Organizations succeed nowadays through benchmarking other companies either from similar industry or from different ones, to determine best practices or solutions that they can incorporate to achieve organizational goals. This benchmarking paper tackles some of the issues and practices followed by these companies. In addition, the analysis reveals how corporations strategize their plans and put them into practice to handle or resolve challenges they face. The analysis takes into consideration some of important strategic human resources management concepts in conjunction with the issues explored.
Examples of issues and concepts addressed in the paper are organizational fit and employee retention, behavioral impact of human resources management practices on organizational performance, training, and development. The research was conducted to compare and contrast how other companies addressed situations similar to those of Riordan. Our team evaluated companies that operate in different fields such as oil industry, specialty drinks industry, railcar, technology industry, and information and communication technology. The companies evaluated in this paper are BP P.L. C Amoco, Miller Brewing, Starbucks Corporation, and General Electric (GE), Gatx, Alphawest.
The benchmarking of these businesses revealed several theories and models of strategizing used in handling issues similar to Riordan’s and how these companies used these strategies successfully. BP P. L. C Amoco by Anida Magaya BP (British Petroleum) is one of largely integrated oil and gas companies globally. Its operations consist of exploration and production of gas and crude oil, in addition to marketing and trading of natural gas, power, and natural gas liquids.
BP is headquartered in London, UK and employs about 80,300 people (DataMonitor, 2010, p. 4). Companies go through numerous process development changes to achieve high performance and profitability. Riordan faces increased employees’ turnovers because of increased dissatisfaction and low morale. Unlike Riordan, BP Amoco had to dismiss thousands of its employees from the firm. Like Riordan PB company underwent huge layoff.
This came as a result of the merger of British Petroleum and Amoco Corp. British Petroleum Co.plc acquired Amoco Corp. in a $55 billion deal in late 1998. Shortly after the deal, like Riordan, PB announced its plans to cut large numbers of employees’ worldwide including USA areas, Alaska, and Canada.
Riordan will need to recognize the significance of employees’ retention during its transformation phases. Riordan can develop well structured training programs and workshops to manage the turnovers experienced by the company. Loss of employees through layoffs or excessive turnovers can have adverse effects on a company’s performance.
At some stage, these workers will need to be replaced, thus resulting in extra costs, as new employees usually require extensive training and time to learn and master their jobs. Other alternatives that Riordan can also consider would be; first, to allow and encourage feed back from employees, which is one of the solutions followed by BP. Feedback has been perceived recently to be an effective way of receiving inputs from subordinates in matters that concern the organization’s progress. Through this method Riordan can discover the core issues that face their HR and employees.
Moreover, Riordan’s CEO can relinquish some power to the company’s HR to manage these processes effectively. For that matter, Riordan can hire a new HR director to replace Yvonne McMillan. Riordan’s New HR personnel will also need to have previous experience in HRM while undergoing transformation to device strategies that would support the department’s role during the change process. Starbucks Corporation by Anida Magaya According to DataMonitor (2010, p. 4). Starbucks Corporation is a global retailer that specializes in coffee brewing and serving.
The company is headquartered in Seattle, Washington and employs about 142,000 people. Starbucks’ philosophy links human resources practices with every business strategy. Starbucks’ philosophy is beyond selling coffee, it strives to sell an overall experience. The approach of Starbuck has made the company one highly enjoyed workplaces and has linked two critical business components successfully together, creating an optimal customer experience. In addition, the company has re-creatable processes joined with consistent performance that all stores execute with intention of retaining customers, creating brand loyalty.
Riordan can develop the same systematic approach by carefully planning and organizing to support employees.?? Properly designed strategic HRM practices can add value to Riordan helping it to maintain a competitive advantage. “Strategy, at least at the tactical level, can and should vary across organizational levels and occupational types within a particular firm” (Dreher & Dougherty, 2001, p. 178). Starbucks ability to entwine its human Resources philosophies with the business strategies is a tremendous success of the organization’s leadership abilities.
Riordan’s use of this benchmarked company will necessitate for the company to determine the strategic influence of its human Resources issues on the organization’s effectiveness while managing a restructuring phase successfully with a compressed timeline. One of important tasks to be considered by Riordan is to create a strategic plan supported by a tactical incorporation of the human resources philosophies with business strategies. This will need to include every functional component of the company as well as an open communication channel.
Comparatively, both companies possess competent, forward looking management, though it appears communication and mentalities may be problems Riordan will have to mitigate to be successful. Thus, linking a business’ strategies to its human Resources is essential for organizations. Riordan must involve its HR in the company’s strategic planning. The company’s HR must be knowledgeable of all strategies needed to address current changes of the business. Riordan’s HR director must be involved in the company’s strategic planning and communications so they can perform appropriate development programs to support the company’s strategies.