HRMorganizational analysis.docx
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HRMorganizational analysis.docx
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HRMorganizationalanalysis
TheOrganizationalStrategy—ACaseStudyofCoca-Cola
Strategichumanresourcemanagement(SHRM)isoneofthemostimportantconceptsinthefieldofbusinessandmanagementtoday.SHRMcanbedefinedasthelinkingofhumanresources(HR)withorganisations’strategicgoalsandobjectivessoastoimprovebusinessperformanceanddeveloporganisationalculturethatnurtureinnovation,flexibilityandcompetitiveadvantage(BaggaandSrivastava,2014).TheconceptofSHRMistoimproveexcellentperformanceenvironmentsandhumancapitalmanagement.Butunderdifferentbackgroundoforganisations,therearevariedorganisationalstrategiesfordevelopmentofbusiness.Theplanedorganisationalstrategyandfutureprojectionsaffectedonmakingproperstrategiesofhumanresourcemanagement(HRM).Conversely,areasonableHRMwouldpromotethedevelopmentoforganisationtoachievetheultimategoaloforganisationalstrategy.ThepurposeofessayistolearnhowtodesignafantasticHRMsystemthroughaseriesofanalysisabouttherelevantregulatoryandenvironmentalfactorsimpactingthisorganisationandHRMpractice.
Thestructureofessayconcludedthreeparts.
(1)Inthepartofintroduction,theessaywouldillustratetheliteraturereviewabouttheHRMsystemandcompanystrategy.Atthebeginning,takinganexampleofCoca-Cola,thewholepassagewouldintroducetherelevantcompanyprofile,suchasthebusinesshistory,scaleofcompany,corebusinessandsoon.Astheforewordofessay,bothliteraturereviewandorganisationalintroductionarecrucialtoanalysefurtherontherelationbetweencompanystrategyandSHRM.
(2)Inthemainbody,thedetailsofcompanystrategyfordevelopmentwouldbeidentifiedpublishedmission,businessmodelandfutureprojections,.Inaddition,thepassagewouldillustratehowtherelevantregulatoryfactorsandenvironmentalfactorsimpacttheorganisationandHRMpractice.(3)Accordingtotherequirementsabovementioned,theauthorwouldputforwardstheparticularstrategyandHRMplantomeettheaimofcompanydevelopment.Intermsofcorerolecompetencies,therequirementsforroleincompanyfuturewouldbespecifiedbySWOTandPESTELsoastogainthearticulatedstrategyandalignedpeopleapproachatbest.
1.ReviewofSHRM
Sparrow(2003,pp:
83-88)oncementionedthatinanorganisation,SHRMmeansacceptingandinvolvingtheHRfunctionasastrategicpartnerintheformulationandimplementationofthecompany’sstrategiesthroughHRactivitiessuchasrecruiting,selecting,trainingandrewardingpersonnel.HRMstrategiestakethelongviewofthefirmandtheprocessofspecificproblemsolving,whiletheplanningaspectislimitedtodecisionsaboutselectionandstaffing(Ritson,2000).Lawler(1988,pp:
24-25.)indictedthattraditionalHRpracticessuchasselection,trainingandcompensationcannolongerbeseparatedintoasdifferentandisolatedactivities;Hambrick,D.,&Snow,C.(1989)mentionedthatitisincreasinglyobviousthataneffectivehumanresource(HR)systemmustbeanintegratedwithotheraspectsofthefirm.Therefore,thehumanresourceprojectshouldadheretotherelevantcompanystrategy.
2.TheIntroductionofCoca-ColaProfile
Coca-Cola,theproductthathasgiventheworlditsbest-knowntastewasborninAtlanta,Georgia,onMay8,1886.Coca-ColaCompanyistheworld’sleadingmanufacturer,marketeranddistributorofnon-alcoholicbeverageconcentratesandsyrups,usedtoproducenearly3000beveragebrands.Thenameof'CocaCola'wasnamedbyFrankRobinson,abookkeeper.ThenameofCoca-Colawhichhementionedhaskeptontoday.Tooursurprise,thefirstCocaColasyrupmixingwithcarbonatedsodasoldatJacob’sPharmacy.Today,productsoftheCocaColaCompanysoldattherateofoveronebilliondrinksperday.Intheyearof1893,Coca-ColawasregisteredintheUnitedStates.Itsellsbeverageconcentratesandsyrupstobottlingandcanningoperators,distributors,fountainretailersandfountainwholesalers.CocaColaCompanywith92400staffs,hassoldtheirbeveragessuchasFanta,Pepsi,Spriteandsoontotheover200countries.Eveninremotestareaoftheglobal,youcanstillfindvendingmachineofCoca-Cola.TheCoca-Colabottlingsystemrootedinthelocalcultureandthedistinctivenessoflocalmarkets.Becausetheconceptofcompanycouldservescustomerswellbasedonthelocalmarket’sneed.Aswastrueacenturyago,strongrelationshipsbetweenCoca-Colabottlers,customersandcommunitiesaretheadvantagebywhichthewholebusinessdevelops.ConsumerscanenjoyCoca-Colatoprovidevariedkindsofdrinks.In2001,intherankingoftheworld-famous'internationalbrand',theconsultantsevaluatedtheworld'smostvaluablebrandrankings,'Coca-Cola'to68.95billionU.S.dollarstops. TheconsumersofCocaColaspreadaroundthewordincludingAsia,Europe,AmericaandAfrica.Theconsumersgroupcouldbecategorizedlike:
theyouth,female,maleandeventhedieters.ThereasonthatCoca-Colarewardsthefavouritesandrecognitionalongthewayisthediversityofdrinkmeetingwithdifferentpeople’staste,forexample,theenergydrinks,juicedrinks,softdrinks,sportsdrinksandothers.Accordingtotheappendix,thecompanyreportedrevenuesof(U.S.Dollars)USD35,502,000thousandsduringthefiscalyearendedSeptember2011,anincreaseof1.09%over2010.TheoperatingprofitofthecompanywasUSD9,228,000thousandsduringthefiscalyear2011,anincreaseof3.15%over2009.ThenetprofitofthecompanywasUSD7,453,000thousandsduringthefiscalyear2011,anincreaseof28.35%over2008.SellingGeneralandAdministrativeexpensesincreased$11671000thousandin2009to$13486000thousandin2011,increaseby15.55%,whichmeansthatthecoreroleofcompanyputtingonthepersonnelofSellingGeneralandAdministrative.Withthedeepeningofglobalization,Coca-Colahassufferedsomedeclinesinsellingandobstacleofdevelopment.Therefore,aperfectcompanystrategyandrelevantHRMmadeplayasignificantroleinbusinesscompetition.
3.Thebusinessmission/visions&StrategyAnalysisofCoca-ColaCompany
Themissioncouldbedescribedto
(1)refreshtheworldinbody,mindandspirit.
(2)Toinspiremomentsofoptimismthroughbrandsandactions.(3)Tocreatevalueandmakeadifferenceeverywhereweengage.ThedescriptionaboutCoca-Cola’smissionisover-abstractedsothatavisionguidingpracticalbehaviourisparticularlynecessary.Coco-Cola’svisionconcludedfromfiveperspectives:
(1)People:
encouragingstaffstoplaytheirtalentsatbest.
(2)Portfolio:
Stimulatingthebeveragebrandstosatisfypeople’santicipationandneed.(3)Partners:
Nurturingawinningnetworkofcustomersandsuppliers,togetherwecreatemutual,enduringvalue.(4)Planet:
Beingaresponsiblecitizenthatmakesadifferencebyhelpingbuildandsupportsustainablecommunities.(5)Profit:
Maximizinglong-termreturntoshareownerswhilebeingmindfulofouroverallresponsibilities.Fromanalysisabove,itisnotdifficulttofindthatCoco-Colaputthehumanresourcemanagementonthecrucialplace.Ofcourse,theprofitisapermanentthemeandobjectives.Therefore,theessaywouldfocusonhowtoimprovetheoverturnandprofitofCoco-Colaandhowtomaketheappropriatearrangementforthestaffs.
3.AscholarlyworkthathasreceivedwidespreadattentionandrecognitionintheStrategicManagementarea--andbeyond--isPorter‘s(1980,1985)typologyofgenericcompetitivestrategies:
Costleadership,differentiation,andfocus.Itcanhelptofindoutthecoredifferentiationandfocusofacompany.
Thesourceofcompetitiveadvantage
CostLeadership:
1.Lessadvertisingcost,morecharitypractice
2.Technologyandautomationadvancesothercompetitorsinthemarket.
Differentiation:
1.Coco-Cola’sdiversityneedforproductisratherstrong.
2.Makinguseofthefastfoodandotherchanneltoopenthesale.
3.theimageofrespectingconsumersandemployeesintheglobalizationandlocalization
CostFocus:
Usingthetechnologyandnewskillstosavecost.
DifferentiationFocus:
TheCoco-Colawithnumbersofstaffsshouldfocusonthemanagementofprofessionalsfordevelopingandsalestaffsformarketing.
Accordingtothefigure,wecanseethatCoco-Colahasadvantageintheaspectsofcostleadershipanddifferentiation.Itisbestwaytomakefulluseofadvantages,suchasadvancedproductiontechnologyandthehigherlevelofautomation.Inaimofprofessionalimprovement,therequirementforthestaffsincompanyhasalsobeenimprovedtoacertainextent.Moreover,thedifferentiationindictedthatthesearchanddevelopmentforthenewproductandexploringnewsalechannelhavemoreadvantagethanothercompetitors.Themanagementforsalespersonalsisakeytomaintaintheadvantage.FromPorter‘sgenericcompetitivestrategies,itisobviousthatthecompanystrategyistoplayfullroleontheadvantageofCoco-Cola.Thecoreroleofcompanyshouldputonthemanagementofhumanresource,especiallydevelopingandsalepersonnel.Becauseonlyiftherationalallocationofstaffs,Coco-Colacouldenhancetheeffectivenessandeconomicbenefits。
4.SWOTAnalysisaboutCoca-ColaCompanyasfollow(accordingtoExhibit1、2)
Thecompanystrategiescouldbeprojectedfromseveralaspects.TherearefollowingstrategiesbasedontheSWOTanalysis:
FortheStrength-OpportunityStrategies,Coca-Colashouldfocusoncreatingnewproductsandimproveservicestopromotethecompany'slong-termdevelopment.FortheStrength-ThreatstrategiesCoca-Colaneedstosearchanddevelopanewandhealthyproducttomeetneedofmorepeople.Withthedevelopmentofsociety,moreandmorepeopletop
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