Strategic Human Resources UGB 320

Strategic Human Resources
UGB 320
1.0 Introduction
Author is required in analyzing the strategic human resource management of the selected
company. This study comprises the introduction of SHRM, selected company background, core
challenges of developing human resource strategy, the company businesses strategy and human
resource strategy, the best practice and best fix for company strategy and also an explanation in
combining the usage of best fit and best practice model. Recommendation will be given for
improving the selected company in practicing strategic human resource management.
2.0 Introduction of SHRM
SHRM stands for the anonym of Strategic Human Resources Strategic. It is used as an approach
in managing human resource which enable supports for business for a longer run (Cipid.co,
2015). According to WiseGeek (2015), SHRM is designed in helping organization in meeting the
needs of their employees. It will need more thinking and better planning for the assistance
towards the employee. Overall, SHRM is a bridge in linking Human Resource management
towards the strategic plan to the management (HRCouncil.ca, 2015).
3.0 Company Background
Author had selected Samsung as the targeted company for analyzing their SHRM. Back in 1938,
Samsung is founded but not the way we had known for today. Samsung is known as a trading
company which started as a grocery shops which had nothing to do with electronic gadgets.
Samsung only entered electronic sector at the year of 1969 while being active in
telecommunications sector only happened at 1980. In today, Samsung had become an
international
company
which
focuses
on
mobile
communications,
electronics
and
biopharmaceuticals. In 2012, Samsung had become globally largest mobile phones manufacturer
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which still remains dominating until today. Samsung headquarter are located in Suwon, Korea.
They had approximately 236000 employees working for Samsung.
According Sharwood (2015), there was figures in showing the first quarter of sales made by
Samsung Company. Samsung had made 4.63 trillion in Won which is equal to $936 million of
US Dollars. The first quarter of 2015 reported 47.12 trillion in Won of sales which is the largest
compared to the year before. According to the Forbes (2015), Samsung Electronics is named the
world number seven most valuable brands, which worth a market price of $199.4 Billion.
4.0 Core Challenges of Developing SHRM
Human Resource personnel will face troubles in developing SHRM to the company however if
changes needed to made upon the company. There will be challenges awaited for personnel in
handling them and among the challenges are employee engagement, retention and recruitment
and leadership development.
4.1 Employee Engagement
According to Zappe (2012), employee engagement is the main challenge faced by Human
Resource Department. The reason is because employee tend to be dissatisfied with their job
where employer tend to be neglecting. Mostly employer will have a traditional way of thinking,
especially Asia, employee are employed by using salary and employer will never care whether
the employee satisfy or not. Employer just knew one theory, as long the employee received
salary from employer then the employee must accomplished the tasks given. On the other hand,
organization culture is keeping the Human Resource department behind. Employee tend to be
adapted to the old organization culture which they felt comfortable and dislike changes to be
made. Once changes of management is made, employees will felt dissatisfy and began in
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gathering for protesting against the new policy. Plus, poor management process had allow the
information of Human Resource department to be lacked of renew. Human Resource department
should always update the feedback of employees in order to kept track of employees job
satisfaction.
4.2 Retention and Recruiting
Organization are hunger for talent in leading the organization. As certain trained employee do not
wished to retained in the company had makes organization loss of spending time on training and
cost. While for small organization, it will be a burden in paying high salary in retaining or
recruiting a talented employee. Retention for talented employee or well-trained employee is
difficult since high performance employee are capable in accepting challenges as other
organization offered in the open market (Bjerke, 2012). As for employee in nowadays are highly
competing for securing a job, every organization will faced troubles for recruiting. It do not
means that the higher the education level of the candidate will definitely secure a job because
lack of knowledge and job experience. While for experience employee will be dissatisfy with
requiring a higher salary due to lack of certification and low education level. Employer would
preferred employees with job knowledge and experience rather than fresh graduates due to
unneeded to reteach about job scope. However, for the best way in recruiting and retaining
employee will needed the hard work of Human Resource department in attracting and retaining
them with rewards based on performance (SocietyHRM, 2012).
4.3 Leadership Development
Leadership development will be important as creating a cycle of leadership where employee are
equipped with leadership skills in leading the organization even the leader had gone for
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retirement (SocietyHRM, 2008). Leaders are meant to lead the organization and make crucial
decision for organization future. Human Resource department will need to have a proper training
for producing great leaders however they will need to be strict in discipline their employee
attitudes (Howard, 2011). Other than that, creating two-ways communication between employee
and the employer is important. By doing these, it could create trust worthy for leaders and
shorten the gap between the leader and his subordinates. As an additional, supervisor that keeps
all the credits of his subordinates will also cause the organization to loss a good future leader.
Fairness to every employee must be done as the fundamental before executing SHRM.
5.0 Company Businesses and HR Strategy
5.1 Samsung Business Strategy
Samsung had been pursuing cost leadership and product differentiation strategies in grabbing the
market share from its main competitor, Apple. Putting into comparison with Apple, both of this
company produces smartphones which had high specification but Samsung sold it with a lower
price and it is definitely different based on appearance and software used. Consumer which are
unable to purchase Apple product, IPhone will switch their target to Samsung due of purchasing
power had made Samsung as number one smartphones manufacturer. Plus, Samsung had a cost
advantage in as their labor is 35% cheaper while raw materials costs 37% less than its competitor
which gives the advantages of leadership costing to Samsung (Sylvia, 2015). While, Samsung
are aggressive in spending for R&D with 5.7% of its revenue while Apple only spends 2.4%
(Nisen, 2013). Other than that, Samsung is manufacturer of chip-maker, which gives times
flexibility in producing when needed which Apple is walking a different way.
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5.2 Samsung Human Resources Strategy

The Human Resource department of Samsung Company uphold the spirit of A company is its
People which means they treasured talented employee for the enhancement of their company
(HRD.Samsung, 2015). Samsung Human Resource department had been trying in recruiting high
quality personnel from around the world. According to Samsung Organization HR Department
(2003), the requirement for Samsung in defining high quality personnel are doctoral degrees on
R&D, marketing, finance, design and information system which will be needed in enhancing
Samsung. They also recruiting personnel from overseas in strengthening their competitive. Other
than that, they also provide training and development for their employees in producing great
leaders. Samsung also combine the management style of diversification strategy and focus
strategy in marketing their product. This new management strategy putting priority on focusing
on innovation which encouraged for improvement. Merit paid and promotion system is presented
in a traditional way which is seniority-based and merit-based promotion and compensation
(Jung, 2014).
Treasuring a good talent for company is easy but the way of retention the talents is difficult due
to the offered that competitor were tempting. Samsungs spirit by upholding a company is its
people is a great philosophy which they introduced merit paid and promotion system in grabbing
these talents. Merit paid are differentia to seniority-based and merit-based. Samsung had mix the
culture of locals into the organization culture where their people are in respect with elders.
Seniority-paid are based on the period of time of employee had worked for the organization and
trying repaid back the effort for many years of hard work. Merit-based paid is based on
performance which junior level employee are capable in getting reward for excellent
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performance. Samsung also provide compensation in expressing gratitude for employee which
they may have been injured during work, sickness occurred or getting pregnant.
6.0 Best Practices and Best Fix for Company Strategies
6.1 Best Practices Model
Best practice is defined as a technique or methodology which is proven reliable and works based
past experience and research (SearchSoftwareQuality, 2006). It can also be a method that
consistently shown result which is used as a role model (BusinessDictionary, 2015). There will
some advantage of using best practice which it is delivering positive impact for employees
training and development, and better communication system (Fapohunda, 2015).
Taking review constantly in evaluating employee performance which is best for contributing to
the organization. Samsung from the past had done great since by upholding and promoting their
philosophy A company is its People. Samsung had truly know what employee want when they
came to their workplace (SHL, 2015). Samsung had truly defined that, a concept of home, is
what their employee want. By practicing best practice, it helps in uniting their employee and
enhanced their working performance. The organization culture that Samsung had established had
been an advantage since it adapted with their local culture, where the young ones will paid
respect and be patient in dealing or asking for help from the seniors. It gives a good image which
will helped the organization in building its image. Plus, staff that works in the front line will
definitely be more polite and patient in dealing with customer issues.
Best Practices also gives an improvement for customer satisfaction since employee will be judge
due to job satisfaction of employee due to reward is given appropriate based on performance. It
also can overall upgrade the quality of services. Through this practices employee will have high
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commitment in doing job. Employee development can also been undergo with best practice in
making sure that their skills are sharpened and the responsibility of work can be bring up and be
aware at all time. However it will needed some long planning before executing the plan.
Personnel will need to make sure it is acceptable for all employee.
6.2 Best Fit Model
Best Fit models suggests that a connection between organizational strategy and different system,
such as, rewards will be going smoothly by improving the efficacy of the organization (UKEssay,
2015). Best Fit also argues that performance of a firm is to be exploited if the human resources
strategies are going continual with organization businesss strategies (UKEssay, 2015). While
best fit can also been used as a tool in meeting the demands of the organization as in the
corporate and functional level of the organization management (Foluso, 2015).
The differences between best practice model and best fit model is that in best practice model, it
emphasizes in human resources policies which include reward system that positioned human
resources as the motivator for leading the employee towards commitment and performance.
However, best fit model emphasizes that company reward system should be associated with
organization strategy which are capable in creating a competitive advantage.
By using best practice model, Samsung Company are capable in positioning human resource
strategy within the organization strategy which gives competitive advantage (Foluso, 2015).
Lets say Samsung had a goal in the end of 2015, they would want to achieve a figure of revenue
by 5% and by after achieving it, there will be a reward for all employees. Human resources will
assist in executing the plan in leading the organization towards the goal. The way they can do it
is to position the right person in the right tasks through evaluating their performance. Cutting
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unnecessary costs which can help in maximizing the revenue. The effort of best fit model can
helped in enhancing team work and unity of employees which makes them have loyalty towards
the company. However, the reward system should not be looked as a set of compensation for
employees while it should be treated as a special reward which is an additional one. Human
resources should give the feelings that when everyone achieved the organization goal, the
employees should take the reward as an encouragement and appreciation for the long years of
hard work of the employees (UKEssay, 2015). Samsung should also need to avoid policies which
works in opposite directions such as encouraging teamwork but reward based individual
performance.
6.3 Explanation of best fit model and best practice model
Best fit model and best practice model seem to be going against each other as implementing it
(delibratepractice, 2012). Best practice model is usually resulted on higher levels of quality,
productivity and low rates of absenteeism and wastage while, best fit model involves planning
future activities, performance objectives and policies towards organization goals (UKEssay,
2015). However, Samsung human resources can execute these two model by taking their
advantage and reduced their disadvantage. Best practice enable the organization in using other
organization management examples which can be improvised by adding best fit model within it.
As an example, Samsung is using their philosophy by holding their employees while this is the
best practice of theirs for securing talents in the company. Adding best fit model which gives
competitive advantage which by using the key word teamwork. Putting these talents in
different teams can compete for a better innovation idea will generates high competitive which
enhanced
performance.
7.0 Recommendation
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Human resource personnel should identify and analysis deeply to the influences and impact
before implementing and truly developed strategic human resource management in Samsung
Company. Communication must be done before executing any plans where it is resulted by not
supported and being dislikes from the employee or subordinates. After communications between
the management personnel and subordinates had been done by achieving an agreement.
Employee will be able to strive for better performance.
Reward system must be clearly stated and delivered to every employee in order avoid argument
in the future. If not, employee will feel been cheated after hard work and effort been done all
these years. The way human resources presented the reward system must not be presented in the
way such as compensation. Instead it must be presented in a way of appreciation and
acknowledgement. By doing so, employee will feel needed and be motivated in the second year.
Employee training must be given in a proper way which will developed them into a true leader.
Leadership skill must be possessed by the employee in order for the survival for the Samsung
Company and striving for a better organization performance. Other than that, basic treatment for
employee must also been given in order for becoming a reason for retention in Samsung
Company. These basic treatment are benefits such as health insurance, EPF, Soso and others
which other company can be gained should also be gained in Samsung for maximizing the
benefits of employee.
Combination of best practice model and best fit model is seem to be opposite however human
resource personnel should truly analyze in the possibility in combining both. The reason behind
is that best practice is a role model that proves they are correct which are used for years by
multiple of organization. While, best fit is capable in shaping growth and competitive advantage
for Samsung to grow and to be different from other organization.
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8.0 Conclusion
As conclusion, Samsung Company need not only keeping on with their reward system but also
improvised it from time to time. The reports on the critical analysis of Samsung human resources
must be in alliance with its business strategy which is cost leadership in order to be competitive
in the market. Author strongly recommended that combined of best fit and best practice model is
capable in making Samsung moving further and be stronger. The key factor of using the nest
practice model and best fit model together is by improvised the best practice and implemented
the best fit model within it. The company growth seem to have a big space for growth but in
making the growth to come true, recommendation must be taken in order to improvised the
employee benefits since employee are the key factor of success for Samsung. Difficulties of
human resource personnel will slowly diminished if steps of developing strategic human
resources is taken in precautions.
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Bibliography
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management.htm
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