to the goals of the organization. The contemporary approach is also based on competence of the individual employees which are integrated into the organization. It is based on the principle that the people are the organization’s greatest asset.
Another major aim of strategic management is to handle or manage human resource as successfully as possible in line with the objectives of the organization. It aims to maximize human potential, which includes skill, talents, or capabilities of the employees, for the fulfillment of the organization’s objectives. An organization with a well-defined strategic management can have competitive advantage over the others.
Strategic competitiveness can be attained with important processes that involved value-creating strategy. On the other hand, a strategy involves several steps and actions that are committed to exploit core competencies in order to gain competitive advantage. (Hitt et al., 2009, p. 4)
Further, a strategy utilizes a plan incorporating the organization’s goals and mission, policies, and other major action statement into one comprehensive or cohesive whole.
A well-planned strategy makes use of all the resources available within the company or organization into a unique and viable tool to counter opponents and competitors. (Storey, 2007, p. 60)
Other interesting opinion of academics has almost one theme when it comes to defining strategic management. Human resources management should not be separated from the strategic needs and aims of the corporation. Human resource policies have to come across the different hierarchies of the corporation. Finally, HR practices should become a part of the daily activities of managers and employees of the company.
In strategic HRM, strategies and people are involved; in other words, we are putting people in forefront of business, including their talents and skills and capabilities, to make the business successful. According to Armstrong (2000, p. 6), the concept of strategic HRM is based on the important part of the HRM philosophy that emphasizes the strategic nature of HRM and the need to integrate HR strategy with the business strategy.
Strategic human resource provides effective management of the staff, retention, and turnover processes, selection of employees that fit with both the organizational strategy and culture, cost effective utilization of employees through investment in identified human capital. As an outcome, the firm can have an increased performance, enhanced customer and employee satisfaction and enhanced shareholder value.
Two paradigms
There are two paradigms present in the concept strategic HRM. The universalist paradigm, which is dominant in the United States and widely used elsewhere, assumes that the purpose of the study of strategic management is to improve the way human resources are managed strategically within organizations.
The aim is to improve organizational performance, as judged by its impact on the organization’s declared corporate strategy (Tichy, Fombrun and Devanna, 1982; Huselid 1995, cited in Harris et al., 2003).
Concluding concepts about strategic management have been focused on careful and extensive systems for getting the right people for the right job. This is emphasized further in process of recruitment, selection and training. There should also be a good communication process within the organization to make sharing of information easy and handy for the employees.
Employees should have a well-defined job design, with a focused concept of work-life balance. There should be a mechanism too for airing of grievances, and management should look for the welfare of the employees. Promotion and rewards, including financial rewars of high-performing employees should also be a priority. (Harris et al., 2003)
Needs assessment plays a major role in strategic management and its outcomes shape help the success of the organisation’s objections. A well-motivated HRM conducts regular and highly-motivated needs assessment that collects information, evaluates employees and management, and the entire organisation can look forward to a bright and safe future.
Needs assessment covers these important functions of HRM
- Knowing the problems of the employees, the work area, and the changes going on. Knowing the problems is first preceded with knowing if there is really a problem. There might be changes in the daily operations being detected by field people.
- Seeking and studying possible remedies for the problems and ongoing changes in the organisation. The changes occur as a result of various factors such as technology, new products, and competition in the market. These changes are part of the operation and everyday life of employees and organization.
- Collecting data for the improvement of human resource management.
- Surveying the needs and wants of employees, the rank and file of the organization, and asking for suggestions for improvement and even prevention of possible problems in the organisation. Suggestions and other information coming from the employees should be given proper attention and evaluation.
When a manager sees that the people and the system they work with are no longer answering to the needs of the new demands of the time, he can start for a reassessment of the situation and call for training of his/her people. Needs assessment is necessary.
Assessment takes the form of evaluation – an evaluation of something that is going on, say activity or something concrete, or something or event that is about to happen. The manager has to have absolute knowledge of all the data and information, have them evaluated and make necessary actions and decisions that correspond to the collected data.
There are various techniques used in needs assessment but they vary according to an organisation’s functions. These techniques have generic or basic approaches; they are those being carried out by organisations most of the time when assessment is needed as the situation demands. (Kubr et al.,1989, p. 59)
Problems can be uncertain or any disturbed situation in an organization. The manager can detect some problems when situations seem not normal. This includes a low or falling output, a low or falling in the standards of service, a high and rising scrap and waste, or a low or falling standard of human performance.
There are many indicators that a problem or serious situation is in the office in the organization. And if any sign occurs, it is time that a needs assessment should be conducted, and the other remedial measures should be conducted without much delay.
The People
The question is how to cope with the multitude of changes in the world of business. Employees of international organisations have to cope with countless changes in the market, and with stiff competition.
Strategic management is challenged here to conduct needs assessment in order to recruit people who are versatile, and who can easily detect any change, and incorporate counteractions from those changes right there and then. The people in the field should adjust right away and make changes in the operation.
Employee Appraisal
One of the primary objectives of employee appraisal is to improve the performance of the employee. Some other benefits can also be gleaned from employee appraisal, according to Beaumont (1993), such as:
- Generation of information for human resource planning, and
- Communication and understanding between employees and supervision.
There have been changes in employee appraisal in many advanced industrialized economies for two reasons:
- Employee appraisal was traditionally concentrated among middle and junior managers in large private organizations;
- The basis for which employees are changed. (Beaumont, 1993, p. 75)
Originally appraisal schemes tended to concentrate mainly on personal traits, but now the focus is now on job results.
One of the functions of HRM most susceptible to cultural influence – and therefore most likely to arouse resentment when those influences are ignored – is performance appraisal. (Cray & Mallory, 1998, p. 120)
The authors are referring to international organisations. This is so because with the continuing expansion of global organisations and the concomitant demand for experienced international managers, the accurate assessment of managers and potential managers outside the home country has become an important HRM function. Studying or appraising employees varies from culture to culture.
The term strategic has been explained earlier in this chapter, but we have to emphasize here the significance of putting it to proper perspective. Studies revealed that executives and managers put more importance on strategic management than any other subject of interest in the organisation.
A CIPD study found that managers emphasized human resource in the planning process. Planning means working on a written human resource strategy. Companies work and invest in people.
Conclusion
Walden Inc. should provide a strategic plan for its new merged company, Able. This can be done through a comprehensive study inside the organization, and even the environment. Continuous study and surveys should be conducted.
These studies may be done by field personnel themselves, with guidance and direct supervision of the HRM people. Their studies and surveys have to be coordinated well, inputted in the database, and compared with past data and information. Needs assessment and identification of needs have to be carried properly and correctly.
Training and development involve the technical aspect of the job, and they have to be properly assessed. The changes are not ordinary changes that have occurred over time, but new changes in the new atmosphere of high technology. They are new changes for the future of work.
We will never know what lies ahead so that we have to be prepared. This is one of the main functions of Needs Assessment – to assess what has taken place and what lies ahead. Strategic management allows HRM people to know what the future holds.
The manager or higher echelons in the organization are waiting and expecting from the department all the changes and the coming changes in the organization. The changes are the counteraction to the changes occurring time and again.
References
Armstrong, M. (2000). Strategic human resource management: a guide to action. London: Kogan Page Limited. p. 6.
Beaumont, P. (1993). Human Resource Management: Key Concepts and Skills, SAGE, ISBN 080398815X, 9780803988156.
Business & Finance (2008). Strategic decision making – Able Corporation & Walden, Inc. Web.
Cray, D. & Mallory, G. (1998). Making Sense of Managing Culture. Bonton MA: International Thomson Business Press.
Harris, H., Brewster, C., and Sparrow, P. (2003). International Human Resource Management. London: Chartered Institute of Personnel and Development.
Hitt, M. A., Ireland, R., and Hoskisson, R. E. (2009). Strategic management: Concepts and cases. OH, USA: South-Western Cengage Learning. p. 4.
Kubr, M., Prokopenko, J. & International Labour Office, Ed. 3. (1989). Diagnosing Management Training and Development Needs: Concepts and Techniques. International Labour Organization. ISBN 9221063992, 9789221063995.
Storey, J. (1995). Human resource management: a critical text. New York: Routledge. p. 60.