Human Resources Environment at Dell

5606 Words Sep 15th, 2011 23 Pages
INTRODUCTION
In recent years, human resource management (HRM) has been integrated into the process of strategic management through the creation of strategic HRM. Linking HRM to organizations’ strategies for success has been buoyed by the realization that HRM greatly influences an organization’s human and organizational resources (Jackson and Schuler). Accordingly, HRM practices can be used to gain competitive advantage over rival organizations. The extent to which HRM can be used to gain a competitive advantage and the means of achieving this are influenced by the climate in which the business operates. The impact of HRM strategy and practice on organizational performance is an important facet of any business strategy and is essential
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Defenders create a secure market and enhance organizational effectiveness. The basic strategy is to aggressively maintain prominence within its market segment and ensure incremental growth. Such firms tend to focus on “cost leadership” type strategy. An Accumulator HRM strategy, based on building maximum employee involvement and achieving skilled execution of tasks serves Defender needs because it focuses on providing skill development in a fashion that is in accordance with the company’s growth and development. Analyzers represent organizations that operate in relatively stable business environments. A Facilitator strategy fits the organizational requirements of Analyzer firms because it fits the dual requirements of this business strategy that are identifying new markets while simultaneously maintaining their presence in existing markets. Prospector firms compete in broad product market domains characterized by continual change. Given the instability of such environments, Prospector companies are best served by a Utilizer HRM strategy geared to the provision of readily available skills consistent with the companies constantly changing needs. In their study on business strategy and HRM practices in Japanese subsidiaries in the United States of America, Bird and Beechler (1995) found that subsidiaries with business strategies that were matched with the appropriate HRM practice performed better than
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