Activity A Introduction: HealthInc. is a manufacturer of premium food products designed specifically for the health conscious individual. Prepared exclusively from 100% additive free whole foods, free range meat and handpicked fruits and vegetable, HealthInc. has a product range designed keeping in mind the needs of health conscious people, athletes, diabetics, patients of high blood pressure and generally individuals who like to lead a healthy and active life style. Following is a list of the products that HealthInc. manufactures: Healthvitals® Real Fruit Juices (Additives, sugar and preservative free) HealthInc. Ready meals® ( Available in an array of pre-cooked, packaged meals, with a variety of combinations.
These include Vegetables, Meats [Veal, Pork, Chicken and Lamb] and pasta combinations, low sodium, and low calorie meals with no added preservatives) HealthInc. Sugarita® Desserts ( A range of desserts which are completely sugar free, a mouth-watering variety of guilt free sweets) HealthInc. G’mornin’® ( A range of sugar-free, sodium-free, breakfast cereals prepared from 100% whole grains) Goals of the Organization: The goal of HealthInc. is to provide the health-conscious consumer with a guilt-free approach towards eating, and to provide customers with a one-stop experience of “Healthy eating”.
External Factors effecting HealthInc. : 1. Increasing consumer consciousness: There is an increasing need for manufacturers to provide healthier, more guilt-free alternatives to every-day mass produced food products available in the market. 2. Competitors: Due to the above mentioned factor, already there are quite a few competitors in the market, something which may prove to be a potential threat for HealthInc. 3. Increased food prices: Due to an increase in overall prices of food, HealthInc. has also recently made an increase in the price of its products, something which can affect the brand’s sales. 4.
Demand for greater depth of product range: Increased interest in healthy eating has prompted a trend where consumers need greater depth in the range of healthy food products. This is a factor which can aid in HealthInc. expanding its operations. Activity B Organizational Strategy: HealthInc. is an organization which follows the strategy of Product differentiation. Due to the nature of the products that it manufactures and distributes, HealthInc. has the largest share in the health foods market. The firms which follow the differentiation strategy seek to develop products and services which differ from the offering of those of their competitors, and in doing so, they have the opportunity to develop and maintain an edge over their contemporaries.
The organization does not exclusively focus on a single group of consumers, and instead positions itself as a brand which offers “Guilt-free” food for every individual, no matter what their needs are. Organizational Strategy and Human Resource Management: HealthInc. has been continuously maintaining its position as the leader in providing the best and the latest in the health foods market. This fact is helped mainly by the initiatives that the organization takes to make innovation a part of its business processes.
For this reason, the importance of the Human Resource department of the organization cannot be debated. For a firm to succeed, it is essential that the Organizational strategy is backed up by the strategy of the human resource department of the organization. Golden and Ramanujam’s (1985) four-stage model of strategic linkage proposes that the involvement of HRM in strategic planning can be divided into four stages: (1) No involvement in the strategic planning process – the role of the HRM function is basically to deal with day-to-day issues. (2) The HRM function is responsible for implementing the strategy formulated by top management. (3) The HRM function contributes to the strategic planning process by providing input to top management. Although the HR department is not directly involved with the planning procedure, it is a crucial link which aids in making a success out of the organization’s chosen strategic decisions.
A research confirmed that evidence suggests that the” presence of an HRM department enables organizations to develop a centralized performance appraisal system compared with a method which simply leaves it to the discretion of individual managers” (Bin Othman, 1996). There is also a great need for an organization to have an HR department which retains and employs individuals which suit the needs of the organization and create value for the organization in the long run.
The HR department and its value, is not only limited to the creation of a resourceful employee base and helping organizations carry out their strategies, the Human Resource department is also crucial in aiding organizations like HealthInc.
in carrying out research and development work. Conclusion: The previous discussion points out the importance of an HR department in making a success of an organization and its strategic goals and aims. For HealthInc. to retain its position in the market, and to be called an innovative brand, it is imperative that the firm does not dissolve its HR Department and allows it to perform its functions. References Golden, K.A. and Ramanujam, V. 1985. “Between a dream and a nightmare: on the integration of the human resource management and strategic business planning processes”, Human Resource Management, Vol.
24 No. 4, pp. 429-52. Bin Othman, R., 1996. “Strategic HRM: evidence from the Irish food industry”. Personnel Review. Vol. 25. No. 1, pp. 40-58.