Introduction of both organisations
Organisation A, Bearing Co. was formed in 1990 and a merger of British and Japanese company. The nature of their business is selling bearing. It is a Business-to-business (B2B) market. They have a total of 470 employees that run the company in Greenfield, East Midlands. Their business covers worldwide and run by a total of 20,000 employees. Organisation A posses the competitive advantage of economies of scale. By producing in a larger quantity, the organisation will able to have a lower cost of production. Beside lower cost, organisation A manages to maintain their quality of production and services. Having the lower cost and offering quality of production and service, the organisation will either able to attract customers with lower price and good quality products and services or they can set themselves a high profit margin.
Organisation B, PressCo is a family business that formed 100 years ago and run by a total of 220 employees. Unlike organisation A that specify more to direct selling of products with account manager, organisation B have a shop floor, a meeting place of their shop floor workers- their front liner of the business with walk-in customers. Press Co is paying a lot of focus in this meeting place. Organisation B manages to provide varieties of products for their customer selection. Besides, they also have quality products as their competitive advantage.
Organisation A (Human Resource Management) VS
Organisation B (Personnel Management)
Both organisations in the article have shown the differences in their management system, culture and the approaches adopted to people management as well.
Organisation A is adopting Human Resource Management (HRM). According to Storey (1995), Human resource management is a “distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committee and capable workforce, using an array of...