Comparative Analysis of HRM Strategies
Comparative Analysis of HRM Strategies
Introduction
The article presents an analysis of HRM in the biggest IT corporation. Each one aims at
acquiring the best candidates to work: aces, talents and A-class employees. However, once
they hire them, corporations apply various strategy of managing that most important asset of
every company. The aim of the article is to show the differences in the approach to human
capital in corporations and – on the basis of the opinion of experts –to point at the strategy
that leads to the best results.
1. HRM strategies
There are many symptoms indicating that of all company functions the personnel
function has undergone the most significant evolution in the last few years. Already in 1980s
a trend appeared to treat human resources as the resources of strategic significance to
company.
Human resources have strategic significance when they ensure the uniqueness, and
consequently the competitive advantage when they are indispensable for an organization to
survive and develop. In 1990s there was a shift from the emphasis on the qualitative HR
aspects to their innovativeness. The decisions that are made on the level of strategic HRM are
frequently non-standard and of key importance.
the implementation of personnel changes resulting from the strategy and further
controlling operations.
1
B. Wiernek, Zarządzanie zasobami ludzkimi, Text, Kraków 2001.
2
http://www.apple.com/jobs (Accessed: 23.04.2015)
3
The website also includes some curios that present Apple as a place of challenges,
perfection and innovation.
Having gone through the slogans, the candidates can start searching for vacancies.
However, it is not only the website to assist in the acquisition of staff. Apples has
always aimed at the acquisition of the best employees on the market, even at the cost of
stealing them from the competitors.
In order to support that process, the company developed an interesting system of
recommending the candidates by the company employees. The process includes presenting
special business cards to all individuals that are considered worth recommending by the staff
members. The employee who recommends a successful candidate – the one that turns out to
be a talent – may receive an award of up to 5000 USD. 3
If Apple finds an exceptional talent or a specialist, the price is not an issue. However, it
is often not the money but the sole opportunity to do something unique that speaks to the
candidates. The anecdote about Steve Jobs encouraging J.Sculley, the author of the
commercially successful Pepsi Challenge campaign, to work with Apple may serve as a good
example4. Job’s attempts (by some referred to as the courtship) to hire Sculley lasted almost
two months. Sculley, although interested in the work with Apple, remained undecided until
the moment when Jobs said the line which entered the canons of negotiations: Do you want to
sell sugar water for the rest of your life or do you want to come with me and change the
world? 5
Apple was never particularly interested in promoting vacancies or even its own products
on social portals. The conviction about the uniqueness of the company, together with the
excellent financial results, resulted in ignoring the existence of such portals as Facebook or
LinkedIn. However, that approach began to change due to the weak results in 2013. Apple has
employed Angel Ahrendts6, the creator of the media success of the Burberry boutique stores,
whose aim is to improve the image of Apple in media, particularly on the Internet and social
services. Thus, one can expect some more activity of Apple on the Internet, which will also
include online recruitment.
The recruitment process
3
A.. Lashinsky, Sekrety Apple’a, Znak, Warszawa 2013.
4
W.. Isaacson, Steve Jobs, Insignis, Kraków 2011.
5
Ibidem.
6
P. Kornaszewski, Dyktatorka mody w Apple, „Forbes” 2014, No. 3.
4
The stage of the collection and analysis of the applications is followed by a next step,
which may last from one day to even few months, depending on the time limit, the complexity
of recruitment and the status of the position. On the Internet one can find several comments
from people who were subjected to the recruitment process in Apple either with a positive or
negative result. It can be concluded that the procedure of both internal and external
recruitment is highly controversial.
The biggest controversy involves underestimating the potentials of the company’s own
employees and ignoring their applications, which is typical for the SITA strategy. Many
people complain that being promoted in Apple is practically impossible as the employment of
new staff from outside the company is preferred. It is difficult to state whether such a situation
is related to Apple’s preference to external recruitment and the search for A-class talents or
the reluctance of the management to undermine the existing positions by promoting the
employees who are doing their job very well. Nevertheless, such an approach on the part of
the management affects negatively the morale of the staff, who feel underestimated and see no
opportunities for professional development.
The first stage, i.e. the analysis of the applications, is followed by interviews. The first
step includes telephone conversations or videoconferences. Then successful candidates attend
a face-face-to-face conversation, which usually ends either in the rejection or acceptance of
the candidate. Numerous candidates who reached that step were very critical about it.
Although the interview itself and its positive atmosphere were evaluated favourably, the lack
of prompt reply as regards the final result were considered inacceptable.
Moreover, numerous applicants complain about the arrogance of some recruiters, who
consider themselves a higher category people, do not treat the applicants with proper respect
and criticize their skills and attitudes. What is more, one should not ignore the existing age
discrimination. The candidates aged 40+ applying for jobs in Apple shops, despite having
adequate abilities and experience and getting through the recruitment process, seem not to suit
the image of a company that prefers young people (that is another feature of the SITA
strategy).
First day at work
After the recruitment and signing the preliminary agreement, the new employee usually
does not know what he/she will be doing. That is because of the company’s obsession to keep
in secret the information about its new products. Even during the first meeting with the new
colleagues, most of them cannot reveal to the new staff member what they are working on as
the project is top secret.
5
The first day usually begins with a preliminary training during which the new
employees receive a welcome package (a company pass, gadgets to help you identify with the
company, e.g. a T-shirt, etc.) and a set of forms to complete and submit to the HR department.
The aim of such meetings is to build a bond between the company and the new employer. A
coupon for a free lunch is some kind encouragement (in fact, the only one experienced in
Apple). Every new employee is faced with his/her first challenge: connecting the computer.
According to the company, the new employee should be well acquainted with new
technologies and intelligent enough to configure the connection with the network and
company servers. Nobody else will do that for them.
However, the thing that new employees remember best after their first day at work is
the security training concerning company’s recent research and projects. That is due to the
fact that Apple, among all big players in the IT sector, is best known for its policy to give a
high profile to its newly launched products. Any information leakage on a new product may
ruin the marketing strategy and result in huge losses. Thus, one cannot be surprised that the
involvement in such a leakage ends up in an immediate dismissal. One cannot be surprised
that most of new colleagues are reluctant to talk with the new employees about their work.
The ubiquitous secrets are typical for Apple. From the very beginning S.Jobs
emphasized the need to keep in secret any information concerning new products and only on
the launch date did he present his work to the world.
The fact that many employees do not know what the colleagues in other department are
working on is a standard in Apple which in other corporations would be unacceptable. The
company pass usually gives an employee the access to clearly defined particular places. It
often happens that managers do not have the access to rooms where their subordinates can
easily enter and where a secret project is under development. It is often the case that two
different departments are unaware of the fact that they compete with each other working on
the same product. Sometimes departments work on particular tasks without the knowledge
where their product will be applied. As one manager put it: “we have cells, like a terrorist
organization. Everything is on a nee-to know basis.”
Apple’s obsession about secrecy is a deliberate strategy. The company wants to keep the
information about a new product in secret as it could badly harm the models on the market.
Revealing the details could have an impact on the purchasing decisions of customers who –
because of the new functions or the fear of the lack of compatibility - might give up buying
products accessible in shops.
6
7
A. Lashinsky, Sekrety…, op. cit.
7
that it is the feeling of participating in something big that encourages outstanding specialists
in their fields to work particularly for Apple. In the Silicon Valley there are companies that
pay and care more about their employees and leave them much more free time for their
private lives. Yet, there is something in Apple that was built for years and is deeply in the
minds of company customers all over the world. According to the Apple employees, it is the
realization that so many people use their products and that they have such an impact on the
customers’ lives that makes them so proud8.
The creation of the mission of company as the one that gives the opportunity to achieve
something unsurpassable that one can be proud of refers to the top group of needs in the
Maslow’s hierarchy, i.e. to the need of self-actualization.
S.Jobs’ pirate strategy that he applied in1984 when working on the McIntosh computers
is an example of referring to the needs of self-actualization and feeling of exclusiveness. He
compared his employees to a bunch of pirates or rebels who are to disrupt the corporate status
quo in the name of higher values. The strategy included the mobilization to fight against the
enemy (i.e. the monopolists represented by the Windows operating system, record companies
that force customers to buy complete records instead of separate pieces of music or Android-
based devices that shamelessly copy the solutions applied in iPhones and iPads.)
The fact that Apple strives to employ the best A-class employees constitutes - apart
from the mission – an additional incentive. It is a rule that there is usually a rivalry between
the best. Although, in line with the mission, everyone contributes to the welfare of the
company and Apple brand, the rivalry cannot be avoided. And the company can transfer it
into a success.
Development path
Planning the employee career paths is visible mainly in big corporations, which do their
best to support their employees in career development and offer the opportunities of climbing
up the corporate ladder. An average employee development plan assumes that once a year (or
every half year) employees meet the superior or HR manager to assess their progress in the
previous period and to define development targets for the next one as well as the best
conditions to achieve them.
In Apple such a programme is practically nonexistent. One may even venture to say that
it would be against the company’s interests. The company is not particularly interested in
promoting its staff. The way of reasoning is simple. If they employ a specialist who does
8
K.. Blumenthal, Steve Jobs inaczej (Steve Jobs, The man who though different), Amber, Warszawa 2012.
8
his/her job perfectly, a promotion and additional responsibilities do not make any sense. It is
better to hire an external candidate who is specialized and experienced in doing the job on that
higher position.
Moreover, having in mind the policy of confidentiality, it is difficult to plan career path
for an employee when his/her own superior does not know future tasks, projects and work
teams. In Apple the situation changes dynamically and the employees often learn overnight
about their transfer to a new project. Such a situation makes it difficult, if not impossible, to
prepare an employee career path with regard to his/her usefulness to the company.
It does not mean, however, that Apple does not place emphasis on the development of
individuals. The employees are encouraged to develop their skills and to learn new things.
However, in contrast to other companies, Apple leaves the development to the employees
themselves believing that they will not want to stay behind the others.
Work - personal life balance
To maintain the balance between work and private live is one of them most important
issues in corporations that care about their staff. However, there is no such attitude in Apple.
The company does not even try to conceal the fact that it values hard work only. When
describing S.Jobs’ point of view, J.Nocera wrote in the Esquire that Apple had become an
absolutely magnificent place to work but he did not have in mind a generous pay or benefits
that no one could resist. He meant that it was an environment in which employees would work
so hard and such long hours under the pressure of deadlines and with the burden of
responsibility that they never expected to cope with, without talking days off and rarely
having a free weekend, and they would not mind that. They would be happy and they would
reach a point when they would not be able to live without work, responsibility and the
pressure of deadlines. It is the environment in which people are united by work with Apple,
which creates a bond that cannot be understood by anybody who has not experienced it.
Conclusion
The HRM strategy is based on the SITA strategy, which is testified by:
a substantial supply of candidates, which gives the opportunity to screen them in
order to find the best ones (A-class workers, talents, geniuses – which is a job title in
Apple Stores),
the application of a simple and cheap procedure of staff acquisition:
o non-standard website,
o finding and recommending new employees by the staff members,
o an increasingly widespread application of social portals,
9
o job interviews.
age discrimination,
a specific motivation system where – instead of salary – the main role is played by:
o company mission (to serve the humanity),
o pride to work with the company,
o the need of achievement and self –actualization
o company shares.
exploitation of employees – there is no work/life balance,
no career paths,
limited opportunities for training paid by the company – the workers should increase
their expertise on their own by training and self-improvement.
In Facebook, as well as in Google, the staff is the greatest company resource. Its care
about the employees is reflected by free gyms, video rooms, small cinema rooms, bathrooms
with showers and free shuttle services for the workers whose journey to work takes at least
one hour. Additionally, the employees have access to free ice-cream, sweets or barbecue and
every Friday they are offered alcohol. The company’s consent to drink alcohol at work is
extremely unusual. It is a sign of trust to the subordinates on the part of managers – if the
workers are trusted in what they are doing, one can trust that they will not abuse the alcohol.
Moreover, the workers are given by Facebook an unlimited number of sick days as the
company believes that the employees love their work so much that they will take days off
only in emergencies. According to Glassdor.com, Facebook is loved by its workers. In 2013
it got the Best Employer Award with the average grade as high as 4.7 and the support of
M.Zuckerberg, the CEO amounted to 99%.
Recruitment and adaptation
Staff recruitment is conducted under the slogan Choose Your Future. Facebook has a
unique system of staff acquisition. A university degree is not required. That is related to the
fact that the founder and CEO did not complete his studies himself in order to have time to
concentrate fully on Facebook. What is more, in contrary to other companies, Facebook offers
10
its new workers as many as 6 weeks to adapt. At that time they work on different projects.
Everyone has a personal mentor whose task is to help in the adaptation process. After the 6-
week period, the new employee has the right to choose the project that he/she likes best and
would like to work on.
Risk for progress
Facebook is a complete opposite to Microsoft as regards the attitude to innovations. The
employees are encouraged to make challenging decisions as they frequently stimulate
progress. One of its mottos is “The biggest risk is not taking any risk” as Facebook is afraid of
missing an opportunity rather than taking a risk. It follows the principle that it is better to
innovate than miss the right moment Another slogan says that “done is better than perfect”.
Such an approach differs significantly from Apple’s obsession on perfection.
Complete openness
It is difficult to find a place in the company that (as it is the case with Apple) would be
closed. The concept behind it is that open space and the lack of separate work stations should
encourage the staff to integrate and establish new contacts, which consequently generates
new ideas. Moreover, every employee is given access to the greatest possible amount of
information about company’s operations. The open Friday meetings with M.Zuckerberg, the
CEO have the same objectives; everybody can come to the meeting and share his/her ideas or
receive the answer to a problem .
Hackathons
That is an example of one of the most interesting rituals in the company. Hacathons are
long lasting sessions (marathons) during which a substantial number of programmers co-
operate on their projects without a moment’s rest and present to oneanother any possible and
sometimes crazy ideas. In the course of that specific brainstorming such ideas emerged as the
famous “I like it” button or “time axis”.9
Google is undoubtedly one of the best and most interesting employers in the IT sector.
The legendary approach of the company to provide its staff with all sort of attractions is well
known. The employees can enjoy themselves and relax in special rooms where they can play
games, do sports or even have a nap. Every day, the company canteen provides free meals,
9
http://www.ere.net/2013/09/09/a-case-study-of-facebooks-simply-amazing-talent-management-practices
(Accessed: 24.04.2015).
11
including sushi or sea-food. Google care about the design of rooms, particularly about the
colours, to make the working environment employee-friendly.
Openness
The company definitely supports a democratic style of management. All employees are
treated equally. Everyone can present an innovation, influence the development direction of
the company and have an insight into company’s operations. Every two weeks employees
receive a newsletter which includes information about the company and answers to
employees’ enquiries. That policy differs completely from the secrecy of Apple. What is
more, the approach to revealing the information about new products is also different. The
company often shares beta versions of its applications instead of hiding them till the launch
date. As a result, numerous users can test them, report on any problems and present ideas as
regards the improvements of their functionality.
Google cares about the conditions for professional and personal development. Due to
the fact that the company is in favour of long-term employment, which is typical for the
human capital strategy, the HR department continually offers new ideas to support self-
development, useful trainings and various forms of assistance. Such approach is supported by
a well developed staff assessment system and a promotion scheme that is backed by planning
individual career paths. Staff assessments, although they are mainly completed by superiors,
are revised by peers from the team or other organizational units. Thus, it approximates the
new 360-degree assessment, which is more objective than assessments conducted by one
person. The management is also subjected to assessment through feedback surveys that are
completed by their subordinates and which often suggest what mangers can improve in their
work. Regular workers are always free to present their comments and ideas concerning
company products or its functioning.
Conclusions:
When analyzing Facebook and Google as the examples of the application of human
capital strategy, the following features of that strategy can be identified:
1. a democratic approach to managing, which is reflected by treating all the staff
equally:
encouraging to innovate,
informing about the current condition of the company,
2. sharing beta versions of products to the users,
3. taking care of staff development through 360 assessment system and career paths,
12
On the whole, the human capital strategy involves comprehensive care about the
employee10.
10
http://www.ere.net/2005/12/05/a-case-study-of-google-recruiting (Accessed: 24.04.2015).
13
Disadvantages:
Conclusion
The ranking list of IT companies that was published by Glassdor.com in 2014 testifies
best to the effectiveness of the three HRM strategies analyzed above. The list was based on
the following criteria:
14
Source: http://www.glassdor.com.
The conclusion from the table is simple. The best rating from consulting companies and
the employees was achieved by organizations that apply human capital strategy.
Moreover, the Millward Brown list of 100 world Top Brands presents Google, Apple
and Microsoft in the first ten positions (1, 2 and 4, respectively). Although Facebook ranks
21st , in the period under evaluation (2013/2014) its brand value increased by 68% and it
moved 10 places upwards. The list shows clearly that these companies are the leaders among
technological companies.
Bibliography
[1] Blumenthal K., Steve Jobs inaczej, Amber, Warszawa 2012.
[2] Isaacson W., Steve Jobs, Insignis, Kraków 2011.
[3] Karnaszewski P., Dyktatorka mody w Apple, Forbes 3/2014.
[4] Lashinsky A., Sekrety Appla, Znak, Warszawa 2013.
[5] Wiernek B., Zarządzanie zasobami ludzkimi, Text, Kraków 2001.
[6] http://www.apple.com/jobs.
[7] http://www.glassdor.com.
[8] http://www.ere.net/2013/09/09/a-case-study-of-facebooks-simply-amazing-talent-
management-practices.
[9] http://www.ere.net/2005/12/05/a-case-study-of-google-recruiting.
11
http://www.glassdor.com
15
Abstract
The article presents a comparative analysis of HRM strategies applied by the biggest IT
corporations: Apple, Google, Facebook and Microsoft. For the purposes of the analysis, from
among personal strategies three most common ones were chosen due to their simple
assumptions: the SITA strategy, human capital strategy and a mixed strategy. The advantages
and disadvantages of each strategy were evaluated. On the basis of the opinion of the experts
from an American portal Glassdor.com, a ranking list of strategies was made from the point of
view of their beneficial effect on corporations.