Strategic HRM Analysis: Philips' Practices and Cultural Considerations

This report provides a comprehensive analysis of Human Resource Management (HRM) strategies at Philips, an international electronic company. It explores how Philips creates value through various HRM practices such as the Balanced Scorecard, Total Quality Management, and performance measurement. The report examines the impact of regional and national culture, particularly in China, on HRM practices, including team building, training, and employee retention. It describes an appropriate organizational employment model, focusing on the standard causal model of HRM, and outlines key organizational levers like tactical communication, employee development, and a meaningful culture. The report uses Storey's 27 points of difference between HRM and personnel management to benchmark Philips' practices, highlighting the importance of adapting to both personnel management and HRM. Furthermore, it emphasizes the significance of local culture in hiring and firing, and in international subsidiaries. Finally, the report provides corporate examples of good HRM practices and offers recommendations for enhancing organizational performance.

INDIVIDUAL PROJECT
FOR HR

TABLE OF CONTENTS
INTRODUCTION.......................................................................................................................................3
A) Explaining HRM strategies for creating values in company........................................................3
B) Analyzing the impact of regional and national culture on practices of HRM in China................5
C) Describing appropriate organizational employment model and levers used by organization for
creating value..........................................................................................................................................6
D) Using storey’s 27 point of differences between HRM and personnel management as a
benchmark describing practice used by Philip in China..........................................................................7
E) Explaining significance of local culture in hiring & firing and HRM practices need to undertake in
general and International subsidiary........................................................................................................8
F) Examining the difference in terms of employment laws when international HRM changes to local
business.................................................................................................................................................10
G) Describing corporate examples of good HRM practices of firm...............................................10
H) Recommendation regarding HRM practices for higher organizational performance.................11
CONCLUSION.........................................................................................................................................12
REFERENCES..........................................................................................................................................13

INTRODUCTION
Human Resource Management is the practice of managing people of company that assist
firm to reach its organizational goal and objectives in effective manner. In current era, it has
become essential for company to adapt strategic approach for retaining, attracting and controlling
employees due to increases competition in industry. The chosen company in current case study
is Philips that’s a EU established firm. It is one of the largest electronic company of world that
deals in domestic appliances, personal & connected care, diagnosis and treatment equipment.
The present report will examine values created by Philip through HR practices. Regional and
cultural impact on activities of human resource management in the mentioned country. Current
report will include organizational employment model and levers for creating value. In order to
define the practice of HRM or Personal management adopted in present case study storey’s 27
point of differences will be used. Report will give emphasis on importance of local culture and
HRM practices for hiring and firing in international subsidiary. Difference of employment laws
in international HRM changes to local business system will be included along with
recommendations for improving employees’ management practices to achieve higher
organizational performance.
A) Explaining HRM strategies for creating values in company
Strategic human resource management is relationship between firm’s employees, objectives,
& goals which aims to achieve competitive advantages. It plays an important role in
obtaining success in effective pattern. Philip has various values for smooth functioning of
organization that includes, fast delivery, priority to customers, quality & integrity, team up,
enthusiasm to improve and inspire. There are several human resource practice that business
conducts for formulating values so that organizational objectives can be attained.
Balance Score Card

Using this Philip aim at communicating firm’s objectives, vision, mission to employees.
It also focuses on making clarity among workers that what they are expected to do in
particular task. Business gives emphasis on identifying factors through balance score that can
improve company’s efficiency by formulating values like fast delivery, team up, etc.
Collaborating with employees across business boundaries for giving best experience to
customers (Taamneh , Alsaad and Elrehail, 2018). The firm is proactive, decisive and
committed to gain complete work from employees in strategic & planned way.
Total Quality management
It is an approach utilized by business for long sustainability through focusing on
customers satisfaction. It is established through contribution of all employees by participating
in improving process. Philip uses this to ensure that its values created for client satisfaction
are obtained. This process encourages and motivates through making enthuastic working
scenarios. It is continues improvement procedure as it concentrates on planning process &
action for making change. Eager to inspire and improve value is attained by this mode of
human resource practice. Philip celebrates success with colleagues and pays attention on
problem solving related to working culture of company.
Performance Measurement
The main purpose of this human resource activity is to obtain quality & integrity through
workers’ performance. For this company aims at developing plans, setting targets, analyzing
efforts of workers and making corrective actions for desire result. With respect to this, Philip
compares actual outcome with estimated standards so that full potential of employees can be
derive in effectual manner (Blom and et.al., 2020). Firm play crucial role in motivating
employees for giving better outcome than previous in turn continuous improvement is
achieved. HRM practice such as social gathering, installing workouts, standardization
performance is established for creating healthy working culture (7 best human resource best
practices, 2020). It is also carried forward by taking feedback from customers, income from
operations, brand value, etc.

B) Analyzing the impact of regional and national culture on practices of HRM in China
Culture is made up of aggregation of various values, beliefs, social behavior, rules &
regulation, etc. There are numerous activities that influence functioning of business activities.
One of the most important elements is cultural factors. Human resource management of
company adapt those policies, procedures an methodologies for managing employees that
can encourage and influence their behavior in positive manner so that organizational set
goals can be reached. Philip as being world largest organizational has emerged into various
nations for purpose of expanding its business. Philip has initiated activities more than 600
cities in China which involves various employees that contribute towards success of firm.
There are a variety of factors that affect functioning in organization such as law, legislation,
employment law, customers taste & preferences, employees way of working, pay structure,
etc.
To tackle with these factors company’s HRM has taken initiation for developing &
establishing those practices that can motivate workers to give their full potential. The
activities involves team building, training & development, strategic decision making,
leadership style, effort evaluation, employee retention, resource administration,
performance appraisal, building employee relation, etc. Moreover, management of company
must acknowledge the differentiation among cultural and national values so that desirable
outcome can be derived (Veth and et.al., 2019). Philips implements all mentioned practices
to ensure that all external as well internal factors of China impact company’s growth in
positive manner.
The most important risk that can be faced by any multinational company in China is
diversity of customers’ perceptions regarding quality, price, etc. These people have concept
of nationalism in their mind while buying any product as their prefer to pursue those goods
only that are produced in their own nation. However, HRM practices that are consistent and
encourage employees in such environment which leads to self encouragement, higher
organizational performance, etc. For attaining this company uses high internal consistency,
adaptive, expertise & integrative approaches are given preferences in multinational
companies. Employee consultation, problem solving sessions, job security assurance, team
buildup & management, data analytics for recruiting right candidate that can adapt changing

circumstance of nation, etc are established by Philips to derive good results from
subordinates in regional and national culture.
C) Describing appropriate organizational employment model and levers used by
organization for creating value
Human resource model provide assistance to firm in explain roles and responsibilities of
HR in organization. The suitable approach for Philip is standard causal model of HRM which
can give appropriate result too company. It comprises overall strategy & Human resource
method, practices, outcome and improved internal along with financial performance (Human
resource management, 2020). This specific model reflects that how personnel managing
activities is linked with whole business process that leads to firm performance. Additionally,
it states that HR plan will be effectual only if this is connected with business plan. It starts
from conducting practices and ends by attain improved performance of Philip which is as
follows:
HR practices and outcome
It is integrated with subordinates monitoring strategies which are linked with full
business procedures. This involves recruiting, developing, appreciating, and providing
compensation. This activities lead to commitment, improvised efforts, employee involvement
and relation, etc. Philip can take various advantages by adapting this mode of structure.
Internal and financial performance
HR results tend to provide benefits of higher productivity, innovativeness, quality efforts,
financial turnover, good profit margin, etc. It shows the relationship between employee
management and modified possibilities of internal environment of firm that is directly gained
through HR activities (Zamanan and et.al., 2020). Further, Philip can derive both mentioned
benefits through this model of employment.
Organizational Levers
It aids company to determine how to obtain excellence in business activities. Philip uses
below mentioned levers for creating value in organization:

Tactical communication
Once firm has established goals it requires channels via company can communicate with
staff. Philip makes sure that communication should be two way so that both the parties can
interact properly. It allows subordinates to share their view, opinion and feedback that
permits firm to make changes in business policies that is appropriate for concerned situation.
In addition to this, this lever gives chance to enterprise to get improved activities.
Workers Development
Providing opportunities for training and development enhances employees’ willingness
for working with commitment, loyalty, engagement, etc. It should be assured by employer of
organization that such chances are given to subordinate where they can get their personal
growth with business development (Singh and et.al., 2021).
Meaningful Culture
Working environment of firm should be purposeful so that confusion of roles and
responsibility can be avoided. This will aid business to get clarity in all process which tends
to provide better productivity, employee satisfaction, etc. Further, mission of firm is specified
clearly and understand to workers through creating appropriate business culture.
D) Using storey’s 27 point of differences between HRM and personnel management as a
benchmark describing practice used by Philip in China
It provides significant difference between human resource and Personnel
Management (PM). HRM refers to managing people of company effectively so that
competitive advantages can be achieved. PM is concerned with recruiting and developing
skills, knowledge and experience in turn employees can become more valuable for
organization. Philips is international electronic firm that conducts its operations on large
scale therefore number of employees involved are high than normal domestic company.
Using both practices permits business to get both the advantages of monitoring and
modifying according to suitability of firm.
In China business activities of Philip are established with at most consideration so that it
can be safe from political as well economical conflicts. Further, it provides benefit of getting

both types of workers that can work according to rules & regulations and innovativeness by
utilizing their specialization for betterment of Philip. Company can nurture and monitor
through direct & indirect communicational channels that aid firm to obtain fast decision
making skill. There are various opportunities that become available for organization when it
utilizes both activities for subordinates. In internal environment it becomes important to
adapt suitable course of action that can increase productivity, profitability, etc.
Making effective paying structure is crucial for company which makes clarity among
employees regarding their remuneration. Using both personnel management and HR gives
opportunity to construct both job evaluation & performance based remunerations (Ababneh,
2021). It removes views of biases among staff related to their compensation and lead to drive
job satisfaction, involvement, etc. Philips follows free flow of communication so information
can be float smoothly within organization that can create belongingness feeling. It allows
workers to participate in decision making according their attributes, tactics and
specialization. Key relation area as well becomes wide due to usage of combination of HR
and PM activities. It is enhanced by focusing on customer and labor management. In addition
to this, monitoring customers and employee satisfaction is essential in competitive
environment of China as it contributes in reaching desire position in industry.
E) Explaining significance of local culture in hiring & firing and HRM practices need to
undertake in general and International subsidiary
There are several elements of culture that need to be considered by enterprise while
recruiting and firing employees. Every nation has diverse values, beliefs, etc. which need to
be focus by firm. It helps company to obtain right candidate at suitable position which can
give competitive advantages to company. Moreover, Human resource should take into
consideration while recruiting as the performance of firm is dependent on efforts of
subordinates.
Diversity
While making decision regarding recruiting management of organization should check
that candidate is able is to get fit in changing circumstances of business. This is an important
tactic that is requiring performing effectively (Jacob, Manalel and Minimol, 2020). Diversity

refers to ability to give full potential that ensure greater productivity and higher profitability
of firm.
Language skill
Cultural differences are as well measured in terms of this mode. Moreover, these factors
need to be taken into consideration while making recruiting and firing employees. Every
nation has different way of speaking with diverse tone. It is responsibility of HR to make
sure that subordinates have professional way of speaking. Knowing different kinds of
knowledge make functioning more easily for organizational process.
Stress tolerance
Changing circumstances may lead to give stress to individual person. Moreover, this is
crucial skill that needs to have in candidate chosen for particular job title (Cheng, 2017).
Stress tolerance power enable person to take strategic decision that can result in effectual end
outcome. There are various situations that make person stressed about their task, activity and
future actions so in turn better tolerance ability is expected.
HRM practices for general and international subsidiary
Training and development
The most important human resource activity in for domestic and global operating
organization is providing learning and improvement opportunities to subordinates (Cheng
and Hackett, 2021). It leads to get modified performance that firm was expecting from staff
so that desirable objectives can be achieved.
Performance Evaluation and Appraisal
Every scale of enterprise need to analyze its actual performance with estimated standards.
It will permits company to gain competitive advantages of improved skills, knowledge,
qualitative performance, motivated subordinates, etc. whenever workers get rewarded for
their higher efforts contribution they get encouragement to get involve in betterment of
business along with fulfillment of their personal agendas.

Talent Management
Recruiting, retaining and controlling employees of business is very essential in
competitive current era. In international companies, cost of operating are already higher than
domestic operations so ensuring that job security and loyalty is attained by subordinates.
Creating healthy working culture
It is responsibility of HR to formulate healthy culture within company. In addition to this,
the environment should be encouraging, value sharing, respectful, etc.
F) Examining the difference in terms of employment laws when international HRM changes
to local business
Employment law comprises rules, regulations, norm and condition between
employer and employee. It impacts both adversely and positively on business activities.
There is nominal difference between international and local HRM activities. Every
nation’s law wants to safe guard the interest of employees which involves fair
remuneration, respectful working culture, growth opportunities, mentioned working
hours, etc. In international employment HR needs to make immigration of documents
(Barrena-Martinez and et.al., 2019). With respect to this, it requires personal profile of
employees to making sure that employees are not indulging into any fraudulent activity.
When global practices changes to local it requires training & personal
development workers so that quality and standard efforts can be obtained. International
human resource management is stricter as compared to national personnel practice.
Employment law divers in terms of pay structure, safety, health conditions measures,
Standard policy for handling different type of individuals changes to simplicity of making
single rule. The workers management guidelines should be comply with employment law
so that fair practices can be conducted.
G) Describing corporate examples of good HRM practices of firm
There are several organizations that have better activities of human resource management
which gives good profitability through obtaining employees full concentration. According
Abdullah and et.al., (2021) HRM should be so effective that workers get motivation to

attaining their personal growth along with firm. In against of this, Brewster (2017) depicted
that Human Resource Management should not waste time on making culture but focus on
enhanced productivity. For example – GE Healthcare uses personnel performance
evaluation as well appraisal technique that enhances it sustainability as compared to other
competitors of industry. It includes communication standards, focus on production with
quality, employment law compliance, healthy & safe environment, etc.
From the view point of Li, Rees and Branine (2019) it is related with team building for
gaining competitive advantages. This should be mainly focus on retaining right candidate for
suitable job. . In contract to this, Krishnan and Scullion (2017) this is related with following
policies, procedures rather than creating specialization development plans. Additionally, it
has lack of support of top level management. For instance- LG Electronics focuses on
achieving proactive approach, professionalism, product expertise, personalized method,
preventative options, etc. With respective to this, actions that company take are proper
recruitment process, positioning, promotion, performance analysis, compensating each
worker with appraising creativeness
H) Recommendation regarding HRM practices for higher organizational performance
 It is advisable to employer to conduct good training sessions for employees so that
required skills, knowledge, attributes needed for specific job can be gained. It enhances
confidence and belongingness feeling among workers that creates enthusiastic working
culture (Human resource management practices translate into sustainable performance,
2020). To gain this, it should align with business strategy so that suitable programs can
be formed and desire outcome may derive.
 Establishing feedback mechanism for making every subordinate know about customers’
satisfaction level, product efficiency, etc. this will lead to create improvement habits
within subordinates that will remove lacking areas of organization.
 Providing employees job security increases motivational and morale which in turn give
quality performance. The organizational goal achievement is dependent on staff
efficiency of working. Additionally, it becomes essential for firm to focus on those
criteria that enhances their efforts.

 It is suggested that employer of business should have proper performance evaluation
system. This formulates trust between company and staff which is important for effective
functioning of enterprise. These are people that add value to process of business so
making them encouraged through monetary compensation can be adopted.
 Maintaining employee relation allows HRM to implement effectual strategies with ease.
Disputes among management and subordinates results in non compliance of policies,
procedures, rules, regulations, etc made by firm for attaining mission and vision.
Moreover, it becomes important for human resource management of company to have
good relationship with its subordinates so that smooth functioning can be attained with
higher organizational performance.
CONCLUSION
From the above report it can be concluded that human resource management is essential
in competitive scenario of world. The present report has given emphasis on strategies of HRM of
Philips for creating value in organization which includes total quality management, balance score
card and performance management. In order to carry forward business operation in China there
are several cultural factors that impact HRM that involves law, legislation, customers’
perception, etc. To tackle with this, current report has focuses on activities like strategic decision
making, leadership style, employee retention, etc. present report has represented standard causal
model of HRM that involves human resource practices which provides internal & financial
performance. In addition to this, organization levers mentioned in case study are strategic
communication, purposeful culture, etc. the current report has explained that HRM and personnel
management both are adopted by business through storey’s 27 point of differences. Importance
of local culture for hiring and firing are tolerance capacity, language skill, etc. along with HRM
practices such as talent management, healthy working scenario. The present report has stated
difference of employment law that involves standard policies and many more. Current case study
involves suggestion for HRM activities involve job security, employee relation, etc.

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