Case Study Example: Considerations for Sportsman Shoes Human Resource Management Practices

Introduction

Human resource management practices are critical in any business setting since it motivates the employees. The activities include rewarding, improving workers status and working conditions.

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Case: Competitive Strategy at Sportsman Shoes

In this case, Sportsman Shoes Company shifted their strategy to competitive strategy meaning they have to change their low-cost strategy. The company will be forced to align their workers into new practices; therefore, they should concentrate on retaining their employees and look for ways which will motivate them so as to fit in product development and operations. The new competitive strategy at Sportsman Shoes will be different from the previous one hence the company should insist on cooperation and mutually dependent behavior because they will no longer concentrate on reducing output cost per employee (Cania, 2016).

The company will need to organize training so as to enable their workers to adequately fit into their new working environment. This can be costly but it is necessary since hiring new workers can be more expensive. The employees, on the other hand, must also be ready to change their practices and align to their new work environment and at the same time willing to take risks coming from changing of work. The human resource department also needs to come up with new performance appraisal policies since the previous one will not be in conformity with the current situations in the company. Remuneration and other policies need to be analyzed afresh so that employees will be satisfied and be motivated and avoid complaints.

What Specific Challenges Will Sportsmen Face Specifically in the Area of Compensation?

Compensation can be a critical problem for the company taking in mind that there will be new employees who will be added to those who have been there. The company will be required to make a compensation which is very competitive and appealing in the job market so as to attract new experienced employees (Forest & Gagne,2011). Compensation will have to be consistent throughout all activities done in the company thus the company will have to develop and implement an effective compensation policy that will satisfy each staff at the same time. Another aspect is that the company goals should be in line with the compensation strategy. This will have positive effects on the costs per output will reduce in such a way that they set the amount to compensate employees depending on the goals they reach.

The other challenge may arise from the senior employees who have been working in the company since they will demand senior positions and other favors compared to new employees. The company should offer them seniority pay so that they will not feel undermined by the company even after working for a long time. On the other hand, new employees will need something to motivate them hence they should be offered some incentive pay so that they will feel welcomed and valued. This incentive will have positive effects on the company in the long run.

Challenges of compensation can break the company if not handled with utmost care, thus the company should analyze tools which will help balance the compensation to be within the company financial limits. Since what motivates one employee is always not the same for another employee, the proper strategy should be used to compensate each employee using his/her performance and prevent cases of inequalities which can lead to regulatory risks (Forest & Gagne,2011).

References

Cania, L. (2016). The impact of strategic human resource management on organizational performance.

Forest, J., & Gagne, M. (2011). The Study of Compensation Systems Through the Lens of Self-Determination Theory: Reconciling 35 Years of Debate.