Strategic Management Assignment: Developing HR Strategies forSimpson & Son

Question

Task: You are required to do an individual 2,500-word strategic management assignment on the either an organisation of your choice or the case study provided below. In either case the report should consider the tasks as outlined in the case study.

Case Study
You are an HR consultant advising a company in the development of their HR strategy. The key requirement is that you recommend an approach to managing human resources which is appropriate to the particular competitive strategy that the firm is pursuing. Consider the following brief description of the business strategy of the company that makes office furniture.

Simpson & Son Office Solutions
Simpson & Son make specialist office equipment. Generally, this equipment is manufactured in small quantities to meet the needs of a particular customer, whose specific requirements cannot be met by mass producers. Often this involves visiting client’s premises and designing and making products which solve a particular problem. However, Simpson & Son are always looking to make things that no one else is making or has even thought about. They have had a number of successes over the years with innovative products, which have attracted high-volume sales, simply because no one else was making them. Even though these often take about five years from the initial idea to the first sales – particularly as they usually involve designing new production systems, sourcing new materials, etc – they have more than paid for the investment.

However, the company is are not the only specialist and innovative furniture company, and it is always a struggle to stay ahead of the competition. In addition to similar competitors in the market, the company is under pressure from two other furniture makers. The first has high volume sales whose products are cheapand the other who manufacture a standard range of office furniture and equipment with a focus is on the high-quality end of the market supported with excellent customer service.

Your Task
As the HR consultant to the company, you have been asked to design an HR strategy for the company. In the organisation assume the HR Director/Manager of the organisation concerned have a budget of €10,000 (approximately) to enable a form of incentivised scheme to be adopted.

Considerations
Advise management of a competitive strategy for the organisation that considers the environment in which it operates and also that of its competitors. Provide an overview of the Porter three competitive strategies and the threats and opportunities that COVID 19 and Brexit present.

Consider what employee behaviours and attitudes you would wish to encourage, and which human resource practices are likely to enable and reinforce the kinds of behaviours that you wish to encourage. Think about various policies and practices such as, but not limited to, resourcing (recruitment, promotion, retention, etc. pay and reward, training and development, job design (including motivation and engagement), work practices (flexible working etc.). etc.

For the company you should have a list of required employee behaviours and attitudes and a list of the HR practices in each area that you think will support them. In essence, this is your HR strategy which is ‘matched’ to the competitive strategy of the company.

In addition, the HR Director has a budget of €10,000 (Approx.) to develop a ‘special’ one-off HR initiative that would promote the desired employee experience. What would you recommend and why?

Answer

Introduction
This report on strategic management assignment considers the development of HR strategies for the office furniture manufacture company named Simpson and Son Office solutions. As a HR consultant of the company, a few solutions are provided to the company for the development of proper HR strategies that are suitable for improving the competitiveness of the company as compared to other rivals. A specific competitive strategy needs to be developed in order to support the business environment of the organization. The various threats and opportunities are described in the report that helps in the assessment of the company’s strategies for future business growth and development. A solution is provided to enhance the competitiveness of the company is provided in the management report. An overview of the Porter’s three competitive strategies are used in the report to evaluate the effect of Brexit and Covid 19 on the business organization.

The Simpson& Sons Company is basically a company that manufactures personalized and customized office equipment’s for office set ups. They do not specialize in making mass productions for large offices and that is the reason for other rival companies are gaining competitive advantage over the brand in terms of costing and quality along with customer service. A range of employee attributes and behaviors are provided by the HR consultant for the enhancement of employee performance, which can help in gaining competitive advantage in the industry. Various policies regarding the recruitment, promotion, retention, training and development have been mentioned in the report for the competitive benefits.

HR strategy for the organization
Competitive advantage in terms of human resources in a company refers to the quality of employees who cannot be replicated, unlike the company’s procedures and methods. It is considered a matter of fact that companies with better employees possess more competitive advantage over other rivals. In this particular case, the company is in need of a proper HR competitive strategy for gaining advantage over its rivals and increase the company sales figures. The HR manager of the company has created a budget of 10,000 Euros for setting up HR initiatives for the benefit of the company.

The company is facing the threats regarding the loss of revenue and sales with the increase of competitive pressure from the two rivals(Beardwell and Thompson, 2017) The threats of new market entrants is posing a risk for the sales figure and the future development of the company. In order to mitigate the risks of new entrants, the company needs to adhere to a strict HR strategy that needs to be implemented. An appropriate HR strategy needs to be developed that is suitable for the present situation and condition of the company. In order to implement the perfect strategy for the company, best practices should be applied. They are basically a set of human resource practices that has a universal approach in terms of application. These practices should align with the business strategies of the company for maximum effectiveness. The following of these practices can also lead the company to superior business performances.

The HR strategy that is suitable for this company is selective hiring. It is meant by hiring the right people for the company. Employees who add value to the organization should be considered for recruitment. There are a lot of recruitment tools that helps in making the right choice of employee recruitment easier. Recruiting key people in the company helps in garnering competitive advantage for the company. Therefore, recruitment process is considered integral to the increase of revenue and sales for the company. The recruitment of capable and competent employees will give competitive advantage to the Simpson & Sons over the other two rivals concerned. The employment of proper accounting professionals can provide ideas to reduce the production cost of the goods that will help the company in selling products at competitive prices, and the employment of competent sales and customer oriented employees will help the company in producing high end products with superior service (Carbery and Cross, 2013).This HR strategy is the most important strategy that is required for seamless business operation in an organization. This act may help in gathering competitive advantage over the two rival companies that are posing a risk for Simpson & Sons.

Competitive strategies
According to Michael Porter, there are three competitive strategies that a company can adopt to gain competitive advantage over the rivals. These strategies can be considered as Cost leadership strategy, differentiation strategy and market segmentation strategy. The cost leadership strategies can be achieved in two possible ways. Firstly, it can be achieved by increasing the profits by reducing the costs and charging industry standard prices. Secondly, it can be achieved by increasing the market share by lowering the prices.

Differentiation strategies involve making the products and services more versatile and innovative than the products of the rivals or competitors. This strategy depends on the exact nature of the industry and the products and services. It usually involves a few product variables like features, functions, durability, support and the overall brand image.

The market focus or segmentation strategy is achieved by a proper understanding of the market dynamics and the unique needs of customers (Kew and Stredwick, 2016). These strategies help in the development of low cost and well specified products designed for the market. The implementation of this strategy helps in the building of a strong brand loyalty amongst the customers.

Although, the three competitive strategies can prove beneficial for the company, the differentiation strategy of Porter can prove to be an efficient strategy for increasing market competitiveness for Simpson & Sons. This particular strategy will provide an overall benefit in increasing the competitiveness of the company. It can be achieved through good research, innovation and development along with the ability to deliver high quality products and services. The market will understand the benefits of differentiated offerings and help in the increase of company sales (Mello, 2015).The benefits of this strategy completely matches the requirement of Simpsons and gain superiority among the rivals of the company.

Threats and opportunities of Covid 19 and Brexit
The possible threat associated with Brexit, I. e the exit of Britain from the European Union, is the drastic slowdown of the economy of Britain (Gunnigle, Heraty and Morley, 2017). This slowdown will result in the decline of the gross sales of the company and a loss in the average annual revenue for the company. The impact will also be create some political and economic challenges for an organization to operate smoothly.

However, the main opportunity to the Simpson due to the Brexit is the capitalization of the market due to its reputation. The other two rival companies are relatively new in the market and they need to follow certain guidelines for the stabilization and sustainability in the market. The Simpson & Sons will however be in an advantageous position because of their prior market presence and strong market goodwill and reputation. Sustainability will be quite easier for them as compared to their rivals.

The global pandemic of Covid 19 has created a havoc in the global economic sector. The outbreak has caused the immediate closure of markets and industries associated with production and other industries (Jackson, Schuler and Werner, 2012).The shutdown restrictions were imposed in many countries along with Britain, being one of the most badly affected nations globally. The pandemic has caused the economic downfall of the nation and posed a few threats to the industry of office equipment manufacturing. The closure of offices for months has led to the decrease in demand for furniture or other office equipment (Mello, 2015). This particular industry and the company has suffered substantial losses in the financial year 2020 that will need a period of another one or two years to settle the losses.

The opportunity of the company is that it will get enough time to reinvest in the modification and development of the products with the help of different strategies to increase their market competitiveness during the phase of the lockdown due to the pandemic.

Encouragement of Work Values
Simpson & Son are required to encourage employee behaviours and attitudes that will not only fit in the competitive strategy that the firm is adopting but will also help in encouraging a positive environment within the organization. The attitudes and behaviour of the employees should be in contrast to what the firm is preaching to its customers. The firm had several successful operations in the past and this has been successful in earning its reputation in the market. This can be ruined by employing the individuals who are unable to keep the reputation of Simpson & Son. Therefore the attitudes and the behaviour that should be encouraged within the firm are

Dependability & Responsibility: The firm should encourage the attitude and behaviour of dependability and responsibility. Employees who report working on time and are present when needed by the firm should be valued. Such employees tend to take responsibility for their behaviour and actions which is exactly the kind of attitude Simpson & Son needs for their business(Loreto, 2019).

Positive Attitude: Positive attitude in an employee leads to positive behaviours within the firm. It has been learned that employees who value and believe in the core values of the company tend to show a positive attitude during their work. Also, employees possessing positive attitudes are more productive, less turnover, and absenteeism than compared to other employees

Helpfulness with others: The firm works on office equipment which indirectly means that Simpson & Son somehow helps in making other company's office a better workplace. This means the firm is encouraging a helpful attitude with its operations. Therefore the same helpful attitudes should be encouraged within the employees of the firm. Employees should be encouraged to assist not only clients and customers but also co-workers within the organization. This becomes helpful in accomplishing the overall goals of the company (Deka, 2020).

Honesty & Integrity: The firm should encourage the employees to maintain honesty and integrity above all. However, the employer should also maintain the same sets of values in order to trust them and also to gain their trust.

Professionalism: Simpson & Son should encourage the attitude of professionalism among the employees. Professional behaviours in the firm would mean learning and doing the work to the best of his ability. Whether it be attending to the customers or keeping the books or innovating office equipment. Encouraging professionalism within the firm will encourage the employees to produce high-quality work that the firm is currently known for.

Human Practices that can help in reinforcing such behaviours
The human resource practices that can help in reinforcing the above-mentioned behaviours are Selective Hiring: The first step that should be taken care of by the firm is selecting only the people who are fit for the job. Bringing in the right people can help in building a competitive advantage. The ability, commitment, and trainability of the person should be taken into account before hiring them for the work(Vulpen, 2019).

Promotion: Every employee desires a promotion because of its impact on pay, responsibility, authority within the organization, and also decision making. It is a powerful tool for communicating with the employees and making them believe that they are valued. The firm should adopt this practice of promoting the employees who possess the capability and the positive attitude needed by the organization. This will serve as an example to not only work harder on their task but will also promote positivity.

Practicing Thankfulness: It has been found that every employee tends to crave praise or recognition for all the efforts that they might have put in. Therefore the practice of thanking the employees in Simpson & Son will help in promoting positive attitudes and behaviours within the organization. However, this should be genuine and should not make them feel small. The Employees who feel appreciated in the workplace tend to value the policies and the practices of the firm and tries to contribute as much as they can(Whalen, 2017).

Flexible Working Condition: The practice of adopting flexible working hours can be adopted by Simpson & sons to promote a positive attitude and behaviours within the organization. Flexible working hours can help in providing job satisfaction and avoid employee burnout due to their inability to manage work and family or office and home. This can result in frustration and anxiety within the employees which will give rise to a negative impact within the organization. The practice of providing flexible working conditions to those who need it can help in overcoming these obstacles. This will also help in retaining the employees who would have otherwise jumped to a more flexible working condition(Spica, 2018).

Fair & Equitable Compensation: It is known that the HR leader of every firm is concerned with high pressure to attract, train, engage and motivate and retain its employees. However, Simpson & Son can rely on just one key assumption and achieve it all. That is paying fair and equitable compensation according to their performance. Any compensation plan whether it be for the salary or even for bonus administration. Paying the employees for exactly what they deserve will not only make them feel valued but will also result in positivity and increased productivity (Bucalo, 2018).

Recommendation
The "special" one-off HR initiative that can help in promoting the desired experience of the employees can be investing the HR budget in organizing Training & Development for the employees(Wolters Kluwer, 2018). This initiative will help teach new skills as well as polish the existing skills of the employees. The HR management of Simpson & Son can train the employees on specific tasks within the firm and also provide excellent customer service which will be crucial in competing with the rival firm in the market. This initiative can also be used to enhance the employee's knowledge of the company’s products and the way it holds an appeal to its customers. This can be beneficial not just for the employees but for the firm as well. The employees will reap the benefits of the training by improving themselves which will make the job easier for them resulting in less burnout and pressure from the work. Developing extensive knowledge on the policy and product of the company will help in delivering and capturing valuable customers to the firm which can act as a competitive edge in the market(Toppr, 2018). On the other hand, the firm can profit through increased efficiency from the employees since efficient employees at work will result in increased innovation and productivity for the firm which will help in standing out amongst its competitors.

Conclusion
The threats and opportunities regarding the pandemic and Brexit can bring out mixed results regarding the future of the company. The pandemic has created a big void in the global economic scenario that has created a deep impact on the global business scenario. The manufacturing of office equipment have suffered considerably due to the closure of offices. The negative impact of Brexit has createda situation of considerable consequences on the economic front of a company. However, the outcome will ultimately depend on the implementation of the proper competitive strategies and the HR policies that can help the company grow a long way ?

References
Beardwell, I. and Thompson, A. (2017) Human Resource Management: A Contemporary Approach. 8th Ed., Pearson

Bucalo, J. (2018). Fair and Equitable Compensation: The Foundation for HR Programs. [Online] HR Exchange Network. Available at: https://www.hrexchangenetwork.com/hr-compensation-benefits/articles/fair-and-equitable-compensation-the-foundation-for-hr-programs#:~:text=Any%20compensation%20plan%2C%20whether%20it [Accessed 7 Jan. 2021].

Carbery, R. and Cross, C. (2013), Human Resource Management, Palgrave Macmillan, London.

Kew, J., and Stredwick, J. (2016). Human Resource Management in a Business Context. 3rd Ed. London, CIPD

Deka, R.R. (2020). Improve Employee Attitude: 4 Incredible Tips. [Online] Nurture an Engaged and Satisfied Workforce | Vantage Circle HR Blog. Available at: https://blog.vantagecircle.com/employee-attitude/ [Accessed 7 Jan. 2021]. Gunnigle, P., Heraty, N., and Morley, M. (2017), 5th Edition, Human Resource Management in Ireland. Gill & Macmillan

Jackson, S.E., Schuler, R.S. and Werner, S. (2012), Managing Human Resources, 11th Ed., Cengage Ohio

Loretto, P. (2019). Work Values Employers Are Looking For. [Online] The Balance Careers. Available at: https://www.thebalancecareers.com/top-work-values-employers-look-for-1986763 [Accessed 7 Jan. 2021].

Mello, J.A. (2015), Strategic Human Resource Management, 4th Ed., South-Western Ohio

Torrington, D. Hall, L. and Taylor, S. and Atkinson, C. (2017), Human Resource Management., 10th Edition Ed., Pearson Harlow (available as an e-book in NCI library catalogue)

Spica (2018). Flexible working arrangements rising | All Hours FlexiBlog | Spica International. [Online] www.spica.com. Available at: https://www.spica.com/blog/flexible-working-arrangements-rising#:~:text=Managers%20can%20use%20flexible%20schedules [Accessed 7 Jan. 2021].

Toppr (2018). Toppr.com. [online] Toppr-guides. Available at: https://www.toppr.com/guides/business-management-and-entrepreneurship/human-resource-management/training-and-development/ [Accessed 7 Jan. 2021]. Vulpen, E. van (2019). 7 Human Resource Best Practices | A Mini-Guide to HRM. [Online] Digital HR Tech blog. Available at: https://www.digitalhrtech.com/human-resource-best-practices/ [Accessed 7 Jan. 2021].

Whalen, R. (2017). 7 Tips for Promoting Positivity in Your Workplace. [Online] info.totalwellnesshealth.com. Available at: https://info.totalwellnesshealth.com/blog/7-tips-for-promoting-positivity-in-your-workplace [Accessed 7 Jan. 2021].

Wolters Kluwer (2018). Human Resources (HR) Budget. [Online] www.tagetik.com. Available at: https://www.tagetik.com/en/glossary/hr-budgeting#.X_bJvNgzbIU [Accessed 7 Jan. 2021].