Human Resources Management of E-Commerce Essay Example
Human Resources Management of E-Commerce Essay Example

Human Resources Management of E-Commerce Essay Example

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  • Pages: 6 (1464 words)
  • Published: April 20, 2017
  • Type: Case Study
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Introduction

The Internet's widespread use has caused substantial shifts in consumer behavior and lifestyle. Consequently, businesses must successfully adapt to these rapid changes to succeed in the market. Borders Bookstore serves as a prime example of a company that went bankrupt because it failed to acknowledge the digital revolution's impact and effectively handle its online presence.

It lagged behind from establishing a viable online book business, over expanded its brick and mortar stores while other book business such as amazon continued to read current trends in e-books and began scaling back. Borders also made a mistake by not investing enough in research and development to compete with other popular counterparts such as Amazon’s kindle and other electronic books and devices (Boshman, Merced). We can learn from Borders of the importance of forecasting future demand, based on current trend

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s in the market. The bookstore industry is changing drastically and trends show increasing Internet sales.

Bookstores like Bojangles’ Book and Music Company face challenges in the e-commerce market while also striving to maintain their traditional physical stores. According to a 2005 study conducted by the Book Industry Study Group, industry trends indicate a decline in the trade book business due to decreased reading time and increased usage of other media, such as the Internet (Rodriguez). Therefore, it is a wise strategic decision by BBMC's CEO to transition the business onto the World Wide Web.

This paper aims to propose an HR Strategy for BBMC to transition their current brick-and-mortar business into an e-commerce venture. The subsequent section presents a SWOT Analysis highlighting the current strengths of BBMC. The company boasts an extensive collection of books and services, and has achieve

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successful expansion into different states by adhering to their motto while delivering exceptional customer service. Additionally, BBMC possesses the capability to manage large-scale operations, demonstrated by their thirty stores and highly efficient distribution system.

It has a great company culture, and has been able to provide local citizens with jobs (Fisher, Schoenfeldt, Shaw 89).
Weaknesses The company has reached a point where it cannot expand further and has not devised a strategic plan to address competition. Profits have been declining (Fisher, Schoenfeldt, Shaw 89).
Opportunities The company offers a distinctive combination of selling both books and music, which sets it apart from most bookstores that focus only on books. Utilizing the Internet will enable BBMC to target a larger audience and market.

There is a potential opportunity to diversify the product offerings beyond books and music by introducing a new range of accessories and gift items. However, this move could be met with challenges as there are already established market leaders like Amazon, who have a large portion of the market share. The decision to expand to the online platform may cause concerns among employees working in physical stores, as they may fear losing their jobs. Additionally, the company might encounter resistance and need to invest more capital during a period of declining profits in order to facilitate the expansion (Fisher, Schoenfeldt, Shaw 89).

Strategic Human Resources Plan The Strategic Human Resources Plan should employ the "Strategic Best Fit" approach, which entails aligning individual HR practices with the organization's overarching business strategy (Fisher, Schoenfeldt, Shaw 49). Given BBMC's presence in the bookstore industry, characterized by a motto such as "You want it, we got it – or we can get

it fast," and its commitment to exceptional customer service, it is evident that placing customers at the forefront is a priority. Consequently, management must possess a clear vision for the company's short and long-term future, particularly post-expansion into the World Wide Web.

By deciding to expand its business to the World Wide Web, The BBMC Company must be prepared for numerous challenges. When developing a Strategic Human Resources Plan, it should consider incorporating a combination of horizontal, vertical, and external fit. The horizontal fit concentrates on implementing HR practices that are complementary to one another, while the vertical fit ensures consistency with the firm's overall strategy. On the other hand, the external fit ensures that the strategy aligns with external factors such as customer buying patterns and increased diversity (Fisher, Schoenfeldt, Shaw 49).

According to Fisher, Schoenfeldt, and Shaw (55), the proposed SHRM plan consists of two primary components: revamping the individuals and restructuring the organization. A key element of transforming the individuals involves recruitment. To uphold BBMC's objective of offering books as per demand, it is essential for the company to have highly skilled staff members who can adjust themselves to the rapid advancements and fluctuations in the industry. Management should prioritize hiring individuals who share BBMC's values and growth strategy while also possessing exceptional customer service abilities.

Having the ability to recruit talent that can adapt to changing customer needs is a crucial aspect of our strategy, as stated by Hr Spectrum. It is essential for us to have an effective training and development program in place in order to assist employees with their learning and growth within the organization. These individuals should possess appropriate language

skills, comprehend the significance of service quality, and demonstrate a high level of participation and group orientation. The establishment of a company culture that fosters innovation and continuous learning is imperative for sustained success. By providing necessary resources and promoting creativity, we enable employees to engage in research and development activities aimed at creating competitive products and services that are sustainable over time. Furthermore, in an online business like ours, there is a broader range of skills required such as IT professionals, network designers, website designers, antivirus and theft protection specialists, supply chain managers, marketing specialists, as well as customer service representatives.

Instead of relying on word of mouth and local high school students, hiring would now be done through online forums and staffing agencies. A strategic approach to performance appraisal in store operations involves looking at the organization as a whole. It is crucial to ensure that the appraisal system is consistent and evaluates the behaviors necessary for achieving the company's strategic goals (Fisher, Schoenfeldt, Shaw 68).

Compensation: To effectively manage a larger staff network across a wider geographical area, it will be crucial to establish a reward structure that effectively conveys the company's overall strategic goals. For example, emphasizing team productivity, profit sharing, and skills-based pay can enhance employees' abilities and motivation, ultimately leading to improved efficiency (Fisher, Schoenfeldt, Shaw 68). Transforming the Structure: Currently, BBMC operates from its home site and utilizes its existing distribution center.

To meet the growing demand, the company must effectively manage its supply chain and provide customers with fast service. This transformation requires a stable communications network, access to IT hardware and software, reliable suppliers and distributors for the supply

chain, as well as transportation and storage facilities. As the company transitions from traditional personnel to strategic human resource management (SHRM), decisions need to be made regarding centralization and decentralization of activities.

One suggestion is to establish a centralized administrative service center that fulfills current obligations, manages support processes, grants workforce access to information, automates essential services through information systems, and consolidates activities for increased productivity (Fisher, Schoenfeldt, Shaw 60). With the expansion of the World Wide Web, integrating HR into strategic planning becomes crucial for BBMC. HR planning involves forecasting labor needs, ensuring labor availability, and implementing plans to guarantee availability when needed.

The BBMC is advised to utilize the Human Resource Planning Model, which consists of five steps. The initial step involves gathering external information regarding the industry, available technology for creating an online business structure, competitors' business practices, labor markets, and social trends. Additionally, it is important to collect internal information, such as current HR plans and strategies within the organization (Fisher, Schoenfeldt, Shaw 97). The next step involves predicting the demand for human resources in both the long term and short term.

This text discusses the process of forecasting and planning for workforce needs within an organization. It emphasizes the importance of considering market and demographic trends to forecast internal and external supply of jobs. The next step is to implement programs to adjust workforce size, skill mix, and career plans. Feedback on the planning process is crucial to assess the accuracy of forecasts and the effectiveness of implemented programs. Additionally, the text highlights the importance of strategic decision making in marketing, finance, and HR when expanding to the World Wide Web. A clear

vision and short and long term growth strategy are necessary for success. The text also stresses the significance of training, development, compensation, and structure in maintaining human capital within the company. Aligning HR strategy with organizational goals and applying a best-fit approach to policies and procedures are essential for staying on track."Centre for Advanced Human Resources Studies. CAHRS, n.d. Web. 15 Feb 2012.
Rodriguez, Veronica. 'BookStores.' Research Reports. SBDC Net, 2006. Web. 16 Feb 2012."

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