Phillip Morris Human Resources What Do You

Phillip Morris Human Resources

What do you know about Phillip Morris' "international HRM" strategies?

Phillip Morris has been using international human resource strategies (HRM) to influence the views of management for newly acquired companies. What happens is they will strategically locate those corporations that are considered to be market leaders. Then, purchase them to help grow their overall bottom line results. Even though the management of the former company; may often have hostilities after the announcement of the merger. The HR department of Phillip Morris will engage in policies that will change these views. (Rea, 1998, pg. 109)

One of the most noticeable examples of this can be seen by looking no further than, with the company allowing the acquired corporation to keep their current management and brand name. The basic ideas with this approach, is to let everyone know that they will continue to be part of the new entity due to: their superior track record of delivering consistent earnings growth. Once this takes place, it means that the acquisition will smoothly occur resulting in an increase to their bottom line numbers. This is significant, because it is showing how this approach has been used by Phillip Morris to: strategically purchase and integrate a wide variety of corporations under their business model. (Rea, 1998, pg. 109)

Yet, when you look beyond this, it is clear that the HR practices that are being utilized by the company are helping them to retain key talent. This is has been an effective tool that they have been utilizing to help improve productivity. The way the company's philosophy works is to address the different needs of employees by: providing them with a competitive compensation package. You would then, go the extra mile to find out what specific issues the staff wants to see addressed that the company is overlooking. At which point, Phillip Morris will begin to implement this as a part of their employee benefits program. ("Comparison of HR Practices at Phillip Morris," 2011)

A good example of this can be seen with the creation of the Phillip Morris Employees Community Fund (PMECF). Established in 2000, this helps the staff in various plants and offices to give something back to their neighborhoods. The way the fund works, is 100% of the employee contributions that are made, are designed to support the objectives of a host of nonprofit organizations (that are focused on addressing the needs of the community). The idea, with this program is to give employees another way that they can deal with some of the different problems affecting their neighborhoods. This instills a sense of appreciation for their jobs at the company. Where, they are seeing them as something more than just work, instead their association with the corporation is viewed as way of supporting the community. Over the course of time, this will help to give employees a sense of satisfaction from their work. This is when they will have deep loyalties that will keep them with the organization over many years. These elements are important, because they are showing how this kind of approach helped Phillip Morris to be able to purchase a number of different competitors. ("Comparison of HR Practices at Phillip Morris," 2011)