Research Paper
Introduction
In today’s fast-paced economy competition is an issue of services and products. Much attention has been directed to a better service and the best product and how this can be achieved through utilising the human resources. This research paper identifies the competitive advantage concepts and models, competitive strategies and the main human resource practices that have a significant impact on the employee’s performance.Understanding sources of competitive advantage has become a major area of research in the field of strategic management. Therefore this research paper also develops an analytical framework for strategic management in order to initiate/formulate and implements the strategic plans successfully. Three questions regarding identifying,defending and achieving competitive advantage through the employees have been raised and answered. Finally a summary of practical criteria of best practice for competitive advantage is presented and a general discussion and recommendations have been drawn.
Organizations are increasingly looking at human resources as a unique asset that can provide sustained competitive advantage. The changes in the business environment with increasing globalization, changing demographics of the workforce, increased focus on profitability through growth, technological changes, intellectual capital and the never ending changes that organizations are undergoing have led to increased importance of managing human resources . A human resource (HR) department that is highly administrative and lacks strategic integration fails to provide the competitive advantage needed for survival, thus losing its relevance. Huselid and Becker (1997) found that there were noticeable financial returns for organizations whose human resource management (HRM) systems have achieved operational excellence and are aligned with strategic business goals. According to Ulrich(1998), a major role of HR personnel is to become a strategic business partner. Youndt
In today’s fast-paced economy competition is an issue of services and products. Much attention has been directed to a better service and the best product and how this can be achieved through utilising the human resources. This research paper identifies the competitive advantage concepts and models, competitive strategies and the main human resource practices that have a significant impact on the employee’s performance.Understanding sources of competitive advantage has become a major area of research in the field of strategic management. Therefore this research paper also develops an analytical framework for strategic management in order to initiate/formulate and implements the strategic plans successfully. Three questions regarding identifying,defending and achieving competitive advantage through the employees have been raised and answered. Finally a summary of practical criteria of best practice for competitive advantage is presented and a general discussion and recommendations have been drawn.
Organizations are increasingly looking at human resources as a unique asset that can provide sustained competitive advantage. The changes in the business environment with increasing globalization, changing demographics of the workforce, increased focus on profitability through growth, technological changes, intellectual capital and the never ending changes that organizations are undergoing have led to increased importance of managing human resources . A human resource (HR) department that is highly administrative and lacks strategic integration fails to provide the competitive advantage needed for survival, thus losing its relevance. Huselid and Becker (1997) found that there were noticeable financial returns for organizations whose human resource management (HRM) systems have achieved operational excellence and are aligned with strategic business goals. According to Ulrich(1998), a major role of HR personnel is to become a strategic business partner. Youndt