Strategic Human Resource Management: A Case Study of Apple Inc.

This report analyzes the effectiveness of strategic human resource management by the application of theoretical framework. The contribution of strategic human resource management has been evaluated in context of chosen organization Apple Inc. SWOT analysis of Apple Inc has been done for explaining the planning of human resource.

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HRM assignment
Name of the University
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Table of Contents
1.0 Introduction:....................................................................................................................2
2.0 Importance of strategic human resource management:...................................................3
3.0 SWOT analysis of company and evaluate the outcome.......................................................4
4.0 Human Resource planning...................................................................................................6
5.0 Human resource policy......................................................................................................10
6.0 Conclusion:........................................................................................................................12
References list:.........................................................................................................................13

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1.0 Introduction:
The report is prepared to analyze the effectiveness of strategic human resource
management by the application of theoretical framework. The contribution of strategic human
resource management has been evaluated in context of chosen organization Apple Inc.
SWOT analysis of Apple Inc has been done for explaining the planning of human resource.
In addition to this, the existing human resource planning has been discussed alongside
designing of new policy for the selected organization.
The mission and vision statements of Apple Inc form the base of success of company.
The vision of Apple is to bring the best personal computing experience to creative
professionals, educators, educators and consumers around the world through its internet
offerings and innovative software and hardware. Mission of Apple Inc is to lead the digital
music revolution with its online store of iTunes and iPods (apple.com 2018).
Apple Inc is a multinational technology company of America based in California. It is
engaged in manufacturing, designing and marketing of software, personal computers, line of
portable digital music players and networking solutions. Apple is involved in manufacturing
and designing of both hardware and software products. Software products of Apple include
iOS operating system, macOS, itune media player, iLife, iwork creativity and Safari web
browser. Hardware products include iPad tablet computer, iPhone Smartphone, iPod portable
media player, smart watch and television (apple.com 2018). The unique ability of company is
leveraged through its business strategy such as development and designing of its own

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operating system, innovative industrial design, seamless integration and many software
technologies and application (Albrecht et al., 2015).
2.0 Importance of strategic human resource management:
Strategic human resource management (SHRM) is an approach that helps in defining
how the goals of organization will be achieved through human resource strategies and
integrated practices and policies of human resources. The ability of organization to achieve
mission, vision and strategic objectives are increased through SHRM by aligning the
direction of organization. SHRM comes with several advantages by creating atmosphere of
competitiveness via differentiation, building core competencies, workforce diversion and
development of work, culture and ethics (Sikora & Ferris, 2014). An organization can adopt
several human resource management strategies such as work arrangements, acquisition of
talents, appraisal and motivation. Work arrangements can be done in the form of team
positions and individual jobs, telecommuting options, position with discretion and autonomy.
Acquisition of talent is done for internal development and can be recruited internally or
externally. Appraisal and motivation are done through intrinsic and extrinsic reward system,
incentives for originality and ideas and assessment for development and reward (Banfield et
al., 2018).
The model of creating competitive advantage by focusing on its workforce by
attracting key skills and talent within the organization is employed by Apple Inc. Apple Inc
has primary objective of retaining its employees and attracting employees externally and the
key people at work are in the technical, marketing and staffing positions. For achieving this
particular objective, different practices of strategic human resource have been employed by
Apple Inc to attract skilled professionals. By making investment in the skills of employees,
the interest of Apple lies in maximizing the interest of its workforce. For enhancing the

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overall competitiveness of organization, human capital is recognized as vital element and
strategy of human resource are regarded as driving force for strategy development (Boselie &
Brewster, 2015). Therefore, the main focus of organization is to capitalize on the
competencies of staffs with the principal objective of achieving competitive advantage in the
market. The factor that has contributed in making the most innovative company in the
industry of consumer electronics is the application of approach of managing people and
sourcing great talents. The main objective of human resource of Apple Inc is to minimize the
financial capital and maximize the investment whilst capitalization on human capital. Some
other responsibilities with which human resource management of Apple Inc is charged
include development of leadership, selection and recruitment, development of employee,
incentive compensation and employee relations which is carried out in an efficient and
consistent manner (Al-Sarayrah et al., 2016). Furthermore, candidate suitability to fit the
culture of organization is the focus of recruitment policy of Apple Inc. Employees at Apple
are provided with the opportunity for development and training along with on job training for
advancement of their skills. In addition to this, such training also provides staff with the
opportunity to interact with talented and experienced workforce. Therefore, it can be inferred
that strategic human resource management of Apple Inc is aimed at attracting and retaining
the best talent at the same time. Such strategic approaches have enabled organization to
prevail as the leading provider of personal computing products (Armstrong & Taylor, 2014).
3.0 SWOT analysis of company and evaluate the outcome
Strength- Apple Inc has best human resource management strategies that help in
attracting and retaining best talent from industry. The unique training approach of company
has helped in ensuring that employees are equipped with appropriate and right skills required

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for job. Such approach has helped in enhancement of skills and strong self reliance
development (Bailey et al., 2018).
Weakness- The recruitment strategy of Apple is dependent upon the candidates
fitting the culture of organization as against experience and skills of employees. Such strategy
is considered as complicated and might restrict talented candidates from applying the
company’s open position.
Threat- On the job training of Apple Inc requires employees to learn on their own
and this can be threat sometimes, if the employees are not able to generate advantages in the
form of becoming self reliance and their failure to fit to the culture of organization (Schuler
& E. Jackson, 2014).
Opportunities- Despite aggressive competitiveness, Apple Inc has the major
opportunities by way of innovation, development of new product lines and expanding the
distribution network. The strategic directions of business are influenced by the opportunities
generated (Purce, 2014). For this purpose, it is required by organization to identify the best
talents from industry.
Recommendations based on evaluation of outcomes of SWOT analysis in context of
human resource management of Apple.
 Apple Inc should adopt the recruitment strategies that are easily accessible and
simple. Procedure of recruitment should intend to encourage employees to complete
the application at their convenience. There should be written as well as verbal
interview procedure that will enable recruiting managers to learn potential candidates
other skills.

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 As opposed to on the job training, such training and development program should be
emulated by company that have a particular process. Instead of leaving employees on
their own, apprenticeship should be embraced by company. It will assist employees in
gaining skills that would enable them to adapt to culture of organization (Stone &
Deadrick, 2015). Furthermore, Apple Inc would also be able to retain its best talents
as they would not be scared on the very first day of job.
 Apple Inc should be able to identify what employees are provided as financial and
non financial benefits by their competitors. The value propositions of organization to
offer rewards would be enabled by organization that is slightly higher than its
competitors such as HTC, Samsung and Nokia.
 A comprehensive talent research should be carried out by Apple Inc for sourcing the
best talents. The potential and talented candidates would be determined by conducting
market research which will help company in attracting the best talent from industry.
4.0 Human Resource planning
For any organization, human resource planning is considered crucial as it plays a
significant role in management of employees. The required human resource of organization is
met through human resource planning by identifying the number and types of employees. It
can be regarded as the process that continuously helps in analyzing the human resource needs
of organization under the changing conditions by development of activities to satisfy the
recruitment, selection, training and staffing requirement. Management of organization
receives assistance in determining the way organization should move to the desired staffing
position from its current staffing position.
Human resource planning of organization helps in adequate and smooth supply of
manpower without any interruptions. Future requirements of human resources such as up

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skilling, re-skilling and succession planning are properly forecasted that helps in development
of employees. In addition to this, it provides assurance of optimum utilization of existing
human resources. The impact of technology on requirement and job of human resources are
anticipated by the human resource planning.
The process of human resource planning requires scanning of environment and
interfacing with strategic planning. It requires analysis of inventory of current human
resources that helps in forecasting of demand for human resources. The supply of human
resource in the external labour market and within the organization is forecasted. Forecast of
demand and supply is compared and this assist in planning actions that are required to handle
any anticipated overages or shortages.
There exist some drawbacks on part of planning of human resource activities of any
organization. The main problem is related to forecasting as it is requires to rely on past
experience for predicting future developments. It is indicative of the fact that forecasting
cannot include the one off events fundamentally altering the events. The characteristics of
planning process stifle the qualities that are required by organization to be competitive
advantage. Critics of human resources, an organization is able to gain competitive advantage
by generating responses to fast changes environment that are more flexible and creative that
the competitors.
Planning of human resources of an organization requires consideration of factors such
as size of business, nature of business, strategy employed and types of organization, resource
of business, policy of management, location of business, time horizon, environmental
uncertainties, business environment, and quality of information and culture of organization.
It is required by organization to keep up with policy of human resource when it is
expanding its business. Planning of human resource for Apple Inc is the framework of

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business for its current requirement of human resources. This would enable organization to
acquire best possible results from employees in future and present scenario. Planning of
human resource by the management of Apple would enable organization in ensuring that it
has the right number and right kind of people at the right time and right place that are capable
of completing the tasks effectively and efficiently that will help in achievement of overall
objectives of organization. Human resource planning at Apple Inc comprise of employment
planning, manpower planning and personnel planning.
The motto of Apple Inc is to think differently which is very well done by company
following the innovative ideas development that helps in creation of innovative products that
continues to define the world of computer designs. Apple Inc forecasts human resources
demand and supply. Forecasting of demand is the process that helps organization in
estimating quality and quantity of people that is required to meet the future requirements. For
instance, say Apple in present scenario requires two highly skilled and innovative employees
for handling one of its departments. Supply forecast on other hand helps in measuring total
number of people that are likely to be available from within and outside the organization
(Morschett et al., 2015). Supply of employees can be generated internally or externally. Third
step deals with programming of human resource that is done after the personnel demand and
supply of organization are forecasted. After the forecasting of demand and supply of
personnel’s, there must be reconciliation and balancing so that vacancies can be filled at the
right time by right number of employees. Next step is the implementation of human resources
that requires conversion of human resources plans into actions. This includes a series of
actionable programmes such as selection, recruitment and placements. Last step is about
evaluation and controlling of programme and the plans of human resources includes targets,
budgets and standards. There should be clarification of responsibility for establishment of

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reporting procedures, controls and implementation. It will help organization in enabling
achievements that would be monitored against the plan.
Human resource planning process of Apple:
(Source: created by author)
Strategic planning activities of human resources of Apple intends to support the
product decision of company by capitalizing on new and emerging trends and thereby helps
in maintaining competitive advantage.
Selection and Recruitment strategy at Apple- It is the first and most important
stage of function of human resource management of organization. Recruitment at Apple is
designed in way to attract talented people following labour demand forecasting and gaol of
company. Organization employs many methods for recruitment by source to internal and
external source. Internal source include department examinations, transferring and
recommendations of employees. Advertisement of organization is supported by external
source such as job centre, employment emergency, company website and newspaper. In order
to generate more competition, the focus of company is to recruit from external sources.

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However, recruiting from external source proves costly and time consuming for company.
The training and development segment of company lies on developmental strategy creation at
Apple. It is for this reason that identification of needs of training would bring benefits to
organization or not. It serves organization by coming up with the appropriate solutions by
reminding superiors about the weak points. However, it is required by organization to use the
suitable method of training by identifying the needs of training and willingness on part of
employees and company. Analysis of training needs of Apple requires people who are focus
and creative in the environment they are working (Vomberg et al., 2014).
5.0 Human resource policy
The policies of human resource management reflect the philosophies and values of
organization. It is the continued guidance regarding the approach that organization adopts for
managing its people. HRM policies serve as guidance for the implementation of procedures
and actions taken that are well aligned with the policy for task accomplishment. It is required
by organization to conduct a careful evaluation of policies of operations in determining the
impact on behaviour and attitude of employees. Any prevailing issues in the organization are
dealt by policies and such guidance helps in ensuring that actions are well aligned with the
philosophies and values of organization (Kryscynski & Ulrich, 2015).
For managing its employees, best strategies have been implemented by Apple. The
policy of human resource management of Apple aims at minimizing the financial risks and
maximizing the return on investment from its human capital. The Human resource policy of
Apple conducts all the responsibilities in a consistent, effective, fair and legal manner. Equal
employment opportunities are provided regardless of race, gender, ethnicity and disability.
The company promotes organizational diversity and is an employer providing equal
opportunities to its employees (Taylor et al., 2015). Recruitment of employees is done on

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assessment of their computer based knowledge. In year 1995, a fellow program was created
by company for recognizing successful and hardworking employees. By way of employee
compensation, a large number of benefits are offered to employees by organization and such
compensation being highly competitive. Some benefits that are offered by organization
include employee stock purchase programs, insurance cover, savings and investing plans
(Delery & Roumpi, 2017). Apple also employs retention strategies by providing economic
reward.
Development of policy for managing human resources within the organization is the
responsibility of human resource managers. For supporting implementation of human
resource policies, management should be provided with effective support and training.
Effective implementation of human resource policies would help in meeting overall
objectives of organization (Cascio, 2014). Designing human resource policies for Apple
requires following some steps that are listed below:
 In the first step, human resource managers are required to gain an in depth
understanding of core values and culture of corporate.
 Conduct an analysis of existing HR policies
 Conducting analysis of external influences such as legislations of employment of
operating country (Wright et al., 2014).
 Seek the views of employees
 Perform assessment of areas where new policies are required if there is inadequacy in
the existing policies.
 Top management should be consulted along with seeking the views of representatives
of union.

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The policies of Human resources of Apple in recent years have raised many issues
and human capital often faces difficulties due to lack of transparency is strict policies of
human resources management (Hollenbeck & Jamieson, 2015). Among staff members, lack
of clarity exists about personal and business objectives. Furthermore, there are no sufficient
provisions for recognizing and rewarding employees who came up with innovative ideas.
This has led to weakening of motivation and morale of employees and has increased the
attrition rate. Therefore, human resource policies of Apple should incorporate proper reward
system that takes into account matters such as equal pay for work that are of equal value,
payment made for performance, contribution, competence and skills (Brewster et al., 2016).
In addition to this, it should also include any non financial rewards that results from
autonomy, accomplishment, recognition along with development opportunity. Some other
areas that can be covered under the HR policies include pay, working time off, information
confidentiality, intellectual property and change management. HR policies of Apple Inc
should be centralized as it helps in standardization of the process across countries of
operations (Bratton & Gold, 2017). However, there are some disadvantages of centralization.
There can be employment of polycentric approach to manage human resources who has the
conscious belief that culture and behaviour of host country market is properly understood by
host country managers and therefore, local people should manage the foreign subsidiaries.
6.0 Conclusion:
It is evident from the analysis of human resource management of Apple Inc that
acquisition of best and talented people from industry has helped company to be ranked as
best company in providing personal computing. From the analysis, it has been further
ascertained that corporate culture does not help in promoting the employees morale.
Therefore, it is required by Apple Inc to create alignment between the strategy of human

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resources and overall organization which would help in sustainable and imminent long term
success. Apple should adopt such human resource policies that would help employees in
decision making by encouraging systematic practice. It would assist organization in
managing diversified workforce and thereby realizing sustainable growth.
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