Human Resource Management Case Study People's Home Gadgets

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Introduction
People's Home Gadgets (PHG) is one of the consumer electronics and appliances industries which have a range of products of very low cost to very high end in its price scale. It is a very competitive company providing one on one customer service. Its major business goal is to reduce the product cost and increase customer service. The company try to maintain its employees' long term well being and success. But these activities rapidly increase its turnover rate around 70% per year. So to manage the company human resource and reduce the hiring new employees to meet its business goal, the company decided to hire Paula Hillman and her main job objectives is to design a suitable HR system within a company which reduces turnover and taking care of its employees and provide maximum customer satisfaction to its customers.
Recommending Paula Regarding the Nature of HR System
I would advice Paula to use commitment based HR system to best manage the customer service representative at the six stores. This commitment based HR system creates a high strategic value and also strives to create a relational relationship rather than a transactional relationship
Looking back at the diagram of the employment portfolio, we can see that the commitment HR system plays a vital
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PHG is a company with low cost strategy, and therefore, operational excellence and cost controls are its major strategic performance drivers. A company has a competitive advantage when it is able to create more economic value than its competitors (Lepak & Gowan, 2010). However, the key strategic performance driver for this low cost strategic organization would be the cost control. This driver best translates PHG’s strategic objectives into actionable activities; the source of a company’s competitive advantage must be translated into strategic performance

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