Professional Documents
Culture Documents
Introduction:
Strategic human resource management is a complex process which is constantly evolving and
being studied and discussed by academics and commentators. Its definition and relationship with
other aspects of business planning and strategy is not absolute and opinion varies between
writers.
The case study speaks about SFYL Company that employs around 700 employees and works in
the security industry. The company’s two categories of employees (full-time and part-time) are
recruited, motivated and compensated differently. Currently, the company attracts the workforce
by inviting them via different channels (job postings in mass-media or word-of-mouth). The
company recruits former police officers for Grade 1, and hires other people for Grade 2 and
Grade 3. Certainly it makes the employees pass different tests to qualify to work for SFYL. The
company strives to retain only the best employees providing them with growth opportunities and
training. It motivates them directly with different, proportionately-growing salaries and profit-
sharing options that the employees get once a year depending on the type of the contract (full-
time or part time and again depending on the grade of the employee). Speaking about the work
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they do one should note that the part-time employees typically work as security guards for public
organizations (business centers or hospitals). The salaried staff (supervisors) works full time and
assures that the job of the part-time SFYL employees goes smoothly without any problems. The
following paper explores integrated human resource approach in a greater detail, and provides
recommendations on how to further improve the human resources and to benefit the
organization.
First of all it is necessary to note that the HRM (human resource management) at SFYL has
many functions that strive to create more value for the organization by properly meeting the
organization people’s needs. HRM is all about management activities and influence people in a
3. Reward systems which are seen in compensations and benefits functions of HRM.
4. Labor-management functions which are seen in collective bargaining and other labor
relations.
HRM strives for the long term benefits offered for a company which comprise the
following:
better.
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2. Quality of work life. HRM has to contribute to the environment conducive for
3. Profit increase. HRM has to use the human resources to increase profits of an
As for the good and bad aspects of the reward strategy that are in use at SFYL one should
note that the HR department developed strategy with its strengths and weaknesses:
1. Employees are split into grades based on their experience. Each grade gets a different
reward.
2. The employees can grow (get promoted) or get demoted, so they are motivated to put
3. Temporary contracts for new-comers so that the experienced staff members feel
4. Small differentials between Grade 2 and 3 to make the newcomers feel well-compensated
and well-appreciated.
5. Salaried supervisors get 25% added to their salaries per month if they work from 9pm to
6. Unlike part-time employees who work 30 hours/week, the salaries employees work 40
hours/week.
their exclusivity.
8. Sales staff gets a commission basis of 10% of a nominal figures represented by the
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9. Formal appraisal for all employees once a year.
10. Profit-based bonus payment once a year to all staff equal to 5% of the firm’s profit for the
11. Pension scheme to all permanent workers with a contribution rate of 4% of base pay
1. Bonus payment distribution is no really fair. Grade 2 and Grade 3 get 3 points. Grade 1
gets 4 points, most salaried people get 7points, sales staff get 8 points, managers get up to
2. The managers frequently promise not salary increases but base point increases.
3. Neither salary not the basis point is directly linked to productivity of an individual
worker.
4. SFYL focuses only on monetary aspects in rewarding the employees completely ignoring
extremely rewarding and motivating to the employees without costing too much money.
It appears that the organization had a very smooth transition from the Grade 3 to Grade 2
employees creating rather small price differences and base point difference (if any at all), while
at the same time assuring permanent contract for the Grade 2 workers to reward them for their
loyalty. Then it appears that the company develops different compensation programs for various
employees without effectively tying those to employee learning, development and productivity.
After all, one needs to remember that HRM pays only to motivate the employees to improve
themselves and to benefit the organization even more. It tied pay to performance only slightly by
providing base points. In this case technically, the employee is not motivated to improve much
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because his bonus depends on the overall corporate achievement/teamwork rather than on his
Drawing all the above together one should note that SFYL indeed did a great job dividing the
employees into different grades and providing different grades with various salary levels, bonus
and profit-sharing options. The main disadvantage is that SFYL appears to ignore its interests by
focusing only on the financial compensation/motivation which does not always appear to be the
cheapest option. The company should consider many other rewarding options that may include
various trainings, seminars, team-building initiatives, mentoring, etc to make people feel loved,
and appreciated. This will increase their commitment more than dry bonus figures.
Each employee at SFYL should understand that life-long learning nowadays is a norm rather
than a whim of superiors. The employees should pursue additional personal development and
training to benefit the organization, while the organization should be understanding to the
employees’ increased stress and should reward them for taking these risks. Just like many other
organizations, SFYL should pay for various trainings and to constantly promote those who strive
for the best. Here are some of the recommendations that one should make for SFYL:
Proper education. One should not forget that nowadays the technology and knowledge develops
at extremely fast pace meaning that if SFYL does not constantly learn new things it is going to
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• SFYL needs to learn the new updates with respect to the industry innovations, the ways
to improve communication, and to create the organizational structure that would be the
most productive(Belker, 2006). The fact that the wireless office (a.k.a. wireless internet)
and lean organization are the most profitable things does not mean that they are going to
stay like this in the next 10 years(Ivancevich, 2006). Certainly that if we allow SFYL
• Develop a proper implementation plan. If SFYL agrees that the organization lacks proper
communication structure, it should not panic but rather discuss the way to overcome the
given problem within the shortest time frames and with the least resources spent. SFYL
should allow risks and change to be present to a certain degree, and it should do the best
• Human factor. SFYL needs to understand that whatever the organization does is in fact
done by SFYL Company’s human resources that are the company’s most precious
assets(Rollo, 2005). SFYL should therefore, constantly try to motivate the employees to
learn, to educate themselves, to remain diverse and to like their organization. The
company should not hesitate to plan and hire people from abroad and to conduct
The SFYL should understand that it is always cheaper to make decisions regarding
communication, organization structure from within rather than from the outsourcing
consulting agency. Last but not least, the company should develop a proper compensation
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• Mentoring. Just like the new-hires, every employee at some point of his/her career at
SFYL needs guidance and encouragement. Mentors (who will be selected among the top-
performers and top-achievers) are going to teach the other employees on how to work
well in the organization and how to remain a productive part of this corporate
lines within SFYL Company’s organization and to reduce errors and processing time that
• Team-building/Trust-building games for the employees (French, 2006). Such games are
created first of all for building a team. It is a common knowledge that a team performs
better than an unmotivated, unrelated, group of co-workers, each of whom strives for
create a better team that SFYL currently has, which in turn is expected to work more
efficiently/effectively, and thus to perform better and with less errors(Shepard, 2007).
Bibliography:
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