INTERNATIONAL HUMAN RESOURCE MANAGEMENTINTERNATIONAL HRM STRATEGIES OF APPLE (MODULE CODE- BSB20135-M ) INDIVIDUAL ASSIGNMENT PROJECT SUPERVISIOR: - MISS AMITA PASRICHA NAME: PANKAJ SHARMA INTAKE NO:-PTM1101006 HAND OUT DATE: 7 FEB 2012 HAND IN DATE: 7 MAY 2012 APIIT SD INDIA [2012] Page 1 INTERNATIONAL HUMAN RESOURCE MANAGEMENT CERTIFICATE This is to certify that I Pankaj Sharma (PTM1101006) has completed the International human resource management and developed the project on “INTERNATIONAL HRM STRATEGIES OF APPLE” and submitted the assignment on 7th may, 2012. In the Supervision of Miss Amita Pasricha APIIT SD INDIA [2012] Page 2 INTERNATIONAL HUMAN RESOURCE MANAGEMENT ACKNOWLEDGEMENT We owe the deep depth of gratitude to our esteemed teacher „Miss Amita pasricha for supporting us a lot to during the span of project and to help us when we face several problems. We are thankful to our honorable Mentor who allows us to perform several tasks like weekly meetings and discussions in the institute itself. We are thankful to the lab faculties for providing necessary help whenever it was require like in case when it was system problem in print outs and other information. Library staff helps us in providing necessary books of different authors for project development and several other platform oriented books on which we had worked upon like entrepreneurs. At last but not the least we cannot forget to thank our friends for their important suggestions help in editing our work and let us know about our errors and mistakes through out the project. PANKAJ SHARMA PTM1101006 (MBA) APIIT SD INDIA [2012] Page 3 INTERNATIONAL HUMAN RESOURCE MANAGEMENT International Human Resource Management (IHRM) IHRM can be defined as set of activities aimed managing organizational human resources at international level to achieve organizational objectives and achieve competitive advantage over competitors at national and international level. IHRM includes typical HRM functions such as recruitment, selection, training and development, performance appraisal and dismissal done at international level and additional activities such as global skills management, expatriate management and so on. In simple terms, IHRM is concerned about managing human resources at Multinational Companies (MNC) and it involves managing 03 types of employees namely, 1. Home country employees- Employees belonging to home country of the firm where the corporate head quarter is situated. 2. Host country employees- Employees belonging to the nation in which the subsidiary is situated. 3. Third country employees- These are the employees who are not from home country/host country but are employed at subsidiary or corporate head quarters. As an example a American MNC which has a subsidiary at India may employ a French person as the CEO to the subsidiary. The Frenchman employed is a third country employee. APIIT SD INDIA [2012] Page 4 INTERNATIONAL HUMAN RESOURCE MANAGEMENT Recruitment and Selection Training and Development Performance appraisal Compensation Health and safety etc. International Staffing Policy The staffing challenges for international assignments are broader in scope than those for domestic staffing. There are different approaches to the management of International human resources. These are as follows: Ethnocentric – the home country attitudes, management style, knowledge, evaluation criteria, and managers are superior to anything the host country might have to offer. Polycentric – there is a conscious belief that only host country managers can ever really understand the culture and behavior of the host country market; therefore, foreign subsidiary should be managed by local people. Geocentric – based on the assumption that the best manager or other employee for any specific position anywhere on the globe may be found in any of the countries in which the organization operates. These three sets of multinational values translate into three broad international staffing policies or sources for staffing international operations. First, the company can send people from its home country. These employees are often referred as expatriates. Second, it can hire host-country nationals, natives of the host country, to do the managing. Third, it can hire third-country nationals, natives of a country other than the home country or the host country. These sources of overseas workers have different advantages (Sims 2002). APIIT SD INDIA [2012] Page 5 INTERNATIONAL HUMAN RESOURCE MANAGEMENT IHRM in the literature Review The literature on international HRM tended initially to focus on the management of expatriates (see. for example. Ivancevich. 1969; Mendenhall and Oddou. l985;Torbiorn.1982; Tung. 198 i). Streams of research into cross-cultural issues (Hofstede. 1984. 1993;Eaurenl. 1986) and comparative HRM (Brewster c/ti/.. 1996, 2004) were also developed. However, in line with a growing literature on international business strategy (Bartlett and Ghoshal, 1989; Porter, 1986; Prahalad and Doz, 1987), more interest was .shown in the issues of managing people in international organizations. Boxall (1995) highlighted the distinction between comparative HRM (how people are managed differently in different countries) and international HRM (how different organizations manage their people across national borders). The comparative HRM field analysed practices within firms of different national origin in the same country or compared practices between different nations or regions (Pieper. 1990). International human resource management (IHRM) addresses the added complexity created by managing people probably the most nationally specific resource (RosenzWeig and Nohria, 1994) - across a diversity of national contexts of operation and the inclusion of different national categories of workers (Tung. 1995). Although, originally, comparative and international HRM Were distinct fields of study, the increasing reliance on strategic partnerships and joint ventures, coupled with a trend towards localization, has made the need to understand how HRM is delivered in different country contexts more important. Consequently there has been a degree of convergence in thinking between the comparative and international HRM fields (Budhwar and Sparrow, 2002). Some of the early models of IHRM focused on the role of MNEs and argued that finding and nurturing the people able to implement international strategy is critical for Brewster ei al.: Towards a new model of globalizing HRM 951 such firms. IHRM was considered to have the siimc main dimensions as HRM in a national context but lo operate on a larger scale, with more complex strategic considerations, more complex co-ordination and control demands, and some additional HR functions. These latter functions were considered necessary to accommodate the need for greater operating unit diversity, more external stakeholder influence, higher levels of risk exposure and more company involvement in employee's lives and family situation (Dowling et al.. 1999). The field focused on understanding those HR functions that changed when the firm Went international and also began to identify important contingencies that influenced the HR APIIT SD INDIA [2012] Page 6 INTERNATIONAL HUMAN RESOURCE MANAGEMENT function to be internationalized, such as the country that the MNE operated in, the size and lifecycle stage of the firm and the type of employee. (Budhwar and Sparrow, 2002). Introduction Apple Organization of Apple was established in 1976 as a computer company. However, in the last decade, Apple has expanded into a complex company that specializes in much more than just computers. In 2001, Apple broke the barrier with the iPod, eventually becoming the dominant market leader in music players. In following, Apple joined the phone industry in 2007 with the iPhone, which has also been widely successful. Apple has established a unique reputation in the consumer electronics industry since it is flexible from its philosophy of comprehensive aesthetic design to its distinctive advertising campaigns. Apple, Inc. is an electronics and software company based in California, USA. Originally known as Apple Computer, the company is familiar to most people as innovators of the personal computer as it is known today. Apple Computer had introduced many of the now-commonplace features of personal computers, including the GUI, the mouse, the floppy disk drive, and color graphics. Apple Computer's Macintosh line of PC's had brought numerous software and hardware components within reach of the average home consumer, often in a stylish case and with an emphasis on usability. The restructured company, now called simply Apple, designs, markets, and sells not only personal computers but also consumer electronics in the form of portable media players and smartphones. Apple also sells intangible goods in the form of software, music, and APIIT SD INDIA [2012] Page 7 INTERNATIONAL HUMAN RESOURCE MANAGEMENT video. The Apple Store chain operates over 150 branches worldwide, where the devices and software and sold and serviced. Vision No one disputes that Apple is lead by its powerful Apple vision, and focus. It is said that Jobs is so fanatical because he deeply believes in Apple Computer and his personal mission is “do it right.” Jobs believes that by making the best quality products possible that sales and stockholder value will follow. Because of Jobs, Apple is known today for its innovation and style, and many Apple products such as the iPod and iTunes are considered so innovative we have spawned micro-industries. (Mercer, 2003) Mission Apple‟s current mission statement is: “Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings.”(By Steve Gall April 14, 2006) ORGANIZATIONAL STRUCTURE Headquartered in Cupertino, California, USA, Apple Computer operates on a global scale, with multiple locations world-wide. Apple‟s business operations are structured into three main categories: hardware, software, and business support services. Within these categories are various divisions, including: Macintosh (computers), peripherals (Apple TV, digital video displays, etc.), applications (iTunes, iLife, Final Cut Studio, etc.), internet services (Safari, QuickTime, Mobile Me, etc.), and others. Provides a broadened visual representation of Apple‟s basic organizational structure. (By Shane R. Mittan, 28 Jan 2010) Apple’s Organizational Chart (November, 2008) Hardware Software Business Support Services APIIT SD INDIA [2012] Page 8 INTERNATIONAL HUMAN RESOURCE MANAGEMENT IPod IPhone Macintosh Peripherals General Industrial Applications Internet Services Operating System Product Counsel Design Legal Retail Accounting Support Markets and Distribution Apple products Apple Lisa 1983 Macintosh Portable 1989 Apple Newton 1993 ENVIRONMENT Environments are those factors and forces outside the organization that effect the organizational performance. APIIT SD INDIA [2012] Page 9 INTERNATIONAL HUMAN RESOURCE MANAGEMENT IHRM strategies of Apple Company "Strategic planning, like any type of planning, involves establishes goals and identifying quantifiable objectives that can help an organization reach them. What perhaps best differentiates strategic planning from "seat-of-the-pants" or intuitive planning initiatives APIIT SD INDIA [2012] Page 10 INTERNATIONAL HUMAN RESOURCE MANAGEMENT concerns how informed the decision-makers are concerning the environment in which the company competes. In some cases, strategic alliances with others may represent the best course of action for various reasons, while acquiring competitors also represents a viable alternative in many cases. Because every organization is unique, there cannot of course be a one-size-fits-all strategic approach that can be applied across the board to achieve successful outcomes to such planning processes, but there are some general guidelines that can be used to help companies recognize when one alternative is superior to another" (Pearce & Robinson, 2005). Apple Computer Strategic planning involves making decisions about an organization's longterm goals and strategies. These plans have strong external orientations and cover major portions of the organization. Successful companies have been diligent in the planning of the organization's long-term goals and strategies and have targeted results needed for long-term survival, value, and growth. Apple Computer's beginning years were mostly reactive to the fast-paced and rapidly changing computer industry; however, we have re-invented them selves time and time again to remain highly competitive in this market. (Pearce & Robinson, 2005). Strategic Planning at Apple Inc. Apple Inc. is one of the world's most successful and most recognizable companies. Over its 30 year existence, the company had seen a lot of changes in the computer industry. What would the future hold for the computer giant in a rapidly changing world? How should the company allocate resources between its more traditional offerings (computers) and its newer products (iPods, iPhones, Apple TV, etc.) in order to maintain and improve its market position. Also, how should Apple's unique retail strategy be used to support the company's product decisions, and by capitalizing on new and emerging trends thus further maintaining its competitive advantage. (By Fabrizio, D) Recruitment and selection Recruitment and selection refers to the chain and sequence of activities pertaining to recruitment and selection of employable candidates and job seekers for an organization. Every enterprise, APIIT SD INDIA [2012] Page 11 INTERNATIONAL HUMAN RESOURCE MANAGEMENT business, start-up and entrepreneurial firm has some Well-defined employment and recruitment policies and hiring procedures. The human resources department of large organizations, businesses, government offices and multilateral organizations are generally vested with the responsibilities of employee recruitment and selection. International recruitment and selection Recruitment-Define as searching for and obtaining potential job candidates in sufficient numbers for and quality so that the organizations can select the most appropriate persons for its job needs. Strategy of Recruitment and selection in Apple APIIT SD INDIA [2012] Page 12 INTERNATIONAL HUMAN RESOURCE MANAGEMENT Recruitment and selection referred to Bratton (Bratton et al, 2003) always is the important and first stage of human resource management function in company. The objective of recruitment about attracts the talent people to be the company‟s employees following goal of company and labour demand forecasting; in addition, it is able to be one way to and promote advertise in the public‟s mind. Referred to effective recruitment and selection practice (Compton et al, 2009), there are many method of recruitment that generally separate by source to internal and external source. The internal source is such as transferring, department examination, and employee‟s recommendation and so on. For external source that support in advertisement of organization such employment agency, job center, newspaper, company Website, etc. In the most case, company focus on recruit from external source due to generate more competition of candidate that means providing variety of choice and high potential to hire the employees of the dream. Especially, incurrent many world class companies realize on value of human resource and development people more than ever before; for instance, Steve Jobs; Apple Inc CEO used to mention that ³the most value asset of Apple Inc is Employee´.However,the costly of recruitment of external resource is the major Weak point of this way practically using job agency and newspapers and time consuming is another disadvantage which are management challenges and every company intend to overcome over past a year and a year. (Compton et al, 2009). Environment factors affecting Recruitment and selection FACTORS AFFECTING RECRUITMENT FACTORS AFFECTING SELECTION Selection is influenced by several factors. More prominent among them are supply and demand of APIIT SD INDIA [2012] Page 13 INTERNATIONAL HUMAN RESOURCE MANAGEMENT specific skills in the labour market, unemployment rate, labour-market conditions, legal and political considerations, company‟s image, company‟s policy, HRP, and cost of hiring. The last three constitute the internal environment and the remaining form the external environment of the selection process. Analysis of recruitment and selection strategies In today‟s competitive and dynamic world, everything gets changed with a swift pace. Organizations need to be more proactive and competent as this is a world of globalization and world has become a global village. In this global village, Organizations who do not possess a competent workforce, usually are not able to make a remarkable progress the in dustry. For the purpose of having a competent workforce, an organization needs to opt best HR strategies with the help of great HR professionals. Companies having fully functional HR departments are known for their success. Some examples are Dell, HP, Amazon.com, and Apple. These organizations, and many others, know and understand the true importance of competent workforce and thus allow their HR departments for making their own strategic decisions. The HR departments in organizations make a significant impact over the performance of organization. This is due to multiple tasks an HR department does in an organization. These tasks include recruitment and selection, orientating new employees, training new employees, HR planning, making HR budgets, performance management and compensating employees. All of these functions have their importance at their own place. And, by default, all of these activities are interlinked with. (By Dessler, 2010) Training and Development APIIT SD INDIA [2012] Page 14 INTERNATIONAL HUMAN RESOURCE MANAGEMENT When most people think of company training, the first thing that comes to mind is "inconvenience." Training conjures images of sudden scheduling; disruption of their personal life; travel; long, drawn out sessions and a sense of relief mixed with futility when it is over. Hardly the best mindset for learning. Strategy of Training and Development in Apple’s Training can be defined as making available to employees planned and coordinated educational programs of instruction in professional, technical, or other fields that are or will be related to the employee‟s job responsibilities. Training can be accomplished through a variety of approaches, such as classroom training, e-learning, and professional conferences that are educational or instructional in nature. Development is generally considered to include training, Structured on-the-job learning experiences, and education. Developmental programs can include Experiences such as coaching, mentoring, or rotational assignments. The essential aim of raining and development programs is to assist the agency in achieving its mission and goals by improving individual and, ultimately, organizational performance. It has been said that the objective of the investigative segment of the Training and Development Program lies on the creation of a developmental strategy. This is why the identification of training needs does not necessarily guarantee that this will already bring benefits to the Apple Inc. It would only serve as a reminder for the superiors to look into the Weak points and come up with APIIT SD INDIA [2012] Page 15 INTERNATIONAL HUMAN RESOURCE MANAGEMENT the appropriate solution and in this case it is the actual selection of the training and development program and the method that should be employed targeting the best results. There two ways that will help in the choice for what training method to use. First, after the identification of the training needs, the willingness of the company should be checked and so with the employees as to how far we can go for the project. It will involve confirming their budget, time and the acknowledgement of the project as urgent and important for them and for the company. With all of these, the management can now look into the most suitable methods based on their assessed stand of the company and there are actually a lot available to choose from depending on the allowed scope, budget and time by the management. Environmental factors affecting training and development Owners expect managers to watch or their interest ant provide a return on investments. Customers demand satisfaction with the products and services we purchase and use. Suppliers require attentive communication, payment and strong working relationship to provide needed resources. Competitors present challenge as we view for customers in a market place with similar products and services Employees and employee unions provide both the people to do the jobs and the representation at work force concern to management Demographics are measures of the various characteristics of the people and the social groups who make up a society. Age, gender and income are the example of commonly used demographic characteristics. Values refer to certain beliefs that people have about different forms of behavior or product. Changes in how a society, values and item or a behavior can greatly affect a business. Training Needs Analysis (Needs Assessment) for Apple Inc. Apple computer has experienced both good and bad times as a main player in the computer industry. It has been a leader in computer technology in the past but has struggled recently in keeping pace in the fast developing computer industry. Emergent technology and developing APIIT SD INDIA [2012] Page 16 INTERNATIONAL HUMAN RESOURCE MANAGEMENT computer applications have contributed to a business environment that is very competitive. Survival in this industry needs the skill to foresee changes and to effectively react to market demands. The computer industry has grown for the last two decades due to the popularity of personal computers even as a household item. This market is no longer limited to the business and educational environment; computers are a consumer good worldwide. Apple Computer, Inc. must respond to this business environment if it is to survive in the future. This is the driving factor for this project. Training Needs Analysis can be complex and demands a creative, people focused environment. Basing from the introduction for the Apple Inc. it seemed that the people needed to prepare the Training Needs Analysis are already within their organization. It would just be a matter of forming the team maybe from the management or from the HR/Training and Development Department. For this to be successful, the process should be designed in a way that it is simple to use but is effective. Again, this is parallel with the basic philosophy of Apple Inc.that is to be user friendly. Training and development Training can be defined as making available to employees planned and coordinated educational programs of instruction in professional, technical, or other fields that are or will be Related to the employee‟s job responsibilities. Training can be accomplished through a variety of approaches, such as classroom training, e-learning, and professional conferences that are Educational or instructional in nature. Development is generally considered to include training, Structured onthe-job learning experiences, and education. Developmental programs can include Experiences such as coaching, mentoring, or rotational assignments. The essential aim of training and development programs is to assist the agency in achieving its mission and goals by Improving individual and, ultimately, organizational performance. APIIT SD INDIA [2012] Page 17 INTERNATIONAL HUMAN RESOURCE MANAGEMENT Performance appraisal Performance appraisal is a system of review and evaluation of an individual or team‟s job performance. An effective system assesses accomplishments and evolves plans for development. Performance management is a process that significantly affects organizational success by having managers and employees work together to set expectations, review results, and reward performance. Its goal is to provide an accurate picture of past or future employee performance. To achieve this, performance standards are established. Strategy of Performance appraisal in Apple The activities of APPLE employees were guided by a comprehensive system of management by objectives (MBO). The performance appraisal system starts with the establishment of long- and short-range objectives derived from company and group objectives. At each company level, overall objectives were communicated and subunit objectives were negotiated. APPLE lets the employees decide on how they would accomplish the goals that they have set. The goals were made to interconnect horizontally and vertically throughout APPLE. The management by objective process is part of the company‟s strategic planning which defines the objectives and responsibilities that a job entails. In an MBO system an employee meets with his or her manager, and they collectively set goals for the employer for a coming period of time. These goals are usually quantifiable, they are objective, and they are usually written. During the specified timeframe, the manager and the employee periodically meet to review the employee‟s performance relative to attaining goals. At the end of the specified period, a more formal meeting is scheduled in which the manager and employee assess the actual degree of goal attainment. The degree of goal attainment then becomes the individual‟s performance appraisal (Sims, 2002). APIIT SD INDIA [2012] Page 18 INTERNATIONAL HUMAN RESOURCE MANAGEMENT APPLE combined MBO with the paired-comparison approach. The paired comparison approach, according to Sims (2002), measures the relative performance of employees in a group. A manager lists the employees in the group and then ranks them (p. 205). APPLE managers invested considerable time and energy ensuring that an individual‟s pay level within their salary range reflected their performance when compared to others. Performance was judged by the immediate supervisor but adjusted based on a ranking process, conducted by managers in face-to-face meetings, which compared employees in different departments with similar responsibilities. The Performance - Appraisal Cycle Environmental Factors Affecting Performance Appraisal in Apple Ability Character traits, skills and knowledge which are used in the performance It is always present and will not vary widely over short periods of time. APIIT SD INDIA [2012] Page 19 INTERNATIONAL HUMAN RESOURCE MANAGEMENT Effort The amount of manual or mental energy that a person is prepared to expend on a job to reach a certain level of performance. Can vary according to incentive and motivation. Motivation Many people who are not motivated keep their performance to an acceptable level by expending only 20-30% of their ability Managers who know how to motivate their employees can achieve 80-90% ability levels and consequently higher levels of performance. Basic needs - food clothing Safety needs - security, avoidance of risk/harm Social needs - friendship, acceptance, group Esteem needs - responsibility, recognition Self realisation - independence, creativity Equity & Expectation Again, detailed notes elsewhere. Basically, people expect to be treated equally, within the company and as others are in similar companies; they expect to get a certain reward for a certain effort; and they expect to get promoted if they undergo training. All these factors are inter-related and affect the amount of effort people are prepared to put in task, or role, perception The direction in which the person wishes to channel his or her effort and ability. It varies according to such factors as whether or not the job is seen to be important or of value in itself, to the organization, to workmates, to the individual whether or not there is an end in sight is what I do simply lost in the larger organization. Can I see it as a finished entity in its own right, no matter how small. Standards & job descriptions must be known and understood. APIIT SD INDIA [2012] Page 20 INTERNATIONAL HUMAN RESOURCE MANAGEMENT Compensation Compensation is the total amount of the monetary and non-monetary pay provided to an employee by an employer in return for work performed as required. Compensation is based on: Market research about the worth of similar jobs in the marketplace, Employee contributions and accomplishments, The availability of employees with like skills in the marketplace, The desire of the employer to attract and retain a particular employee for the value they are perceived to add to the employment relationship, and The profitability of the company or the funds available in a non-profit or public sector setting, and thus, the ability of an employer to pay market-rate compensation. By Susan,M. http://humanresources.about.com/od/glossaryc/g/compensation.htm Strategy of Compensation in Apple The failure to include the value of most stock-option grants as employee compensation and, hence, to subtract them from pretax profits, increased reported earnings and affected Apple Inc‟s (NASDAQ: AAPL) stock prices. A three-month investigation by Apple's board of directors starting July 2006 found that the company had backdated option grants made on 15 dates between 1997 and 2002. The Boards findings raised "serious concerns" about the roles that two former officers had played in the matter. The board of directors also reported that an internal review found two questionable options awarded to Jobs but found no wrongdoing by current management, including Steve Jobs himself. Apple Inc‟s stock dipped to $72 in October 2006, reducing “shareholders Wealth”. For the long-term Steve Jobs promised that he is working "to ensure that this never happens again". The company is strengthening the corporate governance and is implementing measures in order to ensure proper practices with option grants such that backdating cannot occur, such as: Boards set APIIT SD INDIA [2012] Page 21 INTERNATIONAL HUMAN RESOURCE MANAGEMENT the date and price of all option awards we approve, reflecting this data in the Board meeting minutes. The Board should later receive confirmation that the awards Were issued on the date and at the price approved. Boards will ensure the company is filing SEC form 4 filings within 2 business days of option grant (as required by the SEC). Boards will not allow executives to choose the date of their grants, nor there will be flexibility in when the grants are recorded. Boards will clearly communicate the company's policy regarding option dating to all relevant parties such that there can be no confusion regarding what is and is not allowed. Boards will adopt a policy stating that option grants will be made on the same date each year, or divide annual grants into four grants made quarterly. Environment Factor affecting compensation in Apple There are several kinds of negotiation with the employer. For instance, the employee can negotiate at the time of the hiring process or can negotiate at the time of the appraisal cycle. In this article, We consider the strategies available to the employee at the time of the hiring process. There are several parts to the employee’s strategy to negotiate with the employer. Some of them are: Plan and Communicate: The most important part of the employee‟s strategy must be to research the compensation trends in the market and then negotiate with the employer based on how much the other companies are willing to pay for a similar role combined with the fact that the company hiring him or her pays for the same role. Hence, it is advisable for the employee to keep in touch with compensation trends in the marketplace and also talk to other employees before he or she decides to communicate his or her expectations to the prospective employer. Timing makes the difference: In any negotiation process, time is the key element and hence timing the negotiation process is important. The best possible option for the employee would be to wait for the company to make an offer and then pitch in his or her expectations about the compensation. There is something called overkill which must be avoided and the employee must avoid going overboard. At the same time, the employee must also ensure that he or she does not APIIT SD INDIA [2012] Page 22 INTERNATIONAL HUMAN RESOURCE MANAGEMENT start the negotiation process early on in order not to lose out on the offer. Hence the timing of the pitch makes all the difference. Consider the Alternatives: When you are deciding about prospective offers, ensure that you make the pitch for your expected compensation level after taking into account all the alternatives and not simply rush into something that does not value your experience and expertise adequately. At the same time, do not harangue the prospective employers though you might have several alternatives available to you. The point to be noted is that different companies react to compensation negotiations in different ways and hence you must play the field according to these points. Many a time, prospective employees lost out on compensation either because we asked too high or asked too late. At the same time, we should also remember not to coerce the employers. Health and safety Health and safety is integral to success. Board members who do not show leadership in this area are failing in their duty as directors and their moral duty, and are damaging their organization. APIIT SD INDIA [2012] Page 23 INTERNATIONAL HUMAN RESOURCE MANAGEMENT Environmental factors affecting Health and Safety This article reviews organizational factors that influence the satisfaction, health, safety, and Wellbeing of health care workers and ultimately, the satisfaction, safety, and quality of care for patients. The impact of the work environment on working conditions and the effects on health care workers and patients are also addressed. Studies focusing on worker health and safety concerns affected by the organization and the physical work environment provide evidence of direct positive and/or adverse effects on performance and suggest indirect effects on the quality of patient care. The strongest links between worker and patient outcomes are demonstrated in literature on nosocomial transmission of infections. Transmission of infections from worker to patient and from patient to patient via health care worker has been well documented in clinical APIIT SD INDIA [2012] Page 24 INTERNATIONAL HUMAN RESOURCE MANAGEMENT studies. Literature on outbreaks of infectious diseases in health care settings has linked the physical environment with adverse patient and worker outcomes. An increasing number of studies are looking at the relationship between improvement in organizational factors and measurable and positive change in patient outcomes. Characteristics of selected magnet hospitals are review we as one model for improving patient and worker outcomes. (By T Lundstrom–2002) Health and safety Apple’s strategies Apple Computer is committed to protecting the environment, health and safety of our employees, customers and the global communities where they operate. they recognize that by integrating sound environmental, health and safety management practices into all aspects of their business, we can offer technologically innovative products and services while conserving and enhancing resources for future generations. Apple strives for continuous improvement in their environmental, health and safety management systems and in the environmental quality of our products, processes and services. In recognition of current market trends, Steve Jobs has claimed that he wants to transform the company by making the Mac the hub of the consumers' digital lifestyle. Despite Apple computer's recent successes, the company is facing an ever-changing competitive environment on multiple fronts. 1. What are the key strategic challenges facing Apple Computer? 2. What are some of the dimensions along which company success can be measured? 3. What critical external and internal environmental factors have strategic implications for Apple's future? 4. How does Apple's strategy stand up against industry rivalry? 5. What recommendations can be made to enhance the effectiveness of the company's strategy or to change its strategic approach for better results? Apple Finding and Discussion For the purpose of illustration, the industry analysis of Apple Inc. will focus specifically on the portable personal computer manufacturing and sales and on the United States market, although many of the firms involved in the industry produce, market and sell internationally. Considering the threats faced by firms operating in this industry the industry is moderately attractive overall. APIIT SD INDIA [2012] Page 25 INTERNATIONAL HUMAN RESOURCE MANAGEMENT Many firms within the industry have thrived, but competition is very high, while suppliers and buyers have moderate influence over the competitors. There are several avenues by which new competitors may enter the market, but they face substantial hurdles in successfully establishing a viable brand. Finally the threat of substitutes is credible in some use-cases, but will not completely usurp personal computers in the foreseeable future. Rivalry between Competitors While once an industry defined by few large companies and extremely expensive products, pursuing a niche audience, the advent of the personal computer (PC) has caused an industry explosion which now includes dozens of manufacturers pursuing many millions of customers in the United States. As a result of the penetration of computers into everyday life and business the PC is becoming more and more a commodity product. For most users, and business economy is more important that performance specification and other „bells and whistles.‟ The result has led many manufacturers to pursue low-cost and best-cost provider strategies. Those at the lowest end compete on rock-bottom prices foregoing all but the most basic features. Those in the middle range including Dell, HP, and Lenovo compete for customers offering a range of options for varying prices. The similarity of their products due to industry standard setting also leads to price competition that drives down prices and squeeze margins. The desire of companies to buy large numbers of PCs for the lowest bid available also exercises considerable downward pressure on prices offered by these firms. The nature of technological development also imposes increased competition on the members of the industry. The technology behind many key components of PCs continues to become more efficient with increased processing power and less energy consumption. „Moore‟s Law „predicts that the number of transistors on a processing chip roughly doubles every eighteen to twenty-four months. While is more an estimate than a „law‟ industry leaders like Intel, Inc. have kept this pace for decades. This perpetual innovation and development puts pressure on computer manufacturers to streamline production and refresh products at a pace largely unseen in business for centuries. PARENT COMPANY/ STRATEGY APIIT SD INDIA [2012] Page 26 INTERNATIONAL HUMAN RESOURCE MANAGEMENT s or marketing because it will raise cost overall. Global Standardization StrategyTransnational Strategy International StrategyLocalization Strategy Swot analysis IHRM strategy at APPLE company Apple is the top most company in computer industry they have a wide variety of products, from mp3 players and printers to personal computers and powerful servers. Their IHRM strategy that improve their skill and find the excellent worker Companies have trouble operating within the computer industry, namely due to the dynamic that the numbers of transistors per square inch on integrated circuits will double every 18 months, and prices will be reduced. This means even the largest firms must stay on their toes, as the industry is constantly changing and redefining its parameters. LABOR LAWS Act, 1948” ” LABOR MARKET AND COMPETITION million out of 1 billion APIIT SD INDIA [2012] Page 27 INTERNATIONAL HUMAN RESOURCE MANAGEMENT –3% of employment) own everything Apple‟s Ihrm strategy implement their program which they are applying in other country they . has recently made headlines by breaking into Apple is committed to driving the highest standards for social responsibility throughout our supply base. They require that their suppliers provide safe working conditions, treat workers with dignity and respect, and use environmentally responsible manufacturing processes wherever Apple products are made. Their suppliers must live up to Apple‟s Supplier Code of Conduct as a condition of doing business with us. Drawing on internationally recognized standards, our Code lays out Apple‟s expectations in the areas of labor and human rights, worker health and safety, the environmental impact, ethics, and management systems. We insist that our manufacturing partners follow this Code, and we make sure they do by conducting rigorous audits with the help of independent experts. If manufacturers don‟t live up to our standards. On the personal computing side of Apple‟s market are a number of products from various competitors. Each of these competitors has a wide range of computing systems designed for various types of users. Dell is marketing its Dimension line of computers for desktop users and its Inspiring line for laptop users. Both the Dimension and Inspiring lines differ in features and power to provide varying selections for customers with diverse needs.2 The same can be said of Hewlett-Packard‟s Pavilion/Presario desktop and laptop PCs, as well as Gateway‟s 3200/5200/7200 series desktop computers and M210/M320/M520 series laptops.3,4 It would immediately seem that Apple has a wide array of substitutes in the market, but the proprietary nature of Apple‟s products sets itself apart from its competitors. 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