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The labor and compensation tactics selected have to be in synchrony with, and support, the broad differentiation strategy adopted for Advanced Camera. The company’s human resources will, therefore, have to be organized and compensated using strategies seeking to ensure that…
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Download file to see previous pages will also involve ensuring that cameras at all levels of production showcase exceptional design and are easily accessible, while the level of awareness about these attributes will need to equally high. These attributes call for balance between developing employees’ R&D competency, increment of unit sales hence expansion capacity, as the company generates higher demand with time, and according employees compensation that is above average.
The first step in the labor strategy will involve training individuals that are better equipped in production and sale of digital cameras than potent competitors in the industry. This will play a significant role in ensuring that Advanced Camera has significant competitive advantage over other camera providers. Such human resource-dependent competitive advantage should not be overlooked, since unlike other company advantages that can be replicated elsewhere, unique skills and characteristics of employees are difficult to imitate. Further, a properly trained production workforce will generate higher quality cameras than one that is untrained hence unskilled.
In the first year, the company will primarily focus on training extant portable appliance testing (PAT) members. This will happen for two years in a row, thus keeping the money used for quarterly productivity improvement and PAT training constant at $1,000. In the third year, the company will hire 20 new PATs, with the intention of raising the number of units assembled during overtime (OT) to 80 per member. In the subsequent quarter, that is, during year four, Advanced Camera will strive to maintain about 30 PATs, while increasing units assembled at OT by 20 cameras per PAT member. The company intends to maintain this number of PATs even in the fifth year, in order to sustain first shift and overtime PATs, without having to outsource labor (Dess, Lumpkin, & Eisner, 2006). Through this strategy, the company will be able to raise basic wage per PAT member by about 2% from the ...Download file to see next pagesRead More
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