Theories of Human Resource and Marketing Name: Course: Lecturer: Institution: Date: Memo To: From: Date: Subject: Theories of Human Resources and Marketing According to incidences from other companies, the theories of market penetration and employee empowerment culture have proven to be extremely successful. Companies have decided to adopt these theories in their strategies to improve efficiency and promote their products to their customers. This has resulted in companies becoming successful while applying these theories in the decision making process. The Theory of Employee Empowerment Culture In this theory, the employees are encouraged to use their brains more than their hands.
In addition, the management of the company has to offer the employees with incentives in order to become empowered (Swindall, 2007). For instance, Nucor Corp, North Carolina based minimill steelmaker had lost power at its Hickman, Arkansas plant (Clark, 2011). The management of the company announced that it would take them a week to regain operations in the plant. However, three of their employees took the initiative of traveling from Alabama and North Carolina to Arkansas to resolve the problem. They worked for more than twenty hours unsupervised until the plant became operational. After three days, the company was back in operation. The most surprising thing is that nobody told these employees to rectify the problem (Clark, 2011).
This case shows the theory of employee empowerment culture in action where the employees used their brains and not their hands. Based on the company history, they had implemented earlier their strategies and incorporated this theory. In adapting the theory, Nucor Corp rewards its employees and respects them (Clark, 2011). Through this, the three employees saved the company from closing down by working tirelessly on their own. If I was among the senior management, I could not have reacted differently.
However, if I could have used any other theory, I would have used the reward theory. This is where I could have announced that their will be a reward for the employees who will rectify the problem before one week. The Theory of Penetration Pricing In this theory, new products being introduced in the market are lowly priced so that the company can supply more commodities in the market to make their products known (Kortler & Armstrong, 2006). It is worth noting that penetration pricing is different from skimming because in skimming, goods are highly priced. For example, Dell, a company selling computer appliances used the penetration pricing to enter into the market of personal computers (Kortler & Armstrong, 2006). In this industry, other companies like Compaq had already established a name for themselves and they had loyal clients.
The personal computers Dell was selling to the customers were of high quality. Additionally, Dell is a company of high integrity and standards as compared to other companies in the same industry. In the market of personal computers, Compaq had already established a market, and a company that wanted to compete with them had to go an extra mile. Therefore, Dell brilliantly used this theory and they were able to penetrate in this market (Kortler & Armstrong, 2006). If I was one of the senior managers, I could have used the same theory of price to sell the product. On the other hand, if I was to use another theory, I could have used the theory of skimming because Dell is already a prestigious company.
Moreover, the computers they were offering are of high quality. In conclusion, if the company adopts or decides to use the two theories in improving its efficiency and product penetration in the market, it will be successful. Furthermore, these two theories do not require a lot of work in order to implement them in the strategies or the decision processes. Therefore, the company should employ these theories in the company’s strategies.
References Clark, M. C. (2011).
Achieving Adaptability through Employee Empowerment. Winning Workplaces. Retrieved from http://www.winningworkplaces.org/library/features/achieving_adaptability_th.php Kortler & Armstrong, (2006). Principles of Marketing.
New York, NY: Pearson Prentice Hall. Swindall, C. (2007). Engaged leadership: Building a culture to overcome employee disengagement.
Hoboken, N.J: John Wiley & Sons.