Essay about Retailco

1594 Words Apr 17th, 2014 7 Pages
Introduction

RetailCo is a "typically Dutch" retail organization, which takes good care of its employees. RetailCo is a centrally managed company with headquarters and various divisions like food, sales and distribution etc. This case study focuses on the sales division, which is the key division of RetailCo, in which the largest part of the employees (about 85%) work. RetailCo has a unique culture and a separate collective bargaining agreement, tailored specifically to the needs of this company with its pros & cons. RetailCo was recently taken over by a US-based investment firm with a lot of experience in the US retail industry. The predominant approach to HRM in The US and The Netherlands shows some major differences like HRM
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Reward bonus on very good performance (connect with “high pay contingent on company performance”)
5. Job-specific training programs (connect with “Extensive training”)
6. Positive appraisals & collective bargaining agreement (connecting with “Reduction of status differences”)
With the five facts mentioned above, we can easily regard the HRM policy of RetailCo as “best practice” model.
b. Which of these two approaches do you believe to be part of the HRM policy and practices at RetailCo after the take-over. In other words, do you believe that the take- over has changed the overall approach used in RetailCo or not? Explain why.

We believe that the HRM policy and practices at RetailCo after the take-over is “best fit” model. In other words, the HRM approach is totally changed after the take-over.
“Best fit” model argues that HR strategy becomes more effective when it is designed to fit certain critical contingencies in firm’s specific context. (Boxall & Purcell, 2000)
It is mentioned in the case that the new performance-driven HR policy replaced the culture driven HR policy of RetailCo.
As we can see, to fit the core competency of RetailCo and for the competitive advantage, the new HR policy was designed by the investment company with a “stakeholder-based strategy”, Most of the facts which were aligned with “best practice” approach was changed—
1. Job security -> “If you don’t perform you will get

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