Hrm Competitive Advantage Essay

2737 words - 11 pages

Abstract. This paper tries to emphasize why in the era of globalization human resources are viewed as a source of competitive advantage? Therefore, the aim of this paper is to reveal that human resources management is essential to ensure the success of any organization which is based on the belief that an organization gains competitive advantage by using its people effectively and efficiently. Regarding this new challenge of HRM, this paper strives to identify whether the HRM can be considered as a source of competitive advantage of the firms or not? Finally the result of this study highlights the value of human resources (HR) and its strategic activities which have an influence on ...view middle of the document...

The theoretical frame work of this paper shows Human Resource Management (HRM) plays a crucial
role to address and ensure the success of the firms from a global perspective. Consequently, HRM is the
function within an organization which is predominantly tasked with the different issues. These are as the role of recruitment, selection and introduction, personnel administration, training and development, performance and reward management, talent management, succession and career planning, labour relations and HR planning that is providing a general direction to the employees. Furthermore, the purpose of this study is to make an analysis and identifies the value of human resources in an organization for achieving the competitive advantage as well as to find the answer for the following queries: What is the role of the HRM in today’s business world? What are the strategies and driving forces of HRM that enable a firm to improve itsperformance? How the HRM can facilitate a firm to gain its competitive advantage? Consequently, the answers of these questions were elaborated in further sections of this paper.
2. The Role of HRM in Today’s Business
On this new challenge of HRM this paper tries to describe that there are various important factors playing an important role for increasing organizational performance that leads an organization or a firm to promote its core competences. Among them human resource is one of the most essential factor in an organization that need to be taken into consideration. Several authors have different opinions, among them O’Reilly and Pfeffer [5] said that, we do live in a world in which knowledge, intellectual capital, rather than physical capital, is increasingly important and we need smart people who can do great things – increase productivity, build new products and services – and do so even more quickly. Currently, the 1st role played by HRM in a firm is being support system that provides guidance and supervision for the people management in the workplace. The 2nd role is human resourcing that includes necessary tasks as training, development, recruitment, selection and planning. Another role is the strategic management that plays an important part of corporate strategy, which is a key part of the decision making cycle. In short, it is to be noted that HRM in modern enterprises has two inter-related roles: (i) to foster the performance of an enterprise, and (ii) to act as a support for achieving competitiveness through people [6]. Thus, HR strategy is an important determinant of intensity and diversity of human resource practices that assist and guide managers, and affect the success of the organization [7-9]. Similarly, Hamel and Prahalad [10] pointed outthat human capital represents the only sustainable source of competitive advantage.

2.1. Strategies and Driving Forces of HR Facilitate Firms to do Business
While analyzing the strategies and driving forces of human resources it is necessary to mention that...

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