Case Study 1

STRATEGIC HUMAN RESOURCE MANAGEMENT HRM416, SEC-1

SUBMITTED TO Md. Atiqur Rahman Sarker Lecturer, Department of Business Administration East West University

SUBMITTED BY Tanema Binty Hamid ID: 2009-2-10-127

Date of Submission: 27th September, 2011

EAST WEST UNIVERSITY

43, Mohakhali C/A

1. Define the corporate strategy used by each company. In this case study, there are three different types of companies and each of the company faces different kinds of situation. So each company uses different corporate strategies to develop their companies, as well as to achieve strategic goals. Now I define the corporate strategies which are used by each company on the below:Company A:This company is basically a small high-technology communications organization, which was previously entering a monopolistic industry. Company A develops some strategy to achieve its organizational goal. Such as: It wants or targets to corner a specialized niche of the communications market. So they also recruited new employees and wants to maintain an innovative, aggressive and flexible approach. They also maintain rapid internal communications and cost effective procedures with few levels of management.

Company B:This is a large national confectionary manufacturer company which has previously been the market leader. But due to heavy competition they loss their market shares. So they make some strategies such as: As first it wants to relocate its head office from Melbourne to Brisbane. Because they think that in this way they can reduce the expensive overhead. Reduce its manufacturing operations in Sydney and Melbourne.

Company C:This company basically supplies computer support services to a broad and stable range of public service departments and statutory authorities. Company C has also some corporate strategies to achieve their goal. They are:It maintains a long term contracts with their customer. They regularly increased its profit goals through maintain good relationships with their customer. They recruited skilled, enthusiastic, productive employees. To reduce the rate of turnover, they give the employees some facilities. Their morale appears excellent. Their management also adopted a steady as she goals approach.

2. What potential issues and/ or problems may be faced by each company in the near future? Company A:In future company A may be faced some problems. Such as: As the company is small in size, so in the near future it may be faced heavy competition from any large company. It is financed by a consortium of multinational corporations. If the corporations market shares will decline by any cause then it can not be able to finance the company A. So as a result it can not survive.

Company B: Although they relocate its head office to Brisbane to reduce their overheads, but they will have to spend some extra money for their transferring process. Their transportation cost will be higher also. Because of the rumours, some staffs from middle management position have been offered redundancies. So the company will need to recruit new employees. As a result, their advertisement cost, cost of taking interviews and the training cost will be increased.

Company C: Generally the management of this company has traditionally adopted a steady as she goes approach. But in the near future, the employees may be ignore that approach. It also maintains a consistent, long term contracts with their loyal group of customer. But in the future, the customer group can switch to other strong computer support services if the new supplier company offers some extra facilities. Then the company C will face heavy competition.

3. What opportunities are available to each company, and how should they be maximised in the next years? Company A: Though it is a small company, but it has some areas of opportunity. First of all, it can expand its organization throughout the country, if the multinational corporations will able to finance them properly with huge amount.

If the company can maintain innovation, aggressive and flexible approach and the rapid internal communication and the cost effective procedures accordingly, then it can easily maximized in the next few years. It has to train up their new employees and develop some positive feelings about the company. So that they can finish their duty properly.

Company B:This company faces more problems then others. So that, it needs to find out its areas of opportunity. Like: It has to increased its market share and plan some new strategy. It can also try to reduce its extra overheads cost by proper planning. It needs skilled, enthusiastic and experience employees. So that the employees can easily contribute a lot in the company and properly do their works. It can expand its business through borrowing money from the bank or other institutions.

Company C: It can expand its business through out the country by increasing the number of suppliers. It can also make many short term contracts rather then few long term contracts. The company has to encourage its employees and give them some extra facilities. So that, they cans do their activities properly and bring profit for the company.

4. Prepare an appropriate HRM strategy for one of the companies for the next one to two years. Ans:Here, I prepare an appropriate HRM strategy for company C for the next one to two years. Although company C has consistent long term contract with their customer and may exceeds profit but it has to prepare HRM strategy to develop their business criteria as well as to make higher profit and goodwill. For achieving companys goal, it can use soft HRM concept which infers the involvement of employees through empowerment, consultation, commitment and communication. So in this company, the employees can easily negociate with the employers about their salary, bonus or other facilities. Soft HRM can be used here, because the employees are skilled, enthusiastic and productive. The rate of turnover also low.

Company C can take Quality enhancement where they can focus more long term or intermediate focus and commitment to their target goals, high concern for quality and for their process. It can also use the Unitarist HRM model as their strategy. Where unitarist HRM includes common interests between employees and employers and attempt to encourage commitment by both inclusive and exclusive. The employer and employees have to build a good communication. Employer can introduce a good reward system for the employees to encourage their effort. Company C has to maintain their co-operation between employees and employers. They also maintain all of their policies effectively. By implementing all of the strategies effectively Company C can achieve its goal.