RetailCo is a "typically Dutch" retail organization, which takes good care of its employees. RetailCo is a centrally managed company with headquarters and various divisions like food, sales and distribution etc. This case study focuses on the sales division, which is the key division of RetailCo, in which the largest part of the employees (about 85%) work. RetailCo has a unique culture and a separate collective bargaining agreement, tailored specifically to the needs of this company with its pros & cons. RetailCo was recently taken over by a US-based investment firm with a lot of experience in the US retail industry. The predominant approach to HRM in The US and The Netherlands shows some major differences like HRM in the US is characterized by relatively low job security, focus on high performance work systems, and an increasing use of variable pay systems, contrary to Dutch HRM, with relatively higher job security, higher wages with less variable pay, and attention for employee wellbeing. Alongside these differences, there are also some differences specific to the two firms with RetailCo having stakeholder approach and Investment firm having shareholder approach. This takeover presents a dilemma for Retailco HR and the core issue is how to best fit Retailco values with shareholders approach of the Investment firm without comprising its stakeholders interests.
Qstn 1. Describe and evaluate the HR policies and practices at RetailCo before and after the take-over. What are the strong and weak points?
Firm creates value through understanding the factors that determine the profitability and Retailco begins with indentifying the value of a firm’s human resources to organization. At RetailCo, their philosophy was people are the primary link in the value chain, and thus, value is created by focusing first on employees, which can simply describe as “Employee-Service-Profit” manner. This was a firm’s culture from its inception since their