Hrm as a Competitive Advantage

HRM as a Competitive Advantage

Mitesh Patel

Herzing University

Human Resource Management

Dr. Jacinta Hightower

February 20, 2016

HRM as a Competitive Advantage

Human resource management (HRM) can help set up an appealing business mark that can address the diverse needs and desires of potential and existing employees, without trading off a predictable workers, which can bring about a supported competitive advantage. HRM ought to offer firms some assistance with attracting and hold astounding employees, in light of the fact that by coordinating HRM rehearses into the worker esteem suggestion, they set up a one of a kind, appealing good and honest workers. An ideal employee life cycle idea delineates how the business brand guarantee can be conveyed to address the diverse needs and desires of potential and existing workers (App, Merk & Buttgen, 2012).

There are two fundamental ways to think about the value of a few opportunities. To begin with, you may believe that one employment is more essential. As an option, you could look at the employments opportunities by concentrating on certain essential considerations between them. They are the elements that set up how the occupations contrast with each other, and that decide the pay for every employment. In any case, most utilize elements promoted by bundled work assessment frameworks or by federal legislation. They choose a fundamental, compensable element of a job, such as skills, effort, responsibility, and working conditions (Dessler, 2014).

The understanding of sustainability in Sustainable HRM, however, goes beyond the understanding of the term in the context of a sustained (continued) competitive advantage referring among others to aspects of resource regeneration and development. Sustainable HRM also offers a possible solution for organizations that hope to promote themselves as highly responsible among potential and existing employees, in their efforts to attract and retain high-quality employees. To differentiate themselves from competitors in the labor market and enhance their attractiveness as employers, we suggest that organizations should establish an employer brand that includes Sustainable HRM (App, Merk & Buttgen, 2012).

The organization functions as something that excludes the advantage, capability, organization processes, organization attributes, information, and knowledge. And all this under the control of the organization that can and is capable of designing and implementing strategies. That will improve its efficiency and effectiveness (Ivanovic, Galicic & Krstevska, 2010). Thus, resources classifies into three categories:

1. Resources of physical capital - the material technology, equipment, geographic location and access to raw materials.

2. Resources of organization capital - consist of the structure of the organization reports, informal and formal planning, control, coordination system, as well as informal relations among the groups inside the organization and the relations of the organization with the environment

3. Resources of human capital - training of the employees, experience, contemplation, intelligence, relations, values, competence.

In order to be able to evaluate a resource as important for the organization, it is first of all necessary for it to pass some defined tests based on the external environment.  so, here are the known techniques:

1. Imitation: It is related to how much a resource can be provided or imitated by the competition. In cases when a resource can be copied, the profit generated by that resource is short-termed.

2.        Endurance: It is about the speed with which a resource will lose from its value. The longer the life of a resource, the more valuable it becomes for the organization and it contributes to providing and maintaining competitive advantages. Competition and constant innovations can prevent the resource from its endurance erosion.

3.        Suitability: It is related to the one that gets the profit generated by the resource. The more the competitively valuable resources are static and stable, the greater possibility for the organization to make profit through them.

4.        Sustainability: This is access to alternative resources that can undermine the value of the organization present competitive resources. The present value of the resource in the organization drops when a competitor develops and makes a resource-substitute that creates values based on smaller expenses or perhaps a theory for a different value.

5.        Competitive superiority: This is a time test for a resource to prove its value. It is not a question of "which activities we perform well" but "which activities we perform better than our competition" (Ivanovic, Galicic & Krstevska, 2010).

Role of HR in Gaining Competitive Advantage

Albeit most CEOs refer to HR as an association's most essential resource, numerous hierarchical choices don't mirror this conviction. Notwithstanding of these positive possibilities. The patterns propose that business give generally low significance to both the HR of the firm and the Human Asset Office. Pundits contend that HR is still a cost community for the associations and a risk. Quite a bit of this can be ascribed to absence of comprehension of "business" by HR officials.  And their powerlessness to coordinate the HR exercises towards building up the qualities of the association's HR that can influence the methodology of associations (Ahluwalia, 2012).Some important points and strategy to achieve competitive advantage for companies are as listed below:

1.        Value

HR officials must address an essential inquiry "By what means can HR help in either diminishing expenses or expanding incomes?" In today's opportunity when everybody is talking numbers; the HR office needs to demonstrate its value and demonstrate that it makes esteem for the associations. HR can offer a firm some assistance with creating so as to achieve practical upper hand esteem.

2.        Rareness

Only value alone cannot help the HR department to achieve sustainable competitive advantage for organizations. HR executives must examine how to develop and exploit rare characteristics of the firm’s human resources to gain competitive advantage. If the same characteristic of human resources is found in many competing firms, then that characteristic cannot be a source of competitive advantage for any one of them. In order to drive the strategic decisions, HR executives should being the ‘rare’ factor in the talent they recruit.