Distinctive HR are Firms Core

Competencies
Zaeem Baqai 18210
Hajra Hafeez 11999
Hamid Khan 17639
Shahzad zafar 17449
Muneeb Noor 17206
Moazzam Aftab 12740
Bisma Hassan 12261

Introduction
Examination of case comparisons of pairs of firms of
the following types:
Professional sports teams,
Military services,
Retailing firms,
Information service firms
Business schools,
Financial services,
Shipping services,
Food and beverage companies.

Best Practice Bandwagon

Distinctive human resource practices help create
unique competencies that differentiate products
and services as a result driving competitiveness.

People Management as Core Competency

People management is the first step to create
distinctive competencies by the following:
Employee Selection
Employment practices

Employees as products
Employees create by themselves what the
organization sells i.e. the product is a service
provided directly by employees.

Professional Sports

SAN FRANCISO 49 ERS

Recruitment through College Draft rather than
trade
Long term player development strategy
Retaining best players and paying them
generously
Players have involvement in decision making

OAKLAND RAIDERS
They do not develop their own players and use
trades to scoop up talented players
High turnover, due to their reputation as a
collection of individuals not fit together
well.
No involvement of players in decision making

On the Field Comparison between

49 ERS and Raiders

 A precise, well defined

unit
Players long tenure
builds relationship with
fans
Quasi autonomous
team.

Individual
Performance
Wide open playing
style
No personal discipline
among players
An organization
anomaly.

 Pioneering Firm in the science of employee

selection
Sophisticated Selection test
Frequent and rigorous employee surveys

 Intensive training in sears products, operating

systems and sales technique
Straight salary for many of the employees, No
Commission

Decentralized hiring, No Formal Selection tools

Applicants with experience in customer count
Qualities are pleasant personality and
motivation
Only one rule in its personnel hand book Use
your best judgment at all times

A stream of motivation programs, but provide

little training
Pay system is leaded towards commissions
Ranking on the basis of Sales
In fashion retail, employees personal contacts
and emotional energy is important

Professional Service Firms

Professional Service Firms

Attract candidates Having Broad Knowledge of Business
Maintain Idea of Revolving Door
Entrepreneurial Environment
Individualized Incentive Pay Culture
Standard Product
Time Based Competition
Capabilities Based Strategies
Growth Share Matrix

Professional Service Firms

On campus Recruiting System
Prefer Candidates having Technical Background
Provide Extensive training in companies method
of project Management and execution
Provide consistent Services

Business Schools

Harvard Business School

Wharton Business School

HBS
They represent structure for internal
development of Skills.
HBS known for identifying young academies and
also have faculty with unique skills and abilities.
Business knowledge using Clinical and Socratic
method.

Practices for Skills Development

Fellowship Program.
Long tenure Clock.
Students as Faculty.

Wharton School
Seek experienced Faculty
Hire from network of PhDs and competitors
school.
Majority of tenured professor have been hire
away from faculty position.

HBS vs. Wharton

HBS graduates are specialized in general
management and superior decision skills.
Wharton gradates have superior analytical skills
associated with specialized functional area.

Financial Services
Insurance Industry:
The property & casualty section of the insurance
industry is based, perhaps more directly that
other businesses , on knowledge and skills.
The ability to identify and assess risk in unique
situations is the central issue in this business.
Chubb & American International Group (AIG)

Chubb Limited

About the company

How do they work ?
Chubbs Employee Management Program
How did they ensure that the new workers stay
around long enough for the investment to be
recouped?

American International Group

About the company

How do they work ?
Companies Competencies
Outside Labor Market preferred over Employee
Management Program

 Variety of Programs to empower Employees

Pay for Suggestion system
Quality of work-life program

Survey Feedback Action

Developing detailed action plan
Including Employees in designing the work
organization

 No people management practice

Strict regulations and guidelines
More coordination required

Measure Individual performance against

company standards Uniformity
Tight Supervision Substantial material reward
system

 Pay high Wages & Benefits

Gain sharing & stock ownership plans
Promotions filled from within Long term
growth driver
Highly motivated & Loyal employees

Comparison between FEDEX & UPS

 Operating with only one hub

Focusing on overnight package
delivery services
Having fewer problem of
coordination as UPS
incompatible

Driver productivity is 3X
higher than FedEx
Wide range of products
Overnight delivery volume is
only 60% of FedEx
Nine times large business
Demand an extremely high
level

COKE VS PEPSI

About coke
Most recognized trademark
Marketed 70 years before Pepsi.
Part of American history and
culture.

 Business strategy is focused on maintaining its

position and trademark.
Captures 45% of US market.
One of the reasons for failure of New Coke was
breaking away from traditional framework of Coke.

How COKE creates internal competency?

Managing Coke requires deep understanding of
the culture of the organization.
Coke typically hires college grads without former
experience and then intensively trains them.
Concept of Job Security.
Family like culture.
But..

Decision making is centralized and little autonomy.

Low tolerance for self aggrandizement.
Performance is evaluated at the division level.
Only those managers who worry about the company
or are concerned about the trademark are allowed
in decision making.

PEPSI
PEPSI has captured market segments which are
untapped by Coke by deploying distinctive
marketing strategies.
Previously it was a Price Leader and is now known
for finding New Generation of consumers.
It has found new market of institutional players

PEPSIs Internal Competency

It is created though new ideas needed to enter new
market niches.
Experienced employees are hired.
Internal competition is fostered
Decentralized performance evaluation
Little Job security/ high turnover
Only uniting force is beat coke