The United Services Automobile Association ( USAA ) is a Fortune 100 company as of the twelvemonth 2009 that chiefly sells life and belongings insurance to its 7. 7 million members. which consists of active and retired military forces and their household members ( World Wide Web. game. yokel. com ) . They besides offer such services as banking and investing direction. focused on assisting military individuals to pull off their money sagely and offer them services at sensible costs with low involvement rates.
As of 2009. the company employees 21. 500 people and competes in the industry of belongings and casualty insurance against other companies such as MetLife. State Farm. and Government Employees Insurance Company ( World Wide Web. game. yokel. com ) . USAA is headquartered out of San Antonio. Texas. where 25 Army officers founded the company in 1922 and set out to see each other’s autos while standing house in the values of honestness. unity. trueness and great service ( USAA. om ) .
“USAA’s mission is to ease the fiscal security of its members. associates. and their households through proviso of a full scope of extremely competitory fiscal merchandises and services ; in so making. USAA seeks to be the supplier of pick for the military community. ” ( usaa. com ) .
This mission statement from USAA’s web site shows that the company has established its mark market. sectioning it into the kingdom of military forces and their households. Their chief concern scheme in pulling clients and crushing out the competition for those clients is non merely offering a broad array of fiscal and insurance services. but besides by making so at sensible costs. rates. and transporting operations out with superior client service.
As a USAA client holding dealt with their top rivals besides. I know firsthand that they ab initio attract clients by cyberspace and telecasting advertisement largely. and accomplish client trueness by offering a great merchandise at a great monetary value with superior client satisfaction relationships ; this gives the company a high sustainable advantage in their industry and creates a high client value in the market.
This major corporation can afford to be such a customer-focused 1 because they are non a publically traded company ; in other words. they answer non to shareholders. but instead to the members of the association to provide to their desires. This is how they are able to crush out the competition and derive the border on geting and prolonging more clients than other companies in their industry. Human Resource Practices
The USAA corporate website’s callings subdivision pitches employment with the company to interested possible employees as non merely taking orders from clients. but instead genuinely doing a difference in a military family’s life with each and every call. One thing they do that is effectual is seting a subdivision titled. “What’s in it for you? ” under which they portion that the company pays competitively against the competition within the labour market and offer benefits such as a great 401 ( K ) program. fitness plans. and other good inducements ( usaa. com ) .
From an employee’s position. USAA is a great company to work for because the wage is competitory. the benefits increase the value of the occupation above the wage rate. and there is enormous occupation stableness one time you become a portion of their squad. This web site shows that the company’s human resource patterns focus chiefly on wage and benefits to pull possible employees ; moreover the occupation makings insinuate that they are looking for people that have some kind of military service completed. with a moderate college instruction but accomplishments that are focused on client satisfaction and interacting good with other people.
Often times. client service places have a high turnover rate due to the nature of the place in covering with dissatisfied clients. nevertheless. USAA does a great occupation of pulling and retaining the type of persons they are seeking by offering great wage and benefits that make the occupation tough to discontinue. Ethical Philosophy The USAA company website provinces that their nucleus values are. “service. trueness. honestness. and unity ; the same as the military community we serve. ” ( usaa. om ) ; this portrays the corporate doctrine and ethical placement rather clearly.
They believe in working difficult and dependably to present the best service possible while making what is best for the “greater good” of the society in which they operate. When compared with the Kantian Rights discussed in chapter one of our text edition. Fundamentalss of Human Resource Management ( Noe. page 15 ) . USAA’s company moralss parallel with them rather good.
The four traits of service. trueness. honestness. and unity would wholly back up the Kantian Rights of free consent. privateness. freedom of scruples. address. and due procedure because these are the really things the military battles to support. and the armed forces is the market which USAA seeks to function. Foreign Operations The extent of USAA’s foreign operations is non excessively great sing they serve the people of the American military forces.
However. they do manage client histories while they are in foreign lands functioning in the armed forces ; for case. USAA offers great fiscal direction support for military forces who are about to be deployed so that they can utilize their combat and active responsibility wage sagely to back up themselves and their household. HR Practices and Business Strategy
One trait that makes a big difference between successful corporations and lesser successful corporations is the company’s ability to implement its ideals into mundane concern operations and sync its human resource patterns with the overall concern scheme. Sing as USAA is rated in the top one hundred best companies to work for. they must be lucratively making an environment in which their human resource patterns are congratulating the overall concern scheme.
This creates loyal and satisfied employees that will. in bend. transport out their undertakings with diligence and make the superior client service that so greatly defines USAA. If the client service employees at USAA were non satisfied. whether it be for compensation grounds or any ground for that affair. they would non be in a place or attitude to keep the nucleus values of the company. therefore the HR patterns would no longer be in harmoniousness with the overall concern scheme.
It is in this state of affairs that we see the extreme importance of the human resource section and its ability to congratulate the company’s concern scheme. Due to the company’s competitory wage and long list of great benefits that increase the value of holding a calling with USAA. it is just to state that their employees should be satisfied and adequately motivated to transport out the overall concern scheme.