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Trends over the last 50 years clearly indicate changes in both society and business world. Society’s changing patterns concerning communication, competitiveness, globalisation, and well-being have bring new challenges into the business industry. Technology advancement, outsourcing, and constant competition towards products & services but also employment benefits, involve a perpetual adaptability of the organisation. “It is the context within which people are managed that is changing, and personnel management has had to re-position itself in the ever-changing environment of global competition, new technology, and new methods of working and organising work.” (Armstrong, 2001)
These changes are closely linked which the decline of the Industrial Age and the emergence of the Information Age (early 80s) focus on the exploitation of the technology to access and spread efficiently information worldwide. (Stamford, 2011) Organisations require updating knowledge regarding technologies, global markets, competitors and customers to gain sustainable competitive advantage. Consequently, it is essential to constantly invest in developing their human capital. As highlighted by Cole (2002) the Human Resources (HR) approach may assist firms to be able to face these permanent changes through specific strategies. Considering the current situation of Zintas Electronics, the company would benefit from adopting a HR approach. First of all, the complacency and insularity of Zintas Electronics refrain considerably the possibility to afford new changes within the company. Due to this fact, maintaining its place on the market is difficult, especially in a constantly moving sector as electronics which requisite regular improvements, innovation and knowledge’s updates. As advised by Armstrong (2001), it is imperative to unceasingly and quickly learn in order to face today’s permanent change. In the agenda set by Ulrich (1998, cited in Henderson, 2011, p.4) concerning the HR four roles, he defined the HR model as an “agent of continuous transformation”. Through specific processes, HR can support the organisation during its transition. Firstly, establishing a strategic planning will define what and how Zintas Electronics can do to meet current requirements but also to predict what will be needed in the future to anticipate eventual problems. Secondly, Zintas should adopt a learning organisation culture by providing appropriate training to its employees, and focusing on leadership development. The people management policies of Zintas included a system of lifetime employment which can suggest that senior managers’ knowledge and skills may be obsolete if no development schemes have been provided. Thus, according to Hitt, Miller & Collela (2011, p.21), sustainable competitive advantage is built with the quality of the human capital which embrace “value, rareness, and difficulty to imitate”.
As a result, HRM may bring a solution to the company by evaluating the adequate training/ development necessary to Zintas’s employees in order to shape a higher qualify human capital value to enhance the current and future situation. By being well trained, employees will gain confidence and motivation which will also benefit the company as it will increase their productivity. This refers to the psychological contract between the company and its employees which would be appropriate to Zintas Electronics management policies.
Finally, the actual situation of Zintas which is in serious decline for several years supposes that a constant pressure to satisfy customers’ need at the lower possible cost can be feel by employees. This pressure can be seen as a signal that a change within the company is essential to make the best use of its human resource. Flexible working can be a solution as it will balance employees’ life and generate a positive impact on their consideration for the company and their own motivation. In addition, this business strategy reduces absenteeism, increase productivity, and employee commitment. (ACAS, 2007) However, a lack of employee flexibility has been observed in Zintas Electronics. This situation affects the productivity and employees’ involvement. The HRM job design and remuneration approaches can be beneficial to Zintas Electronics. Firstly, employees will be encourage to take initiatives, empower to solve problems and collaborate for both their own and the organisation sake. Feeling as a part of the organisation, their approach will be more positive and will be reflected on their jobs. Concerning the remuneration, it is advisable to use the HRM method based on equitable rewards contribution, focused on individual or team performance. (Boddy, 2002) Through these approaches, employees’ willingness and positivism will be develop and efficiently contribute to the rise of Zintas Electronics.
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