Strategic human resources management aims to align human resources practices with company strategic goals. This involves recruitment, compensation, and training practices that support company objectives. Key features include problem solving through cooperation between HR and other departments, and integrating HR within all company aspects. Performance management and feedback are important, as is compensation tied to performance. A hybrid structure with a VP of HR and HR representatives in each department could implement strategies productively. An open door policy and weekly manager meetings would promote feedback and prevent toxic competition. Diversity in hiring would stimulate new ideas, appeal to various audiences, and lead to more revenue through a better reputation.
15. Performance Management & Management Feedback ? One of the main reasons for the downfall of Salomon Brothers was the competitive nature of the managers in each department. There was little interaction between each department. Employees were not given the opportunity to voice their opinion about company policies/practices. Employees were not given specific career goals.
19. Compensation? Inadequate Reward SystemConsequence of Gutfreund’s overconfident belief that Salomon Brothers made money for the firm rather than specific traders Poor LeadershipGutfreund criticized employees for wanting more money while he took home the biggest salary of any Executive on Wall Street
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21. Diversity? Hired only one type of employee: White well educated college kids. Little race/sex variation. As a result, Salomon sells its self short by not being able to appeal to other audiences. A culture barrier will put a strain on a client-employee relationship. Lack of diversity gives Salomon a narrow viewed, narcissistic reputation to the public, as well as its competition. Its competing firms can use this to expose Salomon to the public, and then capitalize on their bad fortune. A more diverse work force will stimulate new ideas. People from different backgrounds can offer different outlooks on the market, different ideas, and overall a diverse way of doing business based on the clients wants and needs.
22. Goals of Salomon Brothers Be “the best” and keep its prestigious name and reputation. Generate revenue.
23. HybridStructure Elect a VP of HR who would focus primarily on aligning the goals of the company with the goals of the employees in the most rewarding way possible. Elect HR representatives to each department in order to implement the strategies in the most productive way for each individual department.
24. Open Door Policy Employees should have the chance to approach a HR representative of their department to share their feedback about: Management Major conflicts with colleagues Any other issues an employee feels is worth discussion.
25. Weekly Conferences Managers, VP of HR and HR representatives should meet weekly. Promotes interaction between the managers of each department, which may help prevent toxic competition. HR representatives will discuss employees’ major/repeated issues with the managers of each department to ensure the happiness of each employee.
26. Compensation Similarly to Sonoco case, the compensation system needs to have a direction connection with performance.Rather than having fixed salary brackets, there should be commission in addition to a base salary. Ex. Howie Rubin Salomon Brothers should reward employees in front of everyone to create more intrinsic motivationEx. John Gutfreund
27. Diversity Salomon needs to broaden the types of employees they recruit. They need to hire different races and sexes so that they can appeal to every type of audience. Should focus on individuals who can speak various languages. Being able to do business with other parts of the world will result in more revenue for the company.
28. More Diversity More Revenue Diversity will lead to a better reputation with the public. If a company is in the good graces of the public and the media, more potential clients will be more inclined to do business with Salomon. Salomon will appeal to a vast array of potential clients all around the world with all different types of outlooks, wants and needs The diversity of Salomon’s employees will innovate many different ideas that can give the company an edge over its competitors. With the market constantly changing, Salomon cannot afford to hire a cookie cutter employee, they need to think outside of the box and hire different types of people with different ways of thinking.
Editor's Notes
It is the linking of human resources with strategic goals in order to improve the performance of the business as a whole.This means accepting AND involving the Human Resources department of a company as a strategic partner in company strategies –Selecting the right people to perform the necessary tasks.Making sure to reward workers for jobs well done on an objective basis.
It is the linking of human resources with strategic goals in order to improve the performance of the business as a whole.This means accepting AND involving the Human Resources department of a company as a strategic partner in company strategies –Selecting the right people to perform the necessary tasks.Making sure to reward workers for jobs well done on an objective basis.
It is the linking of human resources with strategic goals in order to improve the performance of the business as a whole.This means accepting AND involving the Human Resources department of a company as a strategic partner in company strategies –Selecting the right people to perform the necessary tasks.Making sure to reward workers for jobs well done on an objective basis.
This means accepting AND involving the Human Resources department of a company as a strategic partner in company strategies –Selecting the right people to perform the necessary tasks.Making sure to reward workers for jobs well done on an objective basis.
Explicit connection between HR department and overall business aimsHR should be able to give performance feedback to the employees by being able to directly evaluate their actions.Other company departments work interactively with the HR department when it comes to issues with employees – they are not just simply referred away to deal with HR separatelyThe management of HR does not lie solely within the HR department i.e. if something goes wrong, and SHRM is in place, it is not necessarily the departments fault alone – responsibility is devolved down the line.
HR should be able to give performance feedback to the employees by being able to directly evaluate their actions.
Other company departments work interactively with the HR department when it comes to issues with employees – they are not just simply referred away to deal with HR separately
Other company departments work interactively with the HR department when it comes to issues with employees – they are not just simply referred away to deal with HR separately
The management of HR does not lie solely within the HR department i.e. if something goes wrong, and SHRM is in place, it is not necessarily the departments fault alone – responsibility is devolved down the line.
Usually the HR department of a company is looked at as a separate entity of the company.Almost like an oasis of morality centered away from the hard world of business practices (labor law implementation, allowable breaks, rates of pay, etc.)But, SHRM brings the HR department closer to the inner workings of the company, rather than keeping it separate, in order to work with employees on a more integral level so that long term motivation and productivity is achieved
Usually the HR department of a company is looked at as a separate entity of the company.Almost like an oasis of morality centered away from the hard world of business practices (labor law implementation, allowable breaks, rates of pay, etc.)
But, SHRM brings the HR department closer to the inner workings of the company, rather than keeping it separate, in order to work with employees on a more integral level so that long term motivation and productivity is achieved
Your compensation system is a way to give your employees something in return for the hard work they have done. It can be in the form of monetary bonuses, vacations, awards ceremonies or even just the simple praise. It is how you say “Thank you employee for working hard and causing the company to be successful.” Compensation is important
In every company. Including here, at Salomon Brothers.
This is a possible tactic that could be used by its
