Historically the importance of human resources was long underestimated and the job of the HR departments in large corporations was mainly administrative (Noe et. al., 2010). The term human resource management only arrived in the United States of America in the 1980s. Only in the last decade business leader became aware of the importance of human resource decisions for the firm’s success (Malik, 2009). Previously companies mainly saw this function as an unimportant and inferior department, more and more corporations today are realizing the strategic value a good human resource management can have for the company, especially in service-driven western economies (Noe et al., 2010).
One of the most conservative industries concerning human resource management was the energy market, which placed less emphasis on it than most other industries. After all the common assumptions was that one is supplying a commodity and faces a stable demand. At the beginning of the millennium more than half (55%) of them engaged in outsourcing some or all of their HR functions in order to focus on the primary business and free up time for strategic action (Accenture, 2004). The energy market in Europe has been quite stable after its deregulation. Over time the industry consolidated and a few large corporations evolved. As one of the dominant players in the European energy market RWE AG is a good illustration of the changes the human resource department underwent. Founded in 1898 in Essen, Germany, RWE grew to become a dominant player in the European energy market with leading market positions in the largest European countries. Today, RWE employs around 72000 people and its revenues amount to € 52bn (RWE AG, 2011). Furthermore, today it views its employees as its most important asset for the long-term success of the company and the HR department as essential for the future success of the company (RWE AG, 2011). The purpose of the paper is to explore the human resource practices used by RWE and how these align with the overall strategy and the business model of RWE.
Inhaltsverzeichnis (Table of Contents)
- 1. Introduction
- 2. Business Model & Strategy
- 2.1 Business Model
- 2.2 Corporate Strategy
- 3. Strategic Human Resource Management
- 3.1 Human Research Management Approach
- 3.2 Human Resource Configuration & Modes
- 3.3 Knowledge Management
- 4. Challenges
- 4.1 General challenges
- 4.2 HR specific challenges
- 5. Conclusion
- 6. References
- 7. Appendix
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper aims to analyze the human resource practices employed by RWE, a leading European energy supplier, and assess their alignment with RWE's overall business model and corporate strategy. The analysis will examine the effectiveness of RWE's HR functions and identify challenges the company faces. It will also offer insights into the strategic value of human resource management within the energy sector.
- The evolution of human resource management in the energy sector.
- RWE's business model and its impact on HR practices.
- The strategic role of HR in RWE's corporate strategy.
- Challenges facing RWE's HR department.
- The importance of human resources as a key asset for long-term success.
Zusammenfassung der Kapitel (Chapter Summaries)
1. Introduction: This chapter establishes the historical context of human resource management (HRM), highlighting its previously underestimated importance, particularly within the energy sector. It emphasizes the shift in perspective towards recognizing the strategic value of HRM for a company's success, especially in service-driven economies. The chapter introduces RWE AG, a prominent European energy supplier, as a case study to illustrate the transformation of HRM within the industry, focusing on its growth, employee count, and current recognition of employees as a crucial asset for future success. The paper's objective to explore RWE's HRM practices and their alignment with its business model and strategy is clearly stated.
2. Business Model & Strategy: This chapter delves into RWE's business model using the Johnson et al. framework, analyzing its customer value proposition, profit formula, key resources, and processes. The customer value proposition centers on the reliable and efficient production and supply of energy through vertical and horizontal integration across the value chain. The profit formula examines revenue generation through price and volume, alongside cost structures influenced by economies of scale, high initial investments, and regulatory factors. Key resources are identified as various energy production channels (including renewable sources), advanced technologies, strategic partnerships, and skilled personnel, particularly specialized engineers. Key processes emphasize CSR activities, R&D investments in renewable energies, and the increasing role of IT in monitoring operations. The chapter concludes by outlining RWE's corporate strategy and the need for a SWOT analysis to guide strategic decision-making in a competitive market.
Schlüsselwörter (Keywords)
Human Resource Management (HRM), Strategic HRM, Energy Sector, RWE, Business Model, Corporate Strategy, Renewable Energy, Employee Value Proposition, Competitive Advantage, Challenges in HRM, Knowledge Management.
RWE Human Resource Management: A Comprehensive Analysis - FAQ
What is the main focus of this document?
This document provides a comprehensive preview of a paper analyzing the human resource (HR) practices of RWE, a major European energy supplier. It examines how RWE's HR practices align with its business model and corporate strategy, assesses the effectiveness of its HR functions, identifies key challenges, and explores the strategic value of HR in the energy sector.
What topics are covered in the Table of Contents?
The Table of Contents includes sections on: Introduction, Business Model & Strategy (including subsections on Business Model and Corporate Strategy), Strategic Human Resource Management (with subsections on HRM Approach, HR Configuration & Modes, and Knowledge Management), Challenges (general and HR-specific), Conclusion, References, and Appendix.
What are the key objectives and themes of the analysis?
The analysis aims to: Examine the evolution of HRM in the energy sector; Analyze RWE's business model and its impact on HR practices; Assess the strategic role of HR in RWE's corporate strategy; Identify challenges facing RWE's HR department; and Highlight the importance of human resources as a key asset for long-term success.
What is the methodology used to analyze RWE's business model?
The analysis of RWE's business model utilizes the Johnson et al. framework, focusing on the customer value proposition, profit formula, key resources, and key processes. This framework allows for a structured examination of how RWE creates value, generates profits, utilizes its resources, and manages its operations.
What are some key aspects of RWE's business model highlighted in the analysis?
Key aspects include RWE's focus on reliable and efficient energy production and supply through vertical and horizontal integration; revenue generation through price and volume, influenced by economies of scale and regulatory factors; key resources such as diverse energy production channels (including renewables), advanced technologies, strategic partnerships, and skilled personnel; and key processes encompassing CSR activities, R&D in renewables, and the increasing role of IT.
What are the key challenges facing RWE's HR department, as discussed in the preview?
While specific challenges aren't detailed in the preview, it indicates that a section is dedicated to both general and HR-specific challenges faced by RWE. The full paper likely provides a more in-depth analysis of these challenges.
What is the significance of human resources in RWE's long-term success?
The analysis emphasizes the strategic importance of human resources as a key asset for RWE's long-term success. This aligns with a broader shift towards recognizing the strategic value of HRM, especially in service-driven economies. The preview highlights the growing recognition of employees as a crucial asset for future success within RWE.
What keywords are associated with this analysis?
Key words include: Human Resource Management (HRM), Strategic HRM, Energy Sector, RWE, Business Model, Corporate Strategy, Renewable Energy, Employee Value Proposition, Competitive Advantage, Challenges in HRM, and Knowledge Management.
What is included in the chapter summaries?
The chapter summaries provide concise overviews of the Introduction (setting the context of HRM and introducing RWE as a case study), and the Business Model & Strategy chapter (detailing the application of the Johnson et al. framework to analyze RWE's business model and corporate strategy).
- Quote paper
- MSc, Eda Aydin (Author), 2013, RWE. Analysis of the Human Resource Practices of one of Europe’s leading energy suppliers, Munich, GRIN Verlag, https://www.grin.com/document/282185
