International Bulleting of Business Administration
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The purpose of an organization is to provide a superior value to the market that would increase the profitability to the firm and this occurs only when the employees of the organization are energized and focused who are able to create and deliver value. (Maister, 2002). In the business environment of today, human resources of an organization is regarded as the most important resource as many other successful sources for competition are less powerful and to gain a competitive advantage it is important to consider the strategies and issues associated with human resources. (Jeffrey, 1994). Human resources of an organization are more vital for its sustainability, and the human resource management of an organization aims at obtaining and retaining the required work force which is motivated, skilled and committed. Strategic human resource management is a process that is associated with the role played by the human resource management systems in the performance of the firm as well as focusing on the alignment of human resources as a means of gaining a competitive advantage. In the present day business environment, organizations are aware of the appropriate policies and practices has the ability to increase the performance of the organization in terms of productivity, quality and financial performance.(Lawler & Mohrman, 2003). The role of HR in the global business environment is to strategically react with the implementation of a business strategy by way of supporting the long term strategies. These strategies need employees with appropriate qualifications along with the development of cultural and technical capabilities essential for the strategies of the organization. For an effective strategic management of the human resources, the structure of the organization has become more flexible and the work system has changed to autonomous work groups with qualified work forces, outsourcing of operations of HR, downsizing, delayering, and participation of the employees in the decision making process and high wages for the highly qualified employees. The human resources have evolved into a strategic partner and the modern day fields of organizational behavior and human resource management has evolved from the behavioral science. (Anthony, Perrrewe and Kacmar, 1996, Ferris et al., 1999).
Telecom corporation of Newzealand
Telecommunications in New Zealand was under the control of New Zealand post office of the government till 1980’s and in line with the large scale reforms instituted by the government a state owned enterprise Telecom corporation of New Zealand emerged in 1987. Implementation of the human resource strategies after the privatization of the company in 1990 resulted in the reduction of employees After privatization, the management introduced new technologies and more generic and unskilled workers were outsourced. Skilled workers were offered attractive redundancy pay and much of the work tendered within the group is contestable internally as well as externally that fosters a more competitive environment which drives the prices down. Managers were assigned the task of benchmarking the performance of their division as well as reducing the costs. The core competencies of the company have moved from technical to consumer oriented and these strategies have long term effects on the employee relations. (Ross and Bamber,2000).
Telecom service providers are struggling with the upheaval of their industry which is the mandatory transformation from the government owned policies to the competitive industry, however they have failed to reinvent themselves as true market warriors. The telecommunication industry is dominated by the operators who can project themselves as aggressive competitors and many telecom companies are poorly prepared for competition. Many of the resentful demand driven services are unaware of the basic concepts of customer management and are ill prepared about the involved risks. With the increasing competition, there is a need to improve the quality of human resources that can create structures which can guarantee responses to market conditions and new opportunities.
The present study focuses on the strategies of Huawei technologies a global telecom company based in china. The company is successful with its core values of customer orientation, high performance culture, honesty and trust, team work, commitment and continuous improvement. The company has its competitive presence in New Zealand.
The main focus of the company is for customer and dedicated employees and the company continuously improves the structure, processes and appraisal systems of the organization for an effective growth. The human resources committee improves and manages the capabilities of the organization such as organization talent and culture. For the development of business of the company, the human resources committee ensures that the HR policies reflect the human resource philosophy of the company.
HRM strategy for a competitive advantage
The core competencies are specific to the organization in comparison with other organizations of the industry that provide a fundamental basis for the provision of the added value and valuing and retaining the employees gives a competitive advantage to the firm. (Bani-Hain & Al Hawary ,2009 ).
Huawei focuses on people and it believes that it is important to understand the strengths and capabilities of the people and develops customized HR solutions which align the personal goals of employees with business objectives. This creates synergy for the deal through optimized people value.
Gaining competitive advantage through human resources
The human resources are the distinctive capabilities of an organization that drive superior efficiency, quality service, innovation, performance, customer responsiveness and effectiveness. The value created through these processes provides greater benefits in the markets. . (Armstrong, 2005), In the Huawei company, HRM is core management function and the performance of the HRM activities is instrumental for the survival of the organization.
Responsibilities of HRM
It is essential for the HR professionals to develop necessary skills to handle the enormous responsibilities associated with these activities in order to ensure the effectiveness of the organization,(Inyang, 2001)
The management must ensure that right number and right kind of people are available at the right time and right place having competencies for an effective job and efficiency to achieve the objectives of the organization. Acquisition function of the employees involves forecasting of the future needs of various types of employees and comparing them with the present situation and also determining the type and number of employees to be recruited. (Inyang,2011). Huawei believes that retention and acquisition of the employees is key to the success of an organization and within the talent management framework, the company pays special attention to key employees and design incentives based on the business practices of the location.
Development involves providing employees with additional training and education in order to improve the performance and the four dimensions to this function includes employee training that develops skills as well as change in attitudes. Organization development intends to change the nature of the organization and improves the total organization. Management development tends to acquire knowledge as well as improves the conceptual abilities of the top manager. The career development is concerned with the efforts of the organization to meet the long term needs of the individual and organization. Huawei company provides training and development with the help of training curriculums as well as the project variety from the single to multi skill sets. This training is put into practice resulting in the better career development for the employees.
Managers must identify that the individual needs and desires vary with the individual and it is the responsibility of the manager to recognize appropriate motivational techniques that stimulate job performance and job satisfaction. Huawei has motivated and engaged workforce which is essential to achieve the growth ambition. The company has well designed incentive schemes and procedures that are underpinned by the excellent career and growth opportunities that ensures increased motivation and engagement of the employees.
Providing benefits, services, and the working conditions for the employees is important that makes the employees committed to the organization. Huawei has developed a complete methodology to support the employees through the proven procedures.
Strategies to manage the human resources in an organization
The people related activities of an organization include administrating salaries, performance appraisals, and career planning. It is important to develop appropriate HR policies that can manage the people effective that create value in the market place. ( Templer and Cattaneo ,1995). Huawei provides extensive formal training and customized technical training program to increase and maintain their technical competence.
Performance management is a systematic task that manages people, uses performance goals, measurement, feedback, and recognition as a means of motivating the people to realize their maximum potential. (Alo, 1999). The company aims at the effective valid and systematic evaluation of the performance of the employees through the assessment of skills, competencies and professional behaviors required for the employees to demonstrate.
Recognition and appreciation
Recognition and appreciation of the employees increases the self image as well as the self recognition to the optimal heights and this communicates good radiance to the remaining employees.
Allowing the employees in the decision making process, expressing confidence in their abilities to perform at high levels, designing jobs in such a way that they have freedom, setting meaningful and challenging goals, applauding outstanding performance and encouraging people to take a personal responsibility in their work will empower the employees. Imhanlahimhin (2007)
Training and development
The worker who is market driven needs a continuous empowerment of knowledge that is possible through deliberate sustained and continuous training. (Adeyeye, 2008). Huawei company focuses less on the search for an ideal structure and more on developing abilities, behavior, and the performance of the individual managers and employees. (Bartlett & Ghoshal, 1990).
Strengthening the capacity of the employee
When skills are more than challenges, boredom gives uninspired, non productive employees and if the challenges are greater than skills anxiety interferes in the performance. The company has recognized the imporantance of right combination of skills and challenges that inspires and develops a workforce that is competent and productive. (Michlitsch, 2000).
Employees should be involved in planning, goal setting and strategic reviews for the firm and this would ensure commitment, loyalty and optimum value of the employee which is emphasized by the company.
Good management is communicating with the employees to ensure honesty in a sincere manner keeps the employees abreast of plans successes and failures.
No organization can hope to achieve a high performance without a well motivated work force and the manager must create a right environment that motivates the employees. This enables the employees to realize their personal interests and aspirations within the context of the objectives of the organization and this definitely improves the performance of the employee. The company motivates the employee which comes from the challenge, recognition for achievement, makes the people feel important and enables them to make a meaningful contribution. (Ejere.2010).
Managers of the company expect efficiency to get productivity and job satisfaction for the employee they are in turn expected to offer adequate organizational rewards such as extrinsic rewards, money, fringe benefits, promotions, recognition, status symbol and praise. They are examples to a sense of accomplishment, self esteem, autonomy, personal growth and self actualization.
Building a sense of share purpose
All the employees of company are allowed to contribute to the determination of shared purpose and this arises from the organization culture which represents a uniform way of thinking valuing and perceiving the goals and the processes of the organization.
Creating a learning organization
Huawei company harness full brain power, knowledge and experience that is available to it which enables the organization to evolve continuously for the benefit of the shareholder. The knowledge, skills and experience are harnessed to the advantage of the organization and the individual employee is encouraged by the company to take a responsibility for his or her own personal development. This has improved the future prospects of the employees and in addition to this, the organization determines the competencies required for the development of employees through adoptive training.
Remuneration and rewards
Establishing the enhanced wages and salary packages for all levels of employees in the monetary rewards will enhance the productivity and the retention of employees. The company has adopted a range of innovative and integrated human resource strategies and practices from the job design, recruitment and selection, remuneration and rewards should be fine tuned to the local conditions and labor market.
Summary and conclusions
Effective management of the people in an organization is the driving force in the transformation process that helps in achieving competitive advantage. The human resources of an organization create value and the manager needs to understand the fundamental issues associated with acquisition, development, motivation and the maintenance of an effective workforce that can deliver results. Appropriate strategies of the human resources can drive an optimum value from the employees of an organization includes recruitment of the right people by empowering the employees of an organization. Deregulation of the telecom industry has made downsizing of the employee mandatory. In the new business environment of New Zealand the telecom industry requires new human resource strategies to gain competitive advantage. The Huawei company is successful in a short time due to its innovative human resource strategies that focus on the people which motivate people that ensures commitment and dedication.