4 Global Imaging is a fast growing high tech company with some 100 employees which aims to
4 Global Imaging is a fast growing high tech company with some 100 employees which aims to double in size over the
next three years. The company was set up as a spin out company by two research professors from a major university
hospital who now act as joint managing directors. They are likely to leave the company once the growth objective is
achieved.
Global Imaging’s products are sophisticated imaging devices facing a growing demand from the defence and health
industries. These two markets are very different in terms of customer requirements but share a related technology.
Over 90% of sales are from exports and the current strategic plan anticipates a foreign manufacturing plant being set
up during the existing three-year strategic plan. Current management positions are largely filled by staff who joined in
the early years of the company and reflect the heavy reliance on research and development to generate the products
to grow the business. Further growth will require additional staff in all parts of the business, particularly in
manufacturing and sales and marketing.
Paul Simpson, HR manager at Global Imaging is annoyed. This stems from the fact that HR is the one management
function not involved in the strategic planning process shaping the future growth and direction of the company. He
feels trapped in a role traditionally given to HR specialists, that of simply reacting to the staffing needs brought about
by strategic decisions taken by other parts of the business. He feels even more threatened by one of the joint managing
directors arguing that HR issues should be the responsibility of the line managers and not a specialist HR staff
function. Even worse, Paul has become aware of the increasing number of companies looking to outsource some or
all of their HR activities.
Paul wants to develop a convincing case why HR should not only be retained as a core function in Global Imaging’s
activities, but also be directly involved in the development of the current growth strategy.
Required:
Paul has asked you to prepare a short report to present to Global Imaging’s board of directors:
(a) Write a short report for Paul Simpson on the way a Human Resource Plan could link effectively with Global
Imaging’s growth strategy. (12 marks)
(a) To: Paul Simpson – HR Manager
From:
Human Resource Planning and Global Imaging’s future growth
I will use this report to highlight the main phases in HR (human resource) planning and then deal with the specific HR
activities, which will be needed to support the achievement of the growth strategy.
There are four major stages in creating a human resource plan. Firstly, auditing the current HR resources in Global Imaging,
as a relatively young company one could anticipate it having a relatively young labour force many of whom will be
professionally qualified. Secondly, the planned growth will require a forecast of both the number and type of people who will
be needed to implement the strategy. Thirdly, planning will be needed on how to meet the needs identified in the forecast –
how do we fill the gap in between the human reources we currently have and those needed to fulfil the plan? Finally, there
will be the need to control those resources in terms of measuring performance against the goals set.
The key activities to achieve the growth goals will be:
Recruitment, selection and staffing – here the key issues will be to recruit the necessary additional staff and mix of suitably
qualified workers. The growth of the company will create management succession issues including the two managing
directors, who are looking to exit the business in the foreseeable future. The rate of growth will also make it necessary to
manage significant internal transfers of people in the company as new positions and promotion opportunities are created.
Compensation and benefits – the start up phase of a company’s life is often a stage where a formal reward structure has not
been created. It also may be necessary to meet or exceed the labour market rates in order to attract the necessary talent. As
the firm grows there will be a need to ensure that the firm is competitive in terms of the rewards offered, but there is an
increasing need to ensure equity between newcomers and staff already employed in the firm. These pressures will normally
lead to the creation of a formal compensation structure.
Employee training and development – here there is a need to create an effective management team through management
development and organisational development.
Political
Global stability
Free trade
No wars
Economic
Growth
High disposable incomes
Stable fuel prices
Low inflation
No tax increases
AIRTITE
Social
More travel
Pensioners living longer
– travelling more
More working abroad
More second homes
Technological
Engines more efficent
Larger aircraft
Less pollution
Environmental
No global emission policy
No global warming threat
Legal
Free trade
No emission controls
No wars
Labour employee relations – here there is a need to establish harmonious labour relations and employee motivation and
morale.
Overall, the HR implications of the proposed growth strategy are profound and there is a significant danger that failure to linkstrategy and the consequent HR needs will act as a major constraint on achieving the strategy.
Yours,
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