Strategic HRM

Question: Discuss about theStrategic HRM. Answer: Introduction This report is based on the case study of a music company named Galaxy music. The case study is based on implementation of international human resource management on the operations of organization. The report basically describes about the challenges and problems a company faces during the international business. According to the case study, there is a company named Galaxy music which operates in various countries i.e. USA, UK and Germany with enormous freedom. Tom Black is newly appointed president of the company and he is trying hard to bring some changes within the company. Before doing changes in the company, he conducts a meeting with all senior managers of the company. The reason of changes is that the company is doing a decentralized, federated structured business with geographic territories. According to the president the company should expand its business internationally with the view of think global and act local (Saintilan et al, 2013). To operate in the international market, company has to face some major challenges such as staying responsive to local market, in which the company is working, control the foreign operations, coordination with foreign units, and focus on short term operations with a view of competitiveness in market (Fletcher Crawford, 2013). Galaxy music is trying to move in international market where each had a power to operate its business and make own business decisions in terms of who to record or tour, and which artist to support etc. Strength and Weakness of Centralization vs. Decentralization at Galaxy Centralized structure means one individual to make decision and provide direction to the company. This structure is used by the small businesses because there is one owner who is responsible for the operations of the business (Friedman, 2011). On the other hand, in decentralized business structure, there is more than one person who takes the decision of the company. There are different level in a business and every person take decision on the basis of his level in the organization. Both the structure is important for the organization. Centralized business has a particular mission, vision and objectives for managers and employees created by the business owner. In decentralized business, organization utilizes the manpower according to their expertise and knowledge for running the business. Managers in broad management team ensure to handle the various types of business operations and success of company (Ferrell Fraedrich, 2009). Galaxy Music Company is decentralized company. It has its branches in different countries such as USA, UK and Germany. Because of the decentralizations in company, the company has some strengths and weakness. The strengths and weakness of the company are described below: Strength: Galaxy Music company is decentralized and the plus point is that company allows more people to give use their skills and experience in decision making related to new projects and expansion in international market. Because of decentralization structure, there is no burden of responsibility on one manager for all operating activities (Hales, 2006). For example, there are different manager for the project of different countries. Katie Jamieson is the manager of US marketing and Philippe Collard is the managing director for Galaxy France. Both are looking of different projects for the company. In the company, the power is distributed among many persons. By the case study, it can be seen that newly appointed president is conducting a meeting regarding operational activities of the company to know the viewpoints of all managers. By knowing the viewpoints, President will be able to take those decisions which will be fruitful for the company. By the decentralized structure, company is trying to engage more people in decision making process. It will improve the belief of employees towards the company (Rao, Narayana, 2007). Weakness: In spite of benefits and strengths, there are some weaknesses due to decentralized structure in Galaxy Music Company. By the analysis of case study, it can be seen that there is a lack of uniformity of standards and policies among the managers of the company. The managers are not interested to participate in decision making process (Jackson Morgan, 2004). The example can be seen when the meeting was conducted. The president wanted to know about their views but some of the managers were busy in their phones. They were not listening properly what the president is saying. There is one more drawback because of decentralized structure that it is creating problems in coordination with the managers because the viewpoints of managers are different and all are corrects according to their perception. So, it will create lots of problem for president in taking right decision (Cistulli, 2002). The differentiation in the perception of managers can create conflicts among them. For example, president wanted to expand the business with local market but one of the managers did not agree with his point. He gave his argument that it is not possible to enter in different market with the local market. According to him, Galaxy Music Company is a local company and it will not be able for the company to take own decisions by entering in new world. In such case, all the authority is in the hand of lower level managers and the president will be left no authority. He cannot do changes according to his viewpoints. Things could Galaxy do to Ease the Tension Between International Office and Operating Companies Galaxy Music Company is local company operating its business with local opportunities, taste and local talent. Due to decentralized structure of the business, company is far away to achieve some business purpose. Managers are not ready to move internationally because they thought they are local business players. To reduce the problem between the international office and operating companies, Galaxy Music Company can adopt some strategic human resource plans. The president of the company also suggested thinking global and acting local. The company can adopt the People strategy process to reduce the tension. People strategy process will help the manager to understand the business model and capability of business (Paauwe, 2004). The steps which can be adopted by company are described below: The company should give a clear business model and strategy to win the market. It can be seen by the case that managers are not sure about the project of geographical companies because they dont have clear business strategy. They all are thinking about making money (Guest, Paauwe Wright, 2012) There should be clear and specified organizational business capabilities to operate the business strategy made by the company. In the case study, the marketing director of the company is handling a project in France. According to him, the project which the company is starting in France will not get success because there is no respect of such type of projects in France. This will be the wastage of money. If there would be clear strategy for the project and clear view of capability in business model, the manager will complete this project with positive view and surety (Jackson, 2004). The company should design a proper and appropriate HR practices for the managers. Proper HR practices will help managers to identify their capabilities to fulfill the projects. In the lack of proper HR practices, manager are not trying to do hard work. This is the reason that the company is far away from its target and there is tension between international office and geographical offices (Andresen Nowak, 2015). The president of the company should find right persons to operate in global market. Although one of the managers is against to hire new people. Company needs to focus on centrally authorized, policies and strategies plans to develop everything and everyone. Company can use 7-S model framework to develop the effective strategy (Michalski, 2011). Figure 1: 7-S framework (Source: Michalski, 2011) The model is called The McKinsey7-S Framework. It is designed to frame the proper and clear strategy for the business. The design policies fall into seven categories. The first is strategy which determines direction. Second category is system which determines process within organization. Third category is staff which refers to people, skill sets and mindset within the organization. Fourth category is style, which determines the leadership adopted by the organization. Fifth category in the model is skills that refer to proper skills of the employees and managers working for the company. Sixth category is structure which determines the way of structure of organization and the position of decision making power i.e. who reports to whom. And the last one is shared value which determines the core values of the company that shows the work culture and business ethics of the organization. This model can be helpful to identify the needs to improve the performance and to maintain the performance during the change. For performing well, company must follow this model. This model is helpful to identify the current situation and the future situation of the company and tries to fill the gap between these situations (Basu, 2004). Conclusion By the analysis of case study, it has been observed that Galaxy music company is a decentralized company and the decision making power is not in hand of higher authority. There are several managers for different projects there are different views on one decision. Along with this, there is a lack of coordination among the managers and result is that no one is serious for the issues raised by the president. By the above discussion, it has been analyzed that managers of the company need proper strategy planning and appropriate business model. By the proper strategy, they will be able to identify their capabilities regarding work. Company needs to make a proper framework for the managers and operations of the business. An effective framework of business strategy will push managers towards their goals and they will start thinking over money. 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