Business Strategy of Smith Radiators Inc Case Study

Business Strategy of Smith Radiators Inc - Case Study Example A review of the current HR policies of Smith Radiators revealed that these do not support the current business strategy of a reactor. After identifying the strengths and weaknesses, the organization should address these and eventually assume the business strategy of a defender. There are various weaknesses noted in the current HR policies that ultimately stem for the centralized decision-making process and the lack of formal training and development programs. The recommended HR approach that the organization should take should focus on reviewing their policies on recruitment, selection, maintenance (particularly training and development programs), and other HR policies. Specifically, a closer look into decentralized decision-making to involve the management team and other crucial employees would be expounded; (2) a review of the contract and agreement with the Union in terms of benefits, compensation, and security concerns of employees should be delved into; (3) a review of current j ob descriptions are required; and (4) a closer coordination with other government agencies that affect work conditions such as the Department of Labor, the US EEOC, and the OSHA, must be forged to fit the defender strategy.  Using Miles and Snow typology of organizational strategies, it is eminent that Smith Radiators, Inc. is applying the reactor business strategy in view of addressing the issues presented from the Automobiles of America, Inc. (AAI) letter. AAI proposed two relevant actions that need to be addressed to enable Smith Radiators to continue supplying radiators to them: (1) requirement for Smith Radiators to be a fully certified AAI supplier within 20 months from the receipt of the letter; and (2) the application of Just-in-Time (JIT) delivery of radiators within three months, or by July 15, 1991. As a reactor, the organization sees that a major change would be required but their ability to change is not quick enough due to the following reasons: (1) it would require an evaluation of the current policies and operating functions that would be affected from the proposed changes and the time frame needed within which they could comply; and (2) it would have to design appropriate strategies that should be adopted to achieve the defined goal. Currently, the Human Resources (HR) department implements policies that do not support the business strategy as a reactor. The following policies are currently enforced: Recruitment Policies: (1) use of internal sources through referrals of current employees in recruitment; (2) giving a $500 monetary incentive to employees for referring new recruits who would stay beyond two years.