Human Resource Management, 3rd Edition

Chapter 2

Making Human Resource Management Strategic

A MANAGER'S PERSPECTIVE

ELIZABETH CLOSES HER OFFICE DOOR AND BEGINS THINKING ABOUT THE SMALL CHAIN OF CONVENIENCE STORES SHE PURCHASED LAST MONTH. THE PREVIOUS OWNER WORKED HARD AND SUCCESSFULLY GREW FROM A SINGLE STORE TO THE CURRENT FOUR OUTLETS. ELIZABETH WAS EXCITED WHEN SHE LEARNED THAT HE HAD ACCEPTED HER BID TO PURCHASE THE STORES. HOWEVER, NOW THAT THE DEAL HAS CLOSED, SHE KNOWS SHE NEEDS TO MAKE SOME CHANGES. THE STORES ARE ALL LOCATED IN DESIRABLE LOCATIONS AND ARE CURRENTLY PROFITABLE, BUT SHE HAS ALREADY FOUND IT DIFFICULT TO WORK WITH SOME OF HER MANAGERS. THE LACK OF QUALITY EMPLOYEES HAS REQUIRED HER TO SPEND SEVERAL HOURS DOING MANAGERIAL DUTIES IN TWO OF THE STORES. ELIZABETH HAS ALSO HEARD RUMORS THAT A LARGE NATIONAL CHAIN IS THINKING OF EXPANDING INTO HER TERRITORY. EVEN IF THE COMPETITOR DOES NOT EXPAND, SHE IS CONVINCED THAT THE STORES WILL FAIL UNLESS SHE MAKES SOME CRITICAL DECISIONS AND DEVELOPS A BETTER STRATEGIC PLAN.

Elizabeth knows that effective human resource management must be a big part of her strategic plan. She honestly believes that making employees happy is the key to making customers happy. Obviously, raising wages would make employees happy; yet, Elizabeth also understands that her choices are constrained by a need to produce profit. Paying too much in wages could result in losses that ...