Creative Management and Human Resource Management at Apple Daily Hong Kong
Abstract
The paper aims to assess the creative management and human resource management practices and processes in Apple Daily Hong Kong. Apple Daily Hong Kong is a leading newspaper in Hong Kong owned by Next Media. The paper is designed to find out the effectiveness of creative management and human resource management in Apple Daily Hong Kong.
It has been found by the researcher, through the conducted survey and interview that Apple Daily Hong Kong has several creative management approaches, among these are employee empowerment and strategic human resource management (SHRM). According the survey and interview these effective approaches to management and has yielded many benefits for both the organization and the employees. In the area of HRM, the researcher found out that in general, the employees consider the HR processes of the company as “effective”. These HR processes provide benefits for both employees and organizations. It is interesting to note that the researcher, through the interview, found out that the HR department is able to combine both Human Resource Management and Creative Management through Strategic Human Resource Management (SHRM).
Through secondary resources the researcher was able to study SHRM more deeply. According to secondary resources “Strategic human resource management involves the linking of HRM with the strategic goals and objectives of the organization in order to achieve a progressive business performance and achieve an organizational structure that promotes innovation and flexibility”. SHRM is “a major approach to improving the competitive advantage of the firm. The goals and objectives of HRM are aligned with the strategic objectives and plans of the organization”.
Chapter I: Problem and Its Background
Introduction
Background of the Study
Creative management focuses on how to change an organization’s management by means of opening up the organization’s climate and management style, increasing participation and giving employees more freedom as to how things are done. Human Resource Management on the other hand, is defined as a set of philosophy, policies, procedures and practices related to the management of an organization’s employees. Human resources management is particularly concerned with all the activities that contribute to successfully attracting, developing, motivating, and maintaining a high-performing workforce that results in organizational success.
There are little empirical research that examine the relationship of creative management and human resource management and how these are being implemented in organizations. This paper will investigate and study how creative management and human resources management are being applied in Apple Daily, one of the most popular and successful newspapers in Hong Kong. The researcher aims to determine the relationship between creative management and human resource management.
Apple Daily Hong Kong: Overview of the Business
Apple Daily keeps the leadership position in the Hong Kong newspaper industry. Based on the Next Media’s 2008 annual report, Apple Daily continues to enjoy the second-largest readership among all Hong Kong’s daily newspapers. In the year ended 31 December 2007, it was read by a daily average of 1,466,000 readers aged 12 and over, an increase of 13, 4 percent on the figure of 1,275,000 for the previous year. As a result, Apple Daily’s share of total daily newspaper market grew from 23.0 percent to 27.0 percent. Its circulation sales also rose by 2.4 percent to an average of 305,896 copies per day during the second half of 2007, compared with 298,777 copies in the same period of 2006 (Next Media Annual Report 2008).
Research by Nielsen Media revealed that the demographic profile of Apple Daily’s readership was higher than that of the most popular daily, in terms of educational and career status and personal and household income. IN addition, the quality of the newspaper’s contents and its neutral political stance ensured the continued loyalty of its readers, particularly those with higher educational qualifications, despite string competition from free dailies, price cuts by other newspapers, and the growing popularity of online news sources (Next Media Annual Report 2008).
Human Resource Management at Apple Daily
Next Media, the company that owns Apple Daily Hong Kong is committed to delivering up-to-the minute news that occurs at any time and anywhere in the world. This special responsibility requires unstinting efforts and professionalism from the company’s team members. As of March 31, 2007, Next Media employed a total of 3,499 people in Hong Kong, Taiwan and Canada. Of this workforce, the frontline journalists and photographers are just the tip of the iceberg. Thousands of backroom staff work around the clock to ensure that articles and photographs reach the readers in time. being a responsible and distinguished employer, Next Media aims to recruit and retain the best and brightest talents in the industry. The company has always been an equal opportunities employer. The recruitment policy of the company is non-discriminatory; staff members are appointed purely on the basis of their relevant skills and experiences. Moreover, the staff are treated with respect and are rewarded fairly for their hardwork, enthusiasm and skills, as well as their adherence to the Group’s strict ethical standards (Next Media 2007).
To maintain the highest quality of team members, staff remuneration packages are reviewed annually in the light of individual employee’s responsibilities and the Group’s business performance, together with internal benchmarks and prevailing market practices and conditions. Employees are rewarded on the basis of their performance. Performance-related variable pay such as special year-end bonuses and a profit sharing scheme are provided to team members who made exceptional contributions to the Group. In addition, special educational subsidies are available to those who wish to obtain professional or career-related qualifications.
Statement of the Problem
In this light, the study aims to determine the relationship between Creative Management and Human Resource Management as applied in the case of Apple Daily in Hong Kong. Specifically, the study intends to answer the following questions:
1. In which way does Apple Daily Hong Kong implement creative management?
2. How effective is creative management in Apple Daily Hong Kong?
3. What are the benefits of implementing creative management?
4. What are the Human Resource Management (HRM) processes of Apple Daily Hong Kong that add to its success?
5. How do these processes contribute to the success of the company?
6. How does Apple Daily Hong Kong view its human resources (employees)?
7. How does the company combine creative management policies and practices with HR policies and practices?
8. Does combining creative management and HRM have advantages?
Research Objectives
The study is designed to determine the relationship of creative management and human resource management. The specific aims of the study are:
1. Identify the ways in which Apple Daily Hong Kong implement creative management.
2. Determine the effectiveness of creative management in Apple Daily Hong Kong.
3. Identify the benefits of implementing creative management.
4. Determine the HRM processes of Apple Daily Hong Kong that contributes to the success of the newspaper.
5. Identify the contributions of Apple Daily’s HRM processes to its success.
6. Determine how Apple Daily Hong Kong views its employees.
7. Discover how Apple Daily Hong Kong combines creative management policies and practices with HR policies and practices.
8. Identify the advantages of combining creative management and HRM.
Significance of the Study
The study will be a welcome addition to the existing data and studies about Human Resource Management. The study will also serve as an important source of valuable information about creative management applied in real organizational setting. The researcher aims to present a report that will be able to inform and educate readers as well as serve as a reference for other researchers. The study will particularly give in-depth analysis of HRM and creative management as sources of competitive advantage of Apple Daily Hong Kong. Competitive advantage can be considered as a condition, which facilitates more efficient operation and higher quality products and/or services for an organization. Michael Porter (1985) considers an organization where earning exceeds cost as an organization that achieved competitive advantage. Competitive advantage in Porter’s perspective is being able increase earnings despite the competitive pressures.
Chapter II: Literature Review
Creativity in Organizations
Creativity is considered as one of the core competencies of organizations today. In order to survive in today’s business environment, an organization must learn to adapt to the changes and advancements in all the aspects of the business. Organizations learn to identify the micro- and macro-environment factors that affect them and learn to deal with them. Organizations that can adapt to changes are rewarded with the ability to sustain their competitive position in the market. However, in order to move forward and to achieve more than what they already have, organizations must never run out of ideas and strategies. That is when creativity enter the picture. According to Degraff and Lawrence (2002) creativity creates progress, and progress creates value. What allows a company to respond proactively to diverse pressures is the development of creativity as a core competence. Creativity in a sense focuses on innovation. However, it is more than that. Creativity means the development of new processes, new ways of communicating with customers, or new ways of attracting and retaining the best talent. Creativity is the core of all the competencies of an organization because creativity is what makes something better or new.
Creative Management
Creative management according to Henry (2001) is about changing the way organizations are run, by trying to open up the organization’s climate and management style, increasing participation and giving employees more freedom as to how things are accomplished. Creative management aims to transform the company from within. For staff in creative organizations, creative management may entail developing more creative attitude in themselves, paying attention to ways of developing and nurturing creativity in others and sustaining an open climate or culture that encourages creative endeavor and systems that enable organizational innovation and inter-organizational networking.
Human Resource Management
Literature on Human Resource Management abounds. Jackson and Schuler (1995) use HRM as an umbrella term that encompasses:
A. specific human resource practices such as recruitment, selection, and appraisal
B. formal human resource policies which direct and partially constrain the development of specific practices
C. overarching human resource philosophies, which specify the values that inform an organization’s policies and practices
Ideally according to Jackson and Schuler (1995), these comprise a system that attracts, develops, motivates, and retains employees who ensure the effective functioning and survival of the organization and its members.
Areas of Human Resource Management
The areas of Human Resource Management that will be covered in the study are the following.
1. Recruitment and Selection
Recruitment is concerned with finding applicants, communicating opportunities and information and generating interest. It includes interview, screening, and selection of most qualified candidates, filling of positions through transfer or promotion, and coordinating temporary employment. The aim of recruitment is to identify a suitable pool of applicants quickly, cost efficiently, and legally. Selection is the process of obtaining and using information about job applicants in order to determine who should be hired. Placement involves matching individuals to jobs based on the demands of the job and the competencies, preferences, interests, and personality of the individual. Selection and placement yield a match between the organization’s needs for specific qualified individuals and the different needs of employees that determine the type of work that is satisfying for them (Schmitt and Chan 1998 cited in Sims 2002).
2. Training and Development
Training and Development are planned learning experiences that teach employees how to perform their current and future jobs. Training focuses on present jobs, whereas development prepares employees for possible future jobs (Sims 2002). The objective of training and development is to contribute to the organization’s overall goals.
3. Performance Appraisal and Management
Performance appraisal is the process by which an employee’s contribution to the organization during a specified period is assessed. Performance management is the integration of performance appraisal systems with broader HRM systems as a means of aligning employees’ work behaviors with the organization’s goals. A performance management system consists of the processes used to identify, encourage, measure, evaluate, improve, and reward employee performance at work.
4. Career Development
Career Development is an ongoing, formalized effort by an organization that focuses on developing and enriching the organization’s human resources in light of both the employees’ and the organization’s needs. Career planning is the process by which an individual formulates career goals and develops a plan for reaching those goals. Career development and career planning should reinforce each other. Career development looks at individual careers from the viewpoint of the organization, whereas career planning looks at careers through the eyes of individual employees (Sims 2002).
5. Reward Management
Reward management deals with the formulation and implementation of strategies and policies that aim to reward people fairly, equitably and consistently in accordance with their value to the organization. It deals with the design, implementation and maintenance of reward practices that are geared to the improvement of organizational, team and individual performance. Reward management is an integral part of an HRM approach to managing people (Armstrong 2003). Reward management according to Heery and Noon (2001) is that aspect oh HRM that deals with the management of remuneration and, potentially, with the management of intrinsic rewards, such as recognition of employee achievement.
Although there is a plethora of information and data regarding human resource management in organizations, the researcher intends to contribute to the existing literature with a new focus. The focus of the present study is on creative management and its relationship with human resource management.
Chapter III: Research Methodology and Research Design
This chapter will discuss the research methods that the researcher intends to implement. This chapter will also discuss the procedure in gathering and coming up with relevant findings.
Methods of Research
Primary Research
In order to illustrate the relationship between creative management and HRM, the researcher intends to employ a descriptive type of research. The researcher will make use of survey questionnaires in order to find out how creative management and HRM are applied in Apple Daily Hong Kong. The survey will present useful information to determine whether combining creative management and HRM contributes to the success of Apple Daily Hong Kong. The responses of the subjects will be summarized, analyzed, and reported in order to make a general findings about the topic.
The researcher will also conduct an in-depth interview involving tow HR personnel from Apple daily Hong Kong. The aim of the interview is to ascertain how HRM practices and policies are being implemented in Apple Daily and how does creative management affect the HR policies and practices of the company. The researcher opted to use this king of research considering the desire of the researcher to obtain first hand data from the respondents so as to formulate rational and sound conclusions and recommendations for the study.
Secondary Research
The researcher will make use of published materials such as books, magazines and newspapers to collect data and information regarding the topic. The researcher will also make use of the internet to obtain information about the company such as its background and other related information. As a guide, the researcher will also refer to the previous lessons in class in order to apply theories and laws in the research. For the research, the researcher will mainly rely on secondary data in obtaining the information. Due to inaccessibility of the subject or the case study, other research methods are not applicable. Secondary data are data that have been collected for some other purpose. Secondary data can provide a useful source from which to answer the research question(s). Punch (1998) mentions several advantages of using existing data. Expenditure on obtaining data can be significantly reduced and data analysis can begin immediately, so saving time. Also, the quality of some data may be superior to anything the researcher could have created alone (Thomas, 2004, p. 191). On the other hand, the chosen research method also has several disadvantages. Data that have been gathered by others for their own purposes can be difficult to interpret when they are taken out of their original context. It is also much more difficult to appreciate the weak points in data that have been obtained by others. The data may be only partially relevant to the current research question (Thomas, 2004, p. 191).
To investigate the problem area a case study approach of Apple Daily Hong Kong will be conducted. The case study approach, as an academic research, is widely used. The strength of a case study approach is that it is possible to handle several types of empirical material like documents, artifacts, interviews and observations.
Modes of Data Collection
Survey
To facilitate fast and efficient data collection, and in order to reach respondents who are hard to meet personally due to their busy schedules and because of geographical constraints, the researcher sent the survey questionnaires through electronic mail. This can save both time and money. The questionnaires were sent to each individual in the sample by electronic mail with a request to be completed and then returned in the given date. The questionnaires were also collected in a similar manner. The advantages of this approach are that it is relatively inexpensive and it can be accomplished by the researcher alone. It also allows the researcher to have access to samples that might be hard to reach in person or by telephones, and it permits the respondents to take sufficient time to give thoughtful answers to the questions asked. The data that will be gathered will be organized and presented in a systematic manner to be able to draw valid and accurate conclusions.
Interview
In addition to the survey method, the researcher conducted a face-to-face in-depth interview. The researcher was the one who designed the interview questions. In addition, the researcher will also serve as the interviewer during the interview. The interview will involve two HR personnel from Apple Daily Hong Kong. The interview will be a useful data-gathering tool since it will aid the researcher in acquiring data from the interviewees.
Research Design
The research employed both qualitative and quantitative research methods. The primary source of information and data will come from survey that will be conducted by the researcher through electronic mail among the employees of Apple Daily. The list of the employees that have flexi-time arrangements was acquired by contacting the organization. Out of the list, the researcher randomly selected the target population.
The researcher conducted an in depth interview with two HR personnel in order to assess the company’s implementation of creative management and HRM. Through this research design, the researcher will gather pertinent information that will be instrumental to making a conclusion.
Respondents of the Study
The respondents of the study are employees working in Apple Daily Publishing. By contacting the organization, the researcher obtained the list of employees. The employees working in Apple Daily Publishing (excluding journalists and photographers) were sent electronic mails informing them about the research and requesting their participation. Through convenience sampling 100 employees were chosen to be sent with the electronic mail. Out of this 100, only 57 responded to the electronic mail. The researcher took out 7 respondents to participate in the validation of the research instrument. The remaining 50 employees will be the target population of the survey.
Ethical Considerations
The study will involve human participation and some company data will be used. Therefore, the researcher must bare in mind the ethical considerations that must be prioritized. The researcher values consent and respects confidentiality. The researcher will ensure that that she does not violate the privacy of the respondents and the confidentiality of company data. Securing the permission of the participants will be of utmost importance.
In order to ensure that the respondents and participants are well-informed about the study the researcher sent out a written letter explaining the details of the research, its objectives, purpose and procedure. The reasons why the respondents were chosen to participate in the study were also carefully explained. The researcher also aimed to create rapport and build trust between her and the respondents in order to ensure that the respondents will fully cooperate.
Research Instrument
In order to investigate how Apple implements creative management and HRM, the researcher prepared a survey questionnaire that will be sent to the target population. The researcher used open ended questions in the survey. Open-ended questions allow issues to be discussed more freely than would occur with close or structured questions.
In addition to the survey questionnaires that were sent to the employees of Apple Daily Hong Kong, the researcher conducted an interview with the HR personnel of the said newspaper. The aim of the interview is to determine how the company implements creative management and HRM policies and practices. The interview also aims to identify the benefits of creative management and the company’s HRM policies and practices to the employees and to the organization.
Validation of the Instrument
In order to validate the research instrument, the researcher will initially submit a sample of the set of interview and survey questions and after approval; the survey will include seven employees from the target population. Upon completion of the survey questionnaire, the researcher will ask the respondents for any suggestion or any necessary corrections to ensure further improvement on the instrument and at the same time validate its use. The researcher will then again analyze the survey questionnaire in order to ensure that it is reliable. The researcher is prepared to re-design the survey question, should the respondents report difficulty in accomplishing the survey questionnaire.
Administration of the Instrument
The seven respondents who were used to validate the research instrument will be excluded. The researcher will tally, score and tabulate all the responses to the survey questions. The researcher will use a structured interview. It will be consist of a list pf specific questions and the researcher will not depart from the interview structure. In order to acquire clear statements form the interviewees, the researcher may encourage or ask clarification from the interviewees. The researcher will never allow his beliefs, attitudes and opinions to interfere or to have weight on the findings of the research.
Chapter IV: Research Findings
Survey Questionnaire
The survey questionnaires were sent to the target population through electronic mail. Shown below are the questions that are in the survey questionnaire. The questionnaires were collected via electronic mail.
1. What are the creative management approaches that the company implements?
2. Do you think that these approaches are effective?
3. What do you think are the benefits of these creative management approaches to the organization?
4. What do you think are the benefits of these creative management approaches to the employees?
5. Please assess the effectiveness of the HRM practices and policies of Apple Daily Hong Kong. Please choose the number that corresponds to your answer.
1 – Ineffective
2 – Slightly Effective
3 – Effective
4 – Highly Effective
A. Recruitment and Selection
B. Training and Development
C. Performance Appraisal and Management
D. Career Development
E. Reward Management
6. Do you think that the company’s HR policies and practices contribute to its success?
Interview Guide Questions
The researcher formulated a guide questionnaire for the in-depth interview. The guide questions are presented below.
1. What are the creative management approaches that Apple Daily Hong Kong implements?
2. What are the benefits of these approaches to the employees and to the organization?
3. What are the HR policies and practices of the company that add to its success?
4. How does Apple Daily Hong Kong view its human resources (employees)?
5. How does Apple Daily Hong Kong view the HR department?
6. How does Apple Daily Hong Kong combine creative management approaches with HR policies and practices?
7. What are the advantages of combining creative management approaches with HR policies and practices?
Survey Results
1. What are the creative management approaches that the company implements?
Out of 50 respondents, 36 answered employee empowerment while 6 answered creative salary and reward schemes. Four (4) respondents answered employee participation in decision making in the form of focus groups and suggestion boxes, while 3 respondents answered flexible working arrangements. One (1) respondent answered open work climate.
2. Do you think that these approaches are effective?
Out of 50 respondents 47 said that the creative management approaches of Apple Daily Hong Kong are effective while 3 said that they are not.
3. What do you think are the benefits of these creative management approaches to the organization?
- 10 Respondents – Be able to create an open work environment for the employees that will increase performance and motivation.
- 8 Respondents – Be able to make the employees commit to the company’s goals and objectives.
- 8 Respondents – Be able to attract and retain talented employees.
- 7 Respondents – Be able to hear the voices of the employees, therefore making decision-making more effective.
- 6 Respondents – Increase the company’s competitive advantages.
- 5 Respondents – Be able to be more flexible and adapt to the changes in the micro- and macro-business environments.
- 5 Respondents – Increase earnings because of high employee performance.
- 1 Respondent – Earn a good reputation with various stakeholder groups.
4. What do you thin are the benefits of these creative management approaches to the employees?
- 32 Respondents – Increased in the employees’ ability to change or develop the way their jobs are done
- 15 Respondents – Ability to influence decisions regarding the employees’ work
- Respondents – Increased employee participation in organizational decisions
5. Please assess the effectiveness of the HRM practices and policies of Apple daily Hong Kong.
A. Recruitment and Selection
41 respondents said that the recruitment and selection process of the company is effective while 9 said that it is highly effective.
B. Training and Development
33 respondents said that the training and development strategies of the company are highly effective while 11 said that it is effective. 6 respondents said that it is slightly effective.
C. Performance Appraisal and Management
20 respondents said that the performance appraisal and management practices of the company are highly effective while 15 said that it is effective. 9 respondents said the performance appraisal and performance management practices of the company are slightly effective. 6 respondents said that the performance appraisal and management of the company are ineffective.
D. Career Development
45 respondents said that the career development practices of the company are highly effective while 5 respondents said that they are effective.
E. Reward Management
39 respondents said that the reward management strategy of the company is effective while 11 said that it is slightly effective.
6. Do you think that the company’s GR policies and practices contribute to its success?
47 respondents said yes while 3 said no.
Interview Results
1. What are the creative management approaches that Apple Daily Hong Kong implements?
Interviewee 1: Our organization has a very active employee empowerment commitment. The organization from top to bottom is committed in making the employees empowered and giving them more participation in the decision-making process, especially regarding their jobs.
Interviewee 2: I think that the human resource management philosophy of the company is creative as well. The company implements strategic human resource management, meaning, each department must integrate its policies, practices, and processes to the organizational goals and objectives. I think strategic human resource management is important for creative management to succeed. They go together. Strategic HRM integrates the company’s human resources with the goals and objectives of the organization while creative management is all about coming up with new ways of achieving those goals and objectives and making the employees more empowered to do their jobs.
2. What re the benefits of these approaches to employees and to the organization?
Interviewee 1: To the organization, the benefits all boil down to improved performance because the employees are motivated.
The employees get a sense of empowerment that makes them more committed and motivated. They have more freedom to decide how they do their work. They become more committed to the organization’s goals and objectives because they know that they participated in creating them. So there is a sense of ownership.
Interviewee 2: To the organization, the benefits is increased employee performance and greater ability to attract and retain talented employees. And of course greater earning because of increased employee performance.
The employees become more empowered. The organization becomes more committed to training and developing them, making sure that they are equipped with knowledge, skills and abilities to make informed work-related decisions.
3. What are the HR processes of the company that add to its success?
Interviewee 1: The company strategic human resource management, that means that all HR processes must add to the company’s success.
Interviewee 2: Like what I have said, the company believes in strategic human resource management. That entail integration of all HR practices with the goals and objectives of the company. So I can say that all HR practices contributes to the success of the company.
4. How does Apple Daily Hong Kong view its human resources (employees)?
Interviewee 1: The company views its employees as a source of competitive advantage.
Interview 2: A source of competitive advantage.
5. How does Apple Daily Hong Kong view the HR department?
Interviewee 1: Strategic partner and human capital steward.
Interviewee 2: Partner in making sure that the company’s human resources’ or employees’ efforts are directed towards the achievement of organizational goals and objectives.
6. How does Apple Daily Hong Kong combine creative management approaches with HR processes?
Interviewee 1: Through strategic human resource management. Through SHRM the company views its human resources as a source of competitive advantage. That is why the company is constantly looking for ways to improve the working conditions of the employees and to tap the knowledge, skills, and abilities of the employees. This is achieved through creative management.
Interview 2: The company combines creative management approaches with HR processes through strategic human resource management.
7. What are the advantages of combining creative management approaches with HR policies and practices?
Interviewee 1: A more adaptive and flexible company that has the ability to innovate and to direct its human resources to achieving its goals and objectives.
Interviewee 2: Increased performance, flexibility, good relationship between management and employees, intelligent decision-making, commitment from both sides (management and employees).
Chapter V: Data Analysis
According to Xu and Rickards (2007) creative management is the study and practice of management, drawing on the theories of creative processes and their application at individual, group, organizational and cultural levels. Creative management is associated with new forms of management practices (Henry 2001). The changing business environment has placed traditional command and control management practices under pressure. Increasingly organizations are experimenting with more creative forms of management that rely more heavily on participation, self-organization, facilitation and nurturing. One of the creative management approaches that both respondents and interviewees have identified in the data collection process is employee empowerment. Indeed many authors have pointed out that employee empowerment is one of the most popular form of creative management (Henry 2001; Amar 2002). According to Oden (1997), the objective of empowerment is to tap the creative and intellectual energy of everybody in the company and provide everyone with the responsibility and the resources to display real leadership within their own individual spheres of competence. For empowerment to occur, companies must undertake two initiatives: first is to identify and change organizational conditions that make people powerless, and then second is to increase people’s confidence that their efforts to accomplish something important will be successful. Empowering employees according to Sims (2002) is a popular approach to work organizations. It means giving employees the authority, tools, and information they need to do their jobs with greater autonomy, as well as the self-confidence required to perform the new jobs effectively. Empowering is inherently a motivational approach. It boosts employees’ feeling of self-efficacy and enables them to more fully their potential, satisfying high-level needs for achievement, recognition, and self-actualization. Empowerment results in changes in employees’ effectiveness. The result is that people take more initiative and persevere in achieving their goals and their leader’s vision even in the face of obstacles. According to both respondents and interviewees, Apple Daily Hong Kong implements employee empowerment as a creative management approach.
It is also important to note that one of the interviewees mentioned strategic human resource management (SHRM) as a creative management approach. The researcher consulted published materials regarding SHRM. Strategic human resource management involves the linking of HRM with the strategic goals and objectives of the organization in order to achieve a progressive business performance and achieve an organizational structure that promotes innovation and flexibility (Buyens and de Vos 1991). Strategic HRM according to Burke and Cooper (2004) has emerged as a major approach to improving the competitive advantage of the firm. The goals and objectives of HRM are aligned with the strategic objectives and plans of the organization. The role of HRM is to determine the human resources needed to support strategic objectives and to ensure that employees are selected, trained, evaluated, and rewarded in ways that further the achievement of business objectives. Strategic human resources management means accepting the HRM function as a strategic partner in both the formulation of the organization’s strategies and the implementation of those strategies through activities such as recruiting, selecting, training, and rewarding personnel (Sims 2002, p. 27).
The interview also reveals that Apple Daily Hong Kong combines creative management and human resource management through SHRM. The different processes of SHRM according to Sims (2002) are the following:
1. HR Planning
In HRM planning, planners analyze an organization’s HRM needs in a dynamic environment and develop activities that enable an organization to adapt to change. The HRM planning process involves forecasting HRM needs and developing programs to ensure that the right numbers and types of individuals are available at the right time and place (Sims 2002).
2. Recruitment and Selection
Employee recruitment involves interview, screening, and selection of most qualified candidates, filling of positions through transfer or promotion and coordinating temporary employment. The aim of recruitment is to identify a suitable pool of applicants quickly, cost efficiently, and legally. Selection or staffing involves assessing and choosing job candidates (Sims 2002).
3. Training and Development
Training and development such as orientation, performance management skills training, and productivity enhancement are planned learning experiences that teach employees how to perform their current and future jobs. Training focuses on present jobs, whereas development prepares employees for possible future jobs.
4. Performance Appraisal
Through the performance appraisal process, organizations measure the adequacy of their employees’ job performance and communicate these evaluations to them. Performance appraisals are a critical link in the HRM process, as they assess how well employees are performing and determine appropriate rewards or remedial actions to motivate employees to continue appropriate behaviors and correct inappropriate ones. The HRM role in performance appraisal is one of working with other managers in the organization to establish the appraisal process, the performance dimensions to be measured, the procedures to ensure accuracy, and requirements for discussion of appraisal results with employees (Sims 2002).
5. Career Development
Organizations are becoming more active in developing career development programs. Many organizations are designing career programs in an attempt to increase overall organizational performance and employee productivity, and to attract, develop, and retain the most qualified employees in this increasingly competitive and global environment (Sims 2002).
6. Compensation
The aim of compensation practices is to help organizations establish and maintain a competent and loyal workforce at an affordable cost (Sims 2002).
The interview and the survey also revealed that the organization views its employees as a source of competitive advantage which is in agreement with the resource based perspective of SHRM. Looking at the firm in a resourced-based view has given birth to the idea that Human Resource can be a source of competitive advantage for the firm. The importance of HR as a source of competitive advantage sprung up from the resourced-based view of the firm, which presents a notion that firms develop competitive advantages through valuable and inimitable internal resources. The resource-based view is a conceptualization of firms as unique bundles of accumulated tangible and intangible resource stocks. Resource stocks are defined as internal attributes, including assets, capabilities, processes, routines, and knowledge, that are tied semi-permanently to or controlled by a firm (Barney 1991; Wernerfelt 1984 cited in Niehaus 1995). Viewing SHRM in a resource-based perspective, Wright and McMahan (1992) argues that human resources have the ability to provide sustained competitive advantage through the fulfillment of four basic requirements.
1. Human Resources can be a source of competitive advantage if they are able to add value to the production processes of the firm.
2. Human Resources can be a source of competitive advantage if they are equipped with rare skills.
3. Human Resources can be a source of competitive advantage if they are able to yield a human capital that is hard to imitate. Although human resources are not subject to the same degree of imitation as equipment of facilities, the firm can invest on its human capita to in order to further decrease the probability of such imitation by qualitatively differentiating a firm’s employees from those of its competitors.
4. Human Resources can be a source of competitive advantage if they are not subject to replacement by technological advances or other substitutes.
Viewing human resources as a resource that has the potential to contribute to the achievement of sustainable competitive advantage, Burke and Cooper (2004) argued that SHRM has emerged as a major approach to improving the competitive advantage of the firm. As an approach to improving the competitive advantage of the firm, the aim of SHRM is to attract, train and develop and retain employees of the highest quality.
If the company’s employees are seen as a source of competitive advantage, the company views the HR department as a strategic partner and human capital steward. As a strategic partner, the HR department adds value to the organization by understanding business operations. The HR manager and personnel possess operational experience in functional areas such as marketing, finance, operations, and sales. They understand business conditions to generate pertinent practical solutions for the stakeholders (Gilley and Maycunich 2000). As a Human Capital Steward, HR contributes to strategic capabilities by developing, leveraging, renewing, and nurturing a firm’s stock of knowledge, skills, abilities, interests, and talents. HR is there to help ensure that every individual is able to make value added contributions by identifying and cultivating individual competencies and capabilities. HR delivers people strategy by ensuring that renewal and rejuvenation are on-going activities. HR contributes to organizational success by initiating training and development activities and by creating a culture of continuous learning. HR shapes the values and provides the contextual backdrop that enables people to take initiative and use their judgment in a flexible and fluid business setting. The role of HR is not to create a dependency between the employee and the HR unit, but to forge a partnership that leads to increased intellectual capital, enhanced commitment, greater awareness of opportunities to make a difference, and adaptability (Lengnick-Hall and Lengnick-Hall 2004).
Chapter VI: Recommendations and Conclusion
Making Employee Empowerment Work
In order to effectively empower the employees, the company must:
- Make sure people understand their responsibilities
- Give them authority equal to the responsibilities assigned to them
- Set standards of excellence that will require employees to strive to do all work “right the first time”
- Provide them with training that will enable them to meet the standards
- Give them information that they need to do their jobs well
- Trust them
- Give them permission to fail
- Treat them with dignity and respect
- Provide them with feedback on their performance
- Recognize them for their achievements (Sims 2002)
Goal Setting
Managers and employees need to understand each other’s goals. In addition, managers are responsible fro helping employees in setting goals or objectives. With a clear understanding of explicit goals or objectives, managers and employees can work together to achieve specific outcomes (Sims 2002).
Lifelong Learning
Lifelong learning provides extensive continuing training, from basic remedial skills to advanced decision-making techniques throughout employees’ careers. Lifelong learning programs can achieve three things. First, the training, development, and education provide employees with the decision-making and other knowledge, skills, abilities, and experiences they need to competently carry out the demanding, team-based jobs in today’s organizations. Second, the opportunity for lifelong learning is inherently motivational. It enables employees to develop and to see an enhanced possibility of fulfilling their potential; it boosts employees’ sense of self-efficacy; and it provides an enhanced opportunity for the employee to self-actualize and gain the sense of achievement that psychologists like Maslow, McClelland, and Herzberg correctly argue is so important. Third, although lifelong learning may not cancel out the potential negative effects of downsizing, it might at least counterbalance them to some degree by giving the employee useful and marketable new skills (Sims 2002).
For future studies, researchers may opt to focus on how creative management can be implemented in organizations and how organizations are implementing creative management. This can be helpful in building the creative management literature.
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