The Importance of the Business Strategy and Human Resource Management
Purpose of the study
The purpose of the study is to investigate and critically assess the importance of the business strategy and human resource management (HRM) in terms of the organizational performance. Additional area of focus is the role of entrepreneurial culture of the company and its relation to the business results the company achieves. In order to perform the study, it is necessary to establish a clear profile for each of the subjects in a few areas. First of all, it is crucial to determine particular business strategies employed by each of the companies under research.
For the purpose of the study a business strategy is defined as a set of decisions and goals set by the company’s management in order to gain economic advantage in its industry. The second perspective of the study is the human resources management practices of each company. HRM practices are defined as the strategies employed by the company in order to control, develop and encourage its human capital to improve the company’s performance. And the final perspective of the study is the entrepreneurial culture of the firm. The boundaries of this area are hard to establish, as it has influence on and is influenced by many factors from the first two areas of research, as well as other aspects. The assessment of the three areas described above should determine whether there are any significant differences in the operations of the subjects and if these exist, highlight them. The differences in the organizational performance will also be determined and presented. The results of the research will provide the basis for the analysis of the interrelationship between the operational processes of the company and its performance. The key question of the study is the dependence of the company’s success on the HRM practices implemented by the company, its strategic approach to its market and the cultural environment within the firm. Subjects of the studyThis study revolves around the analysis of 3 companies. Each of them is a leader in their respective industry and is a great subject to look upon.
Borouge is a joint venture between two renown worldwide companies. Abu Dhabi National Oil Company (ADNOC) is one of the top ten oil producers in the world. Today, it is producing more than 2 million barrels of oil per day. They joined with Borealis, company originally based in Vienna, Austria, which is a big producer of plastic, chemicals and fertilizers. Borealis operates in 120 countries in the world and oversees more than 5,000 employees (Borouge.com, 2015). Borouge is world leading plastics provider, with very diverse business culture. Its production facilities located at Abu Dhabi, and its Sales and Marketing department is located in Singapoor.Overall, Borouge employs more than 3,000 people with a very diverse cultural environment, which makes it an ideal subject for the current study.Borouge has recently increased its production capacity, and is heavily investing in R&D and Innovation …