Key Elements of Disneys HR Strategy - Case Study Example

STRATEGIC HUMAN RESOURCE MANAGEMENT Name Course Tutor Date Key Elements of Disney’s HR Strategy There are many elements of Disney’s HR strategy. However, only four are key; summing up all the others. They include: Employee recruitment and selection, alignment of the staff with strategic goals, an integrated performance management, and employee development and training (Kearns, 2010; Truss, Mankin & Kelliher, 2012). Employee Recruitment and Selection Employee recruitment and selection are the core functions within the HR department and forms one of the central elements of HR strategy (Compton, Morrissey, & Nankervis, 2014). Recruitment refers to the process of identifying the organizational needs and going further to locate and encourage potential applicants to apply for the vacant or anticipated job opportunities (Truss, Mankin & Kelliher, 2012). Through recruitment, a pool of qualified professionals as well as skilled and experienced workforce is realized (Boxall, Purcell, & Wright, 2007). It also guides the decisions made and the strategies used in the selection process (Compton, Morrissey, & Nankervis, 2014). Selection on the other hand is the process where the employer evaluates and makes decisions concerning the recruited workforce to fit them for particular roles or positions in the organization (Farr & Tippins, 2010). To become part of Walt Disney Company (WDC) a potential employee needs to fill an application form both online and through the job line (Yemmen & Isabella, 2013). This indicates that the company appreciates both internal and external recruitments. Once the application is reviewed, the person is then invited for auditions which in this case serve the selection purpose. During the selection process the successful applicants again apply for roles and watch a film portraying the heritage, regulations, and terms of employment of the company (Yemmen & Isabella, 2013). The employees interested are interviewed and chosen after qualifying for the applied role. Being an entertainment company, the auditions are structured and purposeful (Yemmen & Isabella, 2013). Additionally, the employee is also informed with the employment conditions. Only those that are fit for the organization are selected, meaning that in the end, the company will be able to realize its mission, vision and objectives (Yemmen & Isabella, 2013). Employee/ Staff Training and Development Training and development forms the other core element of HR (Saks & Haccoun, 2007). The two are in tandem with organizational structure and activity, and gear towards the betterment of the performance of the workforce. There are many forms of training methods organizations can use to better the performance of its workforce (Saks & Haccoun, 2007). The training can be done through induction, on-job training, mentorship, and external training, depending on the company in question. Some of the trainings include technological training, quality training, skills and soft skills training and professional training among others (Kearns, 2010). Employee development can take two forms: Career and Management development (Saks & Haccoun, 2007). Walt Disney is responsible for the development as well as the training of its workforce (cast). This is done through the Walt Disney University, where every new cast members practice all the requirements at Disney as well as rehearse prior to performance (Yemmen & Isabella, 2013). In the university the cast members are grounded with the company’s legacy and the knowledge of Disney characters and films (Yemmen & Isabella, 2013). Additionally, the cast members are introduced to the company’s vision, mission, and the guests. The value of communication and courtesy (Disney language) are also taught in the University. Most importantly the cast is also introduced to safety and health regulations as well as how to answer frequently asked questions. This promotes the value of the employees (Yemmen & Isabella, 2013). The cast learns all this by attending a tradition course aimed at making the employee understand all the other employees as well as the clients. The staff is also trained at the local level within the park. This is a form of on-job training. Some of the ideas learnt concerns the ways to handle the equipments and the way to be the best operators. The new operators are then oriented locally after which they perform under the mentorship (Yemmen & Isabella, 2013). This is linked with the corporate strategy in that the company is able to realize its vision, mission and objectives at the same time being competitive in the market. Additionally, the company is able to have the value it wants for the clients/guests (Yemmen & Isabella, 2013). Integrated Performance Management Organizations that manage the performance of their employees usually do well over their competitors. As a result of this strategy, most of the employees will have job security and satisfaction, be productive and remain loyal to the organization (Armstrong & Armstrong, 2011). The company or organization is able to keep track of the performance of its workforce (Verweire & Berghe, 2004). Walt Disney engages its employees in different ways (Yemmen & Isabella, 2013). First, the aforementioned strategies ensure that the workforce is aligned with the organizational strategy. Second, the company encourages open upward and communication. For example, during training the cast members meet their manager (Yemmen & Isabella, 2013). Third, the company rewards those who perform better. A good example of this is where an exceptional cast who arranges for a Mickey Mouse get well card to an ill guest will be given a guest fanatic card that is placed in a drop box after which selections are made. The six or five successful names are drawn monthly and a prize given to the chosen individuals (Yemmen & Isabella, 2013). This promotes productivity and loyalty of the employees. When the employees are loyal to the company, they will work harder to better their reputation (Armstrong & Armstrong, 2011). This in essence is also beneficial for the corporate strategy reflected in the vision, mission and objectives. Strengths and Weaknesses of Disney’s HR strategy Strengths The employees once trained and inducted into the workforce and work environment are able to perform better and gain job satisfaction and security after attaining the best experience in the company. They are grounded with skills that can help them handle the clients as well as the management. Communication allows the employees’ views and ideas to be listened and effectively addressed (Yemmen & Isabella, 2013). The training and development strategy benefits the employees in various ways. First, they are able to acquire skills and experience that leads to productivity. Second, the employees are able to have job satisfaction as well. Third, the employee will meet their personal development goals. The employee’s safety is regarded as important (Yemmen & Isabella, 2013). The company also has strengths from the aforementioned HR strategy elements. First, the organization is competitive over its peers in the industry. This is because the practices are peculiar. Second, the organization’s reputation as the best HR managed company is assured through the HR strategy. The organization is also able to reflect its corporate strategy that then means that it will be profitable. Disney Company can boast of the committed workforce after careful training and induction. The organization also reduces the costs of external trainings and recruitments (Yemmen & Isabella, 2013). The employees are also aligned with the corporate strategy of the company. The company can be able to implement succession planning easily. The guests, who are actually the clients, benefit the most from the HR strategy. The strength of the strategy lies in customer satisfaction. The committed and experienced workforce will ensure they deliver the best for the client (Yemmen & Isabella, 2013). The services offered are of value and customer based. Weakness There are weaknesses of Disney’s HR strategy to the guests, company and employees. The guests must pay high amounts of money so as to get the entertainment. The revenue is responsible for the sustenance of the HR strategy. The employees are not given room to learn anything that can help them outside Disney. This really could harm them in case their job is terminated at Disney. Second, the performance evaluation criteria and the employee reward system are not fair as it does not give an opportunity for anyone who works hard to be acknowledged. The company is much focused on its traditions alone and not the welfare of the workers. The company does the selection and recruitment on its own, thus consuming time and resources. Advice to Disney on how to Develop the HR Strategy The first step the company should take is to invest in strategic HR planning. Strategic HR planning entails the integration of HRM strategies and the organizational systems so as to achieve the corporate strategy (Allen, 2002). The company should conduct an evaluation on its HR composition, forecast the HR requirements, analyze the gaps existing in the HR, and then develop strategies that will support the overall corporate strategy (Boudreau & Ramstad, 2007). The most competent strategies the organization should consider are the restructuring, partnership and outsourcing strategies (Truss, Mankin & Kelliher, 2012; Kearns, 2013). This is because the business world is becoming dynamic in its own ways (Boudreau & Ramstad, 2007). As can be seen the model used in Disney has been in place for a long time now. To be competent and profitable an organization should restructure its HR (Eigenhuis, Dijk, & Eigenhuis, 2008). This implies that the company will reduce the staff either through attrition or termination, regroup the tasks so as to create new and customer based tasks, and reorganize, so as to be able to attain efficiency in service provision (Eigenhuis, Dijk, & Eigenhuis, 2008). The company should also outsource some of the tasks to individuals and organizations that have the capacity to handle them. This is essential, especially because there are some tasks that are short lived and contracting will be way much cheaper compared to recruitment and selection (McIvor, 2005). However, the implications of outsourcing should be weighed first prior to implementing the strategy (McIvor, 2005). Lastly, the company might consider collaborating with other organizations (Truss & Mankin, 2012). This will widen the scope of the HR strategy (Harzing & Ruysseveldt, 2004). This reduces the costs of training and recruitment, encourages benchmarking of the human resource between the organizations and sharing developmental corporate strategies (Harzing & Ruysseveldt, 2004). Additionally, the compensation and reward system should be reevaluated and the best practice chosen. The system should be fair and inclusive as well as predictable (University of Chester, 2014). Bibliography Allen, L. (2002, November 9). Developing HR strategy: 8 steps towards delivering a successful HR strategy | Personnel Today. Retrieved from http://www.personneltoday.com/hr/developing-hr-strategy-8-steps-towards-delivering-a-successful-hr-strategy/ Armstrong, M., & Armstrong, M. (2011). Armstrong's handbook of strategic human resource management. London: Kogan Page. Boudreau, J. W., & Ramstad, P. M. (2007). Beyond HR: The new science of human capital. Boston, MA: Harvard Business School Pub. Boxall, P. F., Purcell, J., & Wright, P. M. (2007). The Oxford handbook of human resource management. Oxford: Oxford University Press. Compton, R. L., Morrissey, W. J., & Nankervis, A. R. (2014). Effective recruitment and selection practices. North Ryde, N.S.W: CCH Australia. Eigenhuis, A., Dijk, R., & Eigenhuis, A. (2008). HR strategy for the high performing business: Inspiring success through effective human resource management. London: Kogan Page. Farr, J. L., & Tippins, N. T. (2010). Handbook of employee selection. New York: Routledge. Harzing, A. -W. & Ruysseveldt, J. (2004). International human resource management. London: Sage Publications. Kearns, P. (2010). HR strategy: Creating business strategy with human capital. Amsterdam: Elsevier/Butterworth-Heinemann. Kearns, P. (2013). Professional HR: Evidence-based people management and development. London: Routledge. McIvor, R. (2005). The outsourcing process: Strategies for evaluation and management. Cambridge: Cambridge University Press. Saks, A. M., & Haccoun, R. R. (2007). Managing performance through training and development. Toronto: Thomson Nelson. Truss, C., Mankin, D. & Kelliher, C. (2012). Strategic Human Resource Management. Oxford: Oxford University Press. Verweire, K. & Berghe, L. (2004). Integrated performance management: A guide to strategy implementation. London: Sage. Yemmen,G. & Isabella, L.A. (2013). The Wonderful World of Human Resources at Disney. University of Virginia Darden School Foundation. Read More