The strategic management of an organization’s human resource has been recognized as one of the keys to business success. This particular strategy generally involved the optimization of the employees’ potentials mainly through training and performance assessment. This organizational strategy has been integrated in several businesses mainly to improve profitability, establish stronger customer relations as well as achieve considerable business expansion. Strategic human resource management (SHRM) has indeed been applied to fulfill various important business goals and plans. Hence, major companies including Cadbury Schweppes, have been developing and applying various means on how to strategically manage one of their essential assets.
Cadbury Schweppes is one of the major global players in the food manufacturing sector, specifically confectionery and beverage products. About two hundred countries worldwide are enjoying the company’s world-renowned quality products and brands. The company has been able to expand successfully in different foreign countries mainly through its dedication to quality production as well as effective management and marketing practices. In order to progress further, the company still aims to continue on producing quality brands and products, meeting the needs of its shareholders and operating towards optimum performance. Cadbury Schweppes knows that its achievement to operate globally is attributable to its workforce. Thus, the company has been employing different strategies in order to strategically improve its human resources towards continuous global success.
This study then analyzes how the company applies strategic human resource management it its operations. In particular, focus was centered on the assessment of the company’s strategies for maximizing the potentials, assessing the performance and enhancing the skills of its workforce. This research was conducted mainly to determine the relation of Cadbury Schweppes’ global success to its SHRM practices.
Strategic human resource management (SHRM) was actually derived from the conventional HR concepts. Due to the growing pressures in business, particularly in the need to become more competitive and innovative, organizations and human resource departments see it necessary to reconsider existing HR practices. The application of the new concept involves the modification of HR policies, provision of training programs, development of performance measurement systems as well as the promotion of the employees’ overall well-being. In turn, the changes in the HR practice then allowed companies to overcome some of the major hurdles in the business sector.
Cadbury Schweppes is among the major companies operating in the world. Aside from multiple branches in several foreign countries, the product lines of the company as well as its market have continuously grown over the years. Along with its global growth and success, the company has constantly upgraded its SHRM efforts as well. The researcher then aims to determine how these HR strategies had contributed to the company’s global achievement. Investigating on this HR topic can stress the connection between workforce and business efficiency. As effective employees have long been considered as essential to good business operations, identifying how the strategic management of human resource can contribute to greater success will then be of benefit to many other companies. The researcher then attempted to achieve this objective by using some of Cadbury Schweppes’ HR staff for information. Using a survey as the research instrument, the data obtained were then analyzed to develop the findings.
Considering the increasing competitiveness in the business sector, organizations are in need of maximizing its resources in order to operate successfully. One of these important resources is the organizational workforce. By means of determining the different approaches related to strategic human resource management, workforce issues encountered by other companies may be resolved. In addition, companies intending to operate of expand on the global level may achieve this goal by assessing and improving their human resource strategies. This research may also be of value to employees as this could encourage business companies in general to give due value to their workforce so as to achieve better business outcomes. This investigative study could also contribute to the human resource sector particularly by increasing awareness on SHRM and the new approaches other companies could apply. Clients or consumers may also benefit from this study as the increased awareness on SHRM approaches can likely enhance both production and service provision of other companies.
This study aims to determine the role of strategic human resource management in the achievement of Cadbury Schweppes’ global growth and success. Below are the specific objectives of this research study:
To determine the role if strategic human resource management in shaping the development processes of Cadbury Schweppes
To analyze the performance assessment, training and potential-maximizing strategies of the global company
To identify and analyze the human resource strategies of the company that allowed it to operate globally
To relate various human resource management theories to the identified strategies of the company
The entire study is divided into five chapters. The first chapter presents the background of the study, the objectives, research problems and its significance. In the second chapter, literatures and published documents pertaining to strategic human resource management and the strategies applied by Cadbury Schweppes are discussed. The research methodology used for this study is discussed in chapter three. Specifically, this chapter focuses on the description of the participants, sampling technique and the research instruments utilized in the process. In chapter 4, the results of the survey are presented. Literatures supporting the findings of the study are also integrated in the discussion section of the chapter. Finally, the fifth chapter summarizes the findings of the research; significant conclusions as well as appropriate recommendations are also included in the final chapter.
Cadbury Schweppes is actually a company established by a merger involving two of the greatest companies in UK. Jacob Schweppe was the one behind the perfection of the carbonated mineral water manufactured in Switzerland in 1783. On the other hand, John Cadbury established the now world-renowned chocolate manufacturing company in 1824. Over the years, both companies have operated successfully and became household brand names in the British region. It was not until 1969 when these two manufacturing giants decided to merge. Through organic program and acquisition, both companies were able to expand the business worldwide (Cadbury Schweppes 2006a).
As two big companies joined into one, the new company developed and implemented several business strategies that led to its success. For instance, during the middle part of the 1980s, Cadbury Schweppes decided to center its attention on its international brand confectionery and beverages. Through this strategy, the company was able to strengthen its key brand names and even led to the purchase of some other major food brands such as Mott’s, Canada Dry, Trebor, Bassett, Dr. Pepper and Seven Up as well as Hawaiian Punch. The acquisition of other popular brands of the company continued up to the new millennium. In 2000 for example, Cadbury Schweppes acquired the Snapple and Hollywood and even took the second spot in the French soft drink sector when it acquired Orangina. In 2002, the company placed number two in chewing gum production by acquiring Dandy, a Danish chewing gum brand and became the number one company in confectionery at the global level. For $4.2 billion, the company also announced its acquisition of yet another major brand called Adams (Cadbury Schweppes 2006a).
Strategic human resource management is considered as the extension of HRM. While HRM is focused on the theoretical concepts, SHRM is centered on how these theoretical foundations should be implemented. The concept of SHRM was actually brought about by the growing pressures of change. Organizations started to realize that changes in the conventional human resource activities must be carried out. This change would help much organization overcome new issues and challenges related to the human resource concept. In turn, human resource agencies and departments have been active in encouraging HR managers to develop means of applying strategy to the HR function (Niehaus 1995). This then gave rise to what is now called SHRM.
Strategic Human Resource Management (SHRM) is a strategic approach that helps in managing employee relations. This HR concept emphasizes that leveraging people’s capabilities is critical to achieving sustainable competitive advantage. SHRM is actually applied by means of a distinctive set of integrated employment policies, programs and practices. Considering the increasing competition in the working sector, it is important that the employees are equipped with the abilities so as to assist their organization in overcoming such challenge (Bratton & Gold 2003). SHRM gives emphasis on the integration of learning and organization. This means that the conception of learning must be considered by the organization as a purposeful business process (Ruona & Roth 2000). Walton (1999) noted that SHRM is made of the introduction, elimination, modification and directional procedures and responsibilities where all employees are armed with the knowledge, skills and competencies necessary for them to perform various organizational tasks effectively.
Through SHRM processes, employees are able to learn how they can improve their skills and enrich their knowledge, which are very useful in their overall work output. The efficiency of the employees will naturally lead to greater productivity and higher levels of customer satisfaction as well as loyalty. The application of SHRM is also essential for the personal and professional development of the employees, which in turn makes them more confident and committed in their work. The ultimate outcome of SHRM is the attainment of a strong and sustainable competitive advantage out of the company’s workforce. For companies, generating competitive advantages out of their workforces is an important key in becoming globally competitive (McWilliams, Van Fleet & Wright 2001). Schuler, Dowling and De Cieri (1993) noted that in order to successfully compete in the global market, human resources must be deployed effectively.
The human resource strategy of Cadbury Schweppes originated from the company main operation purpose which is to work together to produce brands that others would love. In particular, the company developed a goal related to corporate social responsibility (CSR) in order to achieve this. This goal would direct the company to become socially responsible not only to their consumers but to the people working for it as well. As this goal covers the workforce sector, Cadbury Schweppes develops human resource strategies that are patterned CSR and ethical practices. In fact, one of the essential factors the company uses in its business operations is ethical behavior as well as the establishment of close relations with its stakeholders. The company generally believes that ethical business practices and respect for human rights are core foundation on how the company works and deals with people; the company also claims that good ethics works well with good business, resulting to long term success (The Times 100 2006). These core values then became the main influence for the company’s human resource strategies.
The HR strategies of the company are also influenced by the Quaker values which promote social reform, justice and equality. Thus, from the beginning of its operations, the company has always treated its employees with respect; the company also cares for the welfare of its staff. This explains why the company included sport facilities, parks and housing opportunities for its employees. It is also part of the company’s human resource strategy to inculcate its ethical business culture to its employees by ensuring that all staff members understand the values and behavior the company expects from them; this has been achieved through the company’s “Our Business Principles”? statement. The good practice of Cadbury Schweppes was even recognized in 2003 by the Management Today magazine where it was voted as one of the most admirable companies for fulfilling it environmental and community responsibility. During the same year, the company also placed second for the Food and Drink sector in the Business in the Community per cent club index for doing its social responsibilities (The Times 100 2006).
Over the years, the company has implemented several means to manage its human resources strategically. These strategies include those that maximize potentials, train employees, manage HR risks and assess performance.
One of the key personnel of Cadbury Schweppes is its managers. Thus, in order to optimize their skills, the company applied various strategic programs. One of which is its Building Strategic Capabilities (BSC) program that was developed in 1998. This program course was applied in order to maximize the potentials of the company’s managers. The program is made up of three important elements. One is that the program course involved the study of real strategic issues rather than hypothetical cases; this made the course content more applicable to actual business problems the managers would encounter. Another important element of this program course was that the process of strategic decision-making is studied from goal-setting to performance-monitoring. This element of the program aims to enhance the managers’ strategic language, in order for them to be equipped with the necessary processes and standards for effective strategy implementation. Finally, this program is also made up of an element, which exposes managers to practical or hands-on training. This element is conducted by letting the program participants interact with the members of the top management. For the past five years since this potential-maximizing program has been implemented, Cadbury Schweppes’ BSC program is still used as the main approach for executive development (Morley & Hepplewhite 2004).
The company has continuously developed programs and strategies that would optimize the skills of its staff. For example, in 2005, Cadbury Schweppes pursued its People Strategy through its Building Commercial Capabilities program. This strategy is a group learning and development activity which is implemented to ensure that the full potential of all employees are realized. The program aims to develop the participants’ marketing and sales expertise as well as their commercial decision-making skills; this is done by studying the standard Cadbury Schweppes marketing and selling technique. A total of 1,000 managers have participated in this program (Cadbury Schweppes 2006b).
Training is an important aspect of the company’s SHRM strategy. Aside from ensuring that all employees have equal access to the company’s training opportunities, Cadbury Schweppes also develops training programs that improve the competency of its workforce. For this year, the company developed Passion for People, a people management training program. This aims to teach the standard approach used for managing people; it is also the goal of this program to refresh such management approach among current employees (Cadbury Schweppes 2006b). Bob Stack, Cadbury Schweppes’ Chief Human Resources Officer, also explained that this program is also conducted for the purpose of improving the drive performance skills of the managers. Furthermore, it is the objective of this training program to instill among employees the values and behavior that make up the company’s culture (Cadbury Schweppes 2006c). The company does not only provide training opportunities to the new employees but also offer regular updates of the existing staff members. This strategy is also applicable in cases when one of its employees becomes disabled. When this happens, Cadbury Schweppes sees to it that an alternative job is offered. Moreover, re-training efforts are also provided to the employee if necessary (Cadbury Schweppes 2006b).
In order to support the SHRM strategies of Cadbury Schweppes, the company include appropriate HR policies particularly in the recruitment, selection and hiring of employees. Other common work issues are also covered by the company’s HR regulations. Through these strategic policies, the company is able to maintain its standards and meet desired business outcomes. Patterned after its ethical business practices, the company’s policies promote equal employment opportunities within its global businesses. Thus, Cadbury Schweppes is a company committed to selecting employees based on their abilities and potentials; it is part of the company’s SHRM strategy to optimize the talents and experience the employees have and help them realize their other capabilities. The company believes that by shaping its HR policies with this ethical commitment, the business will not only employ people of talent but it will also help is establishing a good image in the communities where it operates (International Labor Organization 2002).
In recruiting and selecting employees, it is Cadbury Schweppes’ aim to hire the best people for the position it offers and use methods that are free from bias and discrimination. For employee selection, the company ensures that necessary criteria including skills, knowledge, qualifications and experience of the applicants are clearly defined. Psychometric testing, assessment techniques ad other selection methods should also be non-discriminatory. It must be clearly described why the applicant was selected; for this, records for employee selection decisions are kept and stored. The advertisements of the company for the job positions it is offering should also be patterned after the equal employment aspect. In particular, the company must ensure that the advertisements present enough opportunities that most people can apply for. Moreover, these advertisements must reach even underrepresented communities and groups (International Labor Organization 2002). In order to improve its selection process, the company had also recently used an online system for its testing procedures. An electronic version of its psychometric tests has been installed so as to make this vital phase of selection faster and more efficient (Graduate Recruiter 2006).
The risks involved in human resource management are also controlled by Cadbury Schweppes through relevant policies. For instance, the company follows a compensation structure which is not influenced by the employees color, race, ethnic origin, gender, marital status, religion, disability or age. The career development of the employees is also dependent solely on their merits and abilities. The access of the employees to training is also covered by the company’s policies. Specifically, regardless of the employees’ race or origin, all employees of Cadbury Schweppes have equal access to training. Moreover, if certain employees are in need of educational or skill support, the company provides them with the necessary training; this would allow them to progress equally with other employees (International Labor Organization 2002).
Fairness and equality are also part of the company’s policies used for handling work issues, grievance matters and discipline. When such issues arise, the company ensures that the situations are assessed fairly and on the same basis as with similar cases. For bullying and harassment, the company also requires all its business units to develop clear guidelines that would help manage these human resource problems. These ensure that the employees are aware on how to report and address these matters. The development and use of these guidelines also help these issues from happening (International Labor Organization 2002).
Aside from preventing HR-related risks through policies, the company also develops helpful programs that would promote the well-being of the employees. For example, the company conducts education programs for the employees’ health and nutrition; whole-family health management schemes are also implemented. In order to support these programs, the company also provides nutrition-oriented on-site cafeterias. Medical facilities are also made available in the company to meet the employees’ basic safety and health requirements. Aside from the employees’ physical well-being, their mental health is also cared for; this is done through the provision of counseling services. This aims to assist the employees in handling personal and work-related issues (Cadbury Schweppes 2006b).
The SHRM application of the company also involves the assessment or measurement of the performance of its employees. Specifically, the company uses a two-part performance measurement system. The line manager is the one in charge of assessing the individual performance of the employee every half and end of the year. Clearly developed performance objectives are used for the evaluation. The line manager presides a formal meeting with the employee to be assessed; during this time, the set objectives set at the beginning of the year is documented by the line manager and signed by the employee (Cadbury Schweppes 2006d).
The utilization of a performance measurement system at Cadbury Schweppes allowed the company to fulfill its goal of giving due value on its employees’ development, growth and performance management. Through this system, the company is able to recognize and reward the employees who have displayed exemplary performance and gave much contribution to the company’s success. Having a designed system allowed the company to apply a consistent approach for appraising the employees’ performance, even for those working in other international offices. This approach is composed of tools that facilitate the employees’ career development and personal growth; Reward programs are also included. These programs generally help in motivating the employees to contribute more for attaining business success (Cadbury Schweppes 2006e).
The managers of the company are also assessed using this system. Specifically, the company makes use behavioral factors that support its global leadership needs, which include accountability, adaptability, aggressiveness, forward-thinking capability, motivation, collaboration, teamwork and company values. A separate assessment process is also used by the company in order to evaluate other potentials of its managers; this enables the company to identify other roles its managers could perform. Due rewards are also provided to the individual based on the outcome of his or her performance appraisal (Cadbury Schweppes 2006d).
Aside from the individual performance of the employees and managers, the overall performance of the business in relation to the people it serves is also assessed. For this, Cadbury Schweppes uses the climate survey tool that has the ability to identify the relation between overall business performance and employee engagement. This tool was initially used for the company’s 10,000 global managers in 2004 and then applied too all employees the following year (Cadbury Schweppes 2006d).
The use of multiple strategies related to SHRM application has generally been beneficial for Cadbury Schweppes. The performance measurement system of the company for example, motivated the employees to work their best. This finding was further stressed when a study finding showed that almost 90% of the company’s global employees are proud to be employed by Cadbury Schweppes. The survey conducted by the company also showed that the employees are highly committed and engaged to good work performance. The commitment of the employees represents the employees’ attachment to the company while engagement indicates the level of effort the employees are willing to give for the company; they key factors have been directly related to the survey’s key areas. The findings clearly showed that Cadbury Schweppes’ succeeds globally through its employees’ engagement and commitment, which were brought about by its HR strategies. The outcome of the survey was further stressed by the employee turnover records of the company. As of 2003, the turnover rate was at low level of 2.5% at an annual basis; executive population has also dropped minimally from 180 to 165 in 2003 to 2004. The number of women working in the company on the other hand had increased from 11% in 2003 to 13% in 2004. Despite the promising outcome of the survey, the company sees it necessary to continuously improve the level of engagement employees have for good performance (Cadbury Schweppes 2006e).
The performance appraisal system also made the employees more aware of what the company expects from them; this strategy also encouraged the employees to constantly seek ways on how their performance can be improved. The utilization of the performance system has also been helpful for the company as it becomes more knowledgeable with the operation areas that need improvements (Cadbury Schweppes 2006d). In general, having a performance appraisal system in the company’s SHRM strategy helped it to become proactive in maintaining its good business practices and in developing ways on how to be a better company.
The training and programs of the company has also been showing positive outcomes. Its communication-related programs for example, have been able to enhance the employees’ communication and engagement level. These skill developments in turn, enabled the company to accomplish several collective bargaining agreements. The SHRM efforts of the company also encourage share ownership among the employees. Specifically, the HR strategy of Cadbury Schweppes made its all-employee share plan arrangements accessible to its employees in UK, US, Spain, New Zealand, Mexico, Portugal, Netherlands, Germany, Australia, France and Ireland. This achievement helped in bringing the company’s global employees together (Cadbury Schweppes 2006b).
The use of ethical practices in the recruitment and selection of the company’s employees has also been of benefit especially in ensuring the high standard performance of the staff. Improving the means of recruiting through information technology systems has also helped the company in short listing the best applicants. Since this development has improved the speed of the of the recruitment process, the company has more time to assess job-related exercises. The improved psychometric test allows Cadbury Schweppes to gain information that emphasize the candidates’ distinct abilities (Graduate Recruiter 2006).
Strategic human resource management has been recognized by various companies as an important factor for achieving business success. Cadbury Schweppes is among those major companies who have long been applying various human resource strategies to achieve good business outcomes. This research was then conducted with aim of identifying the role of SHRM in the achievement of global success using the case of Cadbury Schweppes in UK. In order to achieve this research aim, the researcher used the descriptive method of research. A total of 30 respondents from the company’s human resource department were selected in random. The survey questionnaire, structure in Likert-format, served as the main research instrument for this study. In addition to primary information, the researcher also used books, journals and other literatures as sources of secondary data. By means of weighted mean computation and the Likert scale, the results of the survey were then analyzed; relevant literatures were used to discuss these results.
In order to achieve the objectives of this research, the researcher would need data that would describe the role of SHRM to the global growth and success of Cadbury Schweppes. For this, the researcher would have to contact people who are knowledgeable of the HR strategies developed and implemented by the company; people who are aware of how these strategies had impacted Cadbury Schweppes’ would also be helpful in answering the needs of this study. Thus, the researcher saw it appropriate to use some of the human resource staff from the company. Considering their participation and experience with these HR strategies, they would be able to provide the data required of this study.
In this research, the descriptive method was utilized. The purpose of employing the descriptive method is to describe the nature of a condition, as it takes place during the time of the study and to explore the cause or causes of a particular condition. The researcher opted to use this kind of research considering the desire to acquire first hand data from the respondents so as to formulate rational and sound conclusions and recommendations for the study. According to Creswell (1994), the descriptive method of research is to gather information about the present existing condition.
This research method is advantageous for the researcher due to its flexibility; this method can use either qualitative or quantitative data or both, giving the researcher greater options in selecting the instrument for data-gathering. The aim of the research is to determine the role strategic human resource management in the global growth of Cadbury Schweppes; the descriptive method was then appropriate for this research since this method is used for gathering prevailing conditions. The research used human resource management employees as respondents from Cadbury Schweppes based in UK in order to gather relevant data; the descriptive method was then appropriate as this allowed the identification of the similarities and differences of the respondents’ answers.
In order to carry out the research, the researcher ensured that a certain research philosophy framework is followed throughout the process. In particular, as this study will make use of human participants for data collection, ethical considerations were taken into account. This is in line with the researcher’s aim of carrying out the entire process ethically. Among the significant ethical issues that need attention include consent, confidentiality and data protection.
Securing permission and gaining the consent of the participants for this study is an important ethical consideration. In order to do so, the researcher relayed the aims of the research clearly to all participants. Each participant was asked to accomplish a consent form, stating in detail all the activities involved as well as the purpose of the study. The reasons why the human resource staff of the company was selected as participants were also stated so as to enable the selected participants to connect the aims of the research with that of the participant qualifications. In the consent form, the researcher also discussed in detail all the treatments or procedures to be done in the process. The possible risks that may be part of the research were also discussed with the participants in order to gain their consent. More importantly, the methods or mechanisms that will be used to prevent these risks were also explained. All of these factors to gain the consent of the research participants were discussed in the most comprehensive manner based on their level of understanding.
Building rapport and gaining the trust of the participants selected to be involved in the study were also essential. These helped in ensuring the cooperation and willingness of the participants to give dependable and sufficient data that for the study. The researcher then integrated research practices that would support this ethical aim. For instance, although the participants may initially give their consent for the research process, the researcher assured the respondents that they are allowed to withdraw from the study even without providing any reason. By giving this freedom, the participants will not feel forced to participate in the process. Moreover, the researcher saw to it that everything stated in the consent form as well as the information given to the respondents before the actual survey were followed strictly. The researcher practiced openness and honesty all throughout the study to assure the research respondents that their security and safety is of utmost priority.
The privacy of the respondents as well as the confidentiality of their responses was considered by the researcher as well. In order to do so, the names of the participants were kept confidential. All details that are related to the study were the only ones disclosed in the final report. A copy of the research was also sent to all participants of the study so as to show that all information obtained had been accurate and properly credited. The researcher also ensured that all data gathered for the study were protected from unauthorized access. The nature of the research involves the discussion of company information that is not typically disclosed to the public. The researcher then ensured that the questions in the questionnaire do not require the provision of specific figures, values of percentages related to the company’s HR strategies and global growth.
The researcher protected the data obtained from the research process as well. In order to do this, the researcher protected all files with passwords. This prevented unauthorized people from accidentally accessing the confidential files of the study. All data collation and analysis were done within the school or university premises so as to ensure that no data were transferred at home or in any other unsecured places.
As this research made us of a survey questionnaire to gather data, the quantitative approach was used for this study. The quantitative approach is centred on the quantification of relationships between variables. Quantitative data-gathering instruments establish relationship between measured variables. When these methods are used, the researcher is usually detached from the study and the final output is context free. Measurement, numerical data and statistics are the main substance of quantitative instruments. With these instruments, an explicit description of data collection and analysis of procedures are necessary. An approach that is primarily deductive reasoning, it prefers the least complicated explanation and gives a statement of statistical probability. The quantitative approach is more on the detailed description of a phenomenon. It basically gives a generalization of the gathered data with tentative synthesized interpretations.
Quantitative approach is useful as it helps the researcher to prevent bias in gathering and presenting research data. Quantitative data collection approaches create epistemological postulations that reality is objective and unitary, which can only be realized by means of transcending individual perspective. This phenomenon in turn should be discussed or explained by means of data analysis gathered through objective forms of measurement. The quantitative data gathering methods are useful especially when a study needs to measure the cause and effect relationships evident between pre-selected and discrete variables. The purpose of the quantitative approach is to avoid subjectivity by means of collecting and exploring information which describes the experience being studied.
Quantitative methods establish very specific research problem and terms. The controlled observations, mass surveys, laboratory experiments and other means of research manipulation in qualitative method makes gathered data more reliable. In other words, subjectivity of judgment, which is not needed in a thesis discussion, can be avoided through quantitative methods. Thus, conclusions, discussion and experimentation involved in the process are more objective. Variables, both dependent and independent, that are needed in the study are clearly and precisely specified in a quantitative study. In addition, quantitative method enables longitudinal measures of subsequent performance of the respondents. Fryer (1991) noted that qualitative researchers aim to decode, describe, analyze and interpret accurately the meaning of a certain phenomena happening in their customary social contexts. The focus of the researchers utilizing the framework of the interpretative paradigm is on the investigation of authenticity, complexity, contextualization, mutual subjectivity of the researcher and the respondent as well as the reduction of illusion.
A total of 30 respondents were selected to participate in the research. In order to obtain data that would be useful for this study, the human resource staff from Cadbury Schweppes UK were asked to take part in the process. As the researcher is based in UK, it will be most practical to have respondents who are accessible to the one conducting the research. Moreover, using respondents from an accessible locale is more cost-efficient. The staff members of the company’s human resource department were asked to participate since they would be able to provide the most important data that this study requires. In order to ensure that pertinent data was gathered, an inclusion criterion was used by the research for selecting the sample. As the available SHRM literatures of company were mostly within 1998 to 2006 time duration, HR employees who had been employed by the company since 1998 are made part of the population; this would ensure that the respondents have been exposed to the SHRM strategies applied by the company. This also helped in limiting the sample to a manageable size. As the age, job position and gender of the respondents would not contribute to the aims of the research, these factors were no longer considered in the selection.
The 30 participants for this research were selected by means of the simple random sampling. This sampling method is conducted where each member of a population has an equal opportunity to become part of the sample. As all members of the population have an equal chance of becoming a research participant, this is said to be the most efficient sampling procedure. In order to conduct this sampling strategy, the researcher defined the population first, listed down all the members of the population and then selected members to make the sample. For this procedure, the lottery sampling or the fish bowl technique was employed. This method involves the selection of the sample at random from the sampling frame through the use of random number tables (Saunders, Lewis & Thornhill 2003). Numbers were assigned for each employee in the master list. These numbers were written on pieces of paper and drawn from a box; the process was repeated until the sample size was reached.
Two types of data were used for this research: the primary and the secondary data. The primary data were derived from the answers respondents gave in the survey questionnaire prepared by the researcher. The secondary data on the other hand, were derived from the findings stated in published documents and literatures related to the research problem. These were based from the recent literatures related to HRM theories, SHRM concepts as well as company’s HR strategies.
Books, journal, periodicals and other company information that were related to the study were used. In order to support as well as explain the results obtained from the survey, literatures derived from these sources would help add clarity and reliability to the findings obtained. Statistical reports, program descriptions and previous company survey results can only be obtained from secondary resources; hence, the use of literatures can help in confirming survey results.
For this study, a survey questionnaire was used for gathering primary data. This has been distributed to the selected respondents. The questionnaire contained questions pertaining to the impact of SHRM strategies of the company to its global success and growth. In order to use the questionnaire as an evaluation tool, the respondents rated each statement or question in the survey using a Likert scale with a five-point response scale. A Likert Scale is a rating scale that requires the subject to indicate his or her degree of agreement or disagreement to a statement. In this survey type, five choices had been provided for every question or statement. The choices represent the degree of agreement each respondent has on the given question.
In order to analyse the results of the questionnaire, the weighted mean computed from each survey item was computed. The weighted mean was used in order to obtain the average values that would represent the sample’s response to each question in the survey. This helped the researcher identify the general response of the participants to the given question or statement.
The Likert survey was the selected questionnaire type as this enabled the respondents to answer the survey easily. In addition, this research instrument allowed the research to carry out the quantitative approach effectively with the use of statistics for data interpretation. In order to test the validity of the questionnaire used for the study, the researcher tested the questionnaire to five respondents. These respondents as well as their answers were not part of the actual study process and were only used for testing purposes. After the questions have been answered, the researcher asked the respondents for any suggestions or any necessary corrections to ensure further improvement and validity of the instrument. The researcher revised the survey questionnaire based on the suggestion of the respondents. The researcher then excluded irrelevant questions and changed vague or difficult terminologies into simpler ones in order to ensure comprehension.
After gathering all the completed questionnaires from the respondents, total responses for each item were obtained and tabulated. In order to use the Likert-scale for interpretation, weighted mean to represent each question was computed. Weighted mean is the average wherein every quantity to be averages has a corresponding weight. These weights represent the significance of each quantity to the average. To compute for the weighted mean, each value must be multiplied by its weight. Products should then be added to obtain the total value. The total weight should also be computed by adding all the weights. The total value is then divided by the total weight. Statistically, the weighted mean is calculated using the following formula:
Once the computed mean for each survey item has been computed, the values are then compared to the likert scale (Underwood 2004):
4.50 – 5.00
3.50 – 4.00
2.50 – 3.49
1.50 – 2.49
0.00 – 1.49
To further understand how the analysis and interpretation were done, consider the example below:
1. The employees of the company responds well to the SHRM strategies
of the HR department.
The first column contains the survey statement from the questionnaire. The succeeding 5 columns are the five likert choices used in the questionnaire (5 – Strongly Agree; 4 – Agree; 3 – Uncertain; 2 – Disagree; 1 – Strongly Disagree). The numbers in the column indicate the number of respondents who selected a particular likert choice for the given question. The formula for computing the weighted mean is then done for each set of answers. The result is found on the seventh column. The interpretation of the computed weighted means was then compared to a likert scale cited previously. Taking the same example from the table and using the scale above, the answers of the respondents gave a weighted mean score of 4.53, which means that the sample in general strongly agrees to the given question.
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