HR 101 INTEL CASE STUDY: Selecting an HR strategy1. IntroductionLike all of the other major business functions, human resources must accomplish a wide range of activities from basic transaction processing to strategic planning in order to be successful. The importance ascribed to each of those functional activities in large part represents your human resource strategy.Delivering a strategic impact
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HR 101 INTEL CASE STUDY: Selecting an HR strategy
1. Introduction
Like all of the other major business functions, human resources must accomplish a wide range of activities from basic transaction processing to strategic planning in order to be successful. The importance ascribed to each of those functional activities in large part represents your human resource strategy.
Delivering a strategic impact requires development of a strategy that supports the corporate business objectives, aligning and prioritizing each of the various activities to support and help accomplish those objectives. While an infinite number of HR strategies can be formulated, most in use today fall under a relatively small number of models. While I don't recommend using a strategy just because of major firm uses it, it is helpful to know what the range of strategies available to HR are. This article highlights the various HR strategy models and provides some insights into the advantages and disadvantages of each.
2. What are the most widely used HR strategies?
If you study successful organizations around the world, you'll find that there are a finite number of HR strategies in use. Although each of the strategies listed below is a distinct category, many firms use them in combination in order to arrive at an approach that best fits their situation. For example, stable business units that provide the core revenue base for an organization may operate under one strategy while a business unit that focuses on future development may operate under another.
Widely admired firms like Intel, General Electric, Cisco, Nucor and Microsoft have found that a "performance culture" is the best approach to drive their success. While other excellent companies such as Hewlett-Packard, Oracle and Dell Computer have adopted an e-HR strategy where technology permeates everything they do in HR. Other successful companies have achieved good results using the more traditional business partner or personnel strategy. Each category has its advantages, costs and disadvantages so be sure and compare and contrast them before deciding that any one is the overall best.
3. The 10 basic HR strategies
The 10 basic most commonly used HR strategies or models are:
A. Personnel
B. Generalist
C. Business partner
D. Call centre
E. Outsourced
F. Centers of excellence
G. Self-service
H. Fact-based decision-making
I. e-HR
J. Performance culture
K. Strategy models defined
Understanding cultural traits and designing policies and rules that take them into account can help foreign companies in China address important human resources issues.
Company Description
What is Intel's goal?
What actions has Intel been taking?
Corporate branding
Personal, not group, loyalty
Disregard for rules and regulations
Evading responsibility
In China, expatriate officials and managers of Intel often complain that they do not have enough authority to do their jobs.
Lack of sincerity
Chinese rarely speak candidly, in part because of the importance of "face" in Chinese culture
Dangers of inequality and jealousy
Despite great improvements in China’s overall standard of living, people harbor deep-rooted prejudice against the rich
Widespread contempt for others
Looking down upon others is a common habit in China.
Working with the local culture
Despite all of the negative traits discussed above, Chinese people also have many positive cultural traits.
Successful HR Practices
Intel has succeeded in implementing human resources (HR) policies in their China operations that reduce conflict among their staff, promote retention, and improve performance.
Constructive confrontation, open communication, and risk taking
Intel Corp. has a policy of encouraging constructive confrontation, in which employees are exhorted to criticize their colleagues’ and managers’ ideas.
Grooming talent and fostering loyalty
Intel has a mentoring system that assigns a mentor to every manager. Employees
HR as competitive strategy
Intel in China - A Case Study in Developing Learning (Apr 06)
April 10, 2006
Questions :
- Evaluate INTEL’s shift in strategy ?
- What could be the impact of Chinese culture in INTEL in its functioning in China ?
- Can HR be considered as a’ competitive strategy’ under Chinese culture ?
- Do you think Intel’s mentoring system will be effective among Chinese employees ? Justify your answer
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