OL211- Module Six: Human Resource Management
School of Business
In this case study, we will observe and assess the employee compensation, recruiting, and selection processes of Maersk Group, Inc. We will address past, present, and future policies and procedures used by the organization to maintain its position as a leader in the global market.
HRM Functions and Practices
An organization's human resource function must be aligned with the organization's strategic and long-term plans for many important and valuable reasons. The human resources function must understand the organization's goals intimately and use that information to acquire and maintain the best possible workforce to accomplish those goals. Aligning the two functions is essential and imperative for a company to thrive in the current global economy. Human resource functions must be keenly aware of the exact requirements of positions within an organization so that they may recruit, select, and train individuals with the appropriate knowledge, skills, and attributes (Snell, Morris & Bohlander, 2016). By performing work analysis and task analysis human resource functions can better understand the fine details of each position and its requirements.
The current global conditions have impacted Maersk's human resource management practices dramatically. Maersk originally began as a family company and grew into a major world conglomerate. Their history of selecting and hiring young, under-educated individuals (often directly from high school) and training them to their own specific standards lead to great success. Their employee retention was phenomenal. However, as they expanded into the global market, they were not able to maintain an equally dedicated and loyal employee base. As the labor market became more competitive, employees sought out additional benefits and compensation for their work. This forced Maersk to overhaul its entire recruitment and selection process.
Maersk has a deep cultural history of internal promotions and hiring, which leads to employees with decades of dedicated service. Maria Pejter, senior director of Maersk Groups Human Resources department said, In many ways, A.P. Mller has been a company of people who work there for life We have disproportionately many people who get to their 40-year anniversary or 50-year anniversary with the company, and no one makes a big wahoo out of 25-year anniversaries because they are very common. However, in the ever-competitive and rapid-paced conditions of the global market, today demanded more than the sometimes homogenous A.P. Mller could offer. One of the major disadvantages of the familial organization is the potential for a company culture to develop in which the company looks out for itself and its components (people) more than the bottom line. Firing habitually underperforming employees is more difficult when they've worked for the company for 25 years. The cost...