Introduction
According to Daft and Dorothy (2009), “human resource management is the strategic and coherent approach to the management of an organization’s most valued assets-the people”. A good human resource management strategy is today considered amongst the most important tools of a business (Gardner, 2002). As the labor market gets more and more competitive, recruitment and retention are increasingly important concerns for business, especially with a realization that employees are now looking for more than good pay. A business’s internal and external environment is an important factor for employees when deciding whether to stay or not. The environment is also an important factor for a business to consider when deciding who to recruit and where to get them from.
Apple Inc. is a global company, with employees from all over the globe. The company has 47, 600 full-time and 2,800 temporary employees from all over the world (Apple Inc., 2011). Its reputation as an employer has been a good one but lately, the business has been facing challenges in keeping that reputation (Bach,2010). The business has been under high levels of criticism when it comes to labor practices. In 2006, the company was under criticism from labor organizations and human rights groups for poor working conditions in China. “Its contracted manufacturers responsible for producing the iPod had more than 200,000 workers living and working in the factory for more than 60 hours per week” (Miller, 2010). Their pay rates have also been unacceptable compared to the number of profits the company makes. Since then, the company put in place labor audits where all their suppliers and contracted companies are audited to ensure they adhere to proper employees’ rights and working conditions. The audits are done yearly and since then, labor abuse in the company has reduced tremendously.
Internal factors
For Apple to achieve optimum functioning, some factors have to align with its policies. Different factors influence the business’ recruitment policies and strategies. Internal factors with ability to influence the business’ recruitment process include its labor policies. The business has good salary rates compared to most American multinational companies. Apple Inc.’s median salary for most jobs is above the national median salary for similar positions. As a result, it can attract more employees and can retain them.
The other factor that affects a company’s recruitment is its training and support policy (Karami, 2007). “Apple inspires a whole new generation of its employees with training and support services” (Network Solutions, 2010). As a result of good training and support mechanisms for its employees, the business can recruit young in the market and help them develop to expected levels. Its passion to create creative products calls for specific training to instill the required skills in the business.
Suppliers, distributors, shareholders, and shareholders influence how and who a business recruits (Kessler, 2000). The business policies are endorsed by shareholders, who influence how much is spent on human resources. A good business also has to consider the needs of its customers and other stakeholders before recruiting. Apple Inc.’s employees, therefore, have to be people with the ability to handle the interested parties of the business (Apple Inc., 2011).
The labor market and supply have a big influence on a business’ recruitment success (Thompson and Strickland, 2000). The labor market influences availability and affordability of human resources for the company. Since Apple Inc. has a global presence, different labor markets have a significant effect on the quality of human resources it accesses and its policy about working with locals or importing employees.
External factors
External factors which influence the business are the economy, government policies, legal factors, and technology (Gatewood, Field and Barrick, 2009). Being a multinational business, Apple’s performance and human resource management policy is largely influenced by the economy of different countries. The economic growth in different regions, inflation rates, inventories, exchange rates, and future trends all impact the business (Weiss, 2010).
Political-legal factors influence business operations. Apple Inc. has an international presence, making it vulnerable to global legislation and regulations. Since different countries have different legislation concerning human resource management, Apple may be restricted in some regions on who it hires and how it does it. Regional trade such as the European Union offers the company enormous potential by making it possible to operate in bigger markets under the same regulations. In such markets, Apple can hire employees from any of the member countries under the same rules and regulations. Political unrest in different regions, such as the ongoing riots in Arabic countries and terrorism, largely impacts Apple’s recruitment processes and its employees’ stability. Under such circumstances, the business may have a hard time recruiting expatriates for its offices in such regions.
Another important external concern for Apple Inc. is economic factors. Economic environments in different countries largely affect multinationals’ revenues, profits, and human resources(Adkins, 2005). A company may not be able to sustain its salary rates in regions where it is making losses (McEntire, Dailey, Osburn, and Mumford, 2006). The recent global crisis and reduced profits for Apple were a good example of just how big a factor the global economy is for it. The business had to halt recruitment in some regions and offer lower salaries in some. Slow economic growth results in a slow growth rate due to decreased consumer spending, reducing the levels of recruitment in the region.
Social-cultural factors do influence a region’s human resources trends and patterns (Mathis and John, 2008). Apple’s products are embraced differently in its many markets and so is its position as an employer. Different products are consumed differently in different regions, influencing the people Apple Inc. employees in them. Currently, computers, phones, and other consumer electronics are experiencing increased demand in almost all markets. As a result, the business has a bigger number of sales and marketing professionals in different regions.
Finally, technological factors are a big consideration when drafting a business’ recruitment plans (Torrington and Laura, 2008). New problems in the market call for new solutions each day and this demands that Apple keeps pace. Technology forms the basis of Apple’s business and therefore, the business cannot afford to offer outdated products in the market. This means that Apple has a big interest in designers, IT experts, and other professionals in the technical fields.
Conclusion
Apple Inc. has managed to stay ahead of the competition as an employer. The business, however, still faces challenges in convincing the world that it has the best employment policies in the world. Different factors affect its recruitment policies, making it hard to impress different markets equally. Its global presence exposes it to many political and legal challenges and big expectations from employees all over the world. The most influential factors for the company’s recruitment plans include its human resources policies, partners and shareholders, political-legal factors, technology, economic and social factors.
Reference list
Adkins, C.L., 2005. Staffing organizations: A comprehensive applied exercise. Human Resource Management Review,15, 226-237.
Apple Inc., 2011. Apple as an employer. Web.
Bach, B., 2010. Implications of enabling technologies for Apple Inc. Ohio: South-Western College Publishers.
Daft, R. and Dorothy, M., 2009. Understanding management. Mason, OH: South-Western Cengage Learning.
Gardner, T., 2002. In the trenches at the talent wars: Competitive interaction for scarce human resource. Human Resource Management, 41(2), pp. 225-237.
Gatewood, R.D. Field, H.S and Barrick, M., 2009. Human resource selection, 8th ed. Mason, Ohio: Thomson/ South-Western.
Karami, A., 2007. Strategy formulation in entrepreneurial firms. Aldershot[u.a]: Ashgate.
Kessler, E., 2000. Innovation Speed: A concept model of context, antecedents and outcomes. Academy of Management Review, 21 (4), pp. 1143.
Mathis, R.L. And John, H.J., 2008. Human resource management. Mason, OH: Thomson/South-Western.
McEntire, L.E. Dailey, L.R. Osburn, H.K. and Mumford M.D., 2006. Innovations in job analysis: Development and application of metrics to analyze job data. Human Resource Management Review, 16, pp. 310-323.
Miller, F., 2010. Apple Inc.: History of Apple, Litigation, Time line of Apple’s Products, iPod, iPhone and Apple TV. New York: Routledge Publishers.
Network Solutions.(2010). Organizational behavior: Power, Politics, Conflict and Stress. Web.
Thompson, A. and Strickland, A., 2000. Strategy formulation and implementation: tasks of the managers. Homewood, IL:Irwin.
Torrington, D. and Laura, H., 2008. Human resource management. Harlow: Financial Times Prentice Hall.
Weiss, J. (2010). Organizational Behavior and Change: Managing Diversity, Cross-Cultural Dynamics and Ethics: Multinational companies Cincinnati, Ohio: South-Western College Publishers.