Analysis Of HR Strategy Of Seagate Technologies - Essay Example

Analysis Of HR Strategy Of Seagate Technologies Table of content Introduction The present case is about the company named Seagate Technologies which offer services in manufacturing, designing, and marketing of information technological devices with major emphasis on the advanced storage devices used for personal or industrial purposes. The company has performed at its best and has gained the leading position in terms of manufacturing and selling of storage devices for electronic information. The company has a highly networked business channels through which it has achieved its overseas existence. The prime business partners of the company are the major OEMs such as Dell, HP, EMC, IBM, and Sun Microsystems to whom it provides products and services. Apart from that the company also has its relationship with potential distributors who sell their products to other small OEMs which have their operations in manufacturing and integrating systems on small scale (Seagate-website A, n.d.). The primary focus of the company remains on their core activities of research and development with emphasis on the customer relationship and quality management. The company has its well developed long and short term plans which supports its decision making process. This indicates that the company has significant involvement of strategic approaches into its business functions and operations. The present case is the analysis of the human resource strategy and its evaluation considering the various internal and external factors of the organization. The evaluation of the case also analyzes the roles and responsibilities of organizational members towards the successful implementation of the human resource strategies of the organization. Apart from the organizational point of view the strategies have also been assessed on the basis of the factors which are external to the organization but have potential impact over the decision making process and the human resource strategy of the organization. Key components of HR strategy The strategic approach towards the human resource management has resulted into many positive outcomes for organizations but still it has remained a debatable issue in terms of its applicability and effectiveness. Organizations still find it difficult in understanding the co-factors which relates to the SHRM. Sometimes authors consider SHRM as a concept within itself for human resource management only while some researches have indicated that SHRM has its relation with the organizational effectiveness. Authors advocating to relate the SHRM concepts with the organizational effectiveness primarily does not mean to have any other form of relationship with other aspects of the business. Instead authors have related the overall performance of the organization including its financial and market returns with the concepts of SHRM. They described that these factors have secondary relationship with the SHRM concepts but the prime focus of SHRM remains to be the organizational effectiveness and its enhancement (Dyer & Shafer, 1998). Mainly the researchers of US origin have described the strong association of human resource management with that of the performance of the organization. This relationship is based on the grounds of two basic perceptions which the researchers have identified in their research works. The first perception of the authors has described the effective deployment of human resources as major part for gaining the competitive advantage by the organizations. The second perception describes the effective deployment of human resources has dependence over the unique combination of human resource practices which varies from one organization to other and has variability in terms of its applicability. It is very much sure that every organization has its own limitations and circumstances which influence their performances. So it is obvious that organizations need to develop their own condition based strategies. The perceptions regarding the deployment of human resources have also enabled the researchers to categorize the human resource practices into two groups. One of them describes the human resource practices in terms of organizations with high performance work system while the second category describes the human resource practices as management function which asks for high level of commitment towards the organization (Guest et al., 2003). Impact of external factors on the decision making process The external factors which influence the strategy of the organization can be classified into five different categories. Each of the identified factors influences the human resource strategy of the organization. It can be said that these factors influences the entire human resource system of the organization. External environment of the organization is one of the factors which influence the HR strategy of the organization. External environment of the organization consists of several co-factors which could include environmental problems and natural calamities as one of those co-factors. The social factors are also equally capable of influencing the strategy working behind the management of human resource of the organization. The social factors include the forces such as social values, culture, and trends which have their influences over the HR strategy of the organization. The social factors are more concerned with the values and culture maintained by the communities and the people of the locations. Political forces are also capable of impacting the human resource strategy of the organization. Political movements always results into several modifications in the business world which influences the entire organization including its human resources. Legal factors have also impacts on the human resource strategy of the organization. Laws intended to have better control over the trade affairs impacts the human resource strategy through its initiatives towards labors and workers. Rules and regulation which are imposed onto organizations facilitates them with framework to work within. Human resource strategy of organizations is also influenced by the economic conditions which includes a vast range of co-factors such as the capital, labor, market trend, etc. These co-factors significantly influence the human resource strategy of the organizations (Anonymous-B, n.d.). Impact of internal factors on the decision making process In the context of human resource management the strengths and weaknesses of the organization can have significant impact over the decision making process of the organization. The factors which are considered as internal to the organization are mostly qualitative in nature. The reason behind considering the HR function of the organization as an important part is the relationship which exists between the human resource and the decision making process of the organization. Any impact over the human resource of an organization influences the decision making process of the organization. Motivational level of the organizational members can be considered as one of the factor which has its influence over the decision making process of the organization. Employee morale is also a factor which is capable of influencing the decision making process of the organization. Other major functions of HR such as recruitment policies and programs of the organization and employee retention are also related to the decision making process of the organization. Since these factors are qualitative in nature so it becomes very difficult to measure the observation and assess them in quantifiable terms. The low level of motivational factors and employee morale could have their impact on the annual productivity of the organization (Anonymous-A, 2006). Higher rates of absenteeism, reduced turnovers, lowering levels of group performances are also parts of the internal factors which have their influence over the decision making process of the organization (Dyer & Reeves, 1995). In the context of human resource of Seagate Technology, the company possesses highly efficient and skilled workforces which have diverse backgrounds. Due to its global presence the company has workforce containing people from different nations. The company believes in having effective knowledge bases so that they can offer better customer service. As a result of which in 2000 it adopted the highly advanced technology named Authoria HR Suit 3.0 for the maintenance of its HR activities. Authoria was an external entity which provided service to Seagate Technologies in developing its knowledge base. The Authoria team consisted of experts and analyst of IT and HRIS including the full time project manager. The services supported Seagate Technologies in improving its roles towards the human resource. The system possessed features of having the subsystems for benefits of both US and UK (Roberts, July 2002). Role of organizational members in implementing HR strategies Organizational people have the central role in the implementation of HR strategies within the organization. The outcomes received from the strategy implemented indicate that not only the human resource department of the organization but the entire organization has its specific role in the implementation of HR strategies. An effective HR strategy reflects its success not only on the human resource of the organization but also on its overall performance including its productivity and returns on invested capital and assets (Dyer & Reeves, 1995). In case of Seagate technologies, as it operates on global level it is required to adopt location specific strategies for their human resources. Seagate Technologies emphasizes its human resources initiatives to attract maximum talent and skills. For better understanding of their HR policies the company adopts the Open Door Policy which helps them in solving ethical issue related to the human resource of the organization. Another significant feature of the company is its Human resource representatives. These representatives have their role in solving HR issues which remain unsolved by the supervisors and local managers. They support employees in better understanding of the company’s ethical policies. The company encourages its employees to clear their doubts until they are satisfied with the solutions. In this context the company also has provision of ethical check which also supports them in generating solutions for ethical and HR related issues (Seagate-website B, n.d.). Chief executives The Chief executives of the organization acts as the change facilitator within the organization and the strategic HR is also related to better understanding of change management in terms of its human resources. The present day CEOs have been observed to be over pressured due to high level of competition in the market. Such high market pressures have reduced the capacity of understanding the human resource of the organization. Expectations from the CEOs have been found to be increasing especially from its human resources because they are the actual performers of the organization. CEOs mainly expects from them in developing alternatives to the traditional approaches pertaining to the activities of human resources such as recruitment and selection. The competitive edge gained by the company by integrating its strategy with the business is also expected to be developed by the human resources of the organization. These strategic advantages help organization in overcoming the challenges posed by the business environment (DeBrule, n.d.). The crossing over of the business operations with the HR functions have also supported the CEOS in increasing their expectation form their HR teams. The HR team of the organization makes significant contribution to the decision making process of the organization. Major roles played by the HR teams in the decision making process of the organization includes developing business plan, mergers and acquisitions, performing reorganization, and managing the succession of the organization (Penezic, May 1993). Directors Directors hold the executive level position in organizations and are concerned only with the decision making and business planning of the organization. In organizations most of the decisions are taken up by the executive level of management which is mainly concerned with the business operations. Apart from the executive level decisions there are several other decisions which are needed to be taken by the director or board of directors of the organization. Decisions which are required to be taken up by the directors mainly include the budget, policies, strategies, and business plan of the organization. Directors of the organizations are also held responsible for recruitment of top level employees such as the CEOs, directors holding higher ranks, and Vice Presidents of the organization. In context of the budgetary issues of the organization directors take decisions in situations when the values are needed to be considered above the optimal level specified by the organization. Since directors are involved in the recruitment and appointment of top level employees they remain as important contributor to the strategic human resource management. The strategies developed for the human resource of the organizations also needed to consider the views and ideas of directors or board of directors, which includes more than one director. The concept of board of directors is mainly found in organizations which have made provisions for public offerings in forms of shares and stakes (Nikomborirak, 2001). Line managers In the context of present day organizations where human resource plays a strategic role has to work in coordination with other verticals of an organization. According to the current business trends line managers and the human resource managers have to work as strategic partners with understanding each others needs from business point of views. Since line managers are provided with comparatively less training activities they must understand the purpose of their work and the supports which they can receive from the human resource department. Line managers are the people who remain directly in contact with the human asset of the organization and interact with them to perform their activities. So it becomes an essential part for the line managers to have better understanding of the concepts of human resources. Line managers can also play significant role in enhancing the team spirit and the motivational level of their employees. The partnership between the line managers and the human resource of the organization is very essential and failing of any of the members in meting their expected roles as strategic partner could make the Hr system of the organization very ineffective. Similarly when there is any form of negligence observed from the human resource department of the organization it ha sits impact over the performance of the line managers (Anonymous-C, 2010). Consultants Business consultants are also liable to play crucial role in the formulation of HR strategy and influence the decision making process of the organization. The role of HR consultant is supposed to be central in this context. Human resource consultants support the process of establishing relationship between the HR strategies and the business operations of the organization. Consultants try to work with the line managers and the employees as a team for the identification of the activities which are essential for the organization. These activities demands for high level of performance in terms of their performance. If they fail to achieve the required level of excellence in performing the activities they create many difficulties for the organization. The major contributions made by the business consultants in HR activities and the decision making process of the organization includes, providing training to the managers, improving employee performances and the relationship among them, observing and analyzing the statistical figures of employee relations, performing recruitment activities for the positions of Information technology department of the organization, and handling the redundancy encountered within the human resource of the organization. Apart from the mentioned activities the consultants also have some additional responsibilities which they share with the HR business partners of the organization. These additional responsibilities include providing feedback, involvement in the interview process, and reviewing the business model and its implementation (Holbeche, 2009). Strategic integration, its flexibility, and quality The term of strategic integration is also referred as the strategic fit which ensures the match between the HR strategies and the business strategies of the organization. It is important to have a match between the HR strategies and the business strategies of the organization as the HR strategies plays supportive role in accomplishing the business plan and provides an identity to it. According to Guest (1989), the HR strategies are needed to be integrated with the strategic planning of the organization. Integration of HR strategies is essential since it can have its impact across the company policies and the hierarchical structure of the organization. The HR strategies of organizations are required to be flexible enough since they traverse the organization wide policies and also influence the overall structure of the organization. The HR strategies are involved in all of the organizational activities where the human resource is being utilized by the organization. Due to its involvement and applicability in all of the dimensions of an organization, HR strategies are observed to be intertwined with the other strategies of the organization which are developed at the departmental level. Due to this reason HR planning has been considered as an integral part of the strategy formulation of an organization. The quality of the HR strategies and their fit is known by the presence of factors which are needed to be covered by the HR strategies through its implementation. These factors can be identified as the strategic interaction between the HR strategies with that of external attributes. Contingency is another factor which signifies the quality of the HR strategy where it ensures the right approach of the organizational internal practices towards the specific external factors which could be the market trends. Better quality HR strategies also ensure that the strategies adopted by the organization can become ideal for others which can adopt hem for their enhancement. Continuous efforts on finding new alternatives for achieving best combination of practices also describe the quality level of HR strategies (Armstrong, 2000). The HR strategies of Seagate Technologies have to be developed considering the diverse workforce possessed by the organization. Due to this diverse nature of the workforce many difficulties are faced by the managers due to their different background and cultures. The difference in their cultures and backgrounds results in the variations in approaches adopted by its employees. The company has to be more concerned about the integration of its HR strategies with that of its business strategies. As a result of which the company puts more effort in maintaining a healthy work environment which can accommodate people from different cultures without causing difficulties to them. Human resource development at Seagate Technologies The human resource development of the company tries to achieve the excellence and ensures its compliance with the legislation and regulations applicable to the human resource development at global, national, and local level. To have better approaches towards the vast and diverse workforce the company has also obtained the membership of Electronic Industry Citizenship Coalition (EICC) Code of Conduct. The HR policies of the company strictly adhere to the policies defined by the EICC Code of Conduct by embedding them within the company’s policies. Regular auditing of HR policies by the company across its sites has also helped the organization to establish effective HR policies for the company. The HR practices adopted by the company have also been aligned with the principles of United Nation Global Compact. The UN Global Compact Principles assures to build a healthy and safe work environment for the human capital of organizations. It encourages uniformity in terms of treating employees at workplace with emphasizing their freedom, fair compensation, safety and security (SEAGATE-annual report, 2008). Recruitment and selection The strategic approach of Seagate technologies towards its human resource could direct it to have an extensive recruitment and selection process with a purpose of including people from minority groups. The company could also targeted female universities and educational institutions to encourage female employment across the globe. The existing employees of the company could be awarded with bonuses for recruiting people from minority groups and empower the overall social health (Aamodt, 2009). The company has focused to be a global employment brand through its approaches for equal employment opportunity and diverse work culture. The five brand values associated with the company’s HR practices has helped them in enhancing its recruitment and selection activities. These brand values include global, diverse, innovative, team-based and result-oriented approaches. The employees of the organization interact and work with their colleagues across the world to gain experience on different projects under the company’ brand. Corporate Social Responsibility has become another important part for the organization especially in its Asian operations. Different measures adopted by the organization to ensure the eligibility of the employees are concerned about the age of its employees which should not be below eighteen years; unnecessary questions on gender, religion, and community are also avoided by the organization to bring more uniformity in its hiring process (Seagate- financial report, 2008). Reward system The reward system is an important aspect of human resource management of an organization. The reward system helps in improving the motivational level of the workforce and makes them work for the organization to achieve its desired goals and objectives. It also helps employees in gaining recognition at the workplace which helps them in improving their career graph (Wilson, 2003). At Seagate Technologies employees are offered jobs which mainly emphasizes on its features such as compensation, reward system, learning opportunities, and an effective career path. The company believes in having a career partnership with its workforce and offers them with optimal work-life balance (Siegel, 2000). The reward system of the organization ensures the sustainability of its diverse culture, high team performance, and the organizational environment. The compensation paid by the organization has been designed to meet the competition at the local and international market. The base pay and the incentives paid by the organization help employees to increase their productivity and performance. To enhance the leadership capabilities of the organization it offers executive compensation to its leaders which basic objectives to attract global leaders, motivate executive to achieve the objectives stated by the organization. It also has objectives to align the interest of members and shareholders to optimize the returns for the shareholders. Adjusting the total cost for the compensation with the financial performance of the organization is also a part of the objectives for the offering executive compensation by the company (Seagate- financial report, 2008). Conclusion The human resource management of Seagate Technologies possesses significant involvement of strategic management. This could be understood through the initiatives taken up by the company in favor of its workforce. The company has also shown interest in improving the job market at many of its business locations through which it has contributed to the economy of the nation. Considering the strategic approaches taken by the company to develop an efficient and productive workforce across the globe it has adopted significant approaches to reduce the cultural barriers among its diverse workforce. In upcoming years the company will be requiring highly productive and skilled workforce to face the high level of competition in the global market. An efficient workforce is the only solution for an organization to survive in highly competitive market conditions. Seagate Technologies have faced an increased level of competition in recent years which has indicated the company to develop its workforce in most efficient way. In regards to that the company has initiated many programs and additional activities pertaining to the health of the society and its workforce. Apart from the safety and security of its workforce the company has also improved its training and development activities. Improvements in the training and developmental activities supports the workforce in enhancing their skills and productivity. These factors are very essential for the company in order to have the leading position in the global business environment. Reference Anonymous-A. 2006. Quantitative and Qualitative Factors in Decision Making. 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