Running head: ELECTRONIC ARTS HUMAN RESOURCE FUNCTION

EA (ELECTRONIC ARTS)

Electronic Arts
Human Resource Function
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Student No. :

Table of Contents
Introduction.....................................................................................................2
SWOT Analysis.................................................................................................3
Human Resource Function...............................................................................5
Recruitment Function of Electronic Arts........................................................7

ELECTRONIC ARTS HUMAN RESOURCE FUNCTION

Conclusion.....................................................................................................10
References.....................................................................................................11

ELECTRONIC ARTS HUMAN RESOURCE FUNCTION

EA (Electronic Arts)

Introduction
Electronic Arts or popularly known as EA Games, is a video game developer, publisher
and distributor. Electronic Arts in 1982 was founded by Trip Hawkins. Electronic Arts has its
headquarter in Redwood City, California. In its last financial year ending March 31, 2016, EA
posted GAAP (Generally Accepted Accounting Principles) revenue of US $4.4 Billion, and has a
total of 8,500 employees worldwide (Yahoo Finance, 2016).

EA began as a game developer, and found success in the early 1980s, and published many
legendary titles. When Hawkins left to found another company in 1991, EA went on an
acquisition spree to acquire other game companies and their Intellectual Properties. From 1991 to
2006, there was an average of 1.2 acquisitions a year (EA, 2016).

Since then, EA has concentrated on growth through creativity and currently provides
content and games for a wide variety of devices and consoles, and is well known for titles like
the Mass Effect, Dragon Age and Battlefield series. EA targets a wide range of audiences, from
SIMS, a simulation game, for younger audiences, to critically acclaimed role playing games such
as Mass Effect for more mature audiences.

ELECTRONIC ARTS HUMAN RESOURCE FUNCTION

SWOT Analysis
Strengths

EA is a well-established brand, and its titles are generally favorably reviewed. Consumers
tend to equate EA with quality.

Over the years, it has gained many reputable developers under its wing.

Possesses valuable intellectual properties like the Mass Effect Series that have done
extremely well in sales.

Weaknesses

In recent years, EA has been known for shortening its yearly refreshes of games. This is
an industry practice where new games are made for existing intellectual properties. These
games could be sequels, prequels reboots or spin-offs from the main series. A yearly
release is based on a developmental period of a few years, but made possible with
staggered yearly releases from different developers. The shortening of the cycle leads to
shorter development time for games, which means content is cut and releases could be
filled with problems. An example would be the SimCity 2013 reboot, where many
reviewers criticized the unreliability of the game to operate as it should have on its first
day of release (Metacritic, 2013).

The company has also been rated The Worst Company in America for 2012 and 2013,
by The Consumerist, a magazine that focuses on consumers interaction with companies
(Morran, 2012).

ELECTRONIC ARTS HUMAN RESOURCE FUNCTION

Opportunities

EA is well positioned to transition into the next phase of the gaming industry, VR (virtual
reality). EA possesses the resources and developers to create next generation games on
the new platform (Gupta, 2016).

Threats

EAs major competitor, game publisher Activision Blizzard, has been doing very well in
the creation of new intellectual properties. While EA has been following yearly refreshes
of successful IPs, Activision Blizzard has been creating new ones, Destiny and
Overwatch to name a few. Continually rehashing old IPs could lead to declining sales as
consumer tires of the genre (Waugh, 2006).

ELECTRONIC ARTS HUMAN RESOURCE FUNCTION

Human Resource Function

In todays globalized market, the organizations all over the world face a tough
competition. It is essential in such rigid conditions to make the optimum use of all the resources
available at ones disposal. One of the most important of these is the human resource. Until a few
years back HR management was considered to be a service division, but with changing times
managers and directors have recognized the strategic potential of this function of management.
Rich and skilled human resources are now recognized as organizational assets and therefore
proper management of these is necessary to derive the optimum benefit of this key resource.
Another point in matter is that human resource is more times than not a key factor for
organizations as a skilled labor force is not always readily available and when it is, there is
always the threat of better opportunities available in the market. Talent Gap and Skill Shortage
have become major stress areas. Therefore it is essential to manage the available human resource
in such a way that it touches its maximum potential and in effect gives the best possible output to
achieve the organizational objectives (Ulrich, 2013).
An organization of a substantial size would generally have a separate department
dedicated to the management of human resources. The prime function of such department is that
of management of people within the organization and framing, implementing and reviewing
policies and systems regarding the same. The core areas in which the concepts and theories of
human resource management apply are recruitments, compensation and other benefits, rewards
and appraisals, training and development, job safety and employee health, and managementworkforce relations.

ELECTRONIC ARTS HUMAN RESOURCE FUNCTION

The process of human resource management starts with the recruitment function. It is a key
function of human resource management and if done right minimizes a lot of issues in the future.
However the opposite is also true. If the recruitment function is not carried out properly, the
implications can be long term. A detailed analysis of this function of Human Resources has been
carried out below.
Recruitment: The process of identification of an existing or potential organizational gap and
undertaking efforts to fill it by the means of attracting potential employees and evaluating,
selecting and hiring them thereafter is known as Recruitment (Armstrong, 2014). Recruitment
can be done internally or can be outsourced to a recruitment agency.
The process of recruitment has the following four steps (Boundless, 2016). The following section
analyses these steps while also drawing a comparison with the recruitment practices of EA:
a. Job analysis: once a requirement has been identified, there arises a need to
analyze what exactly is required from the candidate. This involves an analysis of
job responsibility, description and the required qualification for the job. Job
description defines the work to be carried out in the job and job profile or
specification describes the conditions that a candidate needs to fulfill in order to
bag the job. For instance, lower level developers in EA are often hired on
assignment or hourly basis (Hyman, 2008).
b. Sourcing: the process of sourcing involves employing diverse techniques to attract
and identify suitable candidates for the offered position. This process can be
internal and/ or external. It is basically advertising the fact that a position is open
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or that the company is hiring, which can be done via conventional as well as nonconventional sources. One form of sourcing for a new position is also giving the
opportunity to the existing employees. This gives the existing employees to grow
professionally and fresh hiring can be conducted for the lower positions. EA is
known to advertise and hire through sources like social networking sites like
Facebook and Linkedin, or Job Portals like Monster.com or through job fests, etc.
c. Screening and selection: It is the process of evaluating the applications received
for the job. An assessment to understand the relevant qualifications and skills of
the candidates with regards to the job is conducted. Some of the prevalent
methods are conducting interviews and aptitude tests, evaluating resumes etc.
Generally a combination of such techniques is employed for the selection of the
appropriate candidate. EA is a gaming company and therefore often hires fresh
college graduates for young perspective, even though they have little to no
experience. In such instance only the academic qualification of the candidates is
analyzed. Older employees are often hired based on their skills and experience.
d. On boarding: The best candidate is selected and brought on board. It is important
to make the new employees acquainted with the kind of work required from them,
organizational culture, expected work ethics and the designated lines of
answerability and accountability. This process is known as orientation (Gatewood,
2015).

Recruitment Function of Electronic Arts

As a recruiter, EAs human resources practices have been criticized time and again. In 2004, the
issue with EAs employment practices was highlighted by Erin Hoffman, who posted an
anonymous blog under the name EA Spouse. She severely criticized EAs inhumanly long
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work hours for its employees, which stretched up to 100 hours a week. Such was the condition of
the employees that they had to work for 7 days a week with only reward of an occasional off on a
weekend evening. For this the company was sued for and settled the amount of unpaid overtime
of $15.6 million by its game artists and US$ 14.9 million to the programmers (Hyman, 2008).
The entire episode was attributed to recruitments being lower than required by the
company. In the given instance the companys practice can be compared to Michigan Business
Schools hard model that compared and treated human resource like any other resource such as
raw material. The model views the workforce as expendable and uses them at the least possible
cost and to the maximum extent (Brewster, 2012). While understandably efficient in certain
industries though morally inappropriate, the model does not fit the industry EA operates in. The
model has been discarded long since by the organization. The maximum intellectual value can be
derived from a human resource only when it is nurtured and developed in an encouraging
environment. The HR practices of the company have improved substantially, with overtimes
being paid and lower level developers even being hired at an hourly rate. In 2008, in the same
blog, the author stated that the company has made substantial progress in its HR practices, but
maybe falling back in its old pattern (Hyman, 2008). She also recommended the company as a
potential employer but mentioned that she was again hearing the horror stories.
The recruitment department of the company has also been reviewed by several interviewees as
highly unresponsive, unprofessional and arrogant. The process of recruitment and the wait for an
answer has been reported by many to be as long as two months. Also, with frequent layoffs,
many existing employees have raised the issue of job security. Such reviews discourage the high
potential candidates from seeking a job with the organization and take their skills elsewhere. It is

ELECTRONIC ARTS HUMAN RESOURCE FUNCTION

important therefore, for the company to employ and follow standard human resource practices to
attract and retain the high value employees.
In terms of selecting the right candidate, the company follows the following three major
practices (UK Essays, 2013):
i)

Matching people with jobs: the recruiters now try to match the job portfolio
with the qualification of the employees to the maximum possible extent. This
is in order to avoid mass firing as in 2007, which was largely attributed to the
programmers not being up to the mark on the development of certain
products. Off course it is not always possible to find a perfect match. But the
best available option is selected by following the under mentioned three
strategies:
Right person as per the job
Improvising the job descriptions to match the individuals qualification.
Providing necessary training and engaging in developmental activities to

ii)

help achieve the employees their full potential.

Right person for the job: under this technique the individuals with apt skills
along with experience are only hired for doing a job. Appropriate training, if
required is also provided to achieve the optimum results. When combined
with the training element, this strategy is also called the flexible person

iii)

approach.
The best practice: under this technique, the recruiters or selectors apply the
best possible technique to find a person whose qualifications are apt as per the
job description. The person who is the right fit is selected. This practice
however only concentrates on the current practices and needs of the
organization, whereas the future requirements are generally not considered.

ELECTRONIC ARTS HUMAN RESOURCE FUNCTION

Conclusion
An analysis of the Strengths, Weaknesses, Opportunities and Threats of the organization show
that the company needs to buckle up a bit in order to sustain in the market for long term. The
company being voted the worst company two years in a row, along with the former inhospitable
working environment could cause an irreversible damage to the companys reputation. The
company needs to employ its strengths like availability of vast Intellectual property to combat
the potential threat of being outdated in terms of product development. It also needs to overcome
its weaknesses by investing in the available opportunity along with employing its strength of
being a global brand.
The HR practices of Electronic Arts have improved and developed significantly in the past few
years, but there is still some room for development. In terms of strategic planning,
implementation is as important as the plan itself. Without implementation a plan is worthless. As
discussed in the above essay, the company has taken significant actions in direction of improving
the work environment for its employees, but after a few years it is believed to be returning upon
the same track. It is important that the company in order to get optimum benefits from its Human
resources maintain a positive environment for the employees. Steps like hourly wage system are
a proven hit in this regard. More such actions from the managements endwould further enhance
the attractiveness of the organization as a potential employer.

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References
Armstrong, M. a. (2014). Armstrong's handbook of human resource
management practice. Kogan Page Publishers.
Boundless. (2016, 05 26). Employee Recruitment. Retrieved 07 17, 2016,
from Boundless.com:
https://www.boundless.com/management/textbooks/boundless-managementtextbook/human-resource-management-7/core-functions-of-human-resourcemanagement-58/employee-recruitment-288-3970/
Brewster, C. a. (2012). Handbook of research on comparative human
resource management. Edward Elgar Publishing.
EA. (2016, 07 16). Comapany Information. Retrieved 07 16, 2016, from EA:
http://www.ea.com/about
Gatewood, R. a. (2015). Human resource selection. Nelson Education.
Gupta, A. a. (2016). Electronic Arts: gambling on the future of video games.
Emerald Emerging Markets Case Studies , 1-20.
Hyman, P. (2008, 5 13). EA_Spouse' Hoffman: Quality Of Life Still Issue,
Despite EA Improvement. Retrieved 07 16, 2016, from Gamasutra:
http://www.gamasutra.com/php-bin/news_index.php?story=18621
Metacritic. (2013). Metacritic. Retrieved 7 14, 2016, from
http://www.metacritic.com/game/pc/simcity
Morran, C. (2012, 4 4). The Voters Have Spoken: EA Is Your Worst Company
In America For 2012! Retrieved 7 16, 2016, from Consumerist:
https://consumerist.com/2012/04/04/congratulations-ea-you-are-the-worstcompany-in-america-for-2012/
Taylor, N. F. (2014, 08 14). Supply and Demand, Marketing, Design: HR's New
Role . Business News Daily .
UK Essays. (2013, 11). Human Resources Planning And Development At Ea
Commerce Essay. Retrieved 07 16, 2016, from UK essays:
https://www.ukessays.com/essays/commerce/human-resources-planning-anddevelopment-at-ea-commerce-essay.php?cref=1
Ulrich, D. (2013). Human resource champions: The next agenda for adding
value and delivering results. Harward Business Press.
Waugh, E.-J. R. (2006, 08 25). A Short History of Electronic Arts. Bloomberg .
Yahoo Finance. (2016, 07 15). Electronic Arts Inc. Retrieved 07 17, 2016,
from Yahoo Finance: http://finance.yahoo.com/quote/EA/profile?ltr=1

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