Richer Sounds

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1. Discuss to What extent does Richers offer useful lessons for other organisations in terms of its approach to HRM and to what extent is their approach replicable?
2. Critically evaluate whether the Richer’s Way of managing people would be effective in the Barbados
Submitted on January 04, 2011 Word Count 2475
No. Z0923915
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Table of Contents
Page
1. 0 Introduction ………………………………………………… 2 2.0 Preview ……………………………………………………... 2 3.0 High commitment Management ……………………………..2 3.1 Resource Based Value ……………………………………… 5 4.0 Discussion …………………………………………………... 6 5.0 Conclusion …………………………………………………..11 6.0 Bibliography ………………………………………………...12 List of Figures

Figure 1: Some key areas considered in HCM modeling….……..4 2
1.0 Introduction
With the Guinness Book of records highest sales per employee and sales value per square foot, a five-star rating and #1 High Street shop survey ranking from Which? Magazine; Richer Sounds Plc (RS) is the largest high fidelity (hi-fi) and home theatre equipment company in the UK. Richer Sounds is an unlisted public limited company, wholly owned by Julian Richer, and there are currently fifty-two branches nation wide, each approximately 200sqft in floor area and located off the main high streets. The company had an annual sales turnover of £116.2 million in 2009 with pre-tax profits of £3.4million. Bloomberg (2010), Redman (2010), Richer Sounds (2010) 2.0 Preview

This essay will analyse the Resource Based View (RBV) and High Commitment Management (HCM) Human Resource (HR) models and apply them to the practices at Richer Sounds, then discuss any useful lessons for other organisations, and how replicable their approach is.

Secondly, this essay will give various points of view about whether the Richer’s Way of managing people could be effective in Barbados.
3.0 High Commitment Management
According to Redman (2001) the Best fit model of Human Resource Management (HRM) is dependent on how HR practices align with corporate strategy to gain competitive advantage also known as vertical integration. Huselid (1997) showed that there was a positive impact between the effective use of high performance work systems and alignment with strategy, and this produces positive performance, with employees increasing market share. Delaney et al (1996) suggests that the progressive use of HRM practices such as selective staffing, training and incentive compensation produces the perception of positive performance results. Redman (2001) writes that different HR services are required for different groups of employees due to varying requirements.

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According to Redman (2010) properly structured HRM creates perceived organizational support (POS) from the employees where they feel they are valuable assets to the organization demonstrating affective commitment and therefore positive organizational citizenship behaviour which leads to positive performance, this is also supported by Mitchie et al (2005) using statistical methods. Becker et al (1996) Suggested that key to strategic HRM, flexibility must also be factored in light of continuously changing operating and business environments. Figure 1 shows some areas that are considered in HCM.

Figure 1 Some key areas considered in HCM modeling
Corporate Strategy and Philosophy
Schuler R (2002) suggests that effective HRM is key in any organisation and should be integrated with the business strategy, and by satisfying employee needs through various HR practices gains their cooperation. Gratton et al Recruitment

& Training
Communication Rewards
Employee
Involvement
Corporate
Strategy &
Philosophy
Culture
High Commitment
Management
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(2003) carried out studies of companies with different levels of horizontal and vertical integration, and implementation levels. They showed that alignment of the HR objectives with; company strategy; management values and behaviour; and work processes; were all necessary for a successful people strategy which leads to positive...
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