distinctive human resources are firm’s core competencies
DESCRIPTION
The genesis of efforts to create distinctive competencies and, in turn, business strategies. We illustrate this Point by an Examination:Chose paired companies in same industriesIdentified the distinctive Competencies of each organizationFinally compared there distinctive CompetenciesTRANSCRIPT
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Strategic Human Resources Management
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Aimen Tanveer 01 Muntaha Tatheer 28 Rahat Rafique 36 Asma Hameed 05
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Distinctive Human Resources are Firms Core Competencies
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The genesis of efforts to create distinctive competencies and, in turn, business strategies
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Chose paired companies in same industries
Identified the distinctive Competencies of each organization
Finally compared there distinctive Competencies
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When Employees are the Product
When information or advice as a Product
Beyond direct services
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Professional SportsRetailingSales as Service
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Recruitment through Collage Draft rather then trade
Long term player development strategy
Holding best Players and paying them generously
Players have influence on team decisions and feel they are part of Organization
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They do not as a rule, develop their own Players and use trades to scoop up talented Players
High Turnover , their reputation as a collection of individuals who are not fit together well
Not known for treating players extraordinarily, and making them a part of Organizational Decisions
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A precise , well defined unit
Players long tenure help to built relationship with fans
Qausi-autonomous teamIndividual Performance
Wide Open Style
Desperate attitude and reputations
an organization anomaly
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Pioneering firm in the science of Employee selection
Sophisticated Selection tests
Frequent and rigorous employee surveys
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Intensive training in Sears Products, Operating Systems and Sales techniques
Straight Salary for many of the employees, No Commissions or if paid (1% only)
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Decentralized hiring, no formal selection tools
Applicants with experience and customer contact
Imp. Qualities are pleasant personality and Motivation
Only 1 rule in its personnel handbook use your best judgment at all times
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A stream of Motivation programs, but provides little training
Pay system is leaded towards Commissions
Ranking on the basis of monthly sales
In fashion retail, employees personal contacts and emotional energy is important
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Housewares dominant
Sales financing & warranties
The name you can trust
Turnover is costly
Highest satisfaction level Intense level of motivation & customer contact
Commissions, Internal Competition, Motivation programs provide drive
Autonomy and absence of rules let it too be exercised
High turnover
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ConsultancyBusiness SchoolsFinancial Services
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Attracts candidates having broad perspective of business
Maintain idea of Revolving door with academia
Entrepreneurial Environment
Individualized incentive pay culture
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On campus recruiting system
Prefer candidates having technical background
Provide extensive training in companies method of project management and execution
Provide consistent services
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Clean sheet of paper approachThe Mckinsey way (standardization)
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Faculty having unique skills and abilities
Hire largely to business field
Students who are PHDs in unrelated business field became business experts and are hired as assistant professors
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Hires from network of PHDs and competitor schools
Prefer candidates having exceptional academic record in relevant field of business
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Harvard graduates are specialized in general management orientation and superior discussion skills Wharton graduates have superior analytical skills associated with functional areas
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Shipping businessFood & beverages
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Variety of programs to empower employees
Survey-feedback action
Developing detailed action plan
Dominant force in overnight mail business
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First company to win national quality award
Achieve the objective of organized decision making
Organized interactive skill tests
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No people management practices
Measures individual performance against company standard
Substantial material reward system
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Pays highest wages and benefits
Offers gain sharing and stock ownership plans
Highly motivated and loyal employees
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Operating with only one hubFocusing on overnight package delivery servicesHaving fewer problem of coordination as UPS incompatibleDrivers productivity is 3x higher than FedExWide range of productsOvernight delivery volume is only 60% of FedExNine time large total businessDemand an extremely high level
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Most recognized trademark
Marketed 70 years before Pepsi
Requires a deep specific understanding and feel
Build employment system
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Hires college graduates
Offer reward and life time job on adequate performance
Internal culture is family-like
Centralized decision making
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Proposed by seeking out the niche market
Becoming more diversify by finding new markets
Markets more aggressively
Many more bottling franchises
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Faces much more complicated set of management challenges
Hiring people with experience and advance degree
Operate in decentralized manner and introduce share power stock option program
Continuous flow of new ideas
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Relatively less job security
Ability to change quickly
Employees having significantly less loyalty
By different ways attacking in many different markets
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BUSINESS STRATEGIESHR COMPETENCIESOutside DevelopmentInside SelectionFlexibility
Established market/ Niche
RaidersBCGA.I.G.Pepsi49ersMcKinseyChubbCoke
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Flexibility
Rely on outside market Grab opportunities through flexible approach Individualism
Established markets/Niche
Rely on organizations specific capabilities/ strengths
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Outside developmentInside selection
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Factors that help sustaining equilibrium: Difficult to match others strategy i.e.
Flexible Pepsi
Established markets/Niche Coke
Coke cannot respond quickly to the market changes as compared to Pepsi.
While Pepsi cannot meet the depth of competencies and long term investment.
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Internal flexibility that is driven by organizations competencies and capabilities
Any of the approach is not universal
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Competitive pressure pushing firms towards Outside/Flexible quadrant.
Firms taking on more talent from outside to create necessary competencies in future prospect.
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Investment in particular approach affect employee selection
Transformation from outside to inside strategy (GE attempted to change HR practices in a decade) Start up and rapidly growing firms rely on market approach
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Core competencies should derive business strategy not vice versaFirms that rely on flexible approach are better at spotting and managing talent and skills
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Put pressure on firms to respond quickly (BM and UPS are established but not flexible)
Increased the level of employers investment
Employment policies should be well aligned with business strategies and competencies.
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