How is SHRM effecting on the company’s competitive advantage? Philip Kotler defines the competitive advantage as “An advantage over competitors gained by offering greater customer value, either by having lower prices or providing more benefits that justify higher prices” (Kotler. P & Armstrong G. 2011). The competitive advantage always has to be unique which impossible to duplicate and It is differentiating the company form their competitors. therefore, the sustainability of competitive advantage is very important to compete effectively and to survive in the market.
Furthermore, the competitive advantage will determine, by the organizational capabilities which can be divided as distinctive capabilities and reproducible capabilities. distinctive capabilities defined as unique characteristics; the organization has which is hard to duplicate. Technology, innovation, marketing, quality, are some example of distinctive capabilities. If the organization is aware of their distinctive capabilities, it can develop as a competitive advantage. Most of the distinctive capabilities are combined with humans, such as Knowledge, experience, expertise, skills and the level of commitments. (Armstrong M. 2006)
Reference :
- Armstrong, M.(2006) Strategic human resource management: a guide to action.3rd ed. London, Kogan Page.
- Kotler,P., and Armstrong, G.(2011) Principles of marketing.14th ed. New Jersey, Pearson.
As mentioned, when organizations focus on sustainable performance, sustainable growth, and competitive advantage, there should be a balance or a link between the selected strategies and Human Resources Policies because all the strategies are going to be executed by the human resources in the organizations. So major focus of HRM should be on the ways to create and manage the key competencies in order to keep it both the dynamic and flexible and to motivate the employees accordingly. There should be sustainable creativity and innovations in each and every aspect (Hamdi and Endang, 2014).
ReplyDeleteReference
Hamdi, H and Endang, P. (2014) Strategic Human Resource Management and Sustainable Competitive Advantage. South East Asia Journal of Contemporary Business, 5(2), pp. 7-11.