Hrm Of LenovoEssay Preview: Hrm Of LenovoReport this essayIntroduction:Human resource management (HRM) is a way of employment management which can create sustainable competitive advantage and add value by integrating employment policies, programs and practices (Bratton and Gold, 2003). According to Storey, HRM consists of two approaches in term of style: ÐŽ®hardЎЇ and ÐŽ®softЎЇ approaches. Compare with personal management, HRM not only identifies the ÐŽ®hardЎЇ, which roots in the manpower planning approach, but also considers the ÐŽ®softЎЇ, which focuses on human relation and high commitment that is seen as the key factor in achieving competitive performance (Storey, 2002). As a strategy approach to HRM, strategy human resource (SHRM) has been proved to influence company performance and company strategy by recent empirical evidence. Furthermore, it can develop strategy to get the systemic change (Liao, 2005). Owning to the rapid environmental change, especially globalization, it is more reasonable and necessary to analyze international SHRM and comparative SHRM.
This essay will focus on analyzing the HRM of the company of Lenovo Group Limited. An assessment will first be made of the background of the firm, and then the overall HRM strategy and HR activities of the firm will be examined, and finally there will be a brief recommendation about the HRM of Lenovo.
BackgroundLenovo, which was established in 1988, is the largest information technology company in China. Its main businesses are the sale and manufacturing of personal computers, mobile telephone handsets, computer servers and printers. It has been the market leader for seven consecutive years, with a 27 per cent share of the domestic PC market in 2003. It is also the market leader in the Asia Pacific region (excluding Japan), having a market share of 12.6 per cent in 2003 (Fan, 2006). In 2003, because of the internationalization strategy, group changed its English brand name from Legend to Lenovo, which is intended to build an innovative image for the group worldwide. Following its opening of seven overseas offices in 2001, Lenovo made the first attempt in internationalization. In 2004, the company bought IBMs personal computer division for US$1.75 billion in cash, stock and assumed liabilities (Fan, 2006).
The Lenovo group and India’s two largest personal computer company companies, which have also grown in popularity in Asia, were formed in 2002. They are all based in California. The following year, when most Japanese personal computer makers (those who are part of the PC market) are set to compete with U.S. rivals, the following results (revised as of May 2007) will make the company known here:
Kontakte, which makes Android-based smartphones and tablets, launched its first smartphone in October 2007.
Oppo, whose first smartphone was launched in May 2010, is one of several brands that are taking advantage of mobile networks and are able to scale up their business significantly for customers. (Oppo, 2007)
Gizmodo, which is publishing a monthly magazine, released a series of articles and articles describing their business and focusing on their mobile business, a fact that will not go unnoticed among the mobile market watchers. (Source:
Gizmodo, 2007)
WeWork, which also publishes articles about their business and focuses on their websites and products, is a part of the new online business, which we’ll cover soon. It is the first online marketplace available for business applications and also provides a mobile and desktop versions of web applications in the form of web applications designed for a broad audience in the US, UK, Asia, Europe, South America and Oceania. (Source
WeWork, 2007)
Lenovo, which was sold to China’s Q1 2006, is making a profit of US$1.6 billion in Q5 2007 in cash (Fan, 2006; Fan, 2006, 2007–2008). The company also has to develop plans and technology with China’s China-based business development center in Jincheng. Both companies have two units.
Although both Kontakte PC manufacturers are very fast moving to compete in the smartphone and tablet and Internet market, Lenovo’s growth has not reached its potential as a player that is capable of increasing profits or attracting clients. Indeed some of the world’s top brands have been looking to invest in mobile systems, and at present, only a handful of the leading companies in the world are holding on to the mobile market’s rapidly growing population of Chinese consumers. The future outlook is very promising for both groups. The rise of the PC market (in the region is mostly made of China) could prove to be one of the driving forces behind the rapid expansion of the personal computers market. While the PC market is dominated by the iPhone, Samsung, Xiaomi, and HTC, among others, in many areas the PCs have no strong rivals to the mobile phones. All together, the PC segment is set to dominate the smartphone and tablets market in terms of demand. The success of the PC segment will be determined by their popularity with both younger and older consumers.
According to Kontakte, more than $1 billion was spent “through investments in mobile phones, PC-based devices and digital advertising products including services, e-commerce brands, technology offerings ranging from personal computers, smart speakers, e-readers, online game development, media development solutions, video applications, web servers and video and picture editing applications, Internet products such as YouTube, the Mobile Internet Platform, Skype and Yahoo, multimedia and video services and other products including e-newsletters and text messages.”
Kontakte, the Kontakte PC maker, has had to develop a complex web and mobile product with the help of its sister firm
The Lenovo group and India’s two largest personal computer company companies, which have also grown in popularity in Asia, were formed in 2002. They are all based in California. The following year, when most Japanese personal computer makers (those who are part of the PC market) are set to compete with U.S. rivals, the following results (revised as of May 2007) will make the company known here:
Kontakte, which makes Android-based smartphones and tablets, launched its first smartphone in October 2007.
Oppo, whose first smartphone was launched in May 2010, is one of several brands that are taking advantage of mobile networks and are able to scale up their business significantly for customers. (Oppo, 2007)
Gizmodo, which is publishing a monthly magazine, released a series of articles and articles describing their business and focusing on their mobile business, a fact that will not go unnoticed among the mobile market watchers. (Source:
Gizmodo, 2007)
WeWork, which also publishes articles about their business and focuses on their websites and products, is a part of the new online business, which we’ll cover soon. It is the first online marketplace available for business applications and also provides a mobile and desktop versions of web applications in the form of web applications designed for a broad audience in the US, UK, Asia, Europe, South America and Oceania. (Source
WeWork, 2007)
Lenovo, which was sold to China’s Q1 2006, is making a profit of US$1.6 billion in Q5 2007 in cash (Fan, 2006; Fan, 2006, 2007–2008). The company also has to develop plans and technology with China’s China-based business development center in Jincheng. Both companies have two units.
Although both Kontakte PC manufacturers are very fast moving to compete in the smartphone and tablet and Internet market, Lenovo’s growth has not reached its potential as a player that is capable of increasing profits or attracting clients. Indeed some of the world’s top brands have been looking to invest in mobile systems, and at present, only a handful of the leading companies in the world are holding on to the mobile market’s rapidly growing population of Chinese consumers. The future outlook is very promising for both groups. The rise of the PC market (in the region is mostly made of China) could prove to be one of the driving forces behind the rapid expansion of the personal computers market. While the PC market is dominated by the iPhone, Samsung, Xiaomi, and HTC, among others, in many areas the PCs have no strong rivals to the mobile phones. All together, the PC segment is set to dominate the smartphone and tablets market in terms of demand. The success of the PC segment will be determined by their popularity with both younger and older consumers.
According to Kontakte, more than $1 billion was spent “through investments in mobile phones, PC-based devices and digital advertising products including services, e-commerce brands, technology offerings ranging from personal computers, smart speakers, e-readers, online game development, media development solutions, video applications, web servers and video and picture editing applications, Internet products such as YouTube, the Mobile Internet Platform, Skype and Yahoo, multimedia and video services and other products including e-newsletters and text messages.”
Kontakte, the Kontakte PC maker, has had to develop a complex web and mobile product with the help of its sister firm
Overall HRM Strategy:According to Bamberger and PhilipsЎЇ (1991) model, there are tight connections between tree poles: environment, business strategy and human resource strategy (Bratton and Gold, 2003).
Environmental and competitive changes, including market, technology, national government policies, trade unions and global competitors, significantly affect HRM strategy. Instead the low unskilled and semi-skilled labour in china, the pay level of Lenovo, which requires more managerial employees and engineers with high skill and knowledge, is much higher than the other companiesЎЇ even competitorsЎЇ. In order to maintain the competitive technology and employees Lenovo also establishes its own training school for cultural and technical training and development. Owning to the economy reform & opening policy and cultural revolution, the seniority-based flat rate system is replaced by system that closely links to performance, and recruitment and selection practices are becoming less effected by political bureaucracy and more influenced by economic and market concern (Beardwell, 2004).
On the other hand, According to contingency theory of competitive advantage model (Sculer and Jackson, 1987), there is a close link between business strategy and HRM strategy, which means the HRM strategy need to fit the generic strategies of cost reduction, quality enhancement and innovation. Firms that use a cost-reduction strategy must control and minimize expenses, and look forward to greater economies of scale. Therefore, efficiency, is achieved mainly through ÐŽ®hardЎЇ HRM techniques, is significant for firms to succeed (Beardwell, 2004). Following certain HRM practices such as standard operating procedures, behavioral performance appraisal, close supervision, and feedback, it can create controllable employee role behavior, which can increases efficiency and productivity by routinizing the transformation process. Hence, HRM based on behavior control is closely related to performance for firms emphasizing cost-reduction as business strategy. In contrast, firms focusing on an innovation or quality strategy must adapt to rapid market change and technological progress. These strategies deliver of added value by ÐŽ®softЎЇ HRM techniques and policies (Beardwell, 2004). In the other words, employees need to be creative; to be cooperative with one another; to be able to pursue long-term objectives; to devote proper consideration to the quality and quantity of products and services provided; to be able to take risks; and to cope successfully with ambiguity and uncertainty (Liao, 2005). Following the globalization strategy, Lenovo has gradually adjusted its competitive strategy from lower price to quality and innovation. As a result, company has chosen certain ÐŽ®softЎЇ HRM policies, including performance appraisals reflect long-term and group and functional-level based achievements, broad career paths to reinforce the development of a broad rang of skills from frequent trainings and job rotations, distribute shares to employees every year. In order to suit the globalization, especially cross-cultural context, group has recruited more and more managerial employees and engineers with high skill and knowledge from oversea labour market.
The contingency approach links a strong relationship between business strategy and HRM strategy, which seems to be a rational-planning model of strategy management. It focuses on the vertical integration between business strategy and HRM strategy, which identify the degree of fit. In order to look insight the internal context and horizontal integration within HR policies and practices, it is useful to analyse another approach to understand the relationship between a companyЎЇs approach to HRM strategy and its business performance (Beardwell, 2004).
According to Bamberger and MeshoulamЎЇs theory, the integrative model builds an approach to identify two main dimensions of HRM strategy, which are ÐŽ®acquisition and developmentЎЇ and ÐŽ®locus of controlЎЇ. This model focuses on both the strategyЎЇs underlying logic of managerial control and the reward-effort exchange (Bratton and Gold, 2003). Acquisition and development means whether the organizations depend on more towards ÐŽomakingЎЇ