Case: Right Management Consultants Succeeds by Managing Change
Question 1: What are the challenges faced by Right when the downsizing effort no longer is a popular human resource strategy?
One of the main challenges that the Right company will have to face when downsizing effort is no longer a popular human resource strategy is quite simply finding a new strategy that will work. In finding a new strategy one must take the strategic approach to HRM. In the strategic approach to HRM there are six key elements that are essential for HR managers to consider:
- recognize the impact of the outside environment
- recognize the impact of competition and the dynamics of the labor market
- has a long range focus
- focuses on the
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If Right could improve the qualities mentioned in the previous sentence on their HR crew they will be much better prepared with the tools necessary to combat a changing world.
Case: Polaroid—A Hard Landing
Question 1: What had been Polaroid’s overall growth strategy? How did this affect its HR planning and strategy?
Polaroid’s overall growth strategy was to be the number one and only instant photography company through the invention of it’s own technology in its own laboratories. “Growth objectives are a key part of an organization’s overall strategic plan. Almost all strategic plans deal with the size the company wishes to be in the future” (Human Resource Management pg. 110). One of the ways in which Polaroid planned to be the only instant photography company—in turn would also make it the greatest—was through 533 patents. “Polaroid is still characterized by many as a company that hold too tight a grip on its patents” (Human Resource Management pg. 130). Polaroid’s strategic plan was always to stick with their one invention, improve on it’s technology, and target the sole market. This affected HR planning and strategy because Edwin H. Land did not want to enter other markets; Land wanted Polaroid to be about instant photography. The decision to stay in only one market affected HR from doing what they are suppose to do. It prevented them from being creative or innovative.
Question 2: Whose fault is it when employment declines, as
The problem in this case is concerned with Eastman Kodak losing its market share in film products to lower-priced economy brands. Over the last five years, in addition to being brand-aware, customers have also become price-conscious. This has resulted in the fast paced growth of lower priced segments in which Kodak has no presence.
HR must enact its own strategies which can aid the organization in meeting its goals and mission. They are referred to as strategic human resource management (SHRM). SHRM is “a pattern of planned human resource deployments and activities intended to enable an organization to achieve its goals” (Noe et al., 2002, 55). The following are examples in which HR strategies can positively impact an organization in meeting its desired outcomes.
3. Why is it important for HR management to transform from being primarily administrative and operational to becoming a more strategic contributor?
1. Following Sportsman’s shift in competitive strategy, what are some considerations for the company’s human resource management practices?
1. Evaluate Kodak's strategy in traditional photography. Why has the company been so successful throughout the history of the industry?
Today 's fast-paced, competitive business environment has resulted in "rediscovery" of the human resource management function as a group that may be able to enhance firm competitiveness and performance by being "strategic" (Dyer & Kochan, 1995; Ulrich, 1997). Strategic Human Resource Management is a term describing an integrated approach to the development of Human Resource Strategy that will enable the organization to achieve its goals (Armstrong, 2005). Whiles strategy is an action that managers take to attain one or more of the organization’s goals. Strategy presents a general direction set for the company and its various components to achieve a desired state in the future. This results from the detailed
The problem in this case is Kodak's steadily eroding market share and shareholder value in the film rolls market. This is especially undesirable given the fact that the market has been growing at a tepid 2% annual rate and the steadily increasing threat from competition. Kodak needs to come up with a strategy for corrective action so as to arrest this decline, regain market share and increase share holder value. Kodak's strategy is to reposition itself by targeting a new segment of price sensitive customers and re-segmenting the super premium customers’ space by including a wider segment of special occasion customers.
Polaroid Corporation, headquartered in Cambridge, Massachusetts, was a company marketed a wide variety of instant photographic products for consumers and industries. After the deregulation of US motor industry consolidation of the warehouses in US took place, which resulted in an improved service level and reduced costs. Overwhelmed by the consolidation results, the management wanted to consolidate the subsidiaries’ warehouses in the Europe to a direct distribution.
Wright and McMahan (1994) define strategic HRM as “the pattern of planned Human Resource deployments and activities intended to enable the organisation to achieve its goals.” A HR function should impact the success of an organisation; a policy must remain current and suitable to both the internal and external environment. Ulrich and Lake (1990) affirm, ‘HRM systems can be the source of organisational capabilities that allow organisations to learn and capitalise on new opportunities.’
When Kodak began making changes to its organizational architecture in 1984, its current architecture did not fit the business environment for the industry. The largest factor that motivated Kodak to make this change was increased competition and decreased market share. Until the early 1980’s, Kodak owned the film production market with very little competition. This suddenly changed when Fuji Corporation and many other generic store brands began producing high quality film as well (Brickley, 2009, p. 358). Another factor in this change was technology advancements. As technology rapidly expanded in the 1980’s, other
Q1: Why is it important for HR Management to transform from being primarily administrative and operational to becoming more strategic contributor?
In late March 1996, Ralph Norwood was faced with the task of restructuring Polaroid’s capital structure. In the past, Polaroid had a monopoly in the instant-photography segment. However, with upcoming threats in the emerging digital photography industry and Polaroid experiencing recent losses in their market share due to Kodak’s competition, Gary T. DiCamillo, recently appointed CEO of Polaroid, headed a restructuring plan to stimulate the firm’s performance. The firm’s new plan has goals such as to aggressively exploit the existing Polaroid brand, introduce product extensions, and enter new emerging markets such as Russia in order to secure Polaroid’s future.
The term Human Resource Strategy is well defined as - “Human Resource management (HRM) is a strategic approach to managing employment relations which emphasises that leverage people 's capabilities is critical to achieving sustainable competitive advantage, this being achieved through a distinctive set of integrated employment policies, programmes and practices.” [ Bratton and Gold,4e,p3]
The strategic human resources management of the means every person from within organization from the top of management level to the bottom of ground staffs are doing things that make the organization successful. According to Schuler, R. S. (1992) strategic human resources management is defined about integration and adaption within organization .Its concern to ensure HR management is fully integrated with the strategy and these HR policies are adjusted and used by the employees and their line managers as part of their everyday work.
Aim: This research will help us understand the role played by Strategic Human Resources Management in Organizational success, what role a HR manager plays in improving organizational efficiency and how it differs from traditional Human Resources Management.