Strategic Human Resource Management: A Case Study of Carlsberg

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STRATEGIC HUMAN RESOURCE
MANAGEMENT
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Table of Contents
INTRODUCTION.......................................................................................................................................3
LITERATURE REVIEW............................................................................................................................4
CONCLUSION.........................................................................................................................................10
REFERENCES..........................................................................................................................................11
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INTRODUCTION
Strategic Human Resource Management is the practice of treating their employees in such a way
that it proves beneficial to both the organization and the employees. It includes rewarding
employees for their performance, promotions of employees and also the behaviour of employers
with their employees. For understanding more briefly case study of the Carlsberg, the group is
selected. This organization is situated in Copenhagen, Denmark and was established in 1847.
The company was introduced on an international level in 1968 and the place was Brewery. Now
the organization is giving employment to 41,000 people and was having 500 different beer
brands. The following report will help in understanding strategies Human Resource
Management, should adopt for achieving better outcomes. It will also help in understanding the
importance of these strategies for Human Resource Management. But the main advantage and
motive of Human Resource Management are to achieve better outcomes and results for the
organization.
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LITERATURE REVIEW
According to Molineux, (2013) the main priority of Human Resource Management is to take a
sufficient lead in competition from other organizations. Its motive is to become a successful
leading brand of beer all over the world. For this purpose, they took various steps and adopted or
implemented various plans. One of these plans is Must-Win Battles. This was the strategy
developed by the CEO of the company in order to achieve success for the organization. There are
different components of the particular plan (Must-Win Battles).
Must-Win Battles include –
1. Developing a Common Group Culture – It includes making a group having the same belief for
the betterment of the organization.
2. Making Brand Strong – It is done for making the brand more stronger and stable by making
suitable changes in it.
3. Developing People Capacities – This practice was adopted in order to make the organization
more stronger and stable by increasing efficiency of the employees by proper training and
guidance.
4. Profitability In Beer Market – As the organization is working only in the manufacturing of
beer. Thus the company focuses only on increasing quality and quantity of Beer which is their
main product.
Jiang, & Messersmith, (2018) mentions that as the main focus of Carlsberg is to increase the
efficiency of the organization thus HR strategy it posses should have a long impact and must
prove beneficial for the organization. One such strategy which Carlsberg possess is –
Overarching Strategy - As Carlsberg is an old organization and from the beginning of its
manufacturing, it has been on a proper rate of success. Thus Overarching strategy is beneficial
and is suitable for them. It is because of this strategy based on the purpose of long term positive
effect for the particular organization. This strategy works to attract the customers through service
of the organization and by the quality of the product. Also, this strategy works in such a manner
that the performance of the employees is increased and they remain regularly motivated and
attached to the organization as in the case of Carlsberg. Employees perform better and achieve a
suitable outcome in this case.
Kramar, (2014) stated that there are different motives of Human Resource Department. Few of
these motives are -
 To attract a number of customers regularly for the product.
 For making employees work efficiently for the organization.
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 To make employees remains attached to the organization.
 Making the organization always lead in the competition.
 Make product different and attractive for the organization.
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Martin, et. al., (2016) has researched that he Winning Behavior Strategy is a strategy based on
the principle of achieving better outcomes for the organization. It leads to better results for the
company by making the employees more sufficient and making policies more effective. As the
name suggests Winning Strategy always wants to achieve better results for the organization. The
following strategy was introduced by Carlsberg in order to achieve better results on the
International level and also keeping in mind the reactions by the local customers.
Singh, (2018) has the opinion that by using this strategy organization wants to achieve results on
a permanent basis for the organization. It is a long term process and involves a number of
resources and time to be achieved. In the case of Carlsberg, the organization is old and
successful. It has achieved its results in a long period of time, thus for applying these strategies,
it is important that organization have patience and availability of resources to achieve suitable
outcomes.
Winning Behavior further includes behaviours present in it which includes –
1. Strength of the organization through bonding and mutual understanding of the team.
2. Always willing to win for the organization means achieving results for the organization.
3. Always try to attract the customers with policies and quality of the product.
4. To make a difference in the organization. It includes making product and services effective
and different in such a way that greater outcomes could be achieved.
5. Understanding the demand of customers. The organization should understand the demand of
customers and make products accordingly.
Yilmaz, & Kitapci, (2017) have researched that Carlsberg is an organization whose main
business is to manufacture beer. In this particular sector as it has been observed that competition
is increasing at a rapid rate. Thus it has been concluded that organization should adopt
techniques and ways such that it always remains lead in the competition. Winning Behavior
Strategy is one such technique which always proves beneficial for the organization. As this
strategy makes to work employees work in such a manner that suitable outcomes could be
achieved on a long term basis. It develops a feeling of motivation and works for the organization.
This strategy makes the organization work in such a manner that every time they achieve better
results and implementation of there each plan is always successful.
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Tran, Henry. (2015) opined that there are some practices which should be involved in an
organization. These practices makes easy to imply strategies for achieving better results for the
organization. One such practice is Winning Strategy. Factors helpful for implying Winning
Strategy are-
EQUITY AND DIVERSITY- Rogers, et. al., (2016) mentioned that equity and diversity is the
practice that should be involved by every organization. It is because it involves the development
of every employee working in an organization. If every employee will contribute to achieving
better results for the organization then it ultimately leads to the success of the organization. In
Winning Strategy the strategy decided is for achieving better results for the organization on a
long term basis. It could be achieved only if all the employees will work together for achieving
better outcomes for the organization. Equity and diversity are thus very important for the
organization so that all the employees could work together irrespective of any discrimination. It
leads to understanding the demands and advice of customers easily if diverse nature is present in
the organization. As in the case of Carlsberg, all the employees work together to achieve results
for organization irrespective of any discrimination. It also leads to making the environment of
workplace proper and appropriate for work. Employees can work sufficiently in such an
environment and could result positively for Winning Behavior Strategy. Another major impact of
such a behaviour is that customers are attached more to their organization as in the case of
Carlsberg.
WORKFORCE PLANNING AND DEVELOPMENT- Chang, (2015) introduced a theory that
it is generally a process of determining the skills and education for employees in order for
achieving effective and strong workforce. For achieving results of Winning Behavior Strategy
most important task is to make the workforce strong and sufficient. It could be done only by
Workforce Planning and Development. It increases the efficiency of employees. The main
advantage of this process is it is beneficial not only for any single task or goal but it is beneficial
for a permanent basis for an organization. Winning Behavior Strategy also works for this
purpose of achieving permanent results thus this process is helpful for them. In particular
planning, proper planning is done in order to the aware organization the departments in which
improvement is needed and the employees, knowledge and skills where improvement is required.
The organization works on these factors and makes the workforce strong and sufficient to
achieve better results for the organization.
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Munteanu Anca-Ioana, (2013) opined that in different countries there are different issues that
arises in implying various strategies. The major difficulties that come during implementing
Winning Behavior Strategy in Malaysia are –
 Cultural Issues – According to Sablok, (2013) to Cultural Issues are the issues that arise
due to cultures of different places. The cultural issues are basically related to different
cultures, values and beliefs. The organization faces problems because implementing any
strategy in such a different culture is a very difficult and complex task. Mainly there are 3
cultures in Malaysia which are Chinese, Indian and Malay. It is very difficult for the
organization to implement policies in three different cultures. In many countries, there are
more cultures thus for these countries it is more difficult for the organization to introduce
and implement strategies. In some organizations the employee feels uncomfortable to
work for each other thus it becomes more difficult in these organizations to motivate
employees to work with each other. For solving this issue the leadership should be such
that employees listen to leaders and work accordingly.
 Language Issues – Jiang, et. al., (2013) stated that Malaysia is the country having a
number of cultures and generally, these issues have a number of languages. Thus
implementing strategies is very complex in such a case because it becomes difficult for
the organization to make all the employees understand the given strategy. It makes the
communication gap between the employees. It is because in many cases people of one
language could not understand another language. Carlsberg Malaysia is the oldest
subsidiary of Carlsberg in Australia. The organization should have a solution to this
problem like all the employees should speak a particular language in an organization.
This makes a common language among different employees which helps in
understanding the policies and strategies implemented by the organization.
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Lengnick-Hall (2013) researched that Winning Behavior is a strategy adopted by organizations
to achieve suitable outcomes for the organization and also to remain in lead every time for the
organization. Implementing strategies becomes easier only if conditions are favourable. In the
case of Australia, the conditions are favourable because of languages spoken in Australia and
also the people in Australia.
 Language - Fox, (2013). has introduced that in Australia, there is a common language
spoken that is English. Thus it makes easy for the organizations in Australia to make
their employees teach about strategies easily and the employees can thus work easily if
they understand the strategy properly. In this way, the organization could achieve a
successful outcome.
Implementation – As there are no languages issues in Australia thus organization should imply
their strategies in different places so that productivity and selling could be increased. It could be
done because people have the same languages throughout and thus employees at different places
can understand the policies and could also imply them. Thus it is very easy for an organization to
imply the given strategy.
 Choice Of People In Australia – In Australia, it has been observed that a number of
people consuming Beer are in very large Quantity. Thus it is very beneficial for the
organization to promote their product in such a place where demand and consumption of
the product are very high.
Implementation – Sekiguchi, (2013) has opinion as the demand for Beer is very high in
Australia thus organization should expand its business in Australia. The supply of product should
be increased and also the number of employees should be increased so that the production could
be increased easily. The promotion of the product should be done so that people can be
introduced with new products and their qualities.
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CONCLUSION
In the following case study, it has been thoroughly analyzed that Strategic Human Department is
very important for an organization. The main motive of this practice is to achieve suitable
outcomes for the given organization. Different organizations adopt different HRM strategies for
their organizations. These strategies thus depend on the type of organization and demand of the
organization. There are various difficulties also for organizations to employ these strategies in
different countries. These difficulties include traditional issues, languages issues and various
different factors. It is the responsibility of organizations to solve these difficulties and makes
these strategies implement in their organizations. Different organizations find out different ways
to solve these difficulties.
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REFERENCES
 Molineux, J. (2013). Enabling organizational cultural change using systemic strategic
human resource management – a longitudinal case study. The International Journal of
Human Resource Management, 24(8), 1588-1612.
 Jiang, K., & Messersmith, J. (2018). On the shoulders of giants: A meta-review of
strategic human resource management. The International Journal of Human Resource
Management, 29(1), 6-33.
 Kramar, R. (2014). Beyond strategic human resource management: Is sustainable human
resource management the next approach? The International Journal of Human Resource
Management, 25(8), 1069-1089.
 Martin, Farndale, Paauwe, & Stiles. (2016). Corporate governance and strategic human
resource management: Four archetypes and proposals for a new approach to corporate
sustainability. European Management Journal, 34(1), 22-35.
 Singh, N. (2018). Strategic human resource practices for innovation performance.
Benchmarking, 25(9), 3459-3478.
 Yilmaz, Y., & Kitapci, H. (2017). The Impact of Strategic Human Resource
Management on Institutionalization Process. Business Management Dynamics, 7(3), 26-
38.
 Tran, Henry. (2015). Personnel vs. Strategic Human Resource Management in Public
Education. Management in Education, 29(3), 112-118.
 Rogers, Sean E, Jiang, Kaifeng, Rogers, Carmen M, & Intindola, Melissa. (2016).
Strategic Human Resource Management of Volunteers and the Link to Hospital Patient
Satisfaction. Nonprofit and Voluntary Sector Quarterly, 45(2), 409-424.
 Chang, Y. (2015). Strategic human resource management, transformational leadership
organizational ambidexterity: Evidence from Taiwan. Asia Pacific Business Review,
21(4), 517-533.
 Munteanu Anca-Ioana, & Fullname=" ". (2013). NEW APPROACHES OF THE
CONCEPTS OF HUMAN RESOURCES, HUMAN RESOURCE MANAGEMENT
AND STRATEGIC HUMAN RESOURCE MANAGEMENT. Annals of the University
of Oradea: Economic Science, 22(1), 1520-1525.
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 Sablok, G., Bartram, T., Stanton, P., Burgess, J., Mcdonnell, A., Townsend, K., &
Markey, R. (2013). The impact of union presence and strategic human resource
management on employee voice in multinational enterprises in Australia. Journal of
Industrial Relations, 55(4), 621-639.
 Jiang, K., Takeuchi, R., & Lepak, D. (2013). Where do We Go From Here? New
Perspectives on the Black Box in Strategic Human Resource Management Research.
Journal of Management Studies, 50(8), 1448-1480.
 Lengnick-Hall, M., & Rigsbee, Carolee M. (2013). Strategic human resource
management and supply chain orientation. Human Resource Management Review, 23(4),
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 Fox, H. (2013). STRATEGIC HUMAN RESOURCE DEVELOPMENT IN SMALL
BUSINESSES IN THE UNITED STATES. Academy of Entrepreneurship Journal,
19(1), 77-118.
 Sekiguchi, T. (2013). Theoretical implications from the case of performance-based
human resource management practices in Japan management fashion, institutionalization
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Human Resource Management, 24(3), 471-786.
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