Chapter 4 Case - Integrating Strategy and Human Resource Management
1. Based on these descriptions of the experience of People’s Bank, Ingersoll-Rand, and Maid Bess, what is the unifying theme of the role played by human resource management?
To begin with, human resource management is the process of hiring and training employees so that employees become more knowledgeable of their job tasks, and more valuable to the company. Hiring and training employees, managing payroll, performing job analyses, assessing performance, and communicating with employers and employees are all part of human resource management (Heathfield, 2013). Human resource management is important because it provides competitive advantages and helps to create workplace policies so that employees understand the rules and regulations, so that employees will understand what is expected of them (Greer, 2001, p. 122).
In addition, the unifying theme of the role played by human resource management includes providing solutions that improve workplace conditions by integrating strategies and human resource management in organizations such as implementing programs and purchasing new technology for the organization. For instance, People’s Bank which is a financial service company, changed its strategy to one directed toward markets known as a market orientation (Greer, 2001). The market orientation works in this way, products are developed based on the market demands. Due to these changes, People’s Bank expanded its financial service company which resulted in the establishment of 139 branches, and making banking services and stock trading available online (Greer, 2001, pp. 156-157). The significant changes led to a new organizational structure, and “HRM planning was more fully integrated with the strategic planning process through synchronization of its scanning processes with the bank’s overall environmental scanning process” (Greer, 2001, p. 157).
Regarding Ingersoll-Rand rock drilling division, this company needed to train employees to become familiar with new technology, control the cost of labor, and resolve the labor shortage. Therefore, they had to incorporate human resource management and strategic planning which resulted in allowing employees to take part in choosing new technology for the company and implementing new programs (Greer, 2001). Maid Bess, a uniform manufacturer assimilated strategic planning and human resource management because labor cost became critical (Greer, 2001). As a result, the company increased productivity and employees’ salaries, and reduced the turnover rate. In final, both strategic planning and human resources management work together to improve workplace conditions.
2. How does the strategic role of human resource management in the U.S. Navy case differ from others?
The strategic role of human resource management in the U.S. Navy case is different from other cases because the human resource managers closely evaluated the labor cost...