The Assessment of Zorlu Holding for Its Associated HRM Strategy - Assignment Example

COMPANY PROFILE This paper tries to consider the assessment of Zorlu Holding for its associated HRM strategy. The following are important informationlinked up with Zorlu (Zorlu Holding, 2013). The company is one of the top calibrated firms in the UK since 2006 when it began to consider four principal business lines including home textiles and polyester yarns; electronic goods, information technologies, and durable consumer goods; real estate; and energy production. However, its humble inception dated back in 1950s in southwestern Turkey where it built its strong foundation for making it today in the international markets. It was in 1980s when Zorlu began to become more aggressive in creating its share and competitive advantage in the market. A good place to start this was in the business of home textiles, as the firm successfully established its first renowned brand in the home textiles market in Turkey. Earlier in 1990s, the firm managed to engage itself in the business of electronics after acquiring Vestel Electronics. Zorlu aimed further to expand by taking the plunge into the energy sector in 1996. After ten years, the firm started to initiate another business in the real estate. Today, in Vestel Electronics alone, Zorlu is employing more than 15,000 people, and having 1,050 sales points and 400 after-sales service centres. Having almost 50 companies, Zorlu has now become home to around 30,000 employees who manage to work with the company for the future of providing highly improved quality of life for all. RECRUITING Prior to the actual recognition of potential applicants who would make it through the entire recruitment process, the Zorlu Group is adhering to its policy to select the human resource having a heart to live in its core values. On its website for its Human Resource Policy, the firm states, “We expect every employee to commit to our group’s shared values” (Zorlu Holding, 2013). This shows that Zorlu would want to become effective in employing its corporate culture and strategy by making sure that the human resource has the adherence to its core values. However, there are three essential activities involved in the recruitment process at Zorlu and these include tests, interview and offer, as it aims to become employee’s choice (Zorlu, 2009). At Zorlu, applicants should undergo the general qualification tests like foreign language exam and Hogan personality test (Zorlu, 2009). After passing the tests, the successful applicants would proceed to series of at least 2 or 3 interviews with the HR or the executives in relevant departments who would initiate at some point a competency-based interview (Zorlu, 2009). Those who would make it all the way from the general tests to interviews proceed to offer stage. This is the final part of the recruitment process where the applicants would receive employment contracts if they accept the offer (Zorlu, 2009). This process is a clear indication of optimising the human resource’s potential contribution for organisational benefit (Compton et al., 2009). This also paves the way for attracting potential employees with the right qualifications for the jobs available through employer branding, a concept of making the firm as employee’s choice (Grunewalder, 2008). This is in fact a remarkable modern essence of recruiting, by which Zorlu has significantly applied through the emancipation of its prevailing standards. TRAINING & DEVELOPING WORKFORCE Zorlu Holding has Human Resources Program that has the following features: performance and experienced based, management skills development, teamwork enhancement, regular training programs, temporary assignments, and monitoring during and after the program (Zorlu Holding, 2013). All of these essential moves are determined as potential sources of sustained competitive advantage of an organisation that is relying on its human resource (Marchington and Wilkinson, 2005). These practices also indicate the goal for the achievement of a competitive workforce (Jackson et al., 2011). In other words, through its human resource and associated training and development for its workforce, Zorlu is a company trying to reach its competitive advantage in its industry. PERFORMANCE APPRAISAL Under the Zorlu Holding Human Resource Program, performance appraisal is an integral component because this program allows the management to identify potential candidates for higher management positions (Zorlu Holding, 2013). Everyone has the chance to be part of this program for as long as personnel would qualify the three essential points: high-level performance, management potential, and at least two years experience working for Zorlu (Zorlu Holding, 2013). As already stated, the human resource’s performance evaluation occurs during and after the training and development program. Performance assessment therefore happens within every department not only for the purpose of skills development, but also for substantial enhancement of management skills by exposing both old and new personnel to remarkable engagement into teamwork. Zorlu based its employees’ evaluation of performances on these contexts. Those who would make it in the assessment will have to receive the chance to generate the benefits linked up with the Zorlu Holding Human Resource Program. The evaluation takes once in a year, by which the workers’ achieved progress would have to be determined, and employees’ needs for training improvement would have to be identified (Zorlu, 2009). Completion of performance form is on the intranet and archived in safety by personnel’s personal codes (Zorlu, 2009). The above discussion of Zorlu’s performance appraisal depicts the point that the company integrates competency framework. This framework is a relevant component of a greater number of techniques for conducting performance appraisal primarily on highlighting employee’s competence (Krausert, 2008). Above all, the firm also highlights the right attitude of giving equal chance and opportunity for everyone in terms of compensation and rewards. In fact, performance appraisal is an ultimate means to generate appropriate decisions related to compensation, development, and staffing processes (Krausert, 2008; Lyster et al., 2007). MAINTAINING WORKFORCE It is evident that Zorlu is trying to initiate the ladder of success just to be able to maintain the human resources that are not only well-equipped in skills, but also managerial potentials. In addition, one could observe how Zorlu maintains workforce through salary increase, promotion, position upgrading, career planning, training-development, transfer and rotation (Zorlu, 2009). These are all relevant strategic moves in order to ensure maintaining a healthy and competitive workforce (Daft et al., 2010). All of these are also significant components of the basic functions of the human resource especially in maintaining the workforce and morale. Evaluation of performance for instance would be the ultimate basis on how the human resource for position would fairly upgrade within the firm to achieve competitive workforce (Lyster et al., 2007). Maintaining a competitive and healthy workforce is also tantamount to maximising profit of an organisation (Vohra, 2006). This means Zorlu is trying to create a significant impact on its human resource management in order to generate a significant profit for its entire operation that in great part is relying on human resource. EFFECT OF HUMAN RESOURCE ON CORPORATE STRATEGY At Zorlu, the human resource has crucial role to play for the achievement of corporate strategy. In effect, it tries to contribute a maximum advantage for the implementation of corporate strategy prior to the achievement of corporate goals. The human resource is among the most important resources, human capital or organisational assets that a firm could have (Compton et al., 2009). The human resource executes the potential plans of an organisation (Kurtz and Boone, 2008). It is through execution of plans that the realisation of corporate strategy would have maximum exposure for understanding whether or not it would be enough to achieve the firm’s corporate goals. For instance, at Zorlu, without its human resource who would have to execute its corporate strategy, there would be no remarkable basis on how to achieve its corporate goals. Achievement of corporate goals does not only depend on corporate strategies, but those who would implement them (Armstrong, 2008). With this, the human resource is indeed playing a critical role for the achievement of corporate strategy. HUMAN RESOURCE CHALLENGES The advent of global market has opened a crucial challenge in the human resource. This is because there would be relevant exposure to other major considerations in the global context. The human resource department would have to initiate significant moves in order to address the following challenges. These are potential challenges of the human resource especially in the 21st century: changing nature of the economy, government-legal influences, new organisational forms, global competition, and perception that organisations are vehicles for societal goals (Cartwright, 2005). All of these could also be the probable challenges that Zorlu would be potentially facing in the future. For instance, Zorlu is trying to expand and go international at present. This would require meaningful understanding of the human resource and the associated culture. This is necessary because Zorlu is trying to formulate a cultural standard by implementing its core values just prior to recruiting the appropriate personnel for the vacant job. However, in the international context, there would be essential existence of diversified culture and people with varying core values and orientation. At start, this would be a significant challenge, as Zorlu would have to integrate a general but effective move with its entire strategic human resource management when it comes to allowing a room for its employer branding strategy. At some point, Zorlu would have to organise the appropriate action whether to maintain a highly centralise strategy or not. In addition, global competition would be a remarkable challenge. As for the moment, Zorlu is trying to initiate a subtle move towards employer branding strategy for it to become a company of choice among potential applicants or employees. There should be competition not only at the other aspect of corporate issues, but above all in securing the best human resource in the marketplace. These are just some of the remarkable human resource challenges that not only Zorlu would have to face, but also almost all firms, especially those trying to take the plunge into international or global setting. CONCLUSION The human resource management is the top priority in a company because this is a segment where recruiting, training, maintaining and developing workforce would have to contribute to the firm’s competitive advantage especially in the age of globalisation. In the human resource management, individuals would have the better chance to improve their skills for the creation of competitive workforce. That is why not only training and development are important, but performance appraisal plays a critical role in order to maintain a workforce that could implement corporate strategies and organisational goals, and should stand a cut above the other in the midst of prevailing competition in the marketplace. REFERENCES Armstrong, M. (2008) Strategic Human Resource Management: A Guide to Action. 4th ed. London: Kogan Page Publishers. Cartwright, S. (2005) Human Resource Management. 2nd ed. New Delhi: Mittal Publications. Compton, R. L., Morrissey, W. J., Nankervis, A. R., and Morrissey, B. (2009) Effective Recruitment and Selection Practices. 5th ed. Sydney: CCH Australia Limited. Daft, R. L., Kendrick, M., and Vershinina, N. (2010) Management. Hampshire: Cengage Learning EMEA. Grunewalder, A. (2008) Employer Branding. Norderstedt: GRIN Verlag. Jackson, S. E., Schuler, R. S., and Werner, S. (2011) Managing Human Resources. 11th ed. Mason: Cengage Learning. Krausert, A. (2008) Performance Management for Different Employee Groups. Lauf: Springer. Kurtz, D. L., and Boone, L. E. (2008) Contemporary Business. 12th ed. Mason: Cengage Learning. Lyster, S., Arthur, A. E., and Arthur, A. (2007) One Hundred Ninety-nine Pre-written Performance Appraisals. Ocala: Atlantic Publishing Company. Marchington, M., and Wilkinson, A. (2005) Human Resource Management at Work: People and Development. 3rd ed. London: CIPD Publishing. Vohra, N. D. (2006) Quantitative Techniques in Management. 3rd ed. New Delhi: Tata McGraw-Hill Education. Zorlu Holding (2013) The Zorlu Group: History. Available from: http://www.zorlu.com/EN/ZORLU/default.asp. [Accessed: 23 March 2013]. Zorlu Holding (2013) Zorlu Human Resources Program. Available from: http://www.zorlu.com/EN/IK/ins_insangucu.asp [Accessed: 23 March 2013]. Zorlu Holding (2013) Zorlu Holding Human Resources Policy. Available from: http://www.zorlu.com/EN/IK/default.asp [Accessed: 23 March 2013]. 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