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Introduction
In the tough buiness world, especially in highly competitive mobile device market
with rapidly changing technology and customer trends, enormous corporations such as
Samsung, Apple Inc. or Sony must constantly innovate their operartional system to achieve
given goals. One of the most critical fators which helps the company effectively in doing its
business is apparently human resources and the implementation of recruiting new employees
takes business owner time and effort to strictly contrive for the most effectual staff
particularly when the company sets foot in new market.
Apple Inc. is a multinational technology company with the most successful product of
smartphone IPhone and operating system IOS, which led the company to be the largest and
most lucrative one among information technology companies since 2010 (Hoog, A. and
Strzempka, K. 2011). As other business, Apple Inc. always aims to develop its brand with
high quality employees, which requires a good strategic human resources plan. The current
problem that Apple Inc. is facing is how to new employees and manage them effectively,
especially when the company wants to expand its branches and subsidiaries in new and
promising markets such as China, India and other Asian countries. The predictable scenario
that Apple Inc. consultants can calculate is such as the relocation, compensation package or
local condition for its employees when being moved to a new country, plus the possible
problems if Apple Inc. decides to hire local employees.
Apple Inc. Inc.s organizational strategy and its impact on the companys
strategic human resource planning
Organizational strategy and strategic HR planning definition
Theoretically, according to Venkatraman, and Grant in an article in 1986,
organizational strategy can be defined as an expression of how an organization are expected to
do over a period of time to meet its long term objectives which is attached with an elaborate
appraisal of what the organization must do to complete the mission above. A well-developed
organizational strategy needs to be comparatively pointing out the difference between the
current state of the organization and the expected state that it acquires in the future with a
strict and detailed actions which are necessary to be done in order to reach the targeted goals.
Also, Miles (1978) has mentioned the necessity of a systematic and scientific process towards
organizational strategy with clear framework to adopt as long as it fits the organization both
internally and externally.

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Following the argument of the irreplaceability of human resources (HM) in any


organization - the most important component of an organizational strategy, strategic HR
management must be implemented with utmost attention and effort. The first step to links HR
management straight to the organizational strategy is the practice of strategic HR planning,
which gives the business owners a guideline to lead their organizations in meeting the
objectives. Freeman (2010) in his book approaching this issue with thorough perspective has
defines strategic HR planning as a practice of planning to integrate HR management strategy
and the organization to achieve the overall objectives as long as satisfying the needs of all
employees and stakeholders.
The organizational strategy adopted in Apple Inc. and its relationship with HR
planning
In the case of Apple Inc. when setting foot in promising yet challenging markets such
as China, the company has to face the problem of ensuring the adequate employees with high
quality to undertake the construction of a new empire in foreign market with plain difference
in culture, norms and customer preference.
Currently, Apple Inc. has covered its all areas of the company within its organizational
strategy including the finance, production assembly, operations, R&D, marketing and
obviously HR management. The departments in the company have been formed in categories
based on the functional similarity. Each department also operates as a sub-company with
system and hierarchies. Following that, HR in Apple Inc. are sorted into departments based on
their resources and expertise, which makes sure that all departments in Apple Inc. can work
perfectly and smoothly. The structure that the company is adopting for its operation mainly
focuses on activities that can reduce the cost and increase the flexibility within the internal
environment. The policy of reducing cost can be seen clearly in the action of Apple Inc.
moving some of its largest manufacturing firms to developing countries, where they can take
advantage of low price labors and currency. Apple Inc. has opened more retails in China and
other Asian countries in the last five years as a part of conquering these potential markets as
well as release burden in its home factories. With Apples exclusive and confidential
technology combined with local assembly and labors, Apple Inc. believes to expand its scale
of production yet cut down the budget on conveyance. However, the plan of making more
branches and subsidiaries in China leads the company to transfer some of its key staff from
the United States to undertake important positions, which also make a concern of
restructuring the HR planning within the entire company. Apple Inc. cannot displace its
employees against their will because it conflicts with the democratic culture within the

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company, so the directors had to make a lucrative offer to make them take a trip to China for a
new job, and more than that a new career scenario. Additionally, the expansion of Apple into
China also has a huge impact on HR planning of the company for the large amount of
transferred employees as well as the hard work of ensuring the new life for them. Financially,
the company has to commit to pay the employees equivalent to the sacrifice they take when
working in foreign countries with different language, culture, climate, the exchange rate
between two currencies, location, transportation allowance, etc. Another point is due to
difference of language and culture, Apple Inc. compulsorily hires local employees for their
knowledge of the market and local customers. It is supposed to be a challenge for HR
planning to search, select, recruit and then train the new local employees inculcated with the
companys overall culture and working style. For the issues above, perhaps Apple Inc. has to
spend more than they are doing in the United States, which means financial management
within overall organizational strategy must be recalculated. Speaking of finance, Apple Inc.
intends to circulate its profits from smartphones (IPhone) to R&D activities because as we all
know, the success of R&D is the key to the success of the business performance of the
company.
The importance of HR planning examples to Apple Inc.
The importance of HR planning to any company is obvious including Apple Inc.
According to Schuler and MacMillan (1984), the success of a company in its HR planning
rest on the power of using the right person in the right role. The recruiter should make his best
to select the most appropriate person for the given position, not the best. For instance, when
the company needs a sales employee for its new Macintosh product, Apple recruiter has to
make a decision between person of high expertise of Macintosh and person of high sales skill,
the sales skilled person should be taken into account for the functions of the job. Plus,
investing in human is looking at the long term goals of a company, HR planning involves in
forming an organizational structure for its recruiting and training persons that make up the
structure. HR planning also gives the managers a clear and accurate cost of hiring new
employees and training them and apparently, HR planning monitors any changes of personnel
related issues. For example, in this quarter of the fiscal year in Apple, the company focuses on
develop a new function on IPhone 7 (presumed to launch in 2016), HR department has to call
for a tactic team or make a plan of hiring new experts for complete the project.

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Apple Inc.s recruit practice and recommendations on whether Apple Inc. should
recruit internally or externally
Strategic recruitment definition
HR planning is critical to the survival of the organization in tough and competitive
business world, and the practice of recruitment is the first step to implement it. As defined by
Human resources management published by Oxford University Press, 2011, strategic
recruitment means recognizing the actual recruitment needs of the organization and taking
necessary actions to fulfil those needs in terms of quantity, quality, required skills in area of
the operation of the organization. The quality of employees that are hired from the recruitment
stage can decide the future of the organization while the quantity will measure the exact cost
for recruitment and avoid over-recruiting situation.
Advantages and disadvantages of both internal and external recruitment for
Apple Inc.
As mentioned above, when Apple Inc. expand its brand into a new and foreign market,
they need to consider recruiting employees for the new branch with source which can take
from within (moving US employees to new country with meriting treatment - internally) or
hire local labor (with threat of leaking technology secrets but solving out the problem of local
customer issues externally). Comparing two style of recruitment, each of them also has pros
and cons, which are explained elaborately in adaptation in the case study of Apple Inc. as
followed.
About, internally recruitment, it is undisputable to realize the convenience of
recruiting from within the organization, for easier access of applicants available information.
The employees which can be offered to move to China have been tested carefully and it is
safe to use them for new mission. The company does not need to attempt to investigate their
background because they have done that before. Plus, those employees has experience to
work for Apple Inc. and already be familiar with the companys policies, working style,
culture, etc. and they would quickly get along with jobs in new branches. Another advantage
that can be said is that it is supposed to be an opportunity for the employees to prove and
improve their loyalty to the company. In the case of Apple Inc., the employees who agree on
the deals of working in new countries must gain more trust and along with it bonus from the
company. They would get more compensation payment for their sacrifice such as relocation
cost, working allowance and periodical visit to home.
However, it still hides some disadvantages. First, it can narrow the thinking of
looking new factors, which would be seen in long term in many years after. When the

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company merely counts on available resources and is fainant to find new employees, it has
missed chances to add more talents. Second, it can create some conflicts within the company,
such as discontent of rejected employees, who considers the trip to new country is a chance of
promotions and are turned down.
About, external recruitment, the advantages can be learnt from the disadvantages of
internal recruitment, which is supplements new factors to the company. New employees from
a new country with new and creative ideas for the targeted markets are what Apple Inc. needs
in thriving its business position. Plus, they would bring more insights of their industries to
Apple, which can save time in R&D activities of new markets. Another advantage is it can
reduce the cost for Apple for the exchange rate of two currencies (in this case is US dollars
and Chinese yuan (renminbi)), the labor cost paid for local labors is cheaper than that for US
employees, even at the same level.
However, some disadvantages cannot be ignored. First, Apple would be passive in
investigate applicants information for lack of tools and resources. More dangerously, they
might be business spies from rivals to destroy the company from within, so that Apple Inc.
needs to be cautious and implement it carefully, which yet take longer to find the appropriate
ones. Second, hiring employees of different cultures can cause conflicts between new and old
ones. Internal confrontation in the company can destroy the team spirit within the members
and it gives the company challenge to operate smoothly and effectively.
Recommendations
As recommended from the author, Apple Inc. should still maintain both two styles of
recruitment for the huge advantages of each. Moving expertise employees from the United
States to new market can make the company easier to start the work right away
simultaneously take advantage of their experiences and skills. Hiring new local employees
can reduce cost at a certain level, yet relief the cost of transferring too many people. The
suggestions here is Apple should just make a displacement of top-level manager to new
market for important positions, which hold confidential information of the company and hire
local employees for less important jobs such as assembly worker, sales staff and
administration staff.
Conclusion
Human resources is the most valuable asset of any organization and the practice of
planning and managing this resource is supposed to be top key to lead the company to

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success. Apple is expanding its brand into new market and the company needs time and effort
to produce a genuinely effective plan in HR management to carry out the mission, which can
be difficult and challenging but deserving and rewarding if it is achieved.

Reference
1.

Hoog, A., & Strzempka, K. 2011. iPhone and iOS forensics:

Investigation, analysis and mobile security for Apple iPhone, iPad and iOS devices.
Elsevier.
2.

Venkatraman, N., & Grant, J. H. 1986. Construct measurement in

organizational strategy research: A critique and proposal. Academy of management


Review, 11(1), 71-87.
3.
Miles, R. E., Snow, C. C., Meyer, A. D., & Coleman, H. J. 1978.
Organizational strategy, structure, and process. Academy of management review, 3(3),
546-562.
4.

Freeman, R. E. 2010. Strategic management: A stakeholder approach.

Cambridge University Press.


5.
Schuler, R. S., & MacMillan, I. C. 1984. Gaining competitive
advantage through human resource management practices. Human Resource
Management, 23(3), 241-255.
6.
Human resources management. Oxford University Press, 2011.