Human Resource Functions at Phillip Morris USA - Case Study Example

Human Resource Functions at Phillip Morris – USA Introduction The current pattern of globalisation of business organisation that has been prevalent in the past few decades has seen companies move outside their domestic operations into the large international market. This spectacular change being witnessed in international business requires that companies develop a dynamic workforce that is able to deal with the challenges and triumphs that come along with such processes. For this reason, business managers of particular organizations are usually confronted with a myriad of issues surrounding recruitment and management of people that have the ability to sustain the businesses’ competitive advantage (Johnson 106). In this regard, human resource functions in international business operations are more complex compared to those of domestic businesses. In managing staff, human resource functions o the international front requires a broader outlook (Blyton and Turnbull 46). It is important to realize that the general functions of the human resource department will always remain, for instance, recruiting, hiring and training and development of new staff as well as compensating and laying them down in case there are not contributing to the success of the organisation, however, on the international front, these issues have a broader spectrum. Phillip Morris Company Inc. The history of Phillip Morris, a global company that manufactures and sells Tobacco products can be traced back to 1854, when Philip Morris opened a single shop on the streets of London. During this time, he would sell tobacco and different brands of ready-made cigarettes to people in the streets of London in the United Kingdom. The company later went public in 1881, something that saw Leopold Morris join Joseph Grunebaum for a partnership that saw the birth of Philip Morris & Company and Grunebaum, Ltd. However, the partnership did not last long since it broke down later in 1885 and later, Philip Morris & Co, Ltd was established. Over the years, the company has had to cope with few challenges and employ strategies that have seen it stabilize and become one of the most successful companies on the international platform, importing and selling English – made cigarettes. Human Resource Management at Phillip Morris - USA The human resource has been one of the departments that have steered Phillip Morris Company to its current levels of success at the company. The department has been responsible for recruiting, hiring and training of human resources that understand the requirements of the job market and cigarette industry. When new staffs are hired, the department has been instrumental in helping them understand and effectively integrate into the company’s organizational culture. Part of this process has often involved training them on the company’s core values, their particular job description and ethical concerns while at work. This is the reason why the company boosts of some of the best and productive staff in the industry compared to other organizations. The human resource department at Phillip Morris Company aims at attracting, developing as well as retaining some of the most talented staff around the world. The integral aim of the human resource department in this company has been instrumental in shaping the culture of this dynamic company, effectively creating an environment that emphasizes and rewards performance, whilst at the same time, supporting learning and development (Klerck 245). Besides having excellent and productive human resources, the success of Phillip Morris Company is based on strong human resource policies that give workers a conducive environment for them to deliver the utmost best. Employees at these company range from world class engineers to expert sales, marketing and communications among other human resources, who have. The company has a staff motivation and development system that has seen it enjoy a low staff turn-over including their unionized plant specialists, many of whom have spent more of the working years at the company. The remuneration and compensation functions of the company have seen the company attract human resources whose diverse abilities have helped Phillip Morris USA remain one of the most competitive and successful companies to date. Philip Morris strives to fulfill the needs and interests of its investors and other stakeholders including their customers, employees and the communities in which they operate. The places emphasis on hiring the best people, producing the highest quality products, committing to continued improvement as well as execution of objectives with excellence, combined with a history of corporate philanthropy and giving back to the communities where they live and work to help them grow and prosper. Firm Infrastructure One of the things that the human resource department has done successfully at Phillip Morris is establishing a firm infrastructure that is highly responsive to changes in management marketing and other important functions for the success of the company (Philip para 1). The department has successfully established systems that deal with various aspects of the company management aspects to ensure that maximum efforts are directed towards their specific functions, some of the systems that stands out in the firms infrastructure are discussed below. Legal support Phillip Morris are aware that the product they manufacture and sell is highly addictive and results in serious terminal diseases to their consumers, at the same time, they understand that there is intense scrutiny of the activities they do and the way they do it. This commitment to societal responsibility is not aimed at sidetracking from the fact that Phillip Morris is a company that specializes in selling tobacco. For this reason, the company has laid down a legal system that ensures that there is sufficient support for its clients at any point in time. It is the duty of legal infrastructure at Phillip Morris to listen to society's concerns about the company’s products, seek common ground with their critics and implement real solutions that society assurance for their safety as they use the company’s products. This way, the community is able to embrace effectively the company’s role as a responsible and active member of the community. General management The general management at Phillip is credited for establishing a an environment that enhances employee productivity, it has established an open and transparent work environment with its stakeholders and the society as a whole. In addition, it conducts its responsibility with due integrity, respect, trust as well as a collaborative work spirit (Vyas 48). The general management at Phillip Morris is active in following the spirit and the letter of the laws, regulations as well as policies that govern the business effectively. All these are the values the management has created and established in the company to guide the daily operations of the company and interactions with other important systems in its external business environment. The infrastructural installations at the company have seemed to gel well with government regulations; this is because, the company has been faithful in complying with tax requirements that have been laid down by the government. Company Resources It is important to point out that the success of the company has not been without the presence of important resources, for instance, the company has been effective in establishing state of the art technological resources to improve its effectiveness in marketing and selling of its products. In addition, they have also used social media technology to engage their clients for feedback and answering some of their questions and concerns about its products and other important work practices. The company prides itself in effective systems that use the knowledge and skills of their human resources to stay competitive. It has excellent distributor outlets that understand market dynamics and operations in increasing its market share on the global market, something that has seen it achieve its present success levels. The human resource department at Phillip Morris Company USA provides a perfect example of how human resources need to be treated in an organisation. It is important for business managers to understand that higher wages of workers does not guarantee effectiveness and productivity, it is the way human capital is appreciated and treated in any business and work environment. Works Cited Blyton, Paul and Turnbull, Peter. The Dynamics of Employee Relations, Palgrave: Macmillan Press. 2004. Print. Johnson, Phil. HRM in changing organizational contexts. London: Routledge Publishing. 2009. Print. Klerck, Gilton. Industrial relations and human resource management. London: Routledge Publishing. 2009. Print. Philip Morris USA. Supply Chain. 2007. Web 3 July 2014. < http://www.philipmorrisusa.com/en/cms/Responsibility/Supply_Chain/default.aspx?src=top_nav > Vyas Sumita. Employee Involvement –Key of Success in Change Management. Hyderabad: ICFAI University Press, 9.7. 2009, 46-51. Read More