The third strategic type is the Analyser. The management believes that company can compete not only in the early phase of product development, but later on as well. The human resource department plays the training and maintenance role to design flexible teams and process. I am going to have a look at Bitstudio whether it is a Prospector, Defender or Analyser and then try to analyse its human resource management system. Following that I will describe whether they perform well or not.
Miles and Snow (1984) say, that if the company has got one of the mentioned business strategy, it should have special organisational and managerial characteristic to perform well. However this is the theory and I will evaluate it against my chosen company. Now I will have a look at the chosen company, its strategy, structure and human resource activities. Bitstudio is a typical divisional structure company and each division has got its own executive director.
There is a small human resource department, which is responsible for recruiting people, their trainings and getting the right people to the right positions. It was not easy to collect all pieces of information, because lot of companies these days are very sensitive about publicity reporting financial data. I will use all the accessible data I have collected. First of all, Bitstudio is employing workers, which have got already all the necessary skills and experience needed for selected positions.
This approach eliminates all costs that are needed for workers getting ready for the job. Their idea is to buy these ready people, for instance, from another company. Offering them better values, company can start make immediate profit of their work and so be a better competitor on the market (Fottler et al. 1990). There are conducted some trainings as well, but just to adjust their qualities. Trainings are not the major activity of human resource management. Now I will have look at company’s business strategy.
Bitstudio is permanently looking for new market and product opportunities and experiments with potential responses to the trends. This is done due to the arising number for competitors. HR managers keep this thing in mind and carefully recruit people with necessary competitive skills. Miles and Snow (1984) say: ‘These organizations often are the creators of change and uncertainty to which their competitors must respond’. They also say: ‘Because of their strong concern for product and market innovation, these organizations are usually not completely efficient’.
However, I argue these statements, because Bitstudio raising its revenue every year by 20%. I will get back to this in the next part of the essay concerning analytical discussions. These facts confirm that Bitstudio is acting as a Prospector. Another issue shows us the fit between business strategy and human resource management system. Now I will have a look to the performance appraisal of the chosen company. We can say that Bitstudio is performing quite well more or less. Every year since 1994 there has been bigger and bigger revenue.
Bitstudio is basically using results oriented procedure, for example by reached profit or management objectives. Human resource department also identifies the needs for staffing satisfaction (Bechet et al. 1993). As soon as there is a demand from employee regarding the wellbeing or reach the division objectives, human resource management reacts towards these demands. So here we can also se a fit between business strategy and human resources management, which comes to a conclusion that Bitstudio has got many things that Miles and Snow (1984) describing.
However there is a very interesting point I would like to describe regarding these fits I have recreantly found. As I said at the begging, Bitstudio has not got a big developed human resource department. Basically this division is still developing, but now I can see that they following quite good way. And I am pretty sure that never ever anybody has read Miles and Snow (1984) theory, because I had a chance to work with this company and hat sort of internetworking we had done did not show this knowledge. So why can we see the parallelism with Miles and Snow theory?
Does it really work? Lets find some answers by discussing the impact of business strategy and human resource management strategy match on my company’s performance. Generally is believed and I do so, that companies with ideal fit will achieve higher profits, higher sales growth, higher level of employee morale, lower rates of employee turnover (Arthur 1994) and finally perform better relative to their competitors (Fottler et al. 1990). Lots of these positive outcomes can be found in our chosen company. For instance the profit, which has company made last years.
However, firm performance is influenced by a wide array of factors. Bitstudio used to measure its success comparing to another company performing in similar area in the same year. The company can be successful but comparing to another company is not. This result is by the way reviewed in Miles and Snow (1984) as well. So these are the views we should consider by looking at Bitstudio’s performance, but generally in conclusion I can say that the match between its business strategy and the human resource management has good influence.