Strategic Human Resource Management/ University of Gloucestershire&Academy of Finance

TABLE OF CONTENTS
I. Introduction ......... 03 II. Theory...................... 03 1. Definition............................... 03 2. The Aims of SHRM....... 03 3. Managing Employment Relationship........ 04 4. Recruitment and Selection..... 05 III. Case study: Apple Inc..................................................................... 06 1. Apple Inc Information............................................................... 06 2. Apple Inc Human Resource Management................................. 06 3. Apple Inc Managing Employment Relationships...................... 08 4. Apple Inc Recruitment and Selection........................................ 10 IV. Hanoitourist Travel Company: SHRM... 12 IV. Conclusion.. 13 IV. References...................................................................................... 14

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Strategic Human Resource Management/ University of Gloucestershire&Academy of Finance

There are many factors to create the success of companies and strategic human resource management is one of the most important one to make their companies stronger and more developed. First of all, human resource like workforce or employees is defined as the labor pool in employment; however it describes better about the role, skills, competencies and potential of employees. From the definition of Human resource, the term of human resource management is known as the way employees are recruited, organized, developed, appraised, motivated, and retained
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. Additionally, strategic human resource is used as a new

method of many companies to treat their employees. By this way, they approve the importance of human resource in the companies instead of machines or technologies. Hence, human resource is evaluated as the most valuable property of companies and their employees becomes the main element to make advantages, success and competencies to companies. Strategic human resource management is assessed an effective tool in organizing and controlling the employees. The companies apply appropriate measures to manage their workforce by using their own strategies. There are various ways to analysis the aims of strategic human resource management. In 2000, strategic human resource management aims at the improvement of the way human resources are managed strategically within organizations, with the definitive goal of improving organizational performance, as judged by its impact on the organizations declared corporate strategy, the customer or shareholders. Besides, strategic human resource management involves the linking of HRM with the strategic goals and objectives of the organization in order to achieve a progressive business performance and achieve an organizational structure that promotes innovation and flexibility (1991) (2) As a result, strategic human resource management seems to be a bridge to connect workforce with different skills, abilities in companys standard. Amstrong said that the aim of strategic human resource management is to ensure that the culture, style and structure of the organization, and the quality, commitment and motivation of its

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Strategic Human Resource Management/ University of Gloucestershire&Academy of Finance

employees, contribute fully to the achievement of business objectives. Hence, by using this method, companies find easy to put their business in a coherent and practical policies and programs. Following to the program of this subject, the professor has already lectured about different point of strategic human resource management; for example managing employment relationship, strategic recruitment and selection, strategic international human resource management, and terminating the employment relationship and performance management. In this assignment, I want to focus my explanation on two first modules: managing employment relationship; and strategic recruitment and selection. Firstly, managing employment relationships is simply managing the relationship between the employers and the employees. The relationship between the company and the workforce seems more complex than customer relationships management. If customer relationships management is only indirect way, employment relationships management is return way; both direct and indirect one. It shows the interaction from two sides: employer and employees. The employers have to control their workforce then they can know how to place and design a suitable position per each person. While the employees need a good and comfortable to do their job well. That is the reason why the organizers need the help of technologies in managing their human resources. In the past, telephone and fax were two popular tools to improve the workforce relationship. Nowadays, besides traditional style interpersonal skills and conflict resolution techniques, many companies apply new technologies in managing their employee. Thank for technique development like human resource system, work flow system; it will not be difficult to control and manage the operation of companies. Salary can be paid correctly and on time, managers are assisted to follow their employees work, results and timetable. Moreover, they find easy to make daily reports, update information or inform new knowledge to all the staffs in companies by the help of knowledge and business information management technologies, email, company portal and electric calendars. However, technique cannot decide employment relationship; managing employment relationships is only effective if

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Strategic Human Resource Management/ University of Gloucestershire&Academy of Finance

there is a reciprocal exchange of value between employers and employees. Hence, each part know their rights as well as their responsibilities in that relationship, then they do best for their work and contribute that relationship better and better. The next module in this assignment that I am interested in is recruitment and selection. Recruitment and selection are important steps in the process of managing human resource. Recruitment is defined as vacancy, refers to the process of attracting, screening, and selecting qualified people for a job
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to choose relevant applicants.

While selection is understand as the chain of actions: assess and narrow candidates, finally give the decision. Companies can use staffs existing in their employees to upgrade the higher positions that called internal recruitment or recruit outside to choose the most suitable candidates for their wanted position called external recruitment. (4)

As the diagram, there are many elements in the strategic recruitment and selection; so to do well this module maybe cause costly expense, short-term pressures, lack of coherent corporate strategy. For all reasons, if these steps are prepared well, the companies will catch the right people in the right place at the right time.

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Strategic Human Resource Management/ University of Gloucestershire&Academy of Finance

The next part of my assignment, I would like to analysis the human resource management of Apple Inc. which is famous for designs and markets consumer
electronics, computer software, and personal computers such as Macbook, Iphone, Ipad

and Ipod. It is Established on April 1, 1976 in Cupertino, California, and incorporated

January 3, 1977. The first name of the company is Apple Computer, Inc., but on January 9, 2007 they made the name change by removing the letter computer and now, Apple Inc. becomes the popular name that there are a lot of people want to work for. One of the reasons that make Apple Inc. becomes more and more successful in the business is their strategic human resource management. Provide company with the necessary personal to assure superior performance. Employees should at all times strive for the highest quality in all they do. Ensure proactive internal career progression (5)

Apple Inc. applies a different method from other companies by recruiting people who admire their products and services. By this way, Apple believes that they can own enthusiastic and faithful workforce. However, to become Apple employee, every applicant has to pass at less two interviews. The interviewers will ask applicants every field such as leadership skills, problem solutions, as well as their passion on Apples products. Thank for the hard and strict entrance examination, Apple are always proud of their professional, creative, competitive and responsive, innovative workforce. The best employees with the biggest passion on Apples products create the huge source of workforce when application letters sent to Apple Inc. daily become more and more plentiful.

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Strategic Human Resource Management/ University of Gloucestershire&Academy of Finance

This diagram shows the fact that 45% of candidates admiring products and services; that is three times bigger than the next position candidates who interest or challenge work on Apple Inc. (15%). In addition, Apple Inc. is always flexible with the change of external environmental forces when customers tend to love online shopping. There is an important increase of employees in web and interactive content field (27%).

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Strategic Human Resource Management/ University of Gloucestershire&Academy of Finance

With Apples statement that The companys success depends largely on its ability to attract and retain key personnel; Apple human resource department always continue to employ experienced personnel, which especially in the information technology industry is in high demand and competition for its talents is intense, where the majority of the high tech companys are located, is also key objective of the HRM department (6). To strengthen the relationship between employers and employees, Apple Inc. builds their own standard of mission, vision, values and culture. It is different from other companies; Apple Inc. does not apply the unique architecture for all of their branches or stores. Each branch can utilize the style for their business environment and that makes them become special image. Employees feel comfortable and enthusiastic when working in a professional company. Moreover, to motivate the spirit of staffs, Apple Inc. carries out staff appraisals; so both the appraisers and appraised can understand better about themselves as well as their works results. Based on the feedback of staff appraisals, Apple Inc. can pay merit salary for each staff at each position. Thus, it creates a fair environment in which the boss can know what are advantages or disadvantages of their staffs to put them in the most suitable position. This system is an important key of human resource department. Additionally, staff appraisal system is not only a part of human resource management

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Strategic Human Resource Management/ University of Gloucestershire&Academy of Finance

but also a part of recruitment and selection. Apples workforce can get the promotion to higher position or the company can inform the additional recruitment. Besides a good knowledge of staffs abilities, qualities, Apple is successful in finding their own workforce who is always mastery in the area of web development and interactive content. Apple can base on the result of staff appraisals to know much how shortage their employees have to face to their skills and experience. For example, Apple lacking operational efficiency was in a terrible need to hire an expert on this particular topic, through a functioning HRM department Apple therefore was able to win Timothy D. Cook a highly skilled operational Manager (and Vice president, Materials) from Compaq, one of its main competitors, 141 because of attractive work conditions, which are embedded in the staff appraisal system. A combination of lifelong learning, management development, and reward policy convinced him to become a part of Apples culture. (7) Balancing with the customer preference, Apple Inc. now narrows traditional ways like advertise on newspaper to cut costs and then utilize this savings to make the relevance between online and offline application formats. The objectives of Human resource department are guaranteeing that all of their employees are aware of business, especially Apples products and service. That is the reasons why Apples workforce has to join the training and development class after passing the entrance interview. Hence recruitment and selection keeps an essential role in human resource plan. In order to meet requirement on skills and knowledge to function effectively, Human resource department divides organizational structure intro four categories: offer or efficiency program, business driven needs training, personal development category and general awareness education. The offer or efficiency program is carried out with all staffs at all departments from sales, marketing manager to web and interactive content. The aim of this category is improve the efficiency of staff productivity. The second program aims to help the workforce improve their progress in business especially in e-market which is becoming more and more popular.

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Strategic Human Resource Management/ University of Gloucestershire&Academy of Finance

The next module which Apple applies to their employees is developing personalization to get the assertiveness training. The forth one is educating staffs general awareness. This module mainly focuses on individual; by that way employees are aware of business environment to do their job best. What makes Apple different from other companies is their training and development course. The evaluation compares the objectives of the training with the learning process that actually occurred. The bottom line of the training provision is a work force that not only feels that it can effectively adapt to and adapt within an environment that is in a constant change, but also increase their internal mobility, giving Apple the possibility of redeploying employees (8) Apple was successful in recruiting talent people enlisting into their corporation. Steve Jobs is now known as a genius CEO who was successful in applying sell retail. His first attempt was to build a private showroom in the big retail store like CompUSA however it did not work as what he wanted. Thus his idea which was to open a private showroom in separated area was big success to bring a different image of Apple. That is the reason why Apple has become an architectural simple with glass, wooden, stone, else, designs. Moreover, Apple distinguishes from other companies because they only sell their own products; so it is very necessary to train the staffs to master in all kinds of Apples products. Besides Steve Jobs, in 1999, the Gap chairman Millard Drexler enlisted in the board of management of Apple Inc to consultant retail scheme. Then, Ron Johnson who was working as furniture director of Targer also became a leader of Apple Inc. Ron Johnson is a person who succeeded in building the chain of technique assistants as well as customer service. As the result, Apple is now famous for a talent workforce who had many experiences in other famous corporation especially Gap Corporation. As discussion above, Apples recruitment and selection steps seem very professional and masterstroke. The first lesson which every staffs need to learn by heart is to impress their customer on their enthusiasm and friendliness; and never to say sorry or pity. There is a rule in Apple Inc that makes them stronger and stronger is that

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Strategic Human Resource Management/ University of Gloucestershire&Academy of Finance

Apples employees cannot say nothing about Apples rumors, web and interactive content is forbidden to admit any mistakes about their products or if anyone talks anything about Apple Inc they also have to leave their job. It is not easy to recruit in Apple Inc. however it is much more difficult to continue their job in Apple Inc. An ex- staff of Apple talks that if someone is six minutes later in a shift three times in six months they also have to be out of work. Additionally, sale staffs in Apple Inc don not get pressure to sell as much as products they can but their duty is trying their best to sell the other sub application or package going with that product for customer. If they cannot sell enough the quantity requested, they have to re-train or move to another departure. There are few people who know the meaning of Apples name. It does not mean the simple of a missing apple. APPLE is the abbreviation of approach probe present listen and end. They are five basic steps that any staff has to satisfy when they sell or talk to customer. On the other hand, Apple holds annually events such as the Apple design awards to recruit genius to join their corporation, and then the winner are automatically to an internship position with the company. With the great strategy, Apple can assure that they seldom lack of creative minds; so they can generate a competitive advantage if the HRM activities support them through their work life at Apple.(8) Finally, Apple is successful in linking corporate strategy and human man resource strategy which firstly creates a competitive advantage in Apple Inc. Apples workforce find their passion, enthusiasm and creativeness when working in professional environment. Following to a survey, there are only 3% staffs claim that they are not paid enough to work in Apple Inc. On the other hand, Apple shows their success in recruitment by combining recruitment events and online services which by far exceed content wise the services offered by other players in the market

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Strategic Human Resource Management/ University of Gloucestershire&Academy of Finance

Besides the sample of a very famous corporation Apple Inc, I would like to explain more about strategic human resource management in my company. I have been now working in Hanoitourist Company which belongs to Hanoitourist Corporation. My companys core business is travel and tourism in inbound, outbound and domestic markets. To recruit in my company, every staff has to pass the first entrance exam about application form and then written test and interview one. After passing all examinations, human resource department holds a short class to train newcomers, when this course finishes we also have to pass a small test. With this strategy, every employee will master in travel field; so we can serve and answer any questions about tourism not only in our department but also in other ones. Because of our job characteristic which focuses on service, we learn how to give the guest the best comfort and pleasure. Our objective is making the guest remember Hanoitourist first whenever and wherever they want to travel. That is about recruitment and selection, the relationship between employers and employees is also paid attention. Besides weekly, monthly reports; our human resource department carries out a strategy which name is voting the best staff of the month. Thank for a good plan, we find more passion to work and strive to mastery, moreover it make the distance between the leaders and staffs closer. On the other hand, on special occasion, we often hold parties for all staffs to have chance to exchange not only knowledge but also our

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Strategic Human Resource Management/ University of Gloucestershire&Academy of Finance

relationship; or annual trips in summer holiday, lunar year festival are gifted for employees. From some descriptions about my companys strategic human resource, I think that my company needs to some other strategies human resource besides the old. In conclusion, when human resource management department combines with the workforce, they will become a great competitive source of human capital to any company. From my point of view, I love a quotation of Steve Jobs about the importance of human resource management practices that to be the best is just good enough

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Strategic Human Resource Management/ University of Gloucestershire&Academy of Finance

REFERENCES
1. Getting to Know the Strategic Human Resource Definition and Related Terms, July 2011, http://www.strategic-human-resource.com/strategichuman-resource-definition.html 2. Dissertation on Creative Management and Human Resource Management at Apple Daily Hong Kong, July 2011, http://www.managementparadise.com/forums/human-resourcesmanagement-h-r/213854-human-resource-management-ann-taylor.html 3. Recruitment, Wikipedia.org July 2011 http://en.wikipedia.org/wiki/Recruitment 4. Recruitment & Selection and the Management of Change, Robin.S, www.ln.edu.hk/mgt/staff/robin/Change/EMBA%20Thornhill%204b.ppt 5 8. Valentin.I, A.Lindinger, and G.Poettler, Apple Computer Inc., Dublin Institute of Technology, FT351, Business & Management, Year 4, Strategic Management and Business Policy, February, 23 2004, p.88 p.98, http://www.andreaslindinger.net/downloads/strategicmgmts-lindingeretal.pdf

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