Human Resource Management Strategy free essay sample

Human Resource Management Strategy:Intangible assets Talk about ‘strategy’ we can trace back to a general Greek word ‘strategos’. It means ‘army’ and ‘lead’. (Bracker, 1980 cited in whittington,1993). The same as the case of HRM, traditional HRM not taken serious until it undergo the test of time. Intangible assets include trademark, copyright, business secret and so on. Human Resource is the significant intangible assets of enterprise competition ability today. Sometimes intangible assets are valuable than physical assets. For example†¦ The John Lewis Partnership has been developing an unusual HRM strategy. This enterprise divides to two subsidiaries of the John Lewis Department Stores and the Waitrose supermarket chain. There are about 66,000 staffs which named ‘partners’ not ‘employees’ working for JLP. Further, this organization is owned by all partners not employer. There is a complicate organization structure for a democratic enterprise. Each democratic bodies has right to decide their representatives by voting. Their HRM strategy focuses on ‘employer of distinction’ and emphasis on a fair competition model. We will write a custom essay sample on Human Resource Management Strategy or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The centre of the strategy is ‘powered by our principles’ (PbOP) which comprises faithful, honesty, esteem, commission, achieving common target. First of all, they have a set of method for each stage of the partners’ career. For instance: evaluating, recruitment, training, promotion and so on. Each partners’ behaviors were reported. Following, other feature is setting appropriate work-life balance to ensure the balance between home, leisure and work. There is a career vacation plan for every partner with five years’ work. There are a large number of benefits which partners can choice by themselves. Such as travel to a desirable country, check in luxury hotel and boating. Thirdly, HRM strategies of JLP maintain competitive salary and attractive benefit based on annual financial reports. Such as 2005, the organization take out 15% profits as bonus which cost 1870 pounds for each partners. It is approximately triple folds than Marks Spencer’s bonus which paid 500 pounds for each employee. John Lewis also has a unique non-contributory strategy of pension. Compare with companies in this industry such as Tesco and Sainsbury, they require contribution and even raise the contribution rate. Finally, there is a magazine named The Gazette which all level partners can publish anonymous article to criticize managers even chairman and afford information to all partners. John Lewis who is the founder of JLP recognized a freedom work circumstance is one of the keys to succeed. John Lewis Partners was ranked NO. 1 in for salary and bonus and NO. 4 in the guardian best entrepreneur in 2005. In opinion polls, John Lewis was called the best fair employer. John Lewis Department Stores and Waitrose, they belong to one organization. The strategy of John Lewis Department Store is a little bit similar to that of Semco which is a democratic company. They both used HRM strategy successfully. There are several advantages of democratic organization. Such as their employees are more enthusiastic and more active for their work, more accurate decision-making by make every staffs’ suggestion together because of two hands are better than one and attract more talent to their companies. Democracy must become a mainstream management strategy as intangible assets. All in all, while traditional HRM strategy is always downplayed by organization, nowadays HRM strategy as a significant intangible asset becomes more and more popular. Although intangible assets cannot be seen and touched, it makes a huge number of invisible money. Use these intangible assets can bring unexpected rewards. With the development of HR, more potential competence can be found.