Emerging Issues In Strategic Human Resource Management Commerce Essay Example
Emerging Issues In Strategic Human Resource Management Commerce Essay Example

Emerging Issues In Strategic Human Resource Management Commerce Essay Example

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  • Pages: 14 (3628 words)
  • Published: July 28, 2017
  • Type: Case Study
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This study aims to analyze the corporate culture of Apple Inc. and assess the strengths and weaknesses of its human resource strategy and practice.

The conceptual examination focused primarily on issues related to Human Resource Management perspective of Apple. However, the case study included a wide range of analysis areas such as Apple's operations, marketing, and financial aspects. This theoretical research offers a well-founded and academically supported critical analysis and provides coherent and justified recommendations for changes to HR strategy and practice in Apple Inc. Drawing on the aforementioned case study, this essay assesses the impact of employees on Apple's impressive success and explores the management and leadership styles employed by Apple Inc. Furthermore, this essay critically evaluates Apple's human resources policy and identifies any detrimental HRM issues.

Appropriate theoretical accounts and mod

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els have also been identified that can be used to better manage human resources. In addition, good HRM practices have been recognized, which can be effectively implemented for sustainable future success.

Critical assessment of the role employees have played in Apple Inc

In organizational terms, employees have a significant impact on the success or failure of an administration. The Michigan model (Cited in Price 2007, pp 40) explains that employees are resources in the same way as any other business resource. Therefore, working with employees is as important as working with other equipment and natural materials of the administration. Employees play a crucial role in Apple Inc.

The success of Apple can be largely credited to the significant impact of its products. Steve Jobs, the company's founder and CEO, played a vital role in its growth. Despite initially leaving, he later came back after 12 years an

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turned Apple into the world's most innovative and profitable company.

Steve Jobs, an iconic figure highly desired in the company, is universally recognized as the greatest salesman. This recognition is supported by various case studies. Apple and Steve Jobs have become inseparable, highlighting the significant influence individuals have on an organization. The transformation of Apple from a crisis-ridden company to one of the most renowned globally exemplifies the impact people have on a company. Undoubtedly, this example involving Apple and Steve Jobs will be used for a long time to demonstrate this effect. It is important to note that this achievement is not solely attributed to Steve Jobs but also reflects the collective effort of the people who work for Apple.

Based on the case study, Apple's employees are highly impressive. They demonstrate respect, intelligence, and proficiency in task execution. The company benefits from their strong passion and belief in its mission, giving it a competitive edge. Apple leverages its employees across different functions such as technology, marketing, operations, and sales. These individuals take pride in being part of the industry's most innovative company and consistently strive for its extraordinary success.

Based on the case study, the organization's success depends on key individuals in technical, marketing, and staff roles. Attracting and retaining these individuals is essential for the organization. Redman, A., & Wilkinson (2009) assert that professional expertise contributes to personal and organizational achievements. In prosperous economies, skilled individuals have the leverage to negotiate higher salaries.

The primary objective of every company is to optimize its human resources, or human capital. According to Price (2007), human capital plays a crucial role in establishing an organization's competitiveness. Apple and other

companies acknowledge the significance of their employees in propelling strategic growth, and they concentrate on improving skills and harnessing capabilities. By giving priority to and making use of their workforce's aptitudes, Apple has achieved a competitive advantage and emerged as the most innovative company in the industry. This triumph can be credited to contributions from both management and other Apple employees.

Analyzing factors that impact human resources direction at Apple

The direction of human resources is influenced by various factors, both within the organization and in different situations. The success of Apple heavily depends on market factors that shape its operations. RDI (2010) emphasizes the importance of identifying future trends and adapting to them for sustained profitability and effectiveness. The HRM function plays a crucial role in supporting these strategic perspectives.

When developing a strategic position, it is important to understand the relationship between an administration's environment and its people (HRM) scheme. HR professionals must have an understanding of the strategic HRM process in terms of people aspects. Many administrations face challenges due to people issues, which need to be handled carefully and effectively. Apple appears to have implemented a combination of both best fit and best practice approaches to manage its human resources.

The objective of Apple's Human Resources is to optimize the return on investment from the organization's human capital and minimize financial risk. Human resource managers at Apple carry out these responsibilities in an effective, legal, fair, and consistent manner. Human resource management at Apple encompasses the following key functions: Recruitment and selection, job analysis, training, job rotation, leadership development, performance evaluation, incentive compensation, benefits and profit sharing, employee development, employee safety and health, employee relations,

and more. However, certain crucial factors concerning the management of human resources at Apple are discussed below:
Recruitment: Apple seeks individuals with computer-based knowledge. A highly selective recruitment process has been implemented to hire only the best candidates who will align well with the organizational culture, regardless of their prior experiences. Organizational fit is prioritized over job-fit at Apple.

The case survey shows that the selection process is a quick procedure, where verbal interviews are used to assess prospective employees' suitability for the organization.
Apple emphasizes equal opportunity and diversity. Apple is committed to being an equal opportunity employer and actively encourages diversity within the company. The workforce at Apple consists of individuals from various backgrounds. Having a diverse workforce is considered a positive aspect of Apple's corporate culture.
Apple offers competitive compensation and benefits. Apple provides its employees with a range of benefits, and its compensation and benefits packages are highly competitive.

The benefit package varied depending on location and employment position. It included insurance coverage, flexible disbursement histories, an employee stock purchase programme, and a 401(K) economy and investing program. Additional bonuses included merchandise price reductions, an on-site fitness center, and the opportunity to work on large projects with experienced industry participants. Salary and compensation reviews included year-end bonuses, holiday time off, and other fringe benefits and reimbursements. Apple also offered the FlexBenefits program, allowing employees to customize their benefits to best fit their lives.


Recognition and appreciation

In 1995, Apple established the Apple fellows program to honor its top employees who had made exceptional contributions to computer science.

Each Apple employee serves as a knowledgeable leader in their own field, guiding the company with expertise. The case study emphasizes

that Apple is well-known for recognizing and respecting its workforce, making it an excellent workplace for those who are highly innovative.

Career opportunity

Apple's hiring approach focuses on candidates' alignment with the organizational culture rather than their qualifications for a specific role.

Despite this, Apple employees have the opportunity to improve their skills and progress within the company through internships and on-the-job training. Apple's internship program offers valuable learning experiences in various fields, attracting talented individuals who see it as an ideal educational environment. Many interns are confident that working at Apple will open up job opportunities elsewhere, which is supported by a case study showing that most former Apple interns quickly find employment after gaining experience with the company. The implementation of on-the-job training has been successful at Apple.

In this casual work, employees in society have the opportunity to collaborate with experienced and skilled individuals without any end to challenges. Job security at Apple does not involve a mutual obligation between the company and its employees. Instead, employees are encouraged to seize better opportunities if they arise. Apple is unapologetic about layoffs and emphasizes employability security rather than employment security. This means that if an employee is laid off, their experience with Apple will provide them with enough skills to be attractive to another employer. Apple values the psychological contract over the physical contract.

Monetary value, ( 2007 ) defines the psychological contract as an informal understanding between the employer and employee, which differs from the formal employment contract. The psychological contract is not tangible, but rather a set of expectations held by both parties regarding what they want to contribute and receive from their working relationship.

In the

context of Apple Inc, a comparison and contrast can be made between the concepts of management and leadership.

The effectiveness of any organization relies on its management system and the cultural environment it operates within. According to the Apple Inc. case study, the company is recognized as the top performer in terms of people management within the industry.

According to Price (2007), Steve Jobs is a charismatic CEO whose leadership style is influenced by Douglas McGregor's Theory Y attitudes. Jobs allows his employees to work independently, take initiative, and be self-motivated. However, the case study suggests that Jobs is the one who makes final decisions and only delegates tasks to those he trusts, which is referred to as the benevolent authoritative management style by Likert (2009). One challenge in management is the span of control and communication gap. One employee in the case study mentioned that they received different answers from six different supervisors who did not communicate with each other. Apple's management coordination follows the centralized approach commonly seen in Japanese organizations (Torrington et al., 2008). According to Torrington et al. (2008), Japanese companies often have strong central offices that retain major decision-making power. Steve Jobs is a visionary leader who always recognizes the need for change and envisions the future state.

Anon (2002) labeled him as a transformational leader who, on his own, successfully transformed the organization and rescued it from crisis when he returned in 1997, twelve years after his departure. Jobs motivated Apple employees to think differently, resulting in unconventional products. However, while Jobs' leadership led to Apple's success, it does not guarantee that the same approach would be effective for future leaders. The

case study on Jobs' leadership at Apple aligns with the Great Man theory of leadership, in which he exemplifies the use of CEO-centric power.

According to Anon (2008), Jobs is a commanding leader who is also recognized for his pig recognition and his habits of making phone calls and parking his Mercedes in handicapped musca volitanss. However, in a world of constant change, this type of leadership is not effective in the long run. Jobs has been successful in managing both projects and people at Apple, demonstrating his competence as a transformational visionary leader. However, he has also been criticized for being a bossy dictator who oppresses his employees and fosters a culture of strict secrecy at the company. To ensure Apple's future success, its next leader should adopt a more inclusive leadership style instead of Jobs' traditional commanding approach. It is worth noting that Jobs has deeply influenced Apple's organizational culture, shaping it to reflect his own values and beliefs. In a way, Apple has become an "Institutional mirror" of Jobs himself.

However, the company believes that it would continue operating in the same way even without Jobs. According to a case study, Jobs had set up an executive team, trained and shaped in his methods, to lead the company in his absence. This strategy appears to be working well, as during Jobs' recent six-month absence, the company ran smoothly and even Apple's stock price increased by 66%. Steve Jobs has implemented a strong management succession plan, and it is evident that after Jobs' sudden departure, Cook will assume the role of CEO.

According to Torrington et al. (2008), this is referred to as a single sequence

analysis where the objective is to informally progress by identifying potential replacements for senior personnel in case of sudden departure. Nonetheless, there is debate surrounding whether Apple is an innovative organization or if Steve Jobs is a visionary leader, with some critics suggesting they only focus on the present. This viewpoint aligns with that of Boivin, C.; A.; Roch, J.

(2006) claimed that Apple's leaders are stonewalling and do not have time in their calendars to think beyond the next month's products and plans. Many Apple employees are so focused on the present and fighting today's battles that they are unaware of the past and future. They are not stonewalling on strategy as it deals with tomorrow, but there is no time allocated for it.

Leading and developing effective teams

While Apple has a work culture driven by strong work ethics, it also has another aspect.

On one side, there is a group of unconventional workaholics who work significantly longer hours. On the other side, the work environment at Apple is relaxed and carefree, which has undoubtedly contributed to the formation and development of an effective team spirit. Employees adhere to a casual dress code while working. According to the case study, Apple's employees consider their colleagues to be funny, brilliant, and relaxed, and they appreciate the modern, spacious, and attractive offices furnished with comfortable sofas. The case study also suggests that employees are happy with their workplace experience at Apple, as well as the company's diversity and shared passion. Apple has successfully fostered a sense of pride among its employees.

At Apple, the work culture is driven by a passion for products and a focus on even the smallest

details. Each department is filled with intelligent, creative, and dedicated individuals. Rather than feeling like a family, the work culture resembles a tight-knit club. Apple forms its product development teams with individuals from various backgrounds and experiences. By recruiting innovative people from diverse fields, Apple is able to blend different perspectives and skillsets to create the top-tier products in the market.

Teams in Apple thrive in a challenging and innovative atmosphere where they explore fresh approaches for accomplishing shared tasks. Apple offers them ample opportunities for learning and professional development. The executive teams at Apple demonstrate remarkable cohesiveness. However, rather than relying on teamwork, Apple's corporate culture fosters individual performance. Employees at Apple are expected to work independently, considering themselves as their own greatest resource. Occasional guidance is provided.

As part of its company policy, Apple did not allow employees to take notes during meetings. The company valued hardworking employees and rewarded those who showcased their skills and capabilities. It appeared that Apple fostered an individualistic culture rather than a team-oriented one, selecting independent thinkers who preferred working alone. To motivate and retain employees, Apple also established a club-like community environment.


Analysis of HRM jobs in Apple Inc and appropriate theoretical accounts to develop solutions

The main problem faced by Apple is the lack of systematic human resource management tools. Without well-structured systems and processes, the corporate culture at Apple became dysfunctional, leading to the departure of many talented individuals who did not resonate with the company's culture. It is crucial for Apple to implement a systematic HRM strategy that aligns with the overall organizational strategy in order to ensure long-term success.

Lack of proper tools to acknowledge and appreciate employees

The case study indicates that employees had to take care of their own career development as there was no proper talent tracking system in place. The management showed little concern for the interests of other employees and failed to recognize their hard work.

Throughout the company's history, employees' innovative ideas for products have never been embraced. In the early stages, employees were recognized and valued for their contributions, such as having their signatures engraved on the interior of computer cases for those who worked on Mac. Unfortunately, this practice was not continued over time.

Promotion unfairness According to the case study, unfairness in promotions and overall employee treatment existed at Apple. Apple worked its employees 'to the bone' but did not reward their hard work and dedication. Only top executives were rewarded. In Apple, assessment is not based on contribution to the team and support of others, but rather based on individual outstanding performance.

Reward and bonuses Reward is not based on team performance and contribution, but rather individual performance and individual effort.

The upper management at Apple appears satisfied with their salary. However, lower-level employees have not received bonuses or salary increases. Even though lower-level employees work 60 hours a week, they do not have stock options. Pfeffer's (1998) models propose that higher salary rates can still result in profit if the appropriate salary structure is implemented, such as profit sharing, stock options, and pay for performance (cited in Price, 2007).

When employees feel adequately compensated, they will demonstrate a greater level of commitment. Apple should focus on addressing this issue. It is crucial for the HRM department to

align an organization's payment agreements and overall compensation systems with the business objectives (Torrington et al., 2008, pp. 638).


The issue of long work hours

Apple has faced criticism for its employees working long hours, with many struggling to balance their work and personal lives. Apple has been accused of not respecting the importance of personal time, and has even been sued by an employee for violating labor laws in California.

The commitment model:

Communication is key in outlining the organization's strategy and the purpose of any changes. It is crucial for staff to understand the reasoning behind decisions before they can effectively collaborate in their implementation. Apple's top management should reconsider their strict secrecy and rigid expectations.

Ownership is promoted by involving individuals in decision-making and holding them accountable for carrying out specific actions. Both Steve Jobs and his successor should refrain from making all decisions without employee involvement and commitment. Employee engagement focuses on their involvement in the decision-making process of the organization. It primarily aims to prevent or alleviate dissatisfaction (Torrington et al., 2008, pp.).

Staff involvement within an organization can occur through ownership or authorization. The ABE (2001) HRM survey manual recommends that empowerment entails involving people in the organization's operations, so they can take personal responsibility for their actions (pp. 115). This is more likely to happen in an atmosphere of enthusiasm.

This can be achieved by acknowledging and promoting accountability and recognizing hard work. Performance: Performance evaluation and compensation framework should prioritize dedication. Apple needs to establish an effective performance assessment system in place and take appropriate action to identify high-performing individuals and reward them accordingly.
Organizational

cultural change:
Additionally, there is a need for a shift in organizational culture, transforming Apple from a company with excessive control culture to one with a collaborative culture. Adaptation and collaboration are essential for the company's future survival.

A civilization that is consistently pursuing operational excellence is essential for organizational growth. In control civilizations, leadership is synonymous with authority, and decision-making is closely linked to one's role and title within the organization. These types of administrations typically have a more hierarchical structure (RDI, 2010).

Apple is a member of this class and places a significant emphasis on collaboration both internally and externally with its customers and partners. The company values teamwork and seeks to closely connect with the client and the overall market through collaboration. According to RDI (2010), leadership in a collaborative culture is based on roles rather than individual titles, and authority is situation-dependent, varying based on specific client engagements and projects. The typical organizational structure of a collaborative culture consists of cross-functional teams that are aligned with market opportunities.

According to the case study, Apple has faced criticism for having an organizational culture characterized by Steve Jobs' excessive control, top management's strict secrecy, and a lack of delegation. In order to build long-term customer trust, it is necessary for there to be transparency and collaboration at all levels of the organization.


Decision:

It is clear that Apple has many strengths, including strong leadership, a talented and dedicated workforce. However, it is also evident that the company's overall corporate culture is outdated and lacks morale and alignment with the organizational strategy.

So, it is important for organizations to make changes in their culture in order to achieve sustainable long-term success.

The future leaders need to address these issues and be open to change and implement changes to the administration. One critical factor for success is whether Apple can find a suitable replacement (likely Cook) for Steve Jobs, who has always been ahead of competitors in creating future vision. Apple needs to make some changes in its HRM strategy in order to transition from being a company reliant on one person to a systematic practice. Currently, Apple has 35,000 employees worldwide, but this number is expected to increase in the future. Without a proper HR strategy and defined policies, it will be difficult to manage a diverse and large workforce. Future leaders and managers must establish an HR policy that aligns with the organizational strategy and addresses all emerging HR issues.


Mention

  1. Anon (2002) "Transformational leading ; Organizational alteration ; Management manners''. Review of Transformational leading in the context of organisational alteration by Eisenbach, R. et Al (1999). Strategic Direction, 18 (6), pp.5-7. Available at: hypertext transfer protocol: //www.emeraldinsight.com/journals.htm? issn=0258-0543 & volume=18 & issue=6 & articleid=869238 & show=html
  2. Anon (2008) "Leading personalities''. Review of The problem with Steve by Elkind, P. (2008). Strategic Direction, 24 (11), pp. 17-19. Available at: hypertext transfer protocol: //www.emeraldinsight.com/journals.htm? issn=0258-0543 ; volume=24 ; issue=11 ; articleid=1747898 ; show=html
  3. Bovin, C.; A;

Roch, J.

(2006) "Dominant organisational logic as an hindrance to coaction'' Management Decision, 44 (3), pp. 409-422. Available at: hypertext transfer protocol: //www.emeraldinsight.com/journals.htm? issn=0258-0543 & volume=18 & issue=6 & articleid=869238 & show=html

  • Likert, R. (2009) Management Operations. Harlow, England: Pearson Education
  • Torrington, D.
  • Et Al (2008) is the author of the 7th edition of Human Resource Management, published by Pearson Education in Harlow, England.

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